A research conducted by the American Trucking Association states that nearly 71% of the American shipment is carried by the trucks. The trucking business is among one of the emerging industries of the United States of America. Each year, 3.6 million heavy trucks are on the road doing the heavy lifting. So, without these trucks, American business industry can stop! For there is a lot of demand for trucks and truck driver so now is the best time to launch a trucking company. If you are running a trucking business already then, it is time to take it to the next level. The rough estimated price of a commercial truck is $80,000 showing a huge amount of money is required to run a trucking business. A small business loan from an alternative lender can take care of the financials of the trucking company.
When you are running a trucking business, the list of expenses is endless. You have to take out money to repair the broken parts of the truck. Repairing costs a lot of money, and a small business loan can help you out. In addition to this, a massive amount of money goes into the hiring and training of the truck drivers. An extra flow of cash from a small business loan can help you streamline the daily operation of the business. Moreover, if you think you can’t qualify for a business loan, trust us, we will find something good in your business or financial standing. Just like a company can always find a way to transport goods, alternative lenders can also find a way to transfer funds in your bank account.
Let us look at the following types of small business loans for your trucking business:
- Equipment Financing/Equipment Loan
Equipment Loans and Equipment Financing are among the user-friendly loans. As a major portion of a trucking business comprises of the machines, so this small business loan is the most convenient funding option. If you need some money to purchase a piece of equipment, you apply for the equipment loans. Here the lender offers money to the borrower, and borrower uses it to make the purchase. As that equipment is acting as the collateral so you don’t have to offer separate collateral.
Other than this, you can apply for the equipment leasing as well. Here, the lender has the control over the equipment until the borrower clears off the debt. So take advantage of the low-interest rate and update or buy your favorite truck.
- Merchant Cash Advance
If your clients and customers make payments via the credit card, then in case of emergency a Merchant Cash Advance can lend a helping financial hand. This is among one of the most expensive funding options, so utilize it when you have run out of all the options. As the lender will take a considerable amount of money from your future credit card sales, so make sure you have adequate credit card sales. The longer the time, the higher will be the rate!
The Merchant Cash Advance lenders don’t pay heed to your credit score, so apply away, and make the payments on time.
- Business Line of Credit
If you don’t wish to put personal assets as collateral, then you must apply for a Business Line of Credit. In addition to this, if you are uncertain about the total loan amount, then it is an ideal funding option. A business line of credit works like a credit card and you can receive up to $200,000. Apply for a line of credit and treat yourself with a new truck.
- Working Capital Loan
Other than Equipment Financing, Merchant Cash Advance and Business Line of Credit, your trucking business can take advantage of a working capital loan. If you have a poor credit score, we have a piece of good news for you: a working capital loan does not care about a bad credit score. With this business loan, you can get enough capital to keep your tanks full. The interest rate of a working capital loan range from 5 to 7%.
Go through each type of small business loan and pick the best option for your trucking business. Before you start to know that it is difficult to get small business loan for this industry, so make sure you are going in with a strong financial position. Keep the following tips in mind, before applying:
- Make sure every piece of equipment and every nut of the machine is safeguarded.
- Make sure your trucking business is generating an annual revenue of $100,000.
- Make sure your business is six months old and it has a clean credit history, no bankruptcy, and no foreclosure.
Lastly, remember that applying for a business loan for your trucking company can be difficult, but with stellar financial standing and proper guidance from a financial advisor, it is possible! Head over to the official site of Merchant Advisors, and apply for a small business loan. To stay up to date, follow us on Twitter and Facebook (@Onlinecheck). If you have any question, feel free to call us on our toll-free number at (833) 827-4412, our loyal and keen financial advisor will answer your every question and guide you throughout the way.