Best Business Loans for Trucking & Transportation Companies
There are many challenges that can impact Trucking & Transportation Companies that create a need for capital due to the nature of their business and industry. The most critical issues facing the trucking industry include but not limited to truck driver shortages, changing transportation regulations, safety issues, not to forget variable costs of fuel, maintenance/repairs, tolls, and lodging. Getting capital to help run the business is essential for cash flow to balance these issues and provide stability for the business.
AdvancePoint Capital can provide the business funding for trucking and transportation companies like yours so you can focus on running your business.
The 6 Best Business Loan Options for Trucking & Transportation Companies:
Short Term Business Loans for Trucking Companies
A popular option for those who need cash flow immediately is a short-term business loan. It’s is a financing option in which, like any term loan, you get a lump sum of cash upfront, which is repaid with a fixed total payback over a set period of time. The cost is fixed and is the difference between the lump sum provided upfront minus the payback amount. Early payment discounts may apply depending on the lender. Terms are typically 6 to 18 months. Short term business loans are easier to acquire with more lax credit and financial standards than that of traditional business loans.
Highlights of Short-Term Loans:
- Credit accepted from excellent to poor
- Lower monthly or annual revenue requirements than those of traditional business loans
- Fast and simple process with the same day to next business day funding
Equipment Loans for Trucking Companies
Equipment financing, structured as a lease to purchase or fixed-term loan, lets you purchase business-related equipment, using the equipment as security for the lease or loan. Trucking and transportation companies often need to outfit their vehicles, and this product is an excellent option to do so.
Highlights of Equipment Financing:
- The simple application process with limited paperwork and 1-page application
- Instant funding when approved
- Repayment terms from 1 to 5 years
- Monthly ACH payments directly from a business bank account
SBA (Small Business Administration) Loans for Trucking Companies
The SBA (short for Small Business Administration) works with lenders to provide loans to small businesses. The agency doesn’t lend money directly to small business owners. Instead, it sets guidelines and standards for loans made by its partnering lenders, community development organizations, and micro-lending institutions. An SBA loan provides long-term, fixed-interest rate financing at very attractive interest rates and terms. This product is very popular but the process is lengthy with extensive paperwork requirements and high credit standards.
Highlights of Equipment Financing:
- Interest Rates from 4% to 7%
- Terms from 1 to 25 years
- A variety of acceptable business uses of money
Invoice Factoring / Financing for Trucking Companies
As a Trucking or transportation company, you might be in a position of always having to track down outstanding invoices and having to wait to get paid. Also known as invoice financing, invoice factoring allows you to get advanced your invoices immediately for a nominal fee, instead of having to wait the normal “net” terms of 30, 60 days the invoices normally take to get paid. This is a great way to get cash flow fast off of work that has been completed but not paid for yet. The product is geared towards business to business only, so unless you have other companies you invoice, this product won’t be available if your customers are consumers.
Highlights of Invoice Financing:
- Loan Amount Limits: $10,000 to $1,000,000
- Credit Requirements: All credit types considered
- Processing Time: as little as 2 days
- Length of time of Repayment: Revolving
Business Credit Cards for Trucking Companies
Business credit cards operate the same as personal credit cards. This is a revolving line of credit with a credit limit with a minimum monthly payment requirement typically lower than that of a business loan. You only pay interest based on the current principal, and there are never any prepayment penalties to pay off early. You are issued a card with an account number and have access to use it 24 hrs. / 7 days a week.
Highlights of Business Credit Cards:
- Capital available on-demand 24/7
- No limitations on use of funds
- Flexible payments in that you can choose how much you want to pay monthly
Benefits of Trucking & Transportation Companies Business Loans
Operating a Trucking or transportation company can be a challenge to cash flow as delays in getting paid on invoices, maintenance/repairs, complying with State and Federal guidelines all can eat into cash flow unexpectedly.
Maintenance and Repair of Equipment
Equipment financing allows trucking & transportation companies to repair and maintain their equipment without depleting cash flow.
Transportation and trucking’s lifeblood is the driver’s. Very few businesses rely more on their employees than trucking and transportation as they operate a vast majority of the work and process. Making sure that there is always cash flow available to make payroll is critical, and financing options must be in place to compensate for unexpected issues that negatively impact the business bank account.
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Types of Trucking & Transportation Companies We Serve:
- Trucking Companies
- Logistics Companies
- Medical Transport
- Moving Companies
- Shipping Companies
- Air Transport
- Freight Brokers
- Commercial Trucking
Why AdvancePoint Capital?
- Experience- with Trucking Industry. We have been funding trucking businesses for years.
- Trust-Excellent reviews and feedback from Trucking Companies
- Loan Specialists –Experiences Business funding specialists who know the trucking industry.
- No cost, no commitment quotes
- Products – A Variety of Trucking Business Loan Products. We don’t just offer what we have; we offer what’s available in the marketplace.
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