Best Business Loans for Trucking & Transportation Companies
There are many challenges that can impact Trucking 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 trucking 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. Whether you’re looking for flexible loan options, short term solutions, equipment trucking business loan variations, or financing solutions for a less than stellar credit score — we’ve got you covered. Your commercial truck enterprise deserves loan options that work for you, not against. Discover what we have to offer.
The 6 Best Business Loan Options for Trucking & Transportation Companies:
Short Term Business Loans for Trucking Companies
A popular option for those who need trucking loans immediately is short-term options. Trucking business loans are far and wide, but this is a sound choice for those with bad credit or who need cash fast. 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 for your trucking company, 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. Semi-truck finance options are vast, but equipment loans are a great option as it allows for funding using the expensive collateral many for the loan.
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 continually tracking down outstanding invoices and having to wait to get paid. We have financing options just for you. 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. However, it’s a great funding option, especially for those with bad credit who may not be able to get access to other trucking business loans.
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 funding
- Flexible payments in that you can choose how much you want to pay monthly
Benefits of Trucking & Transportation Companies Business Loans
Operating a trucking company can be a challenge, as delays in getting paid on invoices, maintenance/repairs, complying with State and Federal guidelines, and constant costs all can eat into cash flow unexpectedly. That’s why having loan options for your commercial truck company is essential. Having cash on hand is the best defense for unexpected issues, which means having a wide range of funding and loan options is a must. Your trucking business needs flexible loans that reflect the nature of the job, which is where AdvancePoint Capital can help.
Maintenance and Repair of Equipment
Equipment financing allows trucking & transportation companies to repair and maintain their equipment without depleting cash flow. Keeping commercial truck instrumentation and the vehicles themselves up to compliance and safety standards means finding flexible financing for semi-trucks. The trucking business never has an offseason, which means keeping equipment in tip-top shape at all times to reach your goals.
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 for your trucking company is critical, and financing options must be in place to compensate for unexpected issues that negatively impact the business bank account. Your funding and loan options should reflect the wide array of operations you need to upkeep for your commercial truck company.
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Types of Trucking & Transportation Companies We Serve:
We work with a wide range of trucking and transportation enterprises to give them the financing options they need to reach their goals. Over the years, we’ve worked with countless companies nationwide, offering unmatched expertise and loan variety for trucking businesses. Below is a list of some of our most popular industries:
- Trucking Companies
- Logistics Companies
- Medical Transport
- Moving Companies
- Shipping Companies
- Air Transport
- Freight Brokers
- Commercial Trucking
Why AdvancePoint Capital?
When looking for semi-truck financing or transportation loan options, you’re going to sift through tons of options. So, why go with AdvancePoint Capital? Well, we’ve been a trusted name in the semi-trucks financing arena, offering a wide range of loans and funding products to help businesses reach their goals. Not only do we have the experience, but also the expertise — as we’ve been in the trucking industry for a long time.
- 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.
Frequently Asked Questions
How Can I Get a Trucking Business Loan?
It’s simple! All it takes is a quick and easy application process through AdvancePoint Capital and you’re well on your way to getting the cash you need. Make sure to read the credit requirements, time in business, and have all of your documentation in order. Research is crucial, so be sure to ask your lender beforehand what you’ll need and what the qualifications are.
How Can I Start a Trucking Business With No Money
Well, you can’t. You’re going to need some funding to get started with your trucking or transportation company. If you don’t have cash on hand, you’ll need a trusted lender to help you get the money you need.
Can Truck Drivers Apply For an SBA Loan?
Yes, truck companies can seek SBA options, but they’re not easy to obtain. You’ll need a sound credit history, time in business, and comprehensive financing documentation to obtain an SBA loan.
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