Trucking Company Financing Options: Reasons to Get Transport Company Loans
Even if you’re an established trucking company with regular drivers and a solid customer base, you may find that a transport company loan could be beneficial. Loans can be useful for all kinds of situations and may offer advantages even if you have some working capital.
Why Would You Need Financing?
There are many reasons why trucking company financing could be an important part of your business. Consider some of the following situations:
- You need repairs on semi-trucks or trailers in your fleet
- You want to upgrade your truck storage or make repairs
- You want to expand your business by adding more trucks
- Changes are needed to meet new regulations
- You need to pay invoices or business taxes
Whether you’re just paying the bills, keeping your business up to date or expanding, trucking loans can help you achieve your goals. However, you must know what kind of transport financing you want to use.
Options for Trucking Company Financing
The most obvious place to go for a loan is to a bank. After all, they are in the business of lending money. While this may seem like the easy answer, it’s not always the right one. Banks offer different types of loan products, but they may have higher lending requirements than elsewhere.
To qualify for a bank loan, you may need excellent personal or business credit and collateral. You will need to show evidence of your profitability with documentation that spans more than one year.
Another option is alternative lenders. These loan companies make it easier and quicker to get approved for the money you need. While they do have their own requirements you must meet, they are often more lenient than what you would get with a bank.
Preapproval takes much less time than with a bank in many cases. In fact, you may be approved the same day. Even though rates may not be quite as low as with a bank loan, they are affordable and often have flexible terms.
Some other benefits of alternative truck loans include the following:
- Online application – many places have their applications online and you can even fax or email any necessary documentation
- Fast approval – you can get approved in less than 24 hours
- Minimal documentation – even if the lender asks for documents from your business, it is often less than what you would need to provide with a bank
- Fast money – the money can be in your bank account in just one or two days after approval and all paperwork has been completed
With all these benefits, alternative lending is something to consider for your trucking business.
What to Know about Trucking Loans
Banks offer different types of loan products, but they may have higher lending requirements than elsewhere.
When you’re comparing lenders and considering a loan, you’ll want to think about a few things before making a decision on where to get your money. First, make sure the lender allows you to pay off your loan early with no prepayment penalties.
Flexible terms are also important. You may want to make your payments weekly, bi-weekly or monthly based on how revenue is received. All terms should be transparent with no confusion.
Even with a simple, easy-to-understand loan, you may have questions. You want to work with a lender that has someone assigned to your account or at least is easily reachable when you need to talk with a person.
Some lenders offer a soft credit pull to determine pre-approval. This means it won’t impact your credit score if you are turned down. Being able to receive additional funding can be helpful if you foresee more expenses in the future. Some lenders allow you to automatically renew your loan and receive additional capital once you have paid down your balance.
Of course, one of the most important aspects of selecting a loan is how much the lender is willing to give you. You want to find a lender who will provide the amount you need to take care of your business.
Transport company loans can be the way to go if you want to help your business grow or even just keep it functioning at its current level. Make sure you know the options available to you and select a lender you can trust that provides you with the necessary funds with less hassle.
Fast Track Lenders LLC make it easy and quick to get approved for the money you need for Transport Company Loans, documentation is kept to a minimum, with fast approval, flexible terms and the option to pay off your loan early with no prepayment penalties. Apply Now
How much are you looking for?
Get the capital your business needs fast and easy.
Get funded in 24 hours with rates as low as 9.99%