Alternative funding help you keep your company operations moving along
Owning a trucking company may be quite profitable, but at times you might need more cash than what you currently have available. At these times, you’ll need to look at alternative funding to help keep your operations moving along.
Transport companies will always have a place in the economy to carry goods from one place to another. Owning a trucking company may be quite profitable, but at times you might need more cash than what you currently have available. At these times, you’ll need to look at alternative funding to help keep your operations moving along. Here are some options for trucking company loans.
If you have been in business a while or have established credit with vendors, you may qualify for a line of credit. A line of credit with a vendor will only be good for the supplies you buy through them, whereas a bank’s line of credit will allow you to use the money for multiple needs. Interest rates are usually decent, and you do not have to reapply every time you need more money. Once you pay back a portion of what you borrowed, those funds are again available for the future.
A small business loan may be provided by private lenders and is backed by the government. Interest rates are low and repayment terms can be flexible. You will need good credit and a strong business history. Expect to fill out a lot of paperwork to qualify, but it can provide a large amount of funds for a major expansion or to replace expensive equipment.
If you need cash quickly, you can get a merchant cash advance. However, interest rates are usually high, and this kind of loan is best used for an emergency until you can get other funding. You can get the funds regardless of credit history or other factors but limit it to a true emergency with a plan to pay it back quickly.
You can get a loan based on the revenue that comes into the business. You will need to show that the business has regular income since it is considered a collateral asset. The advantage of this type of loan is you do not need perfect credit to qualify and interest rates are usually reasonable. The loan is often short-term, so you will need to have cash flow soon to pay it off. If your revenue fluctuates, you will need to provide enough information to determine the average and ensure it is enough to pay back the funds.
If you do not qualify for a loan with a bank or other options do not work for you, alternative lenders may be your best option. These lenders will accept less than perfect credit as long as you have a regular revenue. They loan money based on the success of the business rather than focusing solely on your personal credit history. You often have less paperwork to fill out and can be approved in just a few days. Many lenders provide the funds in as little as 24 or 48 hours after approval.
How to Qualify for a Trucking Company Loan
Each lender has their own set of requirements, so you will want to check those out before applying. However, expect to provide a copy of your balance sheet or profit and loss statement to prove revenue and insurance for your business.
Some lenders will require a minimum credit score, which can vary based on the goals of the lender. Alternative lenders are usually more flexible and will accept those applicants with less than perfect credit.
If the business does not meet all the requirements for approval of a loan, you may still be able to obtain financing based on your own personal credit history and financial situation. It pays to take a few minutes to compare your options and see which one is best for your situation.
Fast Track Lenders provides loans for trucking companies to help them expand their fleet, replace old equipment and to meet other financial obligations. Contact us today to learn how we can help you with a loan or apply online and get started with the approval process.
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