As a trucking business, you know that keeping your competitive edge means adapting to industry changes. Funding helps that happen. Learn how to apply for and use a trucking business loan.
Applying for a trucking business loan means you can use those funds to due a number of things to make sure your business keeps growing. This article will explain your funding options and some of the best ways to implement your funds to help grow your trucking company.
What are your Trucking Business Loan Options?
Even within the one industry of transport, freight, and trucking, there are a few financing options available today:
Business Lines of Credit: Receiving a business credit line means you will get access to a set credit limit that you can dip into and repay as the need arises.
Equipment Financing: An Equipment Financing Loan can help you get the funds to upgrade or repair expensive equipment, like trucks, loading gear, and more.
Commercial truck loans: Structured almost entirely like equipment financing, a commercial truck loan allows you to meet commercial vehicle needs.
SBA Loans: The SBA (Small Business Administration) offers loans for the trucking industry too. This can be a viable option if you prove that you couldn’t qualify for a traditional bank loan.
It’s always important to do your homework. Make sure you know which financing option best suits your business before applying for a loan.
With so many private lenders out there, you should ensure you know how long the application process is, especially when you need funding fast. Bank loans and traditional lenders can take weeks to approve and fund your business, alternative lenders can approve and fund in 24-48 hours!
There are also a few prerequisites needed for a business to get approved:
Time in Business: Your proven track record is important to lenders to ensure your business is able to grow from these funds. If your a start-up trucking business, you will have a harder time getting funded.
Minimum Credit Score: If you have a bad credit score, you may need to raise it to get approved for funding. Alternative lenders approve businesses faster if the owners are in good standing.
3 Month’s Bank Statements: You will almost always need to provide at least 3 of your most recent month’s worth of bank statements to apply. The lender then uses your info to determine how much you are approved for and the loan’s term.
How To Use Your Trucking Business Loan
1. Grow Your Trucking Fleet
Having a bigger fleet means more profit and saving on the cost of shipping per mile. Having a larger fleet means you can invest more into:
- Commercial Vehicles and Sems
- Truck Trailers
- Load Boards
- Trucking Licenses and Permits
- Vehicle and Business Insurance
- Fueling costs
- Tolls
As a business owner, you never want to turn away opportunities because of a lack of manpower. Expanding your fleet can get more contracts, increase your cash flow, and stay competitive in the trucking and freight industry.
2. Add to Your Team
Having enough trucks is great, but having enough staff to drive them is equally important. Drivers come at a cost too. You can use your new funds for:
- Driver Training
- Acquiring commercial driver’s licenses and permits
- Paying for Insurance
- Possible union costs
- Staff uniforms and personal equipment
The upfront costs can be significant, but having a large enough team allows you to stay competitive and take on more business in the long run.
3. Update Your Technology
With all the new high-tech solutions available in the trucking business, implementing these tools is imperative to keeping your business ahead of the competition.
You can use a loan for:
- Improved camera systems
- Enhanced GPS and routing systems
- Electronic logging devices
- Upgrading your cabs
While expensive, technology allows your business to be more efficient and safer. A loan helps you afford these crucial expenses.
4. Improve Business Logistics
Logistics is a crucial aspect of running a smooth trucking operation. With more business comes a bigger need to ensure all operations and deliveries are running like clockwork and on time. There are always better logistics to implement, even if you’re running a smaller trucking company.
You can improve your operation by hiring process engineers, operation experts, and even using an automated data system to discover how your business can be more efficient.
5. Plan for Future Costs and Save
Purchasing more inventory needed for your fleet can help you keep down costs over time. With a trucking loan, you can up your tires, equipment, and bulk goods inventory to help lower your business’s expenses.
The trucking industry is a critical part of the U.S. economy, and it’s only getting more important as time progresses. In fact, according to the American Trucking Associations (ATA), the trucking industry accounts for more than 60% of all freight volume in the U.S., with an estimated $10 trillion worth of goods shipped by truck annually.
When you have access to capital and are able to grow your business, it helps you stay ahead of the competition—which means more opportunities for success!
Learn more about Capital Quickly’s Equipment Financing or Working Capital Loan programs. We can approve your application and get your funding in under 48 hours, guaranteed!
Speak to a representative by calling 1-888-709-7446 or emailing us.