There is no single “best loan” for a trucking business. Instead, your specific needs will determine which loan option is right for you. Here are some of the most common financing solutions for trucking-industry needs:
Trucking is an equipment-dominant industry. It’s right there in the name. So it stands to reason that at some point in the course of business, you’ll need funds related to your trucks. If you need financing to acquire a dump truck or semi-truck, consider an equipment loan. Equipment financing can also be used down the road when you need capital to finance truck repairs. This form of financing is secured by the truck itself, which can make it easier to qualify for and lead to better rates.
Factoring, or Accounts Receivable Financing, can be an ideal solution for those seeking freight financing. Startup financing for trucking companies is unique in that you may have purchase orders, but you don’t have the capital to get the company off the ground to fill those orders. Factoring allows you to leverage those IOUs to launch your business.
In a pinch? Short term loans were designed for when you need a quick infusion of cash that can be turned around quickly. You can access funds within 24 hours of getting funded, which is great for when you need fast cash—say, for a surprise truck repair.
If you’re not already using a business credit card, you should be. Business credit cards can take your necessary business purchases —like gas and Smartfood popcorn at a rest stop—and make them work for you. Depending on the card you get, you can earn rewards for each purchase. Plus, a steady payment history helps you build business credit, making you more likely to qualify for other forms of financing down the line.
If you have the luxury of time, an SBA loan can help you finance the expansion of your trucking fleet or build/purchase a warehouse. SBA loans, which are partially guaranteed by the US Small Business Administration, have enviable rates and terms. The flip side: they take time and paperwork, and they come with hefty competition.
Truckers know better than anyone that there’s no use in delaying what needs to be done. Our smart application takes just 15 minutes to complete. That’s 28 hours and 15 minutes less than the traditional bank application process. Then you can compare offers with the help of your personal funding manager and receive funds in as little as 24–72 hours.
Fill out this simple 15-minute application to get the wheels turning on offers from 75+ premier lenders.
– Daniel H.