Four Options For Transportation Financing

The trucking industry has shown large growth, on average  Truckers haul 70 percent of the nation’s freight—about 10.5 billion tons annually. Whether you operate your own truck or own a large-scale transportation corporation, it’s important to understand your financing options. Nearly every company requires financing to expand or overcome unexpected hurdles. Find the best transportation industry financing option available for your unique situation.

Financing Options

Equipment Leasing The easiest way to get started with a small business Truck route is through equipment leasing. If you don’t have the capital to purchase a truck, or the credit score necessary to take out a loan, consider this financing option. With semi truck financing you can begin driving instantly with only first and last payment out of pocket. Rates may be slightly higher than other loan types, but you won’t have to put up any additional collateral. Invoice Financing A popular transportation industry financing option for larger companies is invoice financing. Most invoices you receive will be paid in 30, 60 or 90 days. Invoice Financing provides capital instantly while also mitigating the risk of collecting past due account receivables. You’ll need to pay some fees to the invoice financer, but this financing option allows you to get the money you need to pay monthly bills before they are due. Asset-Based Loans Without a high credit score, it can be difficult to receive the financing you need. Use an asset-based loan in order to get financing without a credit check. You’ll need to put a personal or company asset as collateral, but it’s a great way to receive a loan you may not otherwise have qualified for. Bank Loans The traditional bank loan remains a great option for established companies with a great track record. With an application and approval, you’ll get excellent interest rates and be able to negotiate a payment plan. As your business grows, you can work on getting a line of credit, which gives you more flexibility when purchasing your equipment. There are, of course, many more unique and non-traditional transportation industry funding options. However, these represent some of the most popular and competitive option for a transportation business of any size.

Summary

When looking for Transportation Financing, there are more options than just a traditional bank loan. Conventional financing will give you the best terms and leverage. However, alternative financing provides you with the path of least resistance.  Whatever issues your business may have, there’s a financing option available for your unique situation. If you are interested in learning more about Transportation financing, and Semi truck financing requirements please click here and call us today.