Transportation and trucking businesses have contributed to nations economy The $700 billion-dollar industry have flex muscles in the premises of overland freight . Upon the mass employment of truck drivers in the US, UK and EU there is still a constant demand and shortage of drivers. Trucking companies drive the global economy, but not without a cost.
Trucking and Transportation businesses is associated with have high expenses to operate the business.
Project Financing in the Trucking and transportation business programs are a great way to maintain operating cash flow to keep up with the constant capital demand.
Any commercial trucking company can use a transportation and trucking business loan to finance new vehicles, pay for fuel expenses, maintain payroll, and for routine maintenance on trucks and trailers.
Project Financing for Transportation and trucking business varies based on what money is being used for. The most important thing is to make sure that you are using the right transportation project financing program.
For example, the best truck loan for business programs to use when purchasing a new trucking equipment financing for the transportation industry. If you are looking for capital for day-to-day operating expenses like fuel and payroll, you should be using freight factoring programs to get paid quicker on invoices.
Possibilities of Approving Financing for Trucking and Transportation Business
Qualifying for financing for your trucking and transportation business is easy and simple and convenient with Havelet Finance Limited and you can have your financing approved within 24 hours.
a) Complete our online contact form and enter your business information, contact details, and other necessary information.
b) Upon submission of your application and meeting the minimum requirements you’ll receive several loan options. Our lending expert will walk you through this process and help you decide which loan works best for your business.
c) Choose a loan and receive the funds within 24 to 48 hours.
Project Financing Options for Trucking and Transportation Business
Invoice Factoring: refer to one of our committed client who owns a fleet of trucks and has been operating for years have stretched out to add new truck to his fleets with additional expenses, such as fuel, repairs, and payroll. In order to support their growth, we provided a $250,000 factoring facility which provided them with the following benefits; 1. Payment on invoices within 24 hours 2. Operating cash flow to make weekly payroll 3. Fuel and repair discounts to reduce non-revenue generating expenses. 4. A Load Board to supplement loads and add additional revenue.
The most renowned platform of project financing of trucking and transportation business in the transportation industry is freight factoring. From owner operators to large fleets, business owners are accustomed to working with large corporations and clients that dictate payment terms. Net 30 to Net 45-day payment terms leave transportation businesses strapped for cash. Weekly expenses such as fuel, payroll, and routine maintenance add up while waiting to get paid on each invoice. By utilizing invoice financing programs such as transportation factoring and freight factoring, companies can get paid sooner and not worry about operating capital. Get paid now instead of waiting 30 to 45 days!
Asset-Based financing for Trucking and Transportation Business
Transportation and Trucking business is an asset heavy industry. The two main assets that all companies have are accounts receivable and trucks. Most businesses use freight factoring for ongoing cashflow and truck equipment loans for new truck purchases. However, asset-based financing are a great way to combine both. Asset-based financing and loans can be used to provide a revolving line of credit secured by both account receivables and vehicles. Asset-based lending is a great transportation loan program to have a relationship with one lender, instead of multiple ones.
Advantages of Asset — Based Financing.
Asset-based financing connotes your lending relationship is with one company, rather than having multiple lenders for equipment and receivables. Consolidating monthly payments to one lender helps companies manage cashflow and have one direct point of contact. The second benefit is that the programs act more like a traditional line of credit with an interest rate, instead of a purchase commission.
Interest rates are charged on outstanding money borrowed, versus the face value of each invoice. This results in lower interest expense and more flexibility. Some of the ways to use an asset-based loan are below.
- Refinancing of trucks
- Get paid sooner on invoices
- Increase operating cashflow
- Hire new employees
- Secure new customers
- Purchase new vehicles
SBA Financing for Trucking and Transportation Businesses
SBA loans mapped out for truck drivers is the best way to get low-cost and long-term financing. SBA transportation loan programs allow companies to borrow money over a 10-year term. This results in better operating cash flow and low monthly payments for trucking companies. Sba truck loans for transportation businesses need to get loans for refinancing existing truck loans and leases. Sba truck loans and truck equipment leases are usually over 36 to 72 months. You can refinance existing trucks and purchase new ones over a 10-year term by using an SBA loan.
Merits of an SBA Loan
A whole lots of benefits is associated SBA loans. The first and biggest benefit is the length of term. Traditional truck financing programs provide terms for six years, where SBA loans for trucking company financing out to 10 years. The length in term results in lower monthly repayments than traditional financing options. In addition to the term length, SBA loans can also provide permanent working capital for the business. Another significant benefit is refinancing existing loans for truck drivers and leases. There are limited ways to refinance older vehicles which is a unique benefit of an SBA loan for a trucking company. Additional ways to use an SBA transportation loan are below.
- Purchase new vehicles
- Refinance existing debt
- Hire new employees
- Improve operating cashflow
- Buy out truck leases
- Reduce monthly loan payments
Bridge Loans for Transportation and Trucking Business
Short-term and bridge loans are excellent solutions for small business loans for start-up trucking companies. Businesses frequently come across opportunities that require them to act fast, which requires fast access to capital. Bridge loan programs have an easy application process and can be turned around in as quick as 24 hours. The most important thing for small business loans for start-up trucking companies to consider is the short repayment period. Bridge loans are meant to be a short-term solution for companies to fill cash flow gaps or take advantage of opportunities. The short-term nature of bridge loans has a quick repayment period so it’s important that the monthly installments are sustainable.
Bridge Loan Benefits
There are many benefits to short term loan programs. The first is the quick turnaround time. Applications have limited requirements and can be processed and funded within 24 hours. Another benefit is the flexibility it gives business owners to act quickly and take advantage of opportunity. Bridge loans can be used in a variety of different ways, but due to the short duration it’s always important to use transportation bridge loans for short-term needs.
- Slow paying customers
- Working capital
- Emergency maintenance
- Hiring new employees
- Equipment down payments
- Purchasing truck parts
Business Line of Credit for Trucking and Transportation Business
The best loan program for Trucking and transportation business is line of credit (LOC). Lines of credit are quick to get approved for and can be used in a variety of ways. For trucking, in particular, unexpected expenses can occur. From opportunities to buy discounted equipment, to tire purchases and repairs, an LOC can be a helpful resource. There are different structures depending on the line of credit that’s used, some are secured, and others are unsecured. For a secured LOCs, the loan amounts are larger and the lower interest rates, while unsecured lines of credit are typically capped at $250,000 and have higher interest rates.
Benefits of a Business Line of Credit
The most attractive benefit of lines of credit is flexibility. Having access to capital without having to go through an application process is key to the success of many businesses. Applying for a business LOC should be proactive so that’s available when needed. Another benefit of lines of credit is the repayment structure. For unsecured lines of credit, payments are made monthly and for secured lines of credit, interest-only payments are made on a monthly basis. Next, you only pay interest on lines of credit when you use it! Rather than a lump sum, a credit line is standby capital to be used on an as-needed basis.
Here are other ways to utilize a trucking line of credit.
- Emergency repairs
- New equipment purchases
- Operating cash flow
- Standby capital
- Hiring new employees
- Advertising and marketing
- Equipment down payments
- Purchasing new parts
- Fuel expense
Equipment Financing for Trucks and Trailers
Trucks and trailers are a big upfront cost to commercial trucking companies. A vast majority of trucking companies use truck loans and leases instead of paying cash. By using a transportation equipment loan, commercial trucking companies are able to make low monthly payments for their equipment. The two most common forms of transportation equipment loans are truck leases and truck loans. At the end of a truck lease, the equipment needs to be returned to the vendor, while at the end of a truck loan you own the equipment.
Benefits of Equipment Financing
The most important thing when operating a commercial trucking company is having cash on hand for opportunities or emergencies. A significant benefit of trucking financing for new businesses versus paying cash is the low monthly payments and the ability to keep cash reserves in your industry. Another benefit for truck finance for new businesses is the low rates associated with equipment financing. Trucks and trailers are great assets and lenders offer low rates, long terms, and large amounts for both leases and loans.
Some of the ways to use equipment loans for commercial trucking companies are below.
- Purchase new trucks
- Refinancing truck loans
- Upgrading outdated equipment
- Buy used equipment
- Update equipment software
- Buy used equipment
Trucking and Transportation Business We Finance
- Tanker Trucking Loans
- Flatbed Trucking Loans
- Fuel Transport and Hauling Loans
- Oil Field Trucking Loans
- Local Freight Trucking Loans
- Long Haul Trucking Loans
- LTL Trucking Loans
- Refrigerated Freight Loans
- TCar Hauling Loans
- Interstate Trucking Loans
- Intrastate Trucking Financing
Contact us for any type of trucking financing as mentioned above.