The trucking industry is the heart and soul of the American economy. If you own a trucking and logistics business, you know how difficult it is to stay competitive and meet your client’s tight delivery timelines. In order to survive, it takes a sizable fleet of trucks and experienced, reliable drivers. Working capital loans can provide an infusion of cash when opportunities arise to grow your fleet with new purchases.
You can probably think of many ways to use a working capital loan in your trucking business. With fuel prices continually on the rise, expensive truck maintenance and facilities costs that can skyrocket in the winter, this is a tough business to be in. A short-term working capital loan gets you through the slow season or over the hump in a fiscal crisis. Whether you need to lease additional vehicles or fund a training program for your drivers, consider a loan to:
If you have a regular income, that can be used as collateral to secure working capital for your business. That’s why it doesn’t matter if you have spotty credit; you can still be approved. Interest rates usually range between five percent and seven percent. That’s reasonable for a short-term loan that allows you to stay afloat during downturns or to ramp up quickly for big contracts.
Freight transport is a high-risk industry, so acquiring a working capital loan can be tough. Here are some conditions that can hurt you when you apply for funding. However, keep in mind that nothing is necessarily a deal breaker. Be upfront during the application process so that you can remedy or address these items.
Insurance Requirements. Keep your insurance policies and documentation updated for your entire fleet. If you have adequate insurance that minimizes the risk to your financing provider. The better your insurance, the more likely you are to obtain fast approval on a short-term working capital application.
Maximize Monthly Revenue. Go over the books carefully and make sure you have recorded every bit of revenue that you have made in the past two years. Include projected revenue from regular clients and prospective new business. If you can show $8,000 in monthly revenue, your chances improve dramatically, not only for working capital loans but for all types of business financing.
Credit History. Trucking businesses that have been around longer than one year enjoy a dramatically improved chance of obtaining working capital financing.
Trucking businesses that meet these qualification criteria can receive financing very quickly. Even if your business doesn’t meet all the requirements listed above, you should be able to obtain a personal loan for business with decent personal credit. MY Company Funding doesn’t steer clear of the trucking industry. We offer short-term working capital and equipment financing at affordable rates. Call 740-917-4960 today with any questions.