Are you thinking about expanding your business? Or you’re thinking of starting up a new trucking business? Or you’re thinking about making the move from being a truck driver to being an owner-operator? All of this can be financially rewarding. However, it is not that easy. If you’re new in the business, you should start thinking like a business owner, you need to worry about things that your employer used to worry about, which is making as much profit as you can.
One of the trickiest parts about this is finding a way to invest in your new company. However, once you get the right financing, your company will be all set to achieve new milestones, and very soon your profits will boost remarkably.
Equipment financing is a major part of starting a new business or expanding an existing business. Your business would require suitable equipment to run smoothly. If you’re in the trucking business or thinking about a startup, you’ll have to buy one or more trucks according to the requirements of your business. Whether you’re new in the business or you want to expand your company, purchasing a commercial vehicle right away will not be a clever move because of the obvious risks involved even if you can afford to pay. As an alternative, you should get your truck financed.
Getting your truck financed means getting a loan from a truck financing company and paying them back in small amounts from time to time. If you’re an owner-operator, you certainly would need investment for a truck and other expenses to power your new business. Trucking financing companies provide owner-operator startup loans that can help you kickstart your business. These are long-term loans with flexible repayment options which allow you to run your operations smoothly without disturbing your cash flow. This also helps you in conserving working capital for any unforeseen expenses. A cleverly financed startup will surely perform better and you will see a rapid increase in your revenues.
If you own a small trucking business with a few trucks, you know you can’t compete with larger fleets. This makes a boundary for your business when it comes to taking bigger orders, hiring drivers, and getting discounts from suppliers. More trucks mean more business and rapid growth. Having more vehicles keeps you ahead of your competitors. The problem is that not all truck business owners can afford to pay for new vehicles right out of their pockets. However, fleet commercial funding allows you to add your desired trucks to your fleet and expand your business within no time. These are big loans provided by trucking funding companies that help you to purchase your desired vehicles without spending hundreds of thousands of dollars. You just have to qualify for their eligibility criteria which vary from company to company. To grow your fleet and expand your business, this is the easiest way to achieve all your financial goals. Especially during this period of a pandemic where many trucking businesses are still recovering from the previous losses, the flexible repayment options offered by these companies make it much easier for you.
Semi-truck financing is a slightly different process from normal vehicle financing. Traditional truck loans typically require your credit, business revenue, and time in business to determine if you’re qualified.
In the case of semi-truck financing, the truck you’re purchasing serves as the collateral, which helps to limit the lender’s risk on the truck lease or loan. This factor of less risk for the lender makes you more likely to be qualified for the loan.
Your semi-truck financing terms are determined by several factors, interest rate, and down payment and the criteria differ from company to company. More or less, here’s all you need to become eligible:
- Credit score – 650 or above for the best Semi-Truck financing rates.
- Minimum 2 -3 years’ time in business.
- Down payment amount i.e how much can you afford to put down at one time?
- The age of your semi-truck should be less than 10 years old.
- The mileage of your Semi-truck should be less than 700k miles.
If you smartly finance your trucks, you’ll be surprised by the rapid growth of your business and you’ll always stay ahead in your competitive market.