Transportation Business Loans

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Financing for Trucking Companies

Transportation and trucking companies are the backbone of America. The $700 billion-dollar industry is responsible for a majority of the overland freight in the United States. Even with the 900,000 truck drivers in the US there is still a constant demand and shortage of drivers. Trucking companies drive the US economy, but not without a cost.

Trucking companies have high expenses to keep up with. In order to do so many use transportation and trucking business loans. Trucking business loan programs are a great way to maintain operating cashflow to keep up with the constant capital demand. Trucking companies can use trucking business loans to finance new vehicles, pay for fuel expenses, maintain payroll, and for routine maintenance on trucks and trailers.

Transportation and trucking business loan programs vary based on what money is being used for. The most important thing is to make sure that you are using the right transportation loan program. For example, the best trucking loan program to use when purchasing a new truck is an equipment loan 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.

Loan Options for Trucking Companies

Transportation Factoring and Freight Bill Factoring

The most common form of transportation financing is freight factoring. Trucking companies 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, trucking companies can get paid sooner and not worry about operating capital. Get paid now instead of waiting 30 to 45 days! Below are some of the ways to use freight factoring.

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Weekly payroll

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Truck maintenance

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Fuel expenses

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Extra cashflow

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Growth capital

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Hiring new employees

Asset-Based Loans for Trucking Companies

The transportation industry is an asset heavy industry. The two main assets that trucking companies have are accounts receivable and trucks. Most trucking companies use freight factoring for ongoing cashflow and truck equipment loans for new truck purchases. However, asset-based loans for trucking companies are a great way to combine both. Transportation asset-based loans can be used to provide a revolving line of credit secured by your accounts receivables and your trucks. Asset-based lending for transportation companies is a great transportation loan program to have a relationship with one lender, instead of multiple ones. Some of the ways to use an asset-based loan for trucking companies are below.

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Refinance trucks

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Get paid sooner on invoices

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Increase operating cashflow

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Hire new employees

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Secure new customers

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Purchase new vehicles

SBA Loans for Trucking Companies

An SBA loan for trucking companies is the best way to get low cost and long-term financing. SBA transportation loan programs allow for trucking companies to borrow money over a 10-year term. This results in better operating cash flow and low monthly payments for trucking companies. SBA loans for trucking companies are commonly used for refinancing existing truck loans and leases. Truck loans and truck equipment leases are usually over a 36 to 72 months. By using an SBA transportation loan, you can refinance existing trucks and purchase new trucks over a 10-year term. Additional ways to use an SBA transportation loan are below.

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Purchase new vehicles

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Refinance existing debt

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Buy out truck leases

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Hire new employees

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Improve operating cashflow

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Reduce monthly loan payments

Bridge Loans for Trucking Companies

Short term loans and bridge loans for trucking companies are a great solution for quick capital. Bridge loans for trucking companies can be used in a variety of different ways, but due to the short duration it’s always important to use transportation bridge loans short-term needs. Transportation bridge loans can be used for a variety of different reasons.

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Slow paying customers

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Working capital

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Equipment down payments

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Emergency maintenance

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Hiring new employees

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Purchasing truck parts

Business Line of Credit for Trucking Companies

The most flexible transportation loan program is a business line of credit. Line of credits for trucking companies are quick to get approved for and can be used for many different things. Some trucking line of credit programs are secured by invoices, others by equipment purchases, and some are unsecured. A business line of credit for trucking companies can be used as standby capital for when emergency arise. Here are other ways to utilize a trucking line of credit.

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Emergency repairs

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New equipment purchases

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Operating cashflow

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Standby capital

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Hiring new employees

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Advertising and marketing

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Equipment down payments

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Purchasing new parts

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Fuel expense

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Payroll

Term Loans for Trucking Companies

Short-term trucking loans and long-term trucking loans are frequently used in the transportation industry. Term loans for trucking companies can provide business owners with a permanent injection of working capital for day to day expenses. Transportation term loans can be used for the following reasons.

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Purchasing new trucks

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Working capital

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Equipment upgrades

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Driver training programs

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Financing truck software

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Truck repair financing

Equipment Loans for Trucking Companies

Trucks and trailers are a big upfront cost to trucking companies. A vast majority of trucking companies use truck loans and leases instead of paying cash. By using a transportation equipment loan, 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. Some of the ways to use equipment loans for trucking companies are below.

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Purchase new trucks

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Refinancing truck loans

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Upgrading outdated equipment

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Buy used equipment

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Update equipment software

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Buy used equipment

Types of Transportation Companies We Finance

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Tanker Trucking Loans

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Flatbed Trucking Loans

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Fuel Transport and Hauling Loans

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Oil Field Trucking Loans

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Local Freight Trucking Loans

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Long Haul Trucking Loans

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LTL Trucking Loans

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Refrigerated Freight Loans

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Car Hauling Loans

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Interstate Trucking Loans

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Intrastate Trucking Loans

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