Trucking Business Loans

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    Trucking businesses remain one of the most profitable industries in the United States today. In fact, in 2018, the trucking industry carried 71.4% of the country’s tonnage freight and generated approximately $800 billion in revenue.

    Today, the industry employs about 7 million people, including 3.5 million drivers all over the country. With these numbers, it’s safe to say they play a pivotal role in the United States’ economy.

    With more and more people going into the industry, it’s becoming more challenging for owners of trucking businesses to compete with other bigger corporations. Without the help of trucking business loans, they wouldn’t be able to establish and maintain a competitive advantage, which may set up their business for failure. Now, if you’re a striving trucking entrepreneur, this is not how you want your business to end.

    Trucking business loans are the number one source of funding for many trucking companies. When used right, they can open up a variety of opportunities for growth and expansion. With access to additional cash, entrepreneurs can purchase trucks and fleets easily without breaking their bank account or risking the stability of their cash flow.

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    How Can Trucking Business Loans Help You?

    Trucking companies take out trucking business loans for numerous reasons. However, the most common one is to acquire new trucks and fleets which are vital in the expansion of their business. With the right amount of working capital, trucking businesses can obtain new equipment and provide a better service to their clientele.

    However, buying a new truck can cost $100,000 to $150,000 which when you purchase out of your pocket can create a big cash flow gap in your company.

    This puts you at risk of facing cash flow problems in the future. Trucking loans, on the other hand, help you eliminate that risk since they can provide you with the cash needed for the purchase. You can then repay the loan slowly through monthly installments, or on the terms which you and the business loan company have agreed to.

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    What Trucking Business Loan Options are Available?

    If you’re on the market for a business loan, here’s what you need to be aware of regarding the various options available to you:

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    Other Uses of Trucking Business Loan

    Aside from purchasing trucks and fleets, trucking companies also need trucking business loans for other reasons, such as:

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    Applying for Trucking Business Loans What are the Advantages and Disadvantages of Applying for Trucking Business Loans?

    Investments, regardless of the nature, always come with a distinct set of pros, and cons and trucking business loans are no exception.

    When you take out a business loan, no matter the type, you’ll be taking on a huge risk. If a mistake is made during the application stage, you’ll be risking the financial stability of your trucking company.

    However, here’s the upside:

    • Low-interest rates compared to bank loans
    • Flexible payment terms
    • No need to present cash for collateral

    Now, the downside:

    • Trucks can be repossessed if a borrower fails to meet payments
    • Truck values depreciate over time.

    Should You Apply for a Trucking Business Loan?

    The simple answer is absolutely yes.

    By acquiring one, you’ll get to sustain the needs of your company, improve your services, and stay ahead of your competitors without sacrificing the health of your company’s cash flow.

    By acquiring one, you’ll get to sustain the needs of your company, improve your services, and stay ahead of your competitors without sacrificing the health of your company’s cash flow.

    So, make it a priority to talk to one of the most trusted financial experts near you such as SMB Compass, so you can get all the details regarding business loans for trucking companies.

    Ready to apply for a Trucking Business Loan?