A trucking business has the potential to generate a lot of money, but getting started can be costly. From leasing trucks and/or trailers to the additional expenses of:
- Parts and maintenance
- Employing drivers
- Tracking software
- Daily expenses like fuel and tolls
- Licensing fees
There are a few ways to access the trucks and other machinery you’ll need to get started. Here are some of the best financing tips to get your trucking business up and running:
- Equipment Lenders: Trucks and trailers are the bread and butter of your business, and therefore the most important equipment you need to obtain. Equipment lender companies manufacture and sell trucks and other related equipment, so they’re able to provide custom solutions to companies dependent on their specific (or not so specific) needs. In this way, you’re able to get a hold of the equipment you need when you need it and pay your lenders back in payments.
- Franchise Agreements: This is most cost-effective way to get trucking equipment. A franchise agreement allows you to access tucks more quickly and efficiently, but you’re under a contract and subject to certain franchising fees. You’re also under the pressure of having to make money to cover your upfront spending.
- Freight Bill Factoring Financing: One of the biggest challenges of running a trucking business is the delay in revenue. You’re pressed to meet operating expenses, which doesn’t leave much room for you to turn a profit. Fortunately, freight bill factoring financing can help you solve immediate cash flow issues. An outside facility provides you with advances in funds to pay bills and takes over your invoices to await payment from your clients.
- Bank Loans: A loan can address your cash flow issues, but it comes with stringent conditions. You’ll need a decent operational history and fixed assets to satisfy the bank for collateral. Without these, you’ll have a difficult time securing a loan.
As a business owner, you shouldn’t have to jump through hoops to start your trucking business. Liberty Financial can provide you with a solution that works for you! We’ll help you obtain the tractor-trailer financing you need. Our process is quick and easy, and we can create a repayment plan that is tailored to your business model. Contact us today for more information on our commercial truck financing.