Many companies in the transportation industries can qualify for financing. Some businesses can apply for small business loans with low-interest rates and long terms. Equipment financing is another type of lending that is often used by transportation companies. How can your company put these funding options to good use?
Truck Repairs
For every day that a truck is down, your business loses potential profits. Unfortunately, paying for repairs on trailers and tractors isn’t always easy for owner-operators or fleet owners. You can use transportation industry financing to deal with this situation ASAP.
Working capital financing, merchant cash advance programs, and factoring are all options that provide a large infusion of capital when you need it the most. These alternative financing options are approved quickly, sometimes within 24 hours. You can get your truck back on the road and back to generating revenue.
New Trucks
Something that owners often don’t know is that trucks are covered by equipment financing. Just like construction businesses use this type of financing to purchase heavy equipment, your company can use it to pay for a variety of trucks:
- Semi-trucks
- Box trucks
- Refrigerated trailers
- Tankers
- Cargo haulers
- Flatbed trucks
The advantage of equipment financing compared to traditional loans is that it’s easier to qualify for. Even if your business doesn’t have a great credit score or tons of money for a down payment, you can still get a state-of-the-art truck for business expansion.
Hiring Costs
Transportation financing can assist fleet owners with day-to-day operations as well. Invoice factoring, lines of credit and working capital loans give you flexible financing that can cover many needs, including the cost of attracting and hiring new drivers.
With the speed at which the transportation industry is growing, trucking companies often need to offer incentives to drivers. With sufficient financing, you can keep up with larger fleets and boost your profits at the same time. More drivers and more trucks mean you can serve more customers and generate more revenue.
New Technology
One of the best ways to use financing is to improve your business’s technology. Purchasing diagnostic systems and specialized repair tools can let your team handle most truck maintenance in-house instead of paying other companies for these services. Outfitting all of your trucks with state-of-the-art GPS systems and monitoring software can shave a lot of time off of your deliveries and prevent damage to your trucks from weather-related accidents.
