Trucking Business LoanA commercial truck loan (Trucking Business Financing) can provide you with funds to help you improve your business. The benefits of commercial truck loans are: Preserves Working Capital A commercial truck loan can help you preserve your working capital by providing cash flow to use towards maintaining your vehicles, purchasing truckers’ equipment, fueling up, and other essential trucking expenses. Extra capital also goes a long way for peace of mind in the event of an unforeseen accident. Improves Competitive Edge By providing your trucking business with funds to help you purchase, maintain, or improve your trucks, a commercial truck loan allows you to take your business to the next level. These truck loans allow you to worry less about finances and focus more on the important aspects of your business to help you become more profitable and competitive in every industry. A Variety of Financing Options Going with a commercial trucking business financing instead of a traditional loan will allow you to have more financing options and flexibility with your financial arrangements to best meet your business needs. Working with trucking financing companies to obtain the right loan will provide better, more customized options to best help your business thrive.
How to Start a Trucking Business?You need working capital to start any business. The trucking business is not exceptional. you need to build your fleet by purchasing or leasing trucks.
Buy or lease a truck and trailerAs is the case with vehicles, you have the option to either purchase or lease equipment. Either way, you must first decide what type of freight you plan to carry. Do you plan on only running day trips, or will you need a sleeper cabin? Will your first trailer be a van, a refrigerated trailer, or a flatbed trailer? Below are some common types of leases:
- Operating (Full-Service) Lease: With this lease, you take care of maintenance, taxes, and permits, and at the end of the lease term you walk away.
- Terminal Rental Adjustment Clause (TRAC) Lease: With this lease, you make a small down payment and at the end of the lease you purchase the truck for its residual value. You can opt for the leasing company to sell the truck.
- If the leasing company makes money on the sale, you receive the profit, if it loses money, you pay the difference.
- Lease / Purchase Plans: Lease-purchase plans are primarily for truckers who don’t have enough for a down payment or have bad credit. Experts say you typically pay more in such arrangements versus traditional financing.