A lot of trucking companies go through growth spurts and, at the same time deal with cash flow pressures. Loads may be plentiful, however, with sharp start-up and operational costs, clever methods to finance growth may be the answer.
The Top Choices for Business Growth Financing
For you, the owner-operator or fleet owner, getting hold of the necessary funds for the purchase or leasing of new trucks and trailers is extremely important. Large companies may have a ton of choices when they want to capitalize growth. Small trucking businesses… not so much. So, what’s the smartest path to financing your expansion plans? Let’s check out some good ways to use financial leverage to fund your trucking company’s growth.
1. Invoice Factoring
You can turn your unpaid invoices into cash by selling them to a factoring company. In basic terms, it’s called invoice factoring. This popular financing alternative for trucking businesses takes outstanding invoices and quickly pays you cash. The factoring company, such as eCapital, pays the amount due to you usually in 24 hours, minus a small percentage. While the factoring company takes on all of your accounts receivable processes, you are now free to focus on operations and other responsibilities. What’s better, unlike credit cards or bank loans, factoring doesn’t impact your credit rating.
If you don’t have time for wait months for a bank loan, a factoring company can get you started right away. You can be set up and funded within a few days.
From covering added fuel costs to new expenses, invoice factors can increase your capital, thereby increasing your prospects for fast growth. It’s not a loan, it’s your hard-earned money made available early. In a nutshell, factoring is a smart way to grow your business without going into debt.
2. Working Capital Advances
Working Capital Advances are a new source for funding business development and progress. They deliver funds upfront that are paid back as a percent of your future month to month income. The amount of the advance you receive is determined by how much monthly revenue your trucking business produces.
Normally, trucking companies must be in business for a certain period of time and produce a minimum amount of revenue per month in order to qualify. The approval process is simple, typically taking only a few hours and providing funding within days. If your trucking company has a consistent monthly revenue stream, this may be the finance option for you.
3. Alternative Funding Solutions
Banks and similar financial institutions frequently get tense about lending to trucking companies without extensive past histories. For trucking companies who can’t or don’t wish to go the traditional bank route, online lending is another possibility rather than traditional funding. Online lenders have the advantage of speed: an application takes less than an hour to complete, and a decision and the related funds can be supplied within days. In comparison, the traditional loan process can take weeks, or even months, to complete.
If you’re looking for fast funding for your business, eCaptial can help. No matter your business growth requirements, current business size or credit situation; we have a form of financing that will fit your needs.
Get your free quote by calling 760.456.3786 or by filling out the form. It takes just a few minutes and you can receive funding within days.