If you’re looking for ways to finance your trucking company, we have good news: There are several options available to obtain the funds you need for equipment and other expenses. This article takes a look at them.
Option 1: Equipment Loans
One way to obtain funds for your trucking company is through equipment loans. Your company will receive money from a lender, and in turn, you will repay the funds plus interest on a predetermined payment schedule. Often, the equipment itself serves as collateral in the loan. Equipment loans are a particularly good option if you plan to use the equipment for a long period of time, as your company will keep it at the end of the loan.
Option 2: Sale and Leaseback Programs
If your trucking company possesses equipment but needs funds to cover other expenses, a sale and leaseback program might be right for you. Under this arrangement, your company sells the equity value of your equipment and then leases the equipment itself back. At the end of the agreement, ownership of the equipment goes back to your company. This is a way to free up money while still accessing the equipment you need.
Option 3: Freight Bill Factoring Financing
Your business may run into a problem familiar to many entrepreneurs: the lag time between when you bill a client and when they actually pay. If and when this becomes an issue, you can turn to freight bill factoring financing as a solution. In this arrangement, the lending company buys outstanding invoices from your company at a discount and then collects the money from the client. The advantage of the trucking company is that, according to Chron.com, this method can “solve immediate cash flow issues.”
Ready to get started or want to learn more about financing? Give Mossberg Strategic Capital a call at 1-888-979-7132, send us an email at email@example.com, or get in touch through our contact page. Also, be sure to check out the rest of our blog posts to learn more about other business topics.