Find the Right Loan for Your Trucking Business

Running a trucking business involves a variety of expenses that can quickly add up. Whether you need to purchase new equipment, repair your fleet, hire new drivers, or update your facilities, having the right financial resources is crucial. Like any business, having extra working capital can boost cash flow and drive growth. No matter your funding needs, it’s vital to find the right type of financing for your business. That’s where SVP Funding Group comes in.

At SVP Funding Group, our team of U.S.-based loan advisors is here to guide you through every step of the financing process. You can easily apply online in just a few minutes. Soon after, one of our loan advisors will contact you to discuss your needs and explore the best funding options. If approved, you can receive the funds as soon as the same day to keep your business moving forward.

What Types of Business Funding Can Be Used for Commercial Truck Loans?

There are many financing options available for small businesses in the trucking industry. Here are some of the most popular options:

Business Line of Credit
A business line of credit is a flexible financing option similar to a credit card. Approved trucking business owners are given a specific credit limit, which they can draw from as needed. As funds are repaid, the available credit replenishes, allowing the business to access funds again. This option is especially useful for covering emergency expenses or taking advantage of unexpected opportunities.

Equipment Financing
Equipment financing includes both equipment loans and equipment leasing. Equipment loans work like traditional business term loans, providing a lump sum that is paid back over time. The key difference is that the equipment purchased acts as collateral. With equipment leasing, the leasing company owns the equipment, but the business pays to use it, often with the option to buy it at the end of the lease term.

Merchant Cash Advance
A merchant cash advance is ideal for businesses that receive a large volume of credit card payments. In this type of funding, a cash advance provider reviews the business’s previous credit and debit card sales to determine the loan amount. Repayment is made through automatic daily debits from the business’s bank account, based on a percentage of the business’s credit and debit card sales.

Business Term Loan
Business term loans are one of the most familiar types of financing. A lender approves the business for a lump sum, which is then deposited into the business’s checking account. The funds can be used to cover various expenses, with repayment made over a set period, typically through monthly payments. This loan can also be short-term, with a smaller loan amount and repayment terms spanning just a few months.

Business Credit Cards
Business credit cards are commonly used by truckers to finance their operations. They function much like personal credit cards, and some even offer rewards. While credit cards are a great tool for managing smaller expenses, many experienced trucking company owners use them alongside other business funding options to meet larger financial needs. Strong credit history and a good personal credit score can unlock more favorable business loan opportunities.

Freight Factoring
Freight factoring is a specialized form of business financing for the trucking industry. In this arrangement, a trucking company sells its unpaid invoices to a factoring company at a discount. This allows the trucking business to access funds before its invoices are paid, though they won’t receive the full value of the invoices. The amount taken by the factoring company depends on factors such as the invoice customer’s reliability, the number of invoices, and the factoring company’s fee structure.

Funding Options for Startup Trucking Businesses

Starting a trucking business requires significant investment, but obtaining financing may feel challenging if you have bad credit. There are specific funding options available, including startup trucking business loans for bad credit and small business loans for startup trucking companies, to help you get your business off the ground. Whether you’re purchasing your first truck, securing equipment, or covering initial operating costs, there are solutions to fit your needs.

SVP Funding Group offers expert guidance and fast, flexible funding options to support your trucking business, no matter where you are in the journey. Whether you’re a startup or an established business, we’re here to help you access the financial resources you need to keep your business growing.