The greatest challenge in obtaining funding for the commercial trucking industry, is really gaining access to the information you need as a business owner to make an educated decision. In order to gain those insights it requires you read much online but more importantly that you find and engage with a knowledgeable broker who is willing to educate you on options available to your specific needs.
Qualifying for A Trucking Business Loan
In taking a look at what you’ll need in order to finance a commercial truck, the first step is defining what you’re actually looking at financing. In high-risk industries like freight transport, acquiring loan funds can be notoriously difficult. Common obstacles faced by trucking business owners seeking a loan may include the following:
- Insurance Requirements: It’s extremely important to have adequate and updated insurance on all trucks and inventory. Not only is this going to reduce risk to your business, but lender are also more likely to offer trucking business loans to companies that have great insurance.
- Monthly Revenue Minimums: To increase the funding options for your trucking business, you’ll want to show a minimum of $5,000 in gross revenue each month dating back at least 6 months for optimal financing options. This is important for almost all types of loans: you must demonstrate your ability to repay the loan.
- Business Credit History: It’s also important that you’ve been in business for at least 6 months because an established business history helps tremendously.
Trucking businesses that meet these qualification criteria can receive financing very quickly. Even if your business doesn’t meet all of the requirements listed above, you should be able to obtain a personal loan for business with decent personal credit.