Those in the commercial trucking industry know that cash is always a premium. That’s true for the big companies, but even more so for small independent truckers. Thousands of companies have found merchant cash advances helpful with commercial truck financing.
Larger trucking companies need more money than independent contractors, of course, but they also have the means to obtain it. They are established and have good enough business credit ratings to procure loans when needed. They also have fleets to absorb the down time when trucks need to be serviced.
Such is not the case for many independent drivers. They’re on the roads, often at night, far from home. At times, this is the case when emergency strikes, and it often does.
Commercial Financing Hurdles for Independent Truckers
We know Swift and JB Hunt, but a large percentage of the trucks out there delivering the goods are operated by companies whose names we wouldn’t recognize. These are the companies that might not have the greatest business credit scores. They are companies that don’t have deep fleets to absorb the down time required to get a truck back up and running. The following statistics might this in perspective:
- There are more than 3.5 million truck drivers in the U.S.
- The majority of those 3.5 million are independent, and most are owner-operators.
- There are an estimated 1.2 million trucking companies in the U.S.
- Ninety-seven percent of those companies operate 20 or fewer trucks.
- Ninety percent of those companies operate six or fewer trucks.
Also, unlike the big, established carriers, banks consider these private contractors a risky investment. A Small Business Association (SBA) loan might be easier to obtain for them, but then time becomes a factor. SBA loans can take up to 90 days from the application to the release of funds. That doesn’t much help a guy with a broken axle and a load that needs to get there by Tuesday.
Merchant cash advances can help in such a situation. A merchant cash advance isn’t a loan; rather, it’s an advance on a company’s receivables. It is based on the business you’ve done and paid back as a percentage of the business you’re going to do.
Advantages of a Merchant Cash Advance as Commercial Truck Financing
Get cash when you need it. The application process takes just a few minutes, and the cash is in hand within 48 hours…so you can get it there by Tuesday.
Approval is based on business, not credit. FICO scores are not a factor, as the advance is based on a company’s ability to earn.
What’s yours remains yours. As an advance on company business, there is no need to put anything up as collateral.
Everybody in the trucking industry can tell you that the ability to earn is there. It’s there provided you can keep your trucks on the road. Merchant cash advances can help you do that. They’re excellent for an independent contractor, who has a load to deliver and an emergency. They can be quite beneficial when you want to expand the fleet or upgrade to a new, or newer, truck. This isn’t to say they can’t help the larger companies as well, as advances go as high as half a million dollars.
If out there on the road is where you make your money, a merchant cash advance can help with commercial truck financing.