Finance Your Startup Trucking Company
Finance Your Startup Trucking Company Today
Are you ready to finance your startup trucking company today? If so, FMCSA Registration LLC is here to assist every set of the way. It’s often difficult to secure enough money to fund a startup trucking company. After all, money doesn’t grow on trees. But that doesn’t mean you can't finance your new company ASAP. Our organization developed this page to give you some new ideas. Please continue reading it to learn about how to secure funds. This way, you can start your new trucking company right now. Maintain complete DOT compliance and BOC-3 .
How Do I Get Startup Money for My New Trucking Company?
Listed below are a series of sources for securing startup money. These are the most common options for receiving funding. If you have questions, please contact FMCSA Registration LLC for more information. We can provide even more options for getting your new trucking company set up. Keep in mind that it’s difficult to get enough startup money from one source. Consider using more than one of the financing options listed below. Take a look also at Motor Carrier Authority .
Finance Your Company Using Savings
The more savings you have, the easier it is to start a trucking company. All successful business owners learn how to save money. It’s as simple as that. Now, say that there’s no money in your savings account. That’s okay. But you should consider waiting a few months to start your trucking company. During that time frame, save as much money as you can. Saving is about more than setting up a new company. It’s about the process of practicing saving. This way, you’ll know how to take your company to new heights in the future. Checkout DOT Authority Package .
Come up with a few areas where you can cut out some expenses. This might mean you need to eat out less often every week. Or, you might want to downgrade your deluxe TV cable package. Also, do your best not to use all the money in your savings. It’s crucial to always have some cash in reserve. Here’s an example. An unexpected payment might come up for your trucking company. Then, you’ll have to pay more than you anticipated. Otherwise, your trucking company will get delayed from operating. So, set aside some money that your company can use if an emergency takes place. Our organization is the apex of achieving and maintaining complete, MCS 150 DOT compliance. Check out Top 3 DOT Violations .
Try To Sell Something & Use the Money for Your Startup
Consider selling as many things as you can. You must own some items that you don't use anymore. Or, you have belongings that you don't need any longer. Go ahead and sell them soon. This way, the extra money can help finance your startup company. You can sell anything big or small. From a car to a lamp. If you own a lot of items, you could even host your own garage sale. Everyone has more money than they think that’s sitting around. The key is to convert what’s sitting around into actual money. Contact us to get Texas Dot number .
Have Your Trucking Company Visit With Non-Profit Micro Lenders
Most states in the US have many non-profit microlenders. This type of lender gets formed by successful people in business. Their mission is to give back to other small businesses. That’s why they provide loads to startups and companies. The key is to convince each microlender that you can pay back the loan. A great strategy is to provide a lending company with a sound business plan.
Do you need ideas and advice for creating a business plan? If so, please contact our organization at any time. We can provide free business plan templates. Our experts can also direct you to third-party resources. These resources are for anyone attempting to start a new trucking business. So, let us know if you need a great business plan template for free. A first-rate plan can convince lenders that you're a professional. Then, you can secure funding for your startup trucking company. This is a great option for trucking business financing.
Take Part in the SBA Microloan Program
The United States government understands that the economy depends on small businesses. Our economy functions best when every small business can thrive. That’s why the US government created the Small Business Administration (SBA). The purpose of SBA is to assist small businesses in getting off the ground. This way, they can grow fast and start making good money. SBA is a great resource for trucking business loans. Almost any trucking company startup can work with the SBA.
There’s one key action that the SBA Microloan Program takes care of. It provides loans for small businesses across the country. And startups are no exception. Many of the loans focus on business education. This is great for any new owner operator in the trucking industry. Keep in mind that the SBA is not the organization that provides each loan. Intermediaries get tasked with issuing SBA loans. (Contact us if you need a list of intermediaries by state.) We can send you more information about the SBA Microloan Program. Again, SBA is ideal for most small business loans for startup trucking companies.
Have Your Startup Trucking Company Get Credit Union or Bank Loans
Many different forms of bank loans exist to choose from. Let’s go over the most common loans in the US. Countless trucking startups have used these loans to start their businesses. First there’s the home equity line of credit. It’s one of the most common loans for people that own a home. Remember that you’d put your home on the line through this load. So, take some days to consider the loan before you agree to it. There are also signature loans. No collateral exists for this type of loan. This means that banks cannot lend high amounts.
Your trucking startup should also consider securing a title loan. Do you outright own your vehicle? If so, you can use the vehicle as collateral so that you can secure a loan. Sometimes the amount of a title loan outweighs what a vehicle is worth. There are banks where a person can refinance a loan on a vehicle. (As long as it’s worth more money than you owe.) Then, the bank can give you the difference. You should also consider securing standard business loans. Oftentimes, it’s difficult to get a business loan when you have a new business. But your new trucking company should try getting one. Under certain conditions, some credit unions and banks will provide this loan. Business credit for trucking is crucial in the transportation industry.
Secure Loans From Friends & Family To Finance Your New Business
Exercise caution with this type of loan. The last thing you want to do is borrow too much money from someone close to you. That’s why you've got to put a lot of thought into the amount you borrow for your business. Otherwise, you could ruin relationships with friends and family. Stay honest and upfront about what the money will go toward. Explain that the money is for establishing your new startup trucking company. Make sure that you put the terms of the loan in writing. Doing so can prevent questions from popping up down the road. Only depend on family and friend trucking business funding under certain conditions.
Bring a Partner Into Your Trucking Company
Consider bringing a new partner into your trucking company. But understand that this means you’ll have to give up ownership of the business. Say that the new partner only provides a one-time loan. This means this financing option is little more than a last resort. It’s better to secure money from other sources. Forfeiting ownership is big-time action that cannot get undone. Doing that only for a loan isn’t an ideal option. But say that you choose to go this route for your trucking business. Try to limit the ownership amount that the new partner will receive.
Use Credit Cards To Finance Your Trucking Startup
This is another financing option where you should exercise caution. Say that you use credit card debt for funding the new trucking business. Try to create a backup plan for paying credit card payments. You can’t assume enough business profits will come in during the first few months. Here’s an example. You might have a spouse who has a stable job. If so, you can use part of his or her income for a little while. But make sure that you trim other expenses to make this financing process work.
Let’s go over some common methods for using a credit card to finance a startup. You can use a truck down payment. Oftentimes, you can't use a credit card for making month to month payments. But many organizations will allow you to use a card for the down payment. Or, for a least part of the down payment. You could also use a credit card for an insurance down payment. Purchases for trucking equipment and tools can also take place through a credit card.
Focus on Funding Business Operating Expenses
Say that your company truck departs on its first office trip. That means you've got to pay for fuel, maintenance, and more ASAP. But here’s the problem. Your trucking company won’t start receiving payments until about 30-45 days. Those days begin once you or a truck driver delivers a load. Let’s now go over two common ways to get payments for your startup company. There’s factoring and quickpays. Written below are the advantages and disadvantages of both options. Check out Driver Qualification Files .
Finance Your Startup Through Quickpay
Tons of brokers across the US have an option for quickpay. Say that you ask a broker to use one of the quickpay options. This means you can receive a payment in 2-7 days. (Instead of the standard 30-45 days.) But keep in mind that your company will get charged an extra 3-5 percent. Of course, the key advantage here is that you’ll get paid within 2-7 days. But the main disadvantage is having to pay that extra 3-5 percent. You’ll also have to fill out a new application for every broker. This can make submitting paperwork a frustrating process.
Factoring Can Help Your New Trucking Company With Financing
Many factoring companies exist across the country. Their mission is to help each business receive money ASAP. A factoring company will buy your company’s accounts receivable. This means the factoring organization will provide you with their money fast. (But it will not yet include the fee.) The process often gets completed within 24 business hours once a load arrives. Here’s what the shipper or broker you hauled the load for does. He or she pays the factoring company the entire amount. This refers to the amount owed 30-45 days later.
If you're in need of more thorough information about Drug and Alcohol Program , please contact our organization today. The key advantage of factoring is that you get paid within about 24 business hours. Plus, you only have to deal with one person who will take care of your paperwork. This means you don't have to learn new systems for different shippers and brokers. Factoring companies will handle all collecting and billing. The biggest disadvantage is the extra cost. Depending on the size of your trucking company, the cost is about 3-5 percent. Please contact our organization to learn more about the basics of factoring. The majority of our clients prefer factoring over quickpay. That’s because factoring has the same benefits as quickpay but at better rates. Plus, it’s simpler for any trucking company or startup to use factoring.
Always look at your factoring contract to make sure that nothing gets hidden inside it. It’s often a bad sign if a factoring company uses a very long business contract. If you're unsure about your contract, you're welcome to contact FMCSA Registration LLC. Our experts can look at the contract and make sure it’s valid and accurate. Also, try to find a factoring company with a great reputation. Communicate with fellow owner operators and ask if they have recommendations. Check out How to Obtain your MC number .
Every Owner Operator in Trucking Can Contact Us for Startup Financing Advice
Are you an owner operator ready to get your startup trucking company off the ground? If so, our organization is here to assist. Our trucking industry experts are standing by to give you more financing information. All you've got to do is pick up the phone and give our company a call. Or, you can email us or message us on this website. Our team can do more than tell you how to start a trucking business with no money. Instead, we can guide you step by step through the entire financing process. We look forward to helping your new trucking business succeed. You might also want to check: Trucking Authority Packages .