The trucking business in the United States is worth over $700 billion, and more than 70% of the country’s freight movement takes place on trucks. This critical industry is almost entirely driven by small businesses since over 91% of fleets comprise six or fewer trucks. If you run a trucking business, you would know that the overheads can be quite high, especially when you consider the frequent servicing that the trucks have to go through. It is easy to see that the wear and tear of trucks are quite high, reflected in frequent breakdowns as the trucks get older. You cannot handle such overheads without hassle-free trucking funding in Florida or any other place.
The problem with easy funding for your trucking operation is that banks and other mainstream lenders find some or other excuse not to fund small businesses. Since most trucking operations are small, business funding near Florida from mainstream lenders is a major problem. The other major issue is that on most occasions, trucks need quick and easy funding since it is normally related to a vehicle breakdown. If your truck is stranded on the highway after a breakdown, and the cost of repairs is higher than what you can afford, you will need quick funding to get it back in operation.
The trucking business is capital intensive
Trucks are essentially heavy-duty haulage equipment, and they traverse enormous distances known as ‘land bridges’ in shipping jargon. The cost of fuel aside, you have to be ready for breakdowns anywhere on the truck’s route and subsequent cost of repairs. Only alternative funding can meet such costs on priority.
At the same time, your truck would be carrying the cargo of one or more recipients, who probably need his/her shipment at the earliest. Delays due to truck breakdown can get a client started and demand compensation, which they may adjust from your payment. Fast alternative business funding can ensure quick repair of your truck and prevent a bigger loss.
Longer payment timelines make it a difficult operation
After bearing the high cost of operation, you would expect a fast release of your payment from the client, but that is not to be. The payment deadlines in the trucking industry can be as long as 30-45 days. Unless there are fast business funding solutions, you will find it very difficult to meet operational expenses.
For the most part, operational expenses are paid on time, keep your trucks moving. These include the cost of fuel, maintenance and repairs, and of course, wages of your drivers. Each one of these factors is critical for your business, and you would need some unique funding solutions in Florida to overcome this challenge.
What are your funding options from alternative lenders?
When you apply for alternative business loans, you have several funding options depending on your need and eligibility. Businesses with long payment timelines like yours can apply for funds based on invoice factoring wherein the value of your unpaid invoice is leveraged to extend a line of credit to you.
When your client pays the pending invoice amount, which was factored to extend the small business funding, the loan repayment along with the cost of borrowing is adjusted from this amount. This is one mode of funding that is available to you as a trucking business; there are many others that you could choose.
Looking for Business funding in Florida? Visit https://www.altfunding.com/locations/florida/