Trucking Business Loans
Drive your business forward with the right financing.
The commercial trucking industry is responsible for moving products across the United States. Smart business owners take advantage of the increasing demand for trucking services by expanding their operations. But running a successful trucking business involves many working parts: hiring competent drivers, having a fleet of trucks, and a loyal customer base.
Commercial trucking companies need a steady stream of working capital to keep up with the competition and continue moving forward.
A trucking business loan is a valuable resource every commercial trucking business owner needs. At 1West, we love seeing businesses thrive in their industry, so we make sure to provide them with the funds needed to grow and expand.
How to Use Your Trucking Business Loan
There are many different ways you can use your trucking business loan. To give you an idea, here are some of the most common uses:
Hire Additional Drivers
You wouldn’t have a trucking business without truck drivers. However, you’ll need to spend some before you can hire drivers. For instance, you might need to pay for a recruiter or spend money to post ads on job sites. You also need to pay for permits, insurance, licenses, training, and other expenses associated with onboarding. You may also need to allot money for personal equipment and uniforms.
These costs can be expensive when paid upfront, but your company will benefit from having more drivers. A commercial truck business loan can pay for these expenses, so you don’t have to dip into your working capital.
Add More Trucks
Commercial truck companies with more trucks potentially earn a greater return on investment. Larger companies can also save on shipping per mile, permits, insurance, equipment, fuel, tolls, and more.
A limited number of trucks may cause you to turn own projects, which can ultimately hurt your bottom line. Expanding your fleet allows you to take on more clients, increasing your revenue and establishing your business. Adding more trucks and growing your business as early as possible is essential if you want to compete with larger companies.
Cover Day-to-Day Costs
Fuel, maintenance, insurance premiums, financing payments, and tolls are some of the most common costs incurred by trucking companies. You can use the funds from a trucking business loan to pay for these expenses.
Save on Supplies and Materials
In most cases, buying larger quantities of the necessary supplies and materials can help save you more money. Saving on marginal expenses is one of the most effective ways to increase your bottom line. Using the funds from a trucking business loan, you can take advantage of bulk discounts and purchase much-needed inventory for your business, such as lights, tires, and other equipment in bulk.
Why Choose 1West?
As a provider of commercial trucks, you know that securing additional financing to fund daily and major purchases isn’t a walk in the park. Traditional lenders like banks and credit unions are hesitant to lend money to small trucking businesses for several reasons, including lack of business and credit history or collateral.
1West is committed to providing truckers the right financing for their business. You don’t have to submit mountains of paperwork or wait for weeks for approval.
Quick Access to Working Capital
We understand that small business financing is hard to come by, so we make it a point to help grow your business by giving you instant access to working capital. We partner with more than 50 lenders in our marketplace to help you secure the right loan for your trucking business. Once approved, you’ll receive the funds within 24 to 48 hours.
At 1West, we promise full transparency. You always know where you stand with us – no surprises.
How to Apply for Trucking Financing with 1West
We make it simple.
Create an account. Everything is fully automated.
Choose a loan that’s best for your business. We understand that this process can be overwhelming, given the number of options available. You can use our product wizard to help you decide on a loan!
Apply and compare loans. We submit your application to our lending partners. You may receive multiple offers from more than 50 lenders. Our lending experts can help you compare your options and apply for a loan to help you pick the best one.
Trucking Business Loan Options for You
Business Line of Credit
Trucking business owners are all too familiar with the variable expenses that make budgeting a challenge. A business line of credit gives you the flexibility to borrow money as needed to accommodate these ever-changing expenses.
Many business owners use a line of credit as a financial safety net in times of emergencies. Here’s how it works: Once approved, lenders assign you a predetermined credit limit where you can withdraw funds at any time, given that you don’t go over the limit. Unlike traditional loans, you don’t have to repay the entire credit limit, but only for the amount you’ve withdrawn plus interest. The lender determines your credit limit by looking at the following factors: market value, profitability, credit score, and risk level.
Unsecured Business Loans
Unsecured business loans for restaurants are some of the best loans for business owners with a good
An unsecured business loan is another great business loan option for trucking companies. As the name suggests, unsecured loans don’t require collateral, placing most of the risk on the lender. Borrowers with high credit scores are likely to qualify for one.
You can use the funds for almost any business purpose: payroll, equipment purchases, expansion, or day-to-day expenses. Qualifying for an unsecured loan is typically more difficult, but if you get one, this usually means that it’s easier for you to qualify for other loans.
Trucking companies heavily depend on the vehicle and equipment it uses. The most common equipment is the trucks, but business owners need other equipment to operate, including:
- Trailers: refrigerated trailers, flatbeds, dry vans, auto transport trailers, etc.
- Specialized trailers to transport liquids and other toxic materials
- Computers, laptops, and other technological equipment
- Vehicle jack
If you’re planning to open an office anytime soon, you can also use equipment financing to purchase furniture and fixtures.
Having the latest equipment and technology is necessary to remain competitive in a cutthroat industry. But purchasing them upfront can cause a dent in your working capital.
Equipment financing is the ideal loan product for business owners who need to purchase or lease equipment or commercial trucks. It’s easy to qualify for equipment financing since the equipment you’re looking to buy serves as collateral for the loan. However, remember that the lender has the right to repossess if you default on the loan.
Restaurants rely on heavy-duty kitchen equipment to serve their customers. When a valuable piece of
Use your unpaid invoices to secure additional working capital. Invoice factoring is a financing option that allows business owners to sell their outstanding invoices to lenders at a discount in exchange for immediate financing. Lenders often give you 80% to 90% of the total invoice value upfront. The remaining percentage will be given once your customers paid their dues, minus a factoring fee.
Invoice factoring is a great option for companies with a lot of pending invoices that affect their cash flow. You can use the money to fund almost any purpose as long as it benefits your trucking company. It’s easy to qualify for invoice factoring as it has lower revenue, time in business, and credit score requirements.
Use your unpaid invoices to secure additional working capital. Invoice factoring is a financing option that allows business owners to sell their outstanding invoices to lenders at a discount in exchange for
The Small Business Administration (SBA) created SBA loans to help small businesses qualify for financing. They incentivize lenders to approve small business loans by guaranteeing up to 85% of the entire loan amount. This means that lenders will still get paid a portion of the loan even if you’re unable to repay it.
SBA loans are the most sought-after loans for small businesses as it offers lower interest rates, longer repayment terms, and higher loan amount compared to other loans. You can use the money to purchase another business, equipment, trucks, commercial real estate, and more.
However, remember that you need to prove that you are a strong borrower to qualify and the underwriting process often takes about a month.
How to Compare and Drive Your Business Forward with Trucking Business Loans
Entrepreneurs create 1West for entrepreneurs. We’re committed to helping your trucking business obtain the financing it needs to succeed.
We believe that access to additional working capital should not be complicated. At 1West, we provide financing based on the strength of your business – not your personal credit score. We use the latest technology to simplify the entire experience, allowing us to approve applications quicker.
Your business comes first.
We help you through the whole process.
You don’t have to go through it alone.
Call us anytime (888) 881-WEST
Monday – Friday | 9am – 6pm
FAQs (Frequently Asked Questions)
Can you get a loan to start a trucking company?
- With financing, such as commercial truck loans, you can start a trucking company even without cash on hand. After all, it’s impossible to make deliveries or transport goods if you don’t have a fleet that’s ready to go. These funding solutions can help bridge the gap when you lack the capital to start your trucking company on your own at the moment.
- The great thing about them is that they function as equipment loans. Equipment loans use the underlying truck you are financing as collateral for the loan.
Can You Get a Trucking Business Loan with Bad Credit?
- Credit scores are taken into account when lenders consider your application for trucking loans, but they aren’t the be-all, end-all. If you do well in other categories, such as revenue, collateral, outstanding business debt, credit history, and years in business, they’re likely to make up for your weak credit score.
- A solid business plan showing how your new capital expenses will boost profit and revenue also helps a great deal.
Can you get an SBA loan to start a trucking business?
- Yes, getting an SBA loan to start your trucking company is possible. Start-ups are particularly well-suited for SBA microloans — if your trucking company counts as a microbusiness and SBA Community Advantage Loans if you have a small business in underserved markets.