Overhead costs make up a large part of every trucking company. From maintenance and fuel to buying the trucks themselves, monthly operations can be very costly. The cost of repairs can also add up fast. Fortunately, there are many financing options available today for trucking companies who need help covering costs and fueling growth.
Top Reasons Trucking Companies Need Financing
Commercial trucks get a lot of use and experience a lot of wear and tear during the week. Driving thousands of miles makes regular, ongoing maintenance a necessity, not an option. But even the most diligent maintenance schedule can’t prevent all expensive repairs. Eventually, trucks will need major repairs to stay safe out on the road and avoid costly downtime.
One of the leading causes of accidents with semi-trucks is brakes overheating or wearing out. Once trucks have put some long distances in and have high mileage, the risk of the engine overheating is greater. Starters cause major problems, especially during the colder months. Because they carry such a heavy burden, U-joints and wheel bearings always need to be checked too. These are just a few of the reasons why companies might need truck repair financing.
Repair Costs Can Cause A Strain for Trucking Companies
Running a successful trucking company requires working capital – lots of it. The working capital to cover costs, however, primarily comes from shipments for customers. These invoices have aging periods of 30 days or longer, which creates a big cash flow gap. Waiting on customers to finally send their payment can cause a big financial strain; this is where having a financing solution on standby makes a huge difference.
The Benefits of Getting Truck Repair Loans
Regardless of your business size, truck repair loans can help your business in many ways. Beyond financing repair costs, you will have the flexibility to minimize cash flow gaps, fuel growth, expand your business, and even set aside a cushion of cash. Truck repair loans can even help you in the future. Paying off a small business loan will build credit for your business, increasing your chances to secure more financing if you need it down the road.
How to Choose the Right Type of Financing
There are several types of truck repair financing to choose from today. Finding the right options is key for your immediate cash flow needs and the long-term financial health of your company. Traditional financing options involve complicated contracts, strict requirements, and long wait times. Alternative financing opinions, on the other hand, can help you secure cash quickly, with same or next-day approval.
For example, you can get approved for Online Personal Loans with bad credit in less than 72 hours. No tax returns or financials are required, and the money is available almost immediately. The bottom line: make sure the financing you choose provides the cash you need when you need it most and is offered by a provider that has years of experience in helping your business type and industry.