
What Do I Need to Qualify?
Below is a list of the requirements to get approved for business funding with our most basic program. There may be additional factors that are considered, meeting these three requirements though gives you a very high chance of having your application approved.
- At Least 3 Months in Business
- 530 Min. Credit Score
- $10,000 Min. Monthly Revenue
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at
OR
Submit your online application by clicking apply below and entering a few basic details about your business.
Types of Business Loans Available
While you can take out auto and truck loans for your large vehicles, you will need capital for other aspects of running and growing your business. The type of loan that will best suit your needs will depend upon what you intend to use its proceeds for, but these are some suggestions of loans for moving companies.
1. Working Capital Loan
Working capital is the amount of money that you have to “work” with on a daily basis. These are the funds you can use to cover day to day operations such as rent, utilities, and payroll. To calculate your working capital, subtract your current liabilities from your current assets.
Terms for working capital loans can last from one to three years, so you can use them to cover cash flow issues while just getting started. When making lending decisions, lenders consider factors such as your credit score, time in business, and monthly revenues. If the loan will be outstanding for a longer period, the lender has more risk that it will not be repaid. Therefore the minimum credit score required for a working capital loan is 650. Your business must generate $10,000 a month in revenues, but you are only required to have been in business for two months.
Interest rates vary, but with an alternative lender, you can expect to pay between 9% to 45%. The interest rate you are charged reflects your risk, so raising either your credit score or revenues or both, will lead to a lower rate.
2. Merchant Cash Advance
While banks offer small business loans, they are notoriously difficult when working with small businesses. They do not lend unless a business has been operating for over two years, has strong and steady cash flows and growth, and the small business owner has an excellent credit score. This meant that the marketplace was not serving many borrowers, so alternative lenders stepped in to fill the gap.
Alternative lenders offer merchant cash advances. This is a great way to access money when a bank loan iss off the table. All that is required is that the company is generating revenue for 2 months or more and the company processes credit cards and debit cards.
If you only needed a small amount of capital, say to cover rent for a few months or pay for repairs on a truck, you can borrow as little as $5,000. MCA’s have flexible repayment terms and borrowers can structure payments to align with their business’ cash flow, which is great for the ups and downs of a moving company.
3. Short Term Business Loan
Short term business loans help businesses who have a temporary need for capital. While other types of loans may be cheaper and more suited to long-term plans, a short term loan can help out in a pinch.
Short term loans have terms of six to 24 months, making them ideal for covering a cash crunch but not the choice for a long-term expansion plan. Taking out a loan costs you more than just payments and interest, you will also pay application fees, loan processing fees, and more. Therefore, running out of capital and having to take out another loan to complete a larger project is not ideal.
Need to build out warehouse space or add lockers, and you only anticipate the project taking three months? Consider a short term business loan. Rates are between 9% to 45%, and you must have a minimum credit score of 650 to qualify. With Shield Funding, you can borrow between $15,000 to $1 million.
4. Unsecured Business Loans
Lenders simultaneously want to make money when they grant a loan, which can be done by taking on some risk, and yet minimize their risk. One way that they do this is by requiring that you pledge collateral for your loan. Collateral can be assets such as a truck, business savings account, or investment and retirement accounts.
If you have been running your business with rented trucks and vehicles, you may not have any assets to pledge. Pledging personal investment or retirement accounts might feel too risky. If you do not have collateral or do not want to risk collateral you will want to apply for an unsecured business loan.
Unsecured business loans will cost you more, as the lender has far more risk. Interest rates will be between 9% to 45%, and you must have been in business for one year to qualify. Monthly revenues should meet or exceed $10,000, though borrowers can have a credit score as low as 500.
Financial Growth Tips for Moving Companies
Just like moving locations, where you start is not where you want to end up. Whether you have just booked your first move, or have been in business for years, planning for growth ensures that you have a viable business. As well, thinking about how you want to grow will help you define your business and target demographic.
When you are developing your business strategy, think about incorporating some of these tips.
State of the Industry
Costs to Operating a Moving Company
Sell Products and Ancillary Services
If you have ever rented a U-Haul or other truck, you have seen shelves stocked with items in the rental office. Even if people do not use your moving services, selling boxes, and packing tape to walk-in’s can boost your bottom line. Turning some of your office space into a retail area can help your company grow.
Adding services related to moving can also boost your profit margin. Nobody loves packing and disassembling furniture, and many homeowners are happy to pay extra for this service. If you are hired for a corporate move, the company may have already relocated the individual and wants a mover who provides this service. You can also market and provide this service on sites such as Taskrabbit separate from your moving service.
Another ancillary service would be garbage removal and disposal. The person moving may not want to take their old couch with them but cannot fit it into their small car to take to the dump. Charging to pick up and remove large, unwanted items keeps your trucks busy during the off-season or ups the revenue you make from a move.
Do not forget about the other end of the moving process, either. Once in their new abode, the person may not want to put all that furniture back together or unpack boxes. If you have the workforce, you can offer unpacking or furniture assembly services.
Add Storage Space
Form Partnerships
Reach out to local corporations, talk to the managers of large apartment buildings, and make connections that can boost your business.
Corporations frequently sign contracts to partner with one company for all their relocation needs. Whether it is a one-time move or a year-long contract, relocations can happen at any time of the year. Nabbing a corporate contract could help you generate revenue in the off-season.
The property managers of large apartment complexes know when tenants are planning on moving out, sometimes months in advance. Forming relationships with them, perhaps by offering them a finder’s fee or discounts to people in their buildings, can help you build a steady stream of work.
Market your Moving Company
The Final Word on Borrowing and Moving Companies
There are few barriers to entry when starting a moving company. If you can find people to help load, unload, and drive trucks, and rent or buy a truck, you are in business. To build a sustainable, long term enterprise, however, you will have to plan for growth. Growth eventually requires capital.
Loan products help small business owners succeed. Taking out the right loan for the right reason will push your moving company to the next level. If you are ready to grow, reach out to Shield Funding today.
