Transportation Business Loans
Immediate Business Funding For Trucking Companies
Shield Funding has been securing small business loans for truckers and trucking company owners for more than a decade. If you are looking to improve or expand your transportation business we offer competitive rates and flexible terms for all types of borrowers. If you have bad credit or do not qualify for traditional financing we are your trusted loan resource.
TRUCKING SMALL BUSINESS LOANS
|Estimated Business Loan Term||2 to 18+ Months|
|Rates||12% to 45%*|
|Time in Business Required||2 Months|
|Min Credit Score Require||500|
|Min Monthly Deposits Required||5|
|Min Monthly Revenues||$8,000|
|Min Business Loan Amount||$5,000|
|Max Business Loan Amount||$1,000,000|
|Max Number of Negative Days||3 Within a Month|
|*rates depend on funding duration|
Small Business Funding for Transportation Companies
The transportation industry is the unsung hero of the American economy. And Shield Funding has been offering small business loans for trucking services for over a decade. No matter what kind of loan you need, we’re here to help.
Because we know that running a trucking service is hard. It requires significant investments in labor, equipment, and logistics. Lots of things can go wrong.
But it’s an absolutely essential part of our economy. And we’re here to support you. Whether you need a business loan to buy a new truck, cover payroll for a month, or expand your business across the country, we can help.
What Do I Need to Qualify?
Below is a list of the requirements needed to get approved for funding with our most basic program. Although in some cases there are many additional factors that may be considered, meeting these three requirements gives you a very high chance of having your application approved.
- At Least 2 Months in Business
- 500 Min. Credit Score
- $8,000 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 (888) 882-6117
Submit your online application by clicking apply below and entering a few basic details about your business.
We understand that there are many different reasons to acquire business funding, whether it is growth or expansion, or just maintaining existing debt, we offer a variety of small business loans to help meet your needs. Here are a few of the business loans we offer to help transportation services:
The term loan is the backbone of business funding. You get a lump sum up front and pay it back in installments over up to three years. And we offer loans of up to $1,000,000. So you can buy a new truck—or five—and outfit it with the trailers and equipment it needs to drive more revenue for your company.
Or you might take a smaller loan to do some maintenance. You can use these funds for any business expense. Of which there are many in the trucking industry.
As an alternative lender, we can offer you better terms than any bank. Our interest rates are as low as 5%. And our qualification requirements aren’t as stringent: if you’ve been in business for two months and bring in $8,000 in monthly revenue, you can qualify.
You don’t have to worry about bad credit, either. We understand that people make mistakes—but that doesn’t mean they aren’t qualified for a loan. Whether you’re just getting started or you’ve taken a hit to your credit in the past, we’ll still work with you.
As long as your credit score is 500 or above, you can qualify for one of our bad credit business loans. There’s no way you’d qualify for a loan from a traditional lender with a score of 500.
And you can still get interest rates as low as 12%, so you don’t need to worry about getting ripped off.
Traditional lenders require that you put up collateral when you take a loan. That means you’re risking your trucks, equipment, or even your business itself if you can’t pay a loan on time. We don’t think that’s a good way to do business.
So we offer unsecured loans. You don’t have to offer any collateral. So you don’t need to feel like you’re risking your business.
Our unsecured loans go up to $1,000,000 over terms of 2–36 months. We work with borrowers with bad credit, too—as long as your score is over 500, you’ve been in business for two months, and you bring in at least $10,000 every month.
And you can still get an interest rate as low as 9% on an unsecured loan.
Because transportation services have so many recurring costs, a business line of credit can be a great tool. You can think of it a bit like a credit card: you get a certain amount of money that you can use for your business whenever you’d like.
Once you make a purchase using your line of credit, you’ll pay it back over a few months (or as soon as you bring in enough revenue to be able to afford it).
But the interest rate on a line of credit is significantly lower than that on a business credit card. Our lines of credit have interest rates as low as 5%. If you’ve been in business for six months, have a credit rating of 650 or higher, and bring in $10,000 every month, you can qualify.
This is a great solution for those day-to-day expenses that you need to cover in the trucking industry.
So what might you use these loans for?
Here are some business financing tips for using your small business loans for trucking.
A commercial truck can consume $70,000 in diesel fuel every year. If you have a handful of trucks in your service, that can easily add up to a quarter—or even half—of a million dollars. That’s a huge expense.
Your revenue will cover that cost. But if you’re growing your business, you may have to bring on additional vehicles and drivers to move more cargo. That takes fuel, and you might need to pay that cost before you get paid.
That’s where a small business loan comes in. When you add new cabs and trailers, you might preemptively take out a loan to cover their fuel costs. Then you don’t need to worry about running in the red while you’re getting your new fleet up to speed.
And fuel prices are unpredictable. If there’s a big spike in the price of fuel, you may need some help covering the cost until you can roll it into your prices or the price goes back down. Short-term loans from alternative lenders get you your money fast, which is crucial in these situations.
Cabs and Trailers
You’re probably already using your cabs and trailers to their capacity. To grow your business, you’ll need to add more. The average class 8 truck costs $120,000. That puts a big dent in your bank account.
And unless you have a ton of cash on hand, you’ll need a business loan to cover the cost of that. (You can also hire owner-operators who bring their tractors with them to obviate the need for this funding.)
You’ll need a trailer for each cab, too. That’s another $30,000–$50,000. Again, if you have the cash on hand, you can spend it. But most trucking services, especially when they’re trying to grow, won’t have that much liquid cash.
All of those new vehicles add to your maintenance costs, too.
Commercial trucks put in a huge amount of miles every year; the average semi will cover 45,000 miles. But some can crack the 100,000-mile mark. That puts a lot of wear on expensive parts.
Engine repairs can be over $20,000 alone. Hoses, plastic parts, fenders, and drivetrain parts also need to be maintained. That adds up to an average of $15,000 per year in maintenance costs.
If you have eight trucks in your fleet, that’s $120,000 every year you’ll pay just to keep your trucks on the road.
And don’t forget tires: traveling tens of thousands of miles means you’ll go through several sets of tires for each truck every year. And at around $500 each, you’ll need $8,000 to replace all 16 tires on a single truck and trailer.
Unless you want to put that on a credit card, you might need a small short-term loan. Especially if multiple trucks need new tires at the same time.
Truck driver salaries vary widely—some statistics say that the average driver makes $40,000, while others say that the average is $70,000. And because drivers are usually paid per mile, you may have some drivers that make a lot more than others.
But driver salaries are always going to be one of the biggest expenses for your company. So if you’re trying to grow your business, you’ll need to be ready to invest more in your drivers.
The financial burden of bringing on new drivers can be eased with a short-term business loan. You’ll make all of that money back quickly, but you might need some cash to kickstart the process.
Are you trying to pay for any of these expenses? Or considering growing your transportation service? Give us a call today and we’ll help find the best short term business loan product to meet your needs.