If there is any major industry with an overwhelming ownership of small businesses in the United States, it is the trucking industry. More than 91% of the trucking businesses in the country are owned by operators with 6 or less trucks. On the other hand, trucking is an industry worth $700 billion, and plays a very important role in keeping America in motion. Trucks account for as much as 70% of all the freight movement across the country and beyond and that is crucial. The industry is dominated by small businesses because it is a capital intensive business where things can get out of hand in big operations. That explains why big businesses with huge fleets haven’t succeeded in this industry. However, these small businesses face difficulties in getting trucking funding from traditional lenders.
High cost of operations in trucking
Like most capital equipment, trucks also need continuous maintenance which costs a lot of money. The other important expenditure is the cost of tires that also need to be replaced frequently. All this requires fast and easy equipment funding from lenders who are reliable and understand your business.
Truck operations are frequently beset with breakdowns that have a ripple effect on the entire fleet. If you don’t have ready cash in hand, there is usually a lot to pay for, over and above the cost of repairs. The customers whose cargo gets delayed in the process will also seek some kind of compensation. Managing such situations require unique funding solutions.
Most trucking operations are small businesses
Considering the amount of close monitoring that is required in ensuring smooth operations of your trucking business, it is near impossible for huge fleets to run smoothly. Only small fleets managed by folks who know the industry inside out, can keep the costs down because they remain close to their fleet. They are also smart enough to access alternative funding.
Another problem that truckers face is the long payment timeline of 30-45 days. Businesses with low operating costs and decent cash surpluses can manage such situations to some extent but trucking operations will need smart US business funding solutions to manage such situations. Without that kind of bank-rolling they will find it very difficult to sustain operations normally.
No chance of funding from traditional lenders
Trucking operations are classified as ‘high risk’ by the traditional lenders but actually it is the small size of such businesses that these lenders consider before denying them credit. Most truckers understand that and they also don’t waste their precious time seeking credit from such unwilling lenders. They apply for business funding to alternative lenders who offer hassle-free and unsecured credit on very easy terms.
If your trucking business has an urgent cash requirement and you just have a couple of days at hand to get the money, apply for funding to an alternative lender. They will require you to provide them with your bank account statement for at least one year along with a few other documents that do not include any collateral to cover your debt. Neither will they check your credit history; all they are interested in is your cash flow to make sure you can repay the loan.