Trucking companies are one of the few business niches in perpetual demand, and that’s because commercial trucks account for a huge part of the country’s freight traffic. As a result, this line of business can be one of the most accessible to new owners, especially if you are an owner-operator with no employees to worry about. Financing your entry into this kind of work does take the same care and consideration as starting any other business, though. So, what does it take to get the funding you need for a truck and support equipment?

  1. Create a Business Plan

A standard business plan is a must-have for any small business funding, and trucking companies are no exception. To create a plan that will appeal to lenders, you need to document the finances your company has at its disposal, the necessary equipment, key personnel, and the marketing strategy you will use to bring customers to the table. That means laying out concrete plans that acknowledge what resources you already own and which ones the loan will cover. It also means being clear about exactly how you plan to get those first few contracts that will keep you up and running. If you have a job board or another referral service you know you can count on, that should be included here.

  1. Document Your Startup Funds

Business loans for startups from organizations like the Small Business Administration require you to put in a significant amount of your own money to access the funding needed to cover the rest of your operation. For trucking companies, that usually means between $10,000 and $30,000 for an owner-operator looking to purchase a truck and the necessary support equipment to address issues on and off the road. When you apply for business loans, the lender will want proof that you have the funds available before closing.

  1. Include Complete Collateral Lists

The last key component of financing a new freight business is documenting all the assets you will purchase with the new loan. The list needs to be complete and accurate because startup loans typically require you to use the funds exclusively for the assets listed on the collateral sheet. If you are seeking funds more than the cost of acquiring those assets or list the wrong asset values, your application will probably be delayed or even rejected. The good news? You can resubmit your application with corrected information if that happens.

Seek Expert Assistance

BMF Advisors is a best-in-class commercial capital and insurance advisory firm. We leverage our decades of experience providing advice, guidance, and expertise to craft financial solutions for small to medium size businesses and investors throughout the U.S. Contact us today!