The trucking industry is worth over $212 Billion dollars and generates over $791 Billion dollars in revenue. There are over 2 million tractor-trailers on the road. However, there is a driver shortage right now and trucking companies need fast capital. We can offer truckers up to $25,000 the same day.
Trucking companies need working capital on a daily basis to get freight from point A to Point B. Working capital can be used for the basic operations of the company, hiring more drivers, and floating the cost of freight on Net30 terms until the client pays, or even used for fueling the fleet.
However, getting working capital fast as a trucker is another issue. Traditional bank loans can take weeks or months to receive the money. On top of that, you need perfect credit and have to come up with collateral. Read more about the details below for how to get the best cash advance for truckers same day funding approval.
Types Of Loans For Trucking Companies
Finding the right trucking loan for your business doesn’t have to be hard. But, with all the options out there it can be hard finding the one with the best rates, terms, and requirements to get you the money in the fastest and most efficient way possible.
Below are a few options for fast funding that gets approved:
SBA For Trucking
SBA loans are backed by the government, aka our tax dollars, so to be approved for a SBA will most likely get you the best rates and terms and higher loan amounts.
However, you need stellar credit and you will probably need to put up collateral. There are also a lot of restrictions and red tape on how you use the money - and, if approved, you are looking at weeks or months before getting your money.
Traditional Banking Loan
Bank loans, like SBA loans, are going to have a lot of restrictions and right now big banks are only approving around 13% of small businesses who apply. Credit unions fare a little better with a 18% approval rating. Big banks as well as other agencies are also under a lot of scrutiny right now for how they handled the pandemic aka with misallocated funds from PPP and EIDL loans.
Business Cash Advance For Truckers
Unlike Merchant Cash Advances, which are paid back with the trucking company’s future credit card transactions, trucking business cash advances are quickly becoming a better choice for truckers because they are paid back from the general business revenue instead of their credit card transactions.
Business cash advances make up a large portion of the $37 Billion a year alternative lending industry for good reason: banks aren’t lending to small businesses like they used to. In fact, banks only approve 13% of the applicants that come in from small business owners.
Best Funding Options For Truckers
If your business has perfect credit, and your revenue is over $50,000 a month or more, and you can wait weeks or months for the money, an SBA loan might be the best answer.
However, most trucking companies are hurting right now and need money faster. Also, some trucking companies don’t have perfect requirements for a bank loan and need money today where bad credit is accepted.
What Is Cash Advance For Truckers Same Day Funding
The most common loan with the ability to get the money the same day is often called a Merchant Cash Advance. These are not loans but rather cash advances based on your revenue.
Example: if your trucking business generates $10,000 per month, you can probably get up to $7500 advanced to you (75% of your revenue). If you generate more than $20,000 per month and need more than $25,000 - then you can get a loan that is 1 to 2 times your monthly revenue (our other business loan program which you can access on the same site as well, link below).
Business cash advances can be deposited directly into your business checking account and are paid back daily or weekly through ACH withdrawals. Therefore, you need a business checking account and an EIN number to qualify for a BCA.
How Cash Advance For Truckers Same Day Funding Work
Getting fast money for your transport company is closer than you think. Business cash advances are mainly based on your revenue and health of your business checking account.
Within a few minutes, you can view a pre-approval amount and if you agree to the terms, can have the funds deposited into your business checking account by the end of the day.
Many businesses use the money to pay off old debt, expand their business, fix or replace equipment, and invest in advertising to get the word out about their business. What you do with the money is solely up to you.
Rates For Cash Advance For Truckers
Business cash advances do not use regular interest rates, they use factor rates which are easier to understand. If you borrow $20,000 for example and you lock in a factor rate of 1.20, then you would pay back $24,000 total within 30 days. (20,000x1.20)
If you borrowed $40,000 and paid it back completely within 60 days, you would have a factor rate of 1.29 and would pay $51,600 back. The factor rates increase the longer it takes to pay back but the factor ceiling is 1.49.
Our business cash advances terms are typically one year or less, but most common is 4 to 6 months to pay off. Plus, you can draw funds again if you wish. Our factor rates range from 1.19 to 1.49, which are some of the lowest rates in the industry.
Factor Rates For Specific Terms:
1.19 if the advance is paid within 30 days.
1.29 if the advance is paid off within 60 days.
1.49 if the advance is paid off within six months to a year.
How To Apply For Cash Advance For Truckers Same Day Funding
With a couple clicks of the mouse, you can apply for a same day advance and receive the money in most cases the same business day. The requirements for a same-day trucking loan are simple: must be in business six months or more, have a FICO of 450 or higher, and generate $5k per month in business revenue or higher.
No Collateral Needed
Most banks require that you put up collateral, that can be one of your tractors or even your building. With our same day funding, you can rest assured that no liens will be placed on your property or equipment.
Only Need 450 Credit Score
Most banks want you to have a credit score of 700 or higher. With our same day business cash advance we have the lowest required credit score in the industry at 450. Of course, if you have more than 5 NSFs days in your bank in the last three months we might decline you. We also may reduce your loan amount request if you have other outstanding loans.
Only Need Six Months In Business
Most banks require you to have one to five years in business before they even think about lending to you. We only require that you have been in business for six months.
If you have established your business and are already generating $5,000 or more per month, we feel that is sufficient enough of a track record to lend to you. We have the least requirements in the entire lending industry which has enabled us to help hundreds of businesses get the capital they need.
Lower Income Requirements Than Other Trucking Lenders
Most traditional banks require that your truck business makes $100,000 per month or more, then they want collateral and impose restrictions on how you can use the funds.
We only require that you earn $5,000 per month within the last three months of business for the $25,000 same day funding option, and require $20,000 per month revenue for our business loans up to $2 million in the last 4 to 6 months.
Conclusion For Cash Advances For The Trucking Industry
Over 10 million small businesses closed in America in 2020. Many of those businesses won’t ever come back and that is why we are passionate about what we do in 2023. In a few minutes you can see if you qualify for the money needed to save your trucking business. If you apply in the morning, Monday through Friday, chances are good that you can have the funds deposited into your business checking account by the end of the day.
Sincerely,
Erik C. Johnson
DAC #102443305
