“We’re sorry but due to the high risk nature of your business we cannot provide you financing.” This is what most trucking company owners receive from their bank when trying to get commercial trucking financing. An understanding of this business sector is what sets alternative lenders apart from traditional banks and credit unions.
Having the insight to the trucking industry is what enables alternative lenders, like Small Business Funding, to provide commercial trucking financing. Proper maintenance, upgrades, training of drivers, training of support personel, and working capital specific to the trucking industry plays into the underwriting of a loan. While many banks simply look at profit and loss statements (which are important), alternative financing sources place much more importance on the performance of the business and its nuances. An understanding of code enforcement, rules and regulations that can affect profitability for this industry are scored accordingly when underwriting. Knowing what repairs costs as well as parts to keep trucks on the road is imperative. It gives the lenders an idea of how a loan will or can be used and whether or not the amount the merchant is requesting will suffice. There is no use requesting an amount that won’t fulfill the needs of the company. A lender with the know how can be a great partner to have when requesting commercial trucking financing.
Knowing how long supplies last and fast they wear will allow both the lender and the business owner determine future financing needs as well. Trucking companies that transport primarily in the upper north east will go through three times as many tires than a company that primarily transports in the south west. Little nuances like these will tell the lender that “hey, they will need more money than what they are asking for.” Small Business Funding has relationships with alternative lenders who have an expertise in commercial trucking financing and will negotiate and work with them the get the very best rate and term for the trucking owner. To see how much commercial trucking financing you can receive please click here.