If you own a trucking or transportation business, you already know that operating a company in this industry requires strategy, planning, and the right tools. Small Business Administration (SBA) loans offer favorable terms and flexible use. Transportation companies may be a great fit for this type of financing.
With that in mind, SBA loans for trucking and transportation businesses can be a smart next step if your operation is profitable and you want to expand, lease a new facility, or make an investment.
Why SBA Loans Are a Good Fit for Trucking Companies
SBA loans are flexible and affordable, which makes them attractive to transportation companies. With a portion of the loan guaranteed by the SBA, lenders have less risk. Small businesses can therefore qualify for larger loans and better terms.
These loans are advantageous for small businesses for many reasons, including:
- Low down payments (sometimes zero down payment!)
- Long repayment terms
- Flexible use of the proceeds
- Competitive interest rates
How To Use an SBA Loan
SBA loans can cover nearly any expense your transportation business needs to operate efficiently and grow. The flexibility this kind of funding offers is one reason why SBA financing options for trucking companies are advantageous. You could use the loan to:
- Purchase or upgrade trucks and trailers
- Manage ongoing expenses, such as fuel and insurance
- Lease or buy a new facility
- Bridge the gap with unexpected repairs and day-to-day jobs
For example, a company with five trucks wants to take on a new contract that requires three additional vehicles. An SBA loan would allow the business owner to purchase the new trucks, hire more drivers, and lease a second lot.
Qualifying and Determining the Best Loan Program
To qualify for an SBA loan as a transportation company, your business must meet several standards, such as:
- Demonstrate an ability to repay the loan
- Maintain a good business credit history and credit score
- Meet SBA size standards (most trucking companies do!)
The most important factors are cash flow and good credit.
The SBA 7(a) and 504 programs are the most popular. You can borrow up to $5M with an SBA 7(a) loan, ideal for working capital, refinancing, and more. The SBA 504 loan is best for purchasing land, buildings, or large pieces of equipment.
Work With BFG To Pursue an SBA Loan for Your Trucking Company
Business Funding Group LLC (BFG) is a professional loan packaging firm that focuses on helping small transportation businesses such as yours secure SBA financing without the uncertainty. We could guide you through the process and ensure you complete the steps properly.
Working with BFG is easy because we understand the transportation industry. We provide help and explanations through every step, and we do not charge any fees unless you close on a loan!
SBA loans for trucking and transportation businesses are designed to scale your operations, invest in better equipment, and keep your business running smoothly. You do not have to figure it all out on your own. At BFG, we are experts in SBA loan packaging and are ready to help your business grow!
We can assess how much you could qualify for and what loan options make the most sense for you. Give us a call or fill out our short online application.
(917) 593-5013