Even though our country has come through a difficult economic recession, more people are not buying locally, but are choosing to be budget-conscious and purchase more items online. These online cost savings are passed directly to consumers via inexpensive shipping rates, but have caused a truck and commercial transportation surge.
To see the shortage of truck drivers, one only needs to browse the local want ads in the newspaper or on Craig’s List. Estimates show that the current economy is experiencing shortages of up to 20,000 truck drivers. The American Trucking Association believes this demand will continue to increase by more than 30-percent over the next decade.
To help the transportation industry, many loan companies are offering financial solutions to help trucking services capitalize on growth. These services range based on individual financial corporations, but often include capital funds for the following types of services:
- Employing additional or seasonal truck drivers;
- Purchasing new trucking equipment, parts, such as trailers or tractors;
- Covering all daily expenses, such as tolls and fuel costs; and
- Paying all licensing and tax fees.
Transportation industry lenders can also provide working capital loans with quick approval processes, to businesses with poor credit, use capital for business expenses and tailor repayment plans to fit businesses’ cash flow models.
This additional working capital can help trucking companies consolidate their debts, make tax and insurance payments, increase necessary local and nationwide advertising, add additional trucking routes, expand warehouse and vehicle lots, hire more dispatchers and expand overall transportation fleets.
Transportation loans include a wide range of transportation types, including trucking companies, buses, taxis, private car services, limousines, delivery vans and even moving trucks.
Depending upon the type of loan transportation companies select, they can use a Small Business Loan to provide fixed term, fixed payments that are not bound to personal credit ratings. These types of loans generally offer terms that vary from three to 24 months, depending upon financial qualifications.
An additional type of loan is an equipment lease, which varies from 18 to 60 months, offers fixed monthly payments and is a credit-based loan.
By 2016, the trucking and transportation industry anticipates it will exceed $1.2 trillion, which means that companies need to start financially gearing up as soon as possible, or they could risk missing this booming transportation trend.