Expand Your Transportation Business

The transportation business is very profitable these days and it is always on the move. The business owners know which are the aspects that they need to focus on more to make it grow. However, the problem lies in finding adequate funds to improve those aspects. Without proper funding, you may not be able to improve or expand your transportation business.

However, a business owner like you can easily find some of the small business funding options that are available right now.

Why Do You Need A Loan?

It doesn’t matter whether you are expanding your transportation business or planning to start one, you may need additional funding to make it happen. When compared to expanding your transportation business, starting one is costlier because you need to buy reliable vehicles that represent your company well.

Sometimes you may need funds for the maintenance and repair of old vehicles. Business owners also look for funds when their current cash flow does not cover their daily operating costs. You will also have to find adequate funding to hire new employees and ensure quick and quality service to the customers.

Will You Get A Bank Loan?

Due to the recession of 2008, banks are not 100% ready to offer loans for small businesses because they consider them as a risk. According to many business websites, the new stringent criteria for loan approval also made it difficult for many business owners to find a loan from a bank. That is why many transportation business owners are looking for alternative funding options.

Small Business Association

If the bank rejected your loan proposal, the next option you have is the Small Business Association (SBA). We are not saying that you will get a loan from SBA, and the process is complicated. Just like banks, you have to fulfill a lot of criteria to get a business loan from SBA. If the SBA approves your loan application, you will be connected to a partner lender. Just like a bank, here also you have to submit a lot of documentation and should have a good credit score to get a loan.

It will take almost 60-90 days to complete the whole approval process and you will have to submit a detailed business plan along with your proposal. It should also include your marketing plan, a list of competitors, an overview of your business, tax returns, and other bank records. If you do not have a good credit score, chances of not getting the loan are high. You may also have to submit valuable collateral.

Alternative Lenders

Loans For Small Businesses

Most business owners, if they are rejected by the bank and SBA, go to alternative lenders for funding. Since they do not look at the credit score but the overall health of your business, getting a loan from alternative lenders is pretty easy. It is the perfect option if you are looking for fast cash because you will get the fund within days and with limited documentation.

Most of the alternative lenders offer an online application, which makes the process easier and quicker when compared to other funding options. An alternative lending option gives you flexibility in repaying the debt and you do not have to worry about your credit score because it is not a focus point in the loan approval.

Business Line Of Credit

Most of the transportation business owners are looking for a business line of credit because it is a much easier option. With this lending option, you only need to borrow what you need and the interest rate depends on the money you borrowed. It has a lower interest rate than credit cards and is a good funding option because it does not require any collateral.

Conclusion

If you need to know about more funding options, contact Building Block Capital immediately.