Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

How WeCompete Lenders Provided Working Capital Solutions for a Trucking Company

Trucking is one of the most profitable businesses in the USA. It is also one of the most demanding industries. In order to stay competitive, a Trucking or logistics company must have enough working Capital to support its processes. To keep up with the competition, a sizable number of trucks is necessary. The daily need for fuel, payroll and truck maintenance inflates the cost for operations, which in turn increases the need for working capital. Out of necessity, trucking companies often take out several short-term working capital solutions. Problems in cash flow often arises when there is a delay in client payments. When this happens, the company is forced to take out another working capital solution to keep the business rolling. This may pose a problem for the finance officer, who is oftentimes the owner himself, as having too many short-term capital loans can become unmanageable. One of WeCompete Lenders’ recent clients is a regional trucking company that owed $1,000,000 in Merchant Cash Advances. The accounts were unmanageable, varying due dates and repayment terms made it difficult for the company to keep track of its debts. They approached us for a solution and we provided them with working capital that they used to pay off their advances and continuously finance their growing operations. We secured a multimillion-dollar line of credit for them at 1% rate. After paying off their advances, their business grew. Revenue jumped from 12M to 20M within 9 months. The company’s growth became stable. We are working with the merchants again, this time they wish to acquire a local trucking company and add trucks to their fleet. Trucking companies can apply for several working capital solutions for their long-term and short-term needs. Asset-based Loans - This working capital solution is a secured loan and uses business assets to secure working capital. Assets such as invoices, accounts receivables, real estate, and equipment can be monetized to fund operations. Equipment Financing - This works because it will allow trucking companies to purchase new units of equipment or trucks without paying the full amount. The lender will purchase the truck and lease it or sell it to the trucking company for an agreed period. Invoice Financing - The company’s unpaid invoices can be sold to a factoring company or a lender at a lesser price. They do not need to take out a loan, they can just sell the invoices and the lenders get the full price when the clients pay. SBA Loans - The government backs these loans to encourage small businesses to borrow from banks and alternative lenders. To ensure higher approval rates, the government agrees to pay a portion of the loan in the event of a default. Merchant Cash Advance - Those that need immediate financing but cannot get approved because of bad credit score can make use of their revenues. Selling the future receivables of a company can guarantee short-term capital for immediate needs. Trucking and logistics companies can avail of several working capital solutions. The trick is to get the financing options which offers the lowest rates, fastest time for funding and the fewest fees. These are the type of working capital solutions being offered by WeCompete Lenders. Find out more by reaching out to us at  844 516 0633 or at [email protected].



This post first appeared on WeCompete Lenders, please read the originial post: here

Share the post

How WeCompete Lenders Provided Working Capital Solutions for a Trucking Company

×

Subscribe to Wecompete Lenders

Get updates delivered right to your inbox!

Thank you for your subscription

×