Traditional lenders — and even SBA-guaranteed loans — often fall short when it comes to addressing the unique needs of truckers.
Trucking finance challenges are real and widespread.
With over a decade of experience in real estate and commercial financing, we’ve seen firsthand how tough it can be for trucking entrepreneurs to access the capital they need. Whether it’s due to inconsistent cash flow, lack of collateral, or a limited credit profile, many truckers hit the same roadblocks time and again.
If you’re navigating the maze of trucking finance challenges, know this: there are alternative solutions tailored to your industry. You just need the right guidance and partners who understand the road you’re on.
1️⃣ High-risk industry: Economic volatility, regulatory hurdles, and stiff competition make lenders cautious about trucking businesses.
2️⃣ Equipment depreciation: Trucks and trailers lose value over time, making it harder for lenders to recover their investments in case of default.
3️⃣ Seasonal cash flow: Fluctuating demand throughout the year can strain cash flow, increasing the risk for lenders.
4️⃣ Regulatory hurdles: Strict regulations add complexity to the lending process, making lenders wary of legal risks.
5️⃣ Industry consolidation: Larger companies gobbling up smaller ones can leave smaller trucking businesses struggling to access financing.
Considering all these factors can make traditional lenders, including SBA lenders more cautious when it comes to lending to trucking companies. The funding for starting and growing your small trucking company remains challenging.
Conclusion: Factoring and Equipment financing is the key sources of funding, as it stands today.