Currently, large construction companies are poised for growth across the country. New construction projects in big metro areas like NYC and Dallas, infrastructure contracts, repair, and…
The trucking industry is in a very unique position right now. The economy is strong, businesses are relying less on rail freight to move goods, and fleet owners are calling the shots on customer contracts. At the same time, the trucking industry needs to fill job vacancies and have trucks available to carry capacity loads across the country. Finding financing solutions during a period of economic growth can be challenging, especially when trucking companies want to avoid debt.
Traditional Loans Prevent Growth
Traditional loans work on the same rule for all industries, even trucking. Fleet owners take on debt in exchange for funding. Over the next few years, the balance of the loan will take out a large portion of revenue plus interest. The debt can easily keep fleets from reaping the rewards of expansion, as overhead costs increase along with payroll, insurance, and now liabilities from bank loans. What the trucking industry needs is a way to access an extra source of working capital without the strings and red tape associated with loans.
A Better Option for the Trucking Industry
Fleets of all sizes can leverage their assets to create a revolving business line of credit which can be used to finance growth projects. Asset based lines of credit use the value of things such as facilities, machinery, vehicles, receivables, and more to provide financing which can be a used as needed, instead of one lump sum with debt in tow. Asset based lines of credit do not place any debt on the books. Just like other revolving lines of credit, fleet owners can use the capital for anything they need, and then repay the balance, which replenishes the amount available. Fleet owners can use the line of credit to hire more drivers, acquire more trucks and equipment, launch advertising campaigns, and even pay down existing debt. The best thing about asset based lines of credit is that as the fleet grows, the amount of financing available will also increase.
Start Growing Your Fleet
If you want to grow your fleet and get a larger market share of the trucking industry, contact the team at CNH Finance. We will work with you to create an asset based line of credit tailored to your needs, so you don’t miss out on any lucrative opportunities during this period of economic growth.