If you’re thinking of starting your own commercial trucking business, there are a few things you need to have in place before you seek funding from a lender. There is undoubtedly a shortage of trucking companies and truck drivers in this company at present, and many entrepreneurs are scrambling to try to fill that gap. Before you start your trucking business, make sure you are actually ready for it by considering the most important factors.
An Excellent Business Plan
Before any traditional lender will seriously consider your application, you need to have a really good business plan in place. You will need to research the competition, and you will need to have a good idea of your particular niche, and the specific clientele you intend to serve. You also need to have solid financial projections prepared that will identify how you intend to make a profit, and how you will manage all your expenses for the first several years.
Strong Business Credit Score
Having a good business credit score is pretty much essential if you expect to secure any kind of financing from a traditional lender. That means it will be necessary for you to have a score of at least 680, although a higher score would be even better. If you have a fairly low business credit score, you can basically forget about getting any kind of traditional lender to advance you a loan, and you would have to turn your attention to alternative lenders.
How Much Funding Do You Require?
Before you embark on your trucking business, make sure you give a good understanding of exactly how many trucks you will need, how many drivers you can secure, and how drivers will be paid. Don’t get caught in the situation where you are guessing at how much funding will be necessary to get your business off the ground. You need to know exactly how much money is needed so that you don’t borrow excessively, and so that you don’t under-anticipate the needs of your new business.
Starting Your Own Trucking Business?
If you’re starting up your own trucking business, you’ll undoubtedly need access to working capital. We may be able to assist you with that at Fast Commercial Money, so contact us today and let us advise you on some options which may be available to you.