Each Loan option offers different services. Before picking a Loan provider, consider
The interest rateRepayment termsAmount of the loan.
Some Loans are best for
Equipment financingShort-term trucking business financingWorking capital.
Consider all these before choosing your Loan provider. Some of the owner-operator startup Loan providers are:
LendioBluevineOndeckSmartbizFundboxSouth End CapitalCrestmont Capital
Lendio
When you provide your information to them, they match you up with lenders, compare all the options, and finally present to you the best option. Lendio provides short-term Loans, startup Loans, SBA Loans, etc. However, fund disbursement may take up to 4 weeks. To take a Loan from Lendio, you must have a minimum credit score of 560. An owner-operator can borrow up to $500,000 from Lendio, with a repayment period of 24 months.
Bluevine
The credit limit Bluevine has is $250,000 and this can be used for any need in the trucking business. It can be used for equipment purchases, emergency repairs, operational cost capital, etc. Their Interest rate is from 0. 3% to 6. 5%. It depends on the length of time for repayment and your creditworthiness. A credit score of 600 is the least credit score to qualify for a Loan at Bluevine. In addition, the business must be at least 6 months old and generate monthly revenue of $10,000 minimum.
Ondeck
Ondeck provides Loans for equipment purchases and Lines of Credit for operational costs. The Lines of Credit Loans are up to $100,000 but have a short repayment period of 12 months. The Loan for equipment purchase, called a term Loan, is up to $250,00. The repayment period is 18 months. A minimum credit score of 600 is required to qualify for this Loan. The owner-operator company must have been operating for a year before a Loan application can be granted.
Smartbiz
Smartbiz collects your information and connects you with banks and non-bank lenders for a Small Business Administration (SBA) Loan. The application can be easily done on their website to secure the funding you need. Funds can be up to $5 million. The Interest rate is low the and repayment period is long. The Loan received can be used for a variety of reasons like business expansion, credit for operational costs, equipment purchase, etc. Fund disbursement can be done within 7 days but it may also be longer than that.
Fundbox
Fundbox is often used by trucking business owners who have bad credit. Funding can be up to $150,000 and can be used to cover any expenses within the business. To qualify for a Loan at Fundbox, you need to have a minimum credit score of 600 and annual revenue of $100,000. Documents from your bank showing business transaction history also need to be submitted.
South End Capital
This is best for equipment financing and SBA Loans. South End Capital can give up to $5 million to borrowers with a minimum credit score of 650They have a long repayment period, which can be up to 10 yearsFor an owner-operator, relevant industry experience is required before the Loan application can be approved
Crestmont Capital
Crestmont Capital is best used for equipment financing. They provide both Loans and leases to trucking businessesThe maximum loan amount at Crestmont Capital is $2 million, with a repayment period of 10 yearsThe minimum credit score to qualify for a loan is as low as 500
Tips for Getting a Trucking Loan
Always separate your business account from any personal account. This is because some lenders will request for business bank statement before disbursing funds. It is good to have a good credit score when applying for a trucking Loan. Always pay your bills on time to improve your score. Cut off unnecessary expenses. Lenders will use it to determine your repayment ability.
Conclusion
Depending on what you need a trucking Loan for – equipment purchase, expansion, credit for operational cost, ensure you apply for a loan that suits your need. Also consider the repayment period, Interest rate, credit score, and other essentials before making your choice.
Can Loans be gotten with bad credit?
Yes. There are Loan options that lend to people with bad credit, e.g., Fundbox.
Is there a penalty for payment default?
Yes. Trucks may be seized as a form of penalty.
