SBA Financing for a Trucking Company
The trucking industry is booming right now. Despite the recent pandemic, there is an endless demand for trucking and long-distance freight trucking. As such, now is a great time to buy, sell, or expand a trucking business. However, if you don’t have the funding it can be hard to do so. That is where SBA loans for trucking companies come in. There are many options for SBA financing for a trucking company. Below we detail what some of the opportunities are for trucking companies and SBA loans.
As a business appraiser, Peak Business Valuation works with SBA lenders across the country. We are happy to connect you with SBA lenders who provide SBA financing for trucking companies. Peak specializes in providing business valuations for trucking companies. To get started with either need, schedule your free consultation using the link below.
SBA Loans for Buying a Trucking Company
If you are looking to purchase a trucking company, the SBA 7a loan is one of the best options out there. With a down payment of as little as 10 percent, it becomes very affordable to buy a trucking company. SBA loans come with many other benefits as well such as low-interest rates and long repayment terms. There are many SBA lenders who are happy to provide SBA loans for buying a trucking company.
Peak Business Valuation, business appraiser, would love to help you in the process of buying a trucking company. Obtaining a business valuation prior to buying a company is an important part of the due diligence process. Often, an SBA lender can pre-order the business valuation for the SBA loan and provide it to the buyer before they negotiate a purchase price. If you are seeking SBA financing for a trucking company – specifically buying a trucking company – Peak is happy to help. Schedule your free consultation to learn more about business valuations for buying a trucking company and SBA loans for trucking companies.
Purchasing Truck Fleet with an SBA Loan
Purchasing semi-trailers or starting a truck fleet can be one of the largest costs for a trucking company. Whether you are starting a trucking company or buying a trucking company, the fleet can amount to a significant cost. As such, an SBA 7a equipment loan can be very beneficial. SBA 7a equipment loans for a trucking company come with up to 10-year terms. This makes the SBA 7a equipment loan a great option for trucking companies looking to purchase a truck fleet or expand a fleet of semi-trailers.
Expanding a Trucking Company with an SBA Loan
An SBA 7a loan is a great option for one-truck operations to trucking companies with fleets of semi-trailers. The SBA 7a loan can help you easily expand your trucking business by enabling you to purchase additional trucks, expand to new routes, or hire new truck drivers. An SBA 7a loan can also provide financing for a new location and machinery and equipment. If you are looking to purchase commercial real estate for a trucking company, the SBA 504 loan may be your best option. To discuss financing options for a trucking company, schedule your free consultation today!
SBA loans for Trucking Partnership Buyouts
A common use for SBA loans for trucking companies is to assist with partnership buyouts. Getting financing for a partnership buyout can be difficult especially when it is a minority ownership position. However, SBA financing and specifically an SBA 7a loan for a trucking company can help you obtain the funding to buy out a partner or buy into a trucking partnership.
Buying a Trucking Competitor
One of the most common uses of SBA financing for a trucking company is buying out a competitor. It is one of the easiest ways for a trucking company to expand its operations. The trucking industry is very competitive and, in some scenarios, buying out a competitor can be in your best interest. This includes acquiring routes, clients, trucks, and even truck drivers. Similar to the above items, SBA financing comes with many advantages and competitive terms. If you are looking at buying a trucking competitor, seek SBA financing for a trucking company.
Financing Trucking Working Capital
Next, in addition to the above SBA financing options, SBA 7a lines of credit can also be useful for a trucking company. SBA lines of credit come with up to a 7-year term making them an excellent option for financing working capital. If you are looking to maintain cash flow or keep ahead of regular expenses an SBA 7a line of credit can help. An SBA loan can also help trucking companies when they get hit with large expenses such as truck repairs, accidents, and driver overtime. In addition, an SBA 7a line of credit for a trucking company can help you manage both slow and busy seasons. For assistance in finding an SBA lender or choosing an SBA lender, reach out to Peak Business Valuation, business appraiser.
Refinancing Eligible Trucking Debt
Last, SBA financing is eligible for the refinancing of specific trucking debt. If you have trucking debt that is negatively impacting cash flow, it may be eligible for refinancing through an SBA loan. There are a few conditions: business debt must have unreasonable terms (i.e., high-interest rate) and must be used for business purposes including equipment, machinery, or commercial real estate (not personal expenses). Refinancing eligible debt through an SBA loan for a trucking company can put you in a stronger financial position.
Summary
When you own a trucking business, it is important to have the right tools to help you succeed. SBA financing is a great option for many trucking companies. Whether you are looking to buy, expand, or sell a trucking company an SBA loan can be useful.
Peak Business Valuation, business appraiser, works with dozens of SBA lenders across the country. We would love to help you secure SBA financing for a trucking company. Questions are always welcome! Schedule a free consultation today to start the process of getting an SBA loan for a trucking business.
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