By: Leah Virzi
When the inevitable happens, lead yourself down the road to success
It is a cool, very early Thursday morning. You’re just walking out of the gas station, feeling the crisp morning air on your skin, with a hot coffee in your hand. You pull out the gas pump, close the tank, hop in your truck, and you hear the engine roar. That roar and the pronounced smell of gasoline bring you the most joy before your 3,000-mile journey.
Now, imagine waking up one morning and being unable to fulfill those simple pleasures that you are used to enjoying, regularly. After many years, and thousands of miles of wear and tear, your truck’s engine has worn down. In order to continue living your dream of being a subcontract driver, you have to either fix your engine or buy a new vehicle. Something like this may not be affordable for you, since your truck is not in a reliable condition, which leads you to have no current source of income.
This problem may feel like the end of the world, but with the right kind of funding to fix an old truck or help you purchase a new or used truck, you will be back on track in no-time. The first step is to assess if you should apply for working capital, a term-loan or finance your equipment.
A cash advance loan can get you cash within 1-3 business days, which can be a quick, and easy funding solution if you need the cash as soon as possible. Quick funding is so convenient, because if you need the cash as soon as possible to fix your truck, you will be able to do so. Also with a cash advance, you are able to pay off the loan within 2 years. The short-term loan repayment can allow you to have ease of mind sooner, knowing you will not have to worry about a payment for as long as those that you could find with a medium-term loan. Cash advances can work well if you are seeking funds to repair your truck fast, but they can also be beneficial when you are looking to fund any advertising or marketing for your business. Advertising and marketing will allow you to increase your client list, which will put your newly fixed truck to good use, and it will also lead to an overall improvement in your monthly revenue.
The loan that would probably work better if you were looking to buy a truck, would be a medium-term loan. These loans offer a bit more flexibility and have a 1-2-week turnaround time. Medium-term loans are more flexible in the sense that they allow you to pay off the loan over a duration of 5 years. That would result in lower payments than those that would accompany a short-term loan, making it a more affordable option if money is tight, already. With this loan, you could also request more cash for advertising and marketing needs.
The loan that would best fit your situation, if you specifically wanted to request a loan just to buy or lease a new or used truck, would definitely be an equipment finance loan. Equipment financing loans are specifically designed so that you can purchase the equipment that is essential to keep your business running. These loans generally take about 1-2 business days to fund and terms depends on the life expectancy of your equipment. The best part about equipment financing is that it gives you the option to either lease or purchase equipment. If a newer model comes out, you would just simply trade in your old equipment and refinance.
These same funding solutions can also apply if you own a trucking company, as well. Funding solutions do not always need to apply to buying a new truck, they can also be used to improve your business in many other ways. Some ways you can improve your business include: growing your client list by applying sufficient funds to advertise and market your business, very well; or you can apply for invoice factoring or take out a line of credit to pay for gas, other expenses, or to meet payroll for your drivers.
In the event that you do need to seek funding for a situation as unfortunate as a truck wearing down, at least you know you have these options to turn to. You can also utilize funding to cover other costs if you own your own business. Your options are not limited, and in the event of using any of these funding solutions, you will lead yourself down the road to success.