Whether you need a minor repair or a complete engine overhaul, financing a semi-truck repair can be confusing whether you’re a new or experienced truck driver. In the trucking industry, time is money, so any downtime you have with your truck instantly eats away at your overall earnings. In other words, drivers can’t afford to wait around to get their rigs repaired. Here’s what Memphis, TN-based drivers need to know about quickly financing a semi-truck repair.
Use working capital loans
If you need semi-truck repair for your Oakville, TN-based rig, one option that may be available to you is a working capital loan. These loans offer short-term financing in situations where you need money very quickly. Many working capital loan providers offer same-day or 24-hour financing options. Working capital loans typically operate on a daily payment model where drivers will repay their debt on a daily basis. Money will be taken out of the driver’s account Monday through Friday, excluding holidays, to cover the cost of the repair.
Most working capital lenders provide financing for up to approximately one month of revenue at factored rates from 1.2 to 1.5. For example, if your trucking business earns $20,000 per month before expenses, you can acquire $20,000 for any necessary repairs. The amount you’ll pay back with factored rates would be between $24,000 and $30,000. When you take the daily payment model into account, you could be spending quite a bit per day to repay the loan.
Use an equipment leasing company
Some equipment leasing companies offer loans for Memphis, TN drivers in need of semi-truck repair. The truck being repaired is typically used as collateral for this type of loan. Working with an equipment leasing company is an attractive option for those who own their own trucks, since the vehicle will be used as collateral outright. While rates and terms will depend heavily on your credit profile, most loans can be paid off over a period of up to three years with monthly payments. Keep in mind that it can be difficult to pay this type of financing off early—make sure to research your options.
Use a small business term loan
Small business term loans may be an attractive option for financing necessary semi-truck repairs. You need to have an established business and a good credit score to secure a small business term loan, but funds can be deposited into your account the same day you apply. These loans feature flexible terms that can get you the money you need in a hurry and allow you to pay them back over a period of time, typically two years if you have poor credit to over 10 years if your credit is good.
The longer you hesitate to invest in semi-truck repair for your Oakville, TN-based rig, the more money you’re leaving on the table. There are plenty of options when it comes to financing repairs, and professional repair companies will work with your chosen financing company to support your trucking business. Contact United Diesel Power today to explore your options for semi-truck repair financing and ensure that your rig stays in operation.
Categorised in: Semi Truck Repair
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