Did you know that trucking businesses move 71% of all the freight in America? The transportation industry is a lucrative industry, and there is a legitimate demand for trucking services. With that said, running a transportation business can be very profitable, especially if you have access to transportation financing.
Part of running a successful business is making sure that you have enough working capital to continue growing your business. Transportation loans can help fund daily business operations while leaving more room to expand and market your business. Here are four clever ways on how to use transportation financing for your business:
1. Purchase More Vehicles
Studies from the American Transportation Research Institute (ATRI) discovered that trucking companies with more vehicles often have a greater ROI. Additional vehicles mean you can accept more jobs which will increase your company’s revenue. It’s important to develop your fleet early on so you can position your business in this competitive industry.
2. Hire Additional Drivers
What’s the use of purchasing more vehicles if no one’s going to drive them? Hiring drivers and purchasing vehicles go hand in hand when running a transportation business. However, there are many costs associated with hiring drivers for your company. You may need to pay for recruiting costs if you choose to work with a recruiter, or you may pay to post on a job site. Furthermore, you need to pay for training, permits, insurance, licenses, uniform, personal equipment, and other expenses.
These costs may seem overwhelming but your trucking business will surely benefit if you hire more drivers. Transportation financing can help cover the expenses associated with hiring more drivers.
3. Repair and Maintain Vehicles
Your vehicles need regular repair and maintenance services to remain efficient for years to come. If your vehicle is malfunctioning, it may be more cost-effective to have it repaired rather than buying a new one. But you need to evaluate the needs of your business and the condition of the vehicle before making a decision. A transportation loan allows you to pay for repairs and maintenance so your vehicles receive the TLC they need.
4. Build Your Online Presence
If you want to generate more customers, you should strive to build an online presence. You can hire a web developer to create a user-friendly business website where potential customers can see the types of services you offer. It’s also important to remember that your website must load within seconds; otherwise, your customers will lose interest. Every web page should be a mix of pictures and text to keep them engaged.
Since most of your potential customers search for transportation services online, it’s important to create a strong and authentic online presence.
The Best Transportation Financing for Your Business
Applying for transportation financing can do wonders for your business. Many companies offer a variety of loan programs suitable for every business need. Make sure you are choosing the right company for you.