In the transportation industry, meeting customer demands and maintaining fleet integrity can quickly deplete working capital, whether you are a waste collection company buying new trash trucks or a heavy haul tow company that needs a new winch truck. Here are the top five benefits business owners can expect when searching for transportation financing solutions to preserve capital and stay competitive.
1. Get the capital you need to expand your fleet
One of the primary benefits of transportation financing is the ability to expand your truck fleet. With fewer trucks and less equipment, some transportation businesses have to turn down contracts and opportunities due to a lack of capacity. Don’t be that guy (or gal)!
Equipment financing allows you to expand your fleet to keep up with industry demands and take on more projects. As you know, more work means more revenue for your business.
2. Get on the road fast and stay there
Labor shortages currently impact 61% of labor-intensive transportation operations. To keep your current drivers and attract new ones, you must have the trucks to keep them moving.
Drivers often consider the age and condition of fleet vehicles when deciding where to work. They prioritize newer and well-maintained trucks for safety, comfort, and reliability. Maintaining a modern fleet can be key to driver retention and recruitment efforts.
Financing your fleet not only provides quick access to funds but also ensures that new trucks can hit the road without delay, giving you a competitive edge in the market.
3. Find transportation financing that fits your needs
Transportation financing offers flexibility when acquiring new or used trucks. Financing products that are customized to match your business’s seasonal demands and revenue streams will help you get the trucks you need to run a successful business. Examples include:
- Standard leases: Leasing provides providing flexibility and lower upfront costs. These typically have lower monthly payments and no obligation to buy the vehicle at the end of the lease term.
- Leases with an option to buy: You can use the vehicle during the lease terms and then have the option to purchase it once the lease term ends.
- Loans: Financing through loans allows for complete ownership after repayment.
- Equipment Financing: Specific to vocational trucks, this financing is available for both new and used trucks, making it easier and more cost-effective to expand your fleet, especially for models made after 2009.
These financing options cater to different needs, helping businesses maintain and grow their operations efficiently.
4. Stay competitive with the most up-to-date technology
If you own a business in the transportation industry, you know you have to keep up or get left behind. Equipment financing makes replacing old or outdated equipment more accessible than ever. You can upgrade to the newest truck models equipped with the latest technology, such as:
- Telematics systems: These systems provide real-time tracking and diagnostics, helping to improve route planning, maintenance schedules, and driver behavior.
- Electric and hybrid engines: These technologies help reduce emissions and fuel costs, contributing to a greener and more cost-effective fleet.
- Emission reduction technologies: Innovations such as selective catalytic reduction (SCR) and diesel particulate filters (DPF) help meet stringent environmental regulations.
Staying up-to-date with these technologies keeps your fleet productive and efficient, helping your business remain competitive despite challenges in the vocational transportation market.
5. Save money and maintain positive cash flow
Transportation financing offers you the flexibility to maximize your purchasing power by breaking down the equipment cost into manageable payments, instead of a large upfront investment. This approach provides you with extra liquidity, which can be used for several important aspects of your business, including:
- Daily operations: Avoid interruptions and keep your business running smoothly. Have more cash available to cover routine expenses and operational costs, ensuring your business stays on track.
- Unexpected expenses: Managing unforeseen expenses, such as repairs, emergency purchases, or other urgent financial needs.
- Future planning: Allocate resources towards strategic growth initiatives, such as expansion projects, hiring new staff, or investing in new technology.
- Other business opportunities: Seize new opportunities that require immediate capital, such as entering new markets.
By spreading out the cost of equipment, transportation financing helps maintain a healthy cash flow, supporting your business’s overall stability and growth.
Equify Financial will find financing for your business
If you’re ready to move forward with funding for your fleet, Equify Financial is the financing partner you need. Our local Equify representatives know the transportation industry. We want to go beyond the numbers to get to know you and your business and are ready to help you explore financing options that support your business growth. Let’s start a discussion today so we can help you take advantage of all the benefits financing offers to keep your business rolling.
