The haulage and transport sector is an important part of our economy and provides a vital link that so many other industries rely upon. However, increased costs have hit the industry and require careful planning and a firm financial strategy, so that you can access commercial truck finance to benefit your business.
We can help you to finance a variety of commercial vehicles which can include lorries and trucks, to LGV / HGV vehicles. We understand that purchasing industry-specific infrastructure can often involve large upfront costs which can tighten your business' cash flow. Here at Think Business Loans, we have ways to finance your vehicles that can relieve the stress and pressure of purchasing or refinancing commercial vehicles.
Assets we Finance
Car Transporters- Curtain-sided Trucks
- Flatbed Trucks
- Refrigerated Trucks
- Specialist Trucks
- Many more…
Benefits
- Preserves your working capital.
- Access to high standard vehicles.
- Allows you to expand without being tight on cash flow.
Limitations
- Can work out more expensive than buying the vehicle outright.
- You do not own the vehicle they cannot be classed as an asset within the business.
- If the assets you want to use as collateral are given a low valuation, it could substantially reduce the number of funds you're able to obtain.
- Costs can be high when your asset is industry-specific or there is a limited appeal from the lender.
Case Study
We were approached by transportation and haulage specialists to help them find the funding for expansion. The client has been trading successfully since November 2017 after they leased their first vehicle, only 8 months after starting up they decided to take the opportunity and expand by taking on a second truck and driver.
Due to the type of business, the client realised there was some seasonality in the industry and wanted to take advantage of the busy haulage period by putting more trucks and drivers on the road in order to increase revenue.
Not only was the seasonality of the industry a factor for wanting an expansion, but an issue with one of their vehicles meant it was off the road for 3 weeks. Not only impacting their income but meant a number of costly repairs had to be undertaken.
When one of our experts reviewed the application it was decided the best option would be a business overdraft.
A business overdraft gives you flexible access to cash when you need, and you only pay for the amount you borrow. They can be a really useful way of accessing working capital when you need the cash quickly
Benefits of using asset-based finance
- Able to borrow and repay quickly
- No restrictions on the finance
- Cash on hand to deal with cash flow problems
- Short term to cover until the busy period
- No collateral involved
Here at Think Business Loans, we were able to advise the best finance option for the business. This enabled the business to expand before the busy period in the season without tightening cash flow and to maximize revenue.
To find out more about asset-based finance click here.
If you’re in the haulage industry, there can be many financial issues that you may face. Here at Think Business Loans, we can help you with a wide range of working capital finance solutions, from the well-known like factoring and invoice discounting, to innovative new alternative finance solutions.
Why not see your available options by completing the loan journey below.
Alternatively, you can speak to one of the experts direct at 0203 880 9880.
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