The scenario is far too common among independent drivers and fleet owners. Funding is needed for any number of purposes, such as business growth, equipment upgrades, or working capital to take the strain off of cash flow. The fleet owner or independent trucker goes into a banks for a short-term loan, jumps through all of the hoops, and at the then of it all, is denied the loan request. Fortunately, there is debt free financing for truckers which allows people to avoid the red tape of traditional lending institutions.
Are Bank Loans Necessary For Short-Term Financing?
When seeking short-term financing, bank loans have traditionally been the “go to” solution. However, bank loans lower credit ratings, lock truckers into rigid payment schedules, and place debt on the balance sheets. In essence, using a short-term loan can lead to larger problems in the long run. Using short-term loans for growth may seem like taking a step backward, because once the money is used, there is still debt and compromised credit. Similarly, using loans to alleviate a strain on cash flow only compounds the problem, because not only is the capital from the loan a temporary solution, but the strain will return with the added stress of repaying the loan and repairing credit ratings.
Debt Free Financing For Truckers And Fleet Owners
Instead of using loans, truckers and fleet owners can leverage open invoices for debt free financing. Invoices with aging periods of 30 days or longer can be monetized to provide debt free financing for truckers and fleet owners. By using accounts receivable financing, open invoices are converted to working capital within 24 hours. This provides debt free financing for truckers without having to take out loans, compromise credit ratings, or pay for things out of pocket. Because this type of financing is considered a sale of receivables, it does not fall under the heading of a loan. There is no payment schedule. Additionally, truckers get to preserve credit ratings and purchasing power.
Express Freight Finance Offers The Best Debt Free Financing For Truckers
At Express Freight Finance, we understand the challenges facing truckers and fleet owners. Instead of jumping through hoops and rejection letter for short-term loans, get the financing you need from your own invoices. Express Freight Finance offers accounts receivable financing. To learn more, contact our offices today.