Did you know that there are actually ways you can get started with your own business when you are strapped for cash? Trucking is one of America’s largest industries, so if you are looking to get involved, you better get smart about it.
As long as you know your ropes, you can make a good income.
So, how do you start when you have no money?
Keep reading for the How To Start A Trucking Company With No Money Plus Some Other Important Information.
Here are a few options to consider. As you read them, remember your particular situation. One technique may work well for some, and it may not work well for others.
If you do not have thousands of dollars sitting around waiting to be used, borrowing money might be the best option. Loans do come with their own rules, however. When comparing loan options, consider the monthly payments, the down payment, and all other details (make sure you read the fine print). You’ll need a decent credit score and good employment history to qualify for typical loans and receive reasonable interest rates.
Buying a truck and other equipment could get pretty expensive. To counteract that, consider renting those items.
Commercial Truck Loans
Using a gear loaner might just be what you need to stand up. Instead of paying one big lump sum, you will be paying off your equipment piecemeal.
Renting your equipment can put you into the business much more accessible than finding a suitable financing institution. Banks generally want to see a couple of years of operating history before approving a loan.
Lease to Own
If you are unwilling to sink cash into renting, consider a Lease-to-Own plan. Any money you contribute toward your truck eventually goes towards buying it. Once you pay off your lease ultimately, the car is yours.
If you have a little money to throw at the truck, consider buying used. A used truck that is well-maintained is an excellent choice. It will cost much less than a new truck.
If You Have No Money
If you have no money, to begin with, you also have options. Some loans donat require a down payment, while others do accept bad credit. There are companies out there who specialize in financing trucks. You just have to do some research.
Explore your options and find out which one works best for your situation. Ideally, you will have money to put down or have good to excellent credit. However, it might not happen like this. Once you have found a good funder, stick with them!.
You might need money to do some other work on your business later. These could include vehicle repairs, hiring employees, and general expenses.
Read the fine print, and be sure to understand all of the details about a loan before getting involved. Some will ask for prior experience operating/working on the type of car you are looking to finance. Others need years of possession with the CDL before offering to finance.
Setup Your Business
You will have to take a few steps to get your trucking company up and running. Finding financing is just one of these steps, so let us look at a few other things that you will need to do.
Get a CDL
To operate trucks for a company, you need to obtain a commercial driver’s license (CDL). A CDL allows you to drive vehicles for business purposes.
The requirements to get a CDL can vary depending on which state you live in. But, generally, you will have to pass both a written exam and a driving test. Federal rules require that you take a commercial learners permit (CLP) and have it in your possession before taking a CDL test. Various things will be considered when applying for a CDL.
You will need a driving record, health insurance, funds for fees, and the ability to take written and driving tests. A CDL is not the only requirement you need to fulfil before starting a trucking company. You also will have to fill out our different forums, incorporate your business as a limited liability corporation (LLC), and register with other agencies.
Buying your car(s) and filling out the paperwork is starting. You will need to or will want to take many more steps. One such effort is to get yourself covered with a commercial insurance policy. Your job is out in the open, which can be a dangerous, unpredictable place.
Do Your Paperwork
Make sure that you are covered with proper insurance. This should include workers’ compensation, property insurance, and liability insurance.
Secure Business Insurance
Research the insurers before you choose to work with them. It costs a lot of money to start a trucking business. The good news is that you might not have to pay for it.