3 Reasons to take out a Road Freight Business Loan
How your business can benefit from a road freight transport or truck loan
Starting a road freight transport business and ensuring it can run smoothly and become profitable is going to require a significant investment. Your fleet of transport vehicles and their drivers will be your greatest asset and investing in the quality of both is essential for you to compete as a business in the logistics sector. Aside from financing your fleet and the people who operate it, you need to acquire secure facilities to adequately maintain your vehicles as well as handle administration, marketing, training and more. You also need to consider the costs of insuring all your assets.
Depending on the size of the operation you want to start with, a transport business loan can help you finance all if not a significant portion of your expenses. By securing a transport loan early on, you can ensure that you don’t need to compromise on any aspect of your business and start serving customers with total confidence that you have superior vehicles, equipment, staff and facilities.
If you’re thinking about whether or not to go with a transport business loan, consider the three reasons outlined below.
3 reasons why your road freight transport business needs capital
Equipment financing
The quality of your equipment, specifically your transport vehicles, means everything when it comes to attracting and competently serving customers. Securing the right level of truck finance can mean the difference between struggling with sub-par equipment and excelling in the delivery of your services. Whether you want to purchase outright or leverage a truck hire loan, getting the best equipment should be your priority when starting a road freight transport business.
Applying for permits and licences
On top of insurance and other expenses, there are several industry-specific permits and licenses that you will need to apply for which could cost you money. This includes applying for heavy vehicle licences and permits, as well as access permits. Depending on the types of customers you want to target, you will also need to ensure you set up and comply with the requirements for different freight such as agriculture and food or dangerous goods.
Staff & contractors training, recruitment or development
Recruiting, training, paying for and developing your staff will be one of your biggest long-term expenses. A transport business loan will give you the capital you need to make sure that you can hire and maintain staff who add value to your business, whether they be drivers, customer service personnel, repair technicians, and more.
Road Freight Transport & Truck Frequently Asked Questions
You need to start by creating a business plan, part of which is dedicated to determining how much finance you need. When you have a firm idea of the kind of funding you need, you should then compare different offers for transport business loans.
Starting a transport business requires you to cover the basics like registering your business and company name with ASIC, as well as setting up financial infrastructure like a bank account. You will also want to create a website and sign up to online business directories to ensure you are discoverable by potential customers. You will also need to make sure that you have enough funding to pay for equipment, staff, insurance, and the relevant licenses/permits required to operate the business.
How much money you will need to start a trucking business depends on a variety of factors that you will cover when drafting your business plan. It’s a good idea to determine the size and type of operation you want to set up and then research the costs from there.