Business loan for start up O/O?

Discussion in 'Trucker Taxes and Truck Financing' started by MPE Freight Lines, Feb 11, 2023.

  1. MPE Freight Lines

    MPE Freight Lines Bobtail Member

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    Has anyone applied for a business loan as a start up instead of financing everything individually? I'm considering this option for one lump sum and purchase equipment (truck, trailer, working capitol, etc.). Does this make more sense than several individual loans? I also thought that buying with CASH would offer more buying power?
    If you have done this, did you finance at 100% or put some of your own money in as "down payment"? What is used as collateral?
     
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  3. RubyEagle

    RubyEagle Medium Load Member

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    SBA loan looks really good on your Business credit. Try them the interest rates are good.
     
  4. Ridgeline

    Ridgeline Road Train Member

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    be a driver, learn the system by being a driver, save your money and do it right.

    Having to finance a complete system with no experience is a failure.
     
  5. GYPSY65

    GYPSY65 Road Train Member

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    I agree with @Ridgeline
    This is a recipe for disaster and I personally am one of the members here who most always gives posters the green light and don’t listen to all the other BS sorta thing but going into debt before you go into debt???

    Not a good plan.
    Actually not a plan at all
     
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  6. wis bang

    wis bang Road Train Member

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    This may benefit the repossession man putting all you eggs in one basket.

    What happens when you have an unexpected interrupted cash flow and I owe, I owe, but out the door I can't go...
     
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  7. bad-luck

    bad-luck Road Train Member

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    I have never heard of anyone doing it like that. And frankly I don't think a bank would loan that amount of money even with excellent credit. Trucking has a very high failure rate.
     
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  8. Knightcrawler

    Knightcrawler Heavy Load Member

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    When I bought my first truck I went to my bank. I had enough in the bank to write a check for the amount of the truck, and that was the ONLY reason they gave me the loan. And I have an 850 credit score.
     
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  9. MPE Freight Lines

    MPE Freight Lines Bobtail Member

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    Jan 31, 2023
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    I guess my thought process was similar to starting any other business. There are companies out there that specialize in "business loans" for alot of different things. GAP loans, working capitol loans, etc. I was thinking that if I was to get one of these type of business loans that I would be able to purchase everything that I needed to start, have money in the bank for "unforeseen expenses" and not have to worry about several separate loans for truck, trailer/s, registrations and all the small stuff like straps, chains, binders, etc. I realize this is not a "brick and mortar" situation but most people are not able to accrue this amount of capitol to start without some assistance from lending institutions. I respect you guys that have become owner operators and I'm just trying to figure out the quickest but "safest" way to get there. I'm not in my 20's anymore and don't have 10 years to save to get myself started.
    Thank you to all who responded, I will take it all in advisement. Maybe there is another way to do this more quickly....
     
  10. Dave_in_AZ

    Dave_in_AZ Road Train Member

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    If you are a true business type individual.

    Old school, #### the torpedoes, I will not fail, you may have a chance.

    If not, you have zero chance.

    The learning curve is tough, and extremely unforgiving.

    You really want to have no, or as little debt as possible.

    One of the main reasons for this is that if you are constantly in need of money, you are going to take any load for any rate, which is just a slow death rather than a quick one.

    Do you have any truck ( tractor ) savvy???

    If not, you are going to have to be extremely blessed to start out.
     
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  11. Tb0n3

    Tb0n3 Road Train Member

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    850 PERSONAL credit score is not related to a BUSINESS credit score. They're separate.
    I didn't see where in the OP they said they had no experience. Certainly they seem to have no investment of their own, but it's not necessarily one of the many "I thought buying a trucking company was a good investment" clowns.
     
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