Skip to content

How to Get Funding When Traditional Banks Say No: A Guide for Truckers

As a trucker, you know all too well the importance of having the funds to keep your business moving forward. Unfortunately, securing the financing you need can be a challenge, especially if you’re like many other truckers who have been turned down by traditional banks. The good news is that there are other options out there, such as factoring, that can help you get the funding you need to keep your business going strong. This guide will outline some of the challenges facing small business owners who seek loans from banks, and explore some alternative sources of funding for truckers who need quick access to cash.

The Challenge of Getting a Small Business Loan from the Bank

If you’ve ever applied for a small business loan from a traditional bank, you’re probably familiar with the hurdles that many business owners must overcome to get approved. Banks need to assess the risk of lending to your business, and they do this by looking at a variety of factors, including your credit score, the amount of collateral you can offer, and your monthly revenue. Unfortunately, many trucking businesses struggle to meet these requirements, especially if they’re just starting out or have a less-than-perfect credit history.
Furthermore, banks can be notoriously reluctant to loan money to businesses in certain industries, and trucking is one such industry that can be perceived as risky in the eyes of bankers. That’s why even if you have a solid track record as a trucker and your business is generating revenue, it can still be a challenge to get a traditional loan.
5 Insane Things About Getting Rejected for a Business Bank Loan
If you’ve been rejected for a business bank loan, you’re not alone. Here are five challenges that many small business owners face when they apply for loans from traditional banks:
  • Banks are often reluctant to loan money to businesses that haven’t been around for long. 
  • Banks may require collateral that small business owners can’t provide. 
  • Banks may require excellent credit scores, which leaves out many small business owners with less-than-stellar credit. 
  • The application process can be complex and time-consuming. 
  • Even if you meet the bank’s criteria, you may not get approved due to ongoing economic and industry fluctuations that affect the bank’s risk tolerance and policies.
What Can You Do When Traditional Banks Say No?
If you’re a trucker, you might be wondering what options are available when traditional banks turn you down. One potential solution that many truckers find helpful is factoring. Factoring is a process in which you sell your accounts receivable (unpaid invoices) to a factoring company, in exchange for an immediate cash advance.
Factor My Load is one such factoring company that specializes in providing financing for truckers. Unlike traditional banks, factoring companies base their funding decisions on the value of your unpaid invoices, rather than on your credit score or collateral. This means that even if you have a less-than-perfect credit history, you may still be able to get funding.

The Advantages of Factoring for Truckers

There are many advantages to using factoring to fund your trucking business. Here are just a few:
1) Quick access to cash
Unlike traditional loans, which can take weeks or even months to get approved, factoring companies like Factor My Load can provide funding within 24 hours. This can be a lifesaver when you need funds to pay for fuel, repairs, or other expenses.
2) No collateral required
Because factoring companies base their funding decisions on the value of your accounts receivable, you don’t need to offer any collateral. This means you don’t have to worry about putting up your truck or other assets as collateral.
3) Flexible terms
Factoring companies offer a variety of financing options that can be tailored to your business’s needs. For example, you may be able to choose between recourse and non-recourse factoring, or between long-term and short-term financing.
4) No repayment required
Because factoring is not a loan, you don’t have to worry about making monthly payments or paying interest. Instead, you simply sell your accounts receivable to the factoring company, and they take care of collecting payment from your customers.
4) No repayment required
Because factoring is not a loan, you don’t have to worry about making monthly payments or paying interest. Instead, you simply sell your accounts receivable to the factoring company, and they take care of collecting payment from your customers.
5) Improved cash flow
By getting cash upfront for your unpaid invoices, you can improve your cash flow and avoid the stress of waiting for customers to pay. This can help you stay on top of your bills, cover unexpected expenses, and grow your business.

Is Factoring Right for Your Trucking Business?

If you’re a trucker who’s struggling to get funding from traditional banks, factoring may be a good option for you. However, it’s important to do your research and make sure you choose a reputable factoring company that understands the unique needs of the trucking industry.
At Factor My Load, we specialize in providing factoring services to truckers, and we pride ourselves on our fast, reliable service and flexible terms. So if you’re looking for a quick and easy way to get the funds you need to keep your business moving forward, give us a call today at (317) 939-3769. We’re here to help you succeed!