Would you like to start a trucking company? If so, you'll need a lot of money.
At least, that's what some people would tell you. Did you know there are actually ways to start your company if you're short on funds?
Trucking is a major industry in the U.S., so you're smart if you want to take part in it. As long as you learn the ropes, you'll be well on your way to making a great income.
So how can you get started if you don't have funds? Keep reading to learn how to start a trucking company with no money, plus some other important information.
Financing Options
No doubt about it, if you want to start a trucking company, it's going to require a lot of money, whether provided by you or someone else. While some people have thousands of dollars waiting to be used for this purpose, most of us don't. Luckily, there are various funding options available.
Here are some options for you to consider. As you read through them, keep in mind your specific situation. One method will work for some but not for others.
Commercial Truck Loans
If you don't have thousands of dollars sitting around waiting to be used, a loan may be your best financing option. Loans have their own rules, though. When comparing loan options, consider your monthly payment, the down payment, and every other detail (don't forget to read the fine print).
In general, to qualify for a typical loan and get a good interest rate you'll need good credit and good work history.
Consider Renting
Purchasing the trucks and other equipment you need can be very pricey. To combat this, consider renting these items.
Using an equipment lender may be just what you need to get up on your feet. Instead of paying a large sum of money, you'll pay for your equipment bit by bit.
Renting equipment may get you in business more easily than searching for the right financial institution. Banks will generally want to see a couple years of operating history before approving a loan.
Lease to Own
If you don't want to dump money into a rental, consider a lease to own program. Any money you put toward the truck will ultimately go toward buying it. Once you've paid your lease in full, the truck will be yours.
Buy Used
If you have some funds to put toward a truck, consider buying one that's used. A used truck that has been well cared for is a great option. It will cost a lot less than a new truck.
If You Have No Money
If you don't have any money to start out with, there are options for you too! Some loans don't require a down payment and others allow poor credit.
There are companies that specifically finance truck loans. You just need to do a little research. Explore your options to see what works best for your situation.
Ideally, you'd have some money for a down payment, or you'd have good or great credit. That may not be the case, though.
Once you find a good financier, hold onto it! You may need funds for other business operations down the road. These may include vehicle repairs, hiring staff, and general expenses.
Read the fine print and make sure you understand all the details of a loan before you get into it. Some require previous experience operating/working with the type of vehicle you're looking to finance. Others require years of CDL possession before they offer funds.
Setup Your Business
You'll need to go through several steps to set up your trucking business. Finding funding is only one of those steps, so let's look at some of the other things you'll need to do.
Get a CDL
In order to drive trucks for business, you'll need to get a Commercial Driver's License (CDL). A CDL allows you to operate vehicles for commercial purposes.
The requirements for obtaining a CDL may differ depending on the state you live in. But in general, you'll need to complete a written test and a physical driving test.
Federal regulations require you to test for and hold a Commercial Learner's Permit (CLP) before you take the tests to get a CDL.
Various things will be considered when you apply for your CDL. You'll need a driving history, medical certification, funds to cover fees, and the ability to pass written and driving tests.
Do Your Paperwork
A CDL isn't the only requirement you'll have to meet before starting your trucking business. You'll also need to fill our various forms, register your company as a Limited Liability Company (LLC) and register with various institutions.
Secure Business Insurance
Purchasing your vehicle(s) and filling out paperwork is only the beginning. There are plenty of other steps you'll need or want to take.
One of those steps is securing business insurance.
Your work is on the road, which can be a dangerous and unpredictable place. Make sure you have adequate insurance. This needs to include worker's comp, cargo coverage, and liability insurance.
Research insurance companies before going with one. Choose one that processes and pays claims quickly
How to Start a Trucking Company with No Money
It costs a lot to set up a trucking company. The good news is, you may not have to pay for it.
If you're wondering how to start a trucking company with no money, the answer is simple: find the right financing.
While traditional financing will still cost you, certain options allow you to start up without any out of pocket costs. So get researching and find your ideal financing plan today!
Have you thought about what life would be like as a trucker? Check out our article for some valuable insights.
