Once about eight accounts are on the business credit report, apply for Fleet credit at Citgo, BP, Chevron, Wawa, and others. Fleet credit normally requires one or more of the following: a personal guarantee; credit check; collateral; or cash flow. However, because the company has already built business credit via the aforementioned vendors, it can get approved for fleet credit without these.
Finally, with at least fourteen accounts on the business credit report, the company can easily qualify for business VISA, Mastercard, auto/vehicle financing, computer leasing, etc. just for having built and maintained solid business credit.
Personal Credit Score
If the company has established good, solid business credit and the business owner has a good personal credit score, the company may able to get business lines of credit, equipment/vehicle loans, etc. via conventional lenders such as banks and SBAs with lower rates and longer loan terms, which equates to lower payments. It’s important to know, however, that conventional lenders often deny business applications in to trucking/transportation companies because they have stricter underwriting guidelines due to the risk associated with them. In addition, – the three Cs — cash flow, credit, and collateral – are underwriting requirements for traditional lenders. Companies and business owners who possess all three CS, will get the best loan term and lowest rate/payment.
Startup Trucking & Transportation Businesses
For owners of start-up trucking/transportation businesses and those with little or lackluster business credit and/or low personal credit scores, limited cash flow or revenue, and little/no collateral, there are several alternatives to conventional bank/SBA funding. Although companies may not get the best rate or longest term by going this route, it is much easier to get approved when applying with these lenders. This can be a great help to those businesses which are lacking in one or more of the aforementioned areas. Some require no collateral and even offer bridge funding if the business is short on revenue. Suppliers and vendors may offer net 30, 45, 55, or 60 terms – business owners just need to inquire.