Freight Broker Financing Options

 

 Freight Broker Financing Options


The average business owner has no idea what they can do with a bucket of money. Sometimes, it seems like that small business loan application could fall into a black hole and never be seen again. But, if it’s time for you to get your hands dirty and actually create some new or increased revenue opportunities, not just sitting around the office waiting for some magic windfall might be the best option.

That’s why we have created this list of freight broker financing options—so you can avoid the usual trap of trying to beg or borrow your way into achieving legitimate success.

Even though we’re talking about freight brokers these days—and not small business loans—it doesn’t mean that you can’t get a loan from a normal bank, credit union or other lender. In fact, you can actually get some limited financing from the type of lender we just mentioned, but the only thing those companies are interested in is getting paid back.

Since most small businesses have to pay for their own freight broker transactions (unless it's a cash buyer), it may be hard for them to qualify for any type of financing in this scenario. So, we end up with a situation where the small business doesn’t have any alternatives. In this scenario, there are few options.

Here are the main possibilities for small businesses that need to get freight brokers financing:

Option #1: The Freight Broker Financing Company (FBC) will provide some financing options for your freight brokerage business.

Option #2: You can find a freight broker organization that can provide you with some financing to help you expand your business. A good example of this type of company can be found at http://www.freightflorida.com/credit-facility-programs/ .

Option #3: Use your own money and acquire the freight broker financing from an outside company.

Option #4: Find tax exempt financing for your freight brokerage business. These types of loans don’t require a tax return or tax documents to prove your income level. This is perfect for businesses that have irregular income payments.

Option #5: Work with a small business lender that is willing to work with new freight brokers at a lower rate (prime + 1%). The only real downside to this type of financing is that the term length can be fairly short—as short as 6 months.

Option #6: Use a limited partnership package to fund your freight brokerage business. This is a great option for businesses that have limited or no access to traditional financing.

Option #7: Get direct financing from the freight brokers themselves. These types of transactions happen every day and don’t require a lot of paperwork or fancy legal documents to be completed as most freight brokers already have their own funding providers for themselves.

These are actually the best possibilities for financing your freight brokerage business, but there are other options that you can consider in addition to these options (and maybe even other options that we just haven’t heard of yet).

In order to overcome the usual problems with finding freight broker financing sources, it is vital that you do your own independent research and find programs that will work for you. After all, small business loans are about working with money. And the more you can claim for a specific business idea, the better off your business will be.

Thanks for reading this article! Please share it via Facebook or Twitter. Remember to join my free newsletter and leave me a comment below–I love getting comments on this blog (just click the comments link at the bottom of each page). You can also get updates by following me on Twitter @scottkuettner or liking my Facebook page: https://www.facebook.com/pages/The-Business-Weekly/542917319185203?ref=hl

References:

http://www.freightbrokersinsights.com/freightbroker-financing.html

http://smallbusiness.chron.com/financing-options-small-businesses-3482.html#ixzz3XJvqNkpy
















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