Financing for a Transportation Business
Sources of Financing a commercial Transportation Business Transportation business is associated with an asset-based and non-asset based businesses. Asset-based companies include freight haulers, delivery companies and limousine companies; non-asset based firms include freight brokers and third-party logistics providers. Both have traits that separate them from peers in other industries. In addition, asset-based transportation companies incur considerable capital expenses due to the vehicles and related equipment they purchase or lease. Several industry-specific financing options exist for industry needs. Financing for a Transportation Business Equipment Lender Equipment lenders often serve as an excellent source of financing for asset-intensive transportation companies. Equipment lenders that focus on the transportation industry understand industry dynamics, characteristics and risks. Banks often consider transportation assets too risky to use as collateral and lend against because