Bright colorful big rigs semi trucks with semi trailers standing in the row on truck stop parking lot at early morning

Different make big rigs semi trucks tractors with loaded semi trailers standing in the row on truck stop parking lot at early morning waiting for the route continuation time according to the log book

How Can a Semi Truck Owner-Operator Benefit From a Business Line of Credit?

Financing is a tool that can help a business get started, stay in business, and even grow. A business line of credit is a type of loan that is specifically beneficial to semi truck owner-operators. With a revolving limit, a variable interest rate, and the option to increase your limit, a line of credit is ideal for truck drivers who own their truck or fleet. 

Whether you have bad credit or no credit, 10-4 Financing makes it possible for you to qualify for a business loan. Here’s how a semi truck owner-operator can benefit from a business line of credit. 

Benefits of a Business Line of Credit

  • Flexible Funds When Business is Slow. In the trucking industry there are fluctuations in the amount of freight available and the rate paid for loads. Fuel prices also fluctuate, making it difficult to balance your income and expenses. A line of credit provides flexible cash when income is low to take care of the costs of operating your business as well as personal expenses. 
  • Pay for Truck Maintenance and Repairs. Semi trucks need regular maintenance to operate well and to run safely. Even with maintenance, occasional repairs will be needed for unexpected problems or breakdowns while out on the road. A business line of credit can provide you with the funds you need for repairs and maintenance so you can keep your truck out on the road making income. 
  • Establish or Improve Your Credit. As a new semi truck owner-operator, it can be difficult to establish credit, especially if your personal credit is bad. A line of credit can help you build credit for your business name. As you borrow from it and pay it back on time, your credit score rises and your credit history reflects this. Once your credit is good you can get larger loans to upgrade your truck or expand your fleet. 
  • Interest Accrues on Balance Only. With a line of credit you are only required to pay interest on the amount you borrow. The balance will reflect the amount that you’ve used from your line of credit and the interest will be calculated on any amount that isn’t paid off by the due date. Interest rates on lines of credit are typically variable, meaning they are subject to change. You can take advantage of lower interest rates by borrowing when the rate goes down. 
  • Limit is Easy to Increase. As you use your line of credit and make payments on time, your limit can gradually increase so you’ll have more credit available to you when you need it. This allows you to borrow larger amounts for bigger purchases to improve and expand your business. 

10-4 Financing specializes in lending for the transportation industry. They understand the unique challenges that semi truck owner-operators face and strive to provide workable solutions for everyone. 10-4 Financing was started in 2011 with a sole mission to become the best financing source available for truckers and dealers in America. Over the years, we developed special relationships with the most competitive lenders in the industry, hundreds of quality dealers across the country, and thousands of happy truckers.

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