Results 1 to 25 of 26
Threaded View
-
11-13-2015, 07:14 PM #4
- Join Date
- Sep 2015
- Location
- Miami, FL
- Posts
- 189
Why do lenders hate trucking companies?
I factor a lot of trucking companies and there are 3 types of companies in the industry:
- brokers: typically don't own trucks. They arrange loads for carriers. These guys typically operate with tops 15% margins. They can open and shut down on a fly since they don't have any skin in the game other than a computer and a phone. Any broker with less than 2 years in operations is high risk.
- carriers: carriers can be broken down into three categories:
1. Small fleet: 1-5 trucks. These guys burn a truck, file a claim with their insurance carrier and close the company and then run and get a new DOT number under a new entity just as fast as changing an underwear.
2. Medium fleet: 5-20 this is where the money is as it's harder for a company to change the entire fleet to another company.
3. Large fleet 20-up: these are home runs, if you fund them, but these are typically ABL prospects.
- the last one are carriers who operate as brokers: they use other people's trucks, however, the trucks run under the carrier's authority.
Happy to share some qualifying questions I use to help you guys determine which companies are good to pursue. Just let me know.
Hope this helps.
Similar Threads
-
Large Trucking Deal - Direct Lenders Only - Looking for 2.5 Million in funding
By fbilson in forum Deal BinReplies: 8Last Post: 11-11-2015, 03:32 PM -
I Hate Salesforce! Need a new CRM.
By ISO man in forum Merchant Cash AdvanceReplies: 12Last Post: 06-23-2015, 02:00 PM -
ATTENTION Lenders, and ISO companies
By Cashfunder01 in forum Help WantedReplies: 0Last Post: 06-04-2015, 08:30 PM -
lenders for publishing companies
By master financier in forum Merchant Cash AdvanceReplies: 2Last Post: 05-13-2015, 05:10 PM -
Trucking Companies and Contractors
By michaelh in forum Business LoansReplies: 1Last Post: 01-27-2015, 05:02 PM