CFACommercial Funding Advisory

Security & Transport Services

Business Funding for Private Transportation Services

Private transportation companies, including limousine services, executive car services, and medical transport providers, invest heavily in vehicles. A new Suburban or Escalade runs $60,000 to $100,000, and a limousine or sprinter shuttle costs even more. The vehicles depreciate while requiring constant maintenance, cleaning, and insurance. Fleet expansion is how you grow revenue, but each vehicle added increases your fixed costs by the loan payment, insurance premium, and maintenance budget before it generates a dollar.

Common Uses

What Private Transportation Services Use Funding For

  • Purchase luxury sedans, SUVs, sprinter vans, or stretch limousines for fleet expansion
  • Cover commercial auto insurance premiums that run significantly higher than personal policies
  • Hire and train CDL or chauffeur-licensed drivers for new vehicle additions
  • Invest in dispatch software, GPS tracking, and booking management platforms

Funding Options

Best Funding Types for Private Transportation Services

Commercial Vehicle Financing

Finance individual vehicles or an entire fleet with the vehicles as collateral. Luxury and commercial vehicle lenders understand the depreciation curves and can structure loans that match the earning life of each vehicle.

Business Line of Credit

Cover fuel, maintenance, insurance, and driver payroll between monthly billings from corporate accounts. Private transportation companies with corporate contracts bill monthly, creating a consistent cash cycle that a credit line smooths.

SBA 7(a) Loan

Fund a larger fleet acquisition, a move to a bigger garage facility, or the purchase of a competing transportation company. SBA loans provide the long terms needed to keep monthly payments manageable against the revenue each vehicle generates.

What Lenders Look For

Qualification Notes for Private Transportation Services

DOT registration, commercial auto insurance, and proper for-hire transportation permits are required in every jurisdiction
Lenders look at your revenue per vehicle per month to determine if adding more vehicles is financially sustainable
Companies with corporate contracts and recurring airport shuttle routes demonstrate steadier revenue than on-demand-only services

Related Industries

Related Security & Transport Services Funding

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