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
Related Industries
Related Security & Transport Services Funding
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