Limousine and rental car companies stay competitive by keeping their vehicles up-to-date. They periodically purchase new models and maintain their existing vehicles to ensure a professional appearance.
However, buying and maintaining vehicles would be much easier if not for the notoriously high insurance and fuel costs. These expenses become even harder to meet when the inevitable slow season arrives. United Capital Source has access to business loans for limousine and rental car companies looking to cover the rising costs of expanding their fleet and their services.
Business loans for limousine and rental car companies are financing products specifically geared towards the cash flow cycles and recurrent expenditures of these companies. In addition to short-term needs and large purchases, a small business loan can bridge cash flow gaps when business slows down.
Specialized financing options are tailored for small businesses needing vehicles for fleet operations. Alternative lenders often offer fast approval rates for small business loans. Understanding the financing process can help you secure the best deal possible for your rental car or limo business.
Business loans for limousine and rental car companies can come in the form of:
Each of the products listed above can suit a different type of expense, budget, or cash flow issue. For example, one of the biggest challenges for rental car companies and the limousine industry is the cost of insurance. There are several ways to lower monthly insurance premiums, like prepaying the annual fee. Sensible business financing products include business term loans, working capital loans, or revenue based business loans.
Proactive advisory services can minimize the total cost of ownership of a fleet. Strategic advisors can help businesses with lifecycle cost and vehicle selection analyses. Business financing can help fund these services.
Unlike your bank, you don’t need entirely consistent cash flow or a massive bank balance to access business term loans from United Capital Source. If your credit score renders you ineligible, the latter two options can still provide the borrowing amount and terms to keep your business running after covering this substantial expense.
Another way to lower insurance premiums is to focus on shorter trips. But this is only possible if you aggressively market your business as the go-to source for winery tours or other local excursions. Working capital loans and revenue-based financing may be ideal for advertising costs because you must launch your campaigns in the months leading up to the busy season. Not only can you get approved when business is slow, but your payments will be minimal until business picks back up.
If you’re looking to cover operational expenses during a slow period, you might consider a line of credit instead. Like a working capital loan, a business line of credit makes sense for short-term, moderately-sized expenses. But what makes a commercial line of credit unique is that as long as you keep paying back what you’ve borrowed, that money becomes available again. Thus, you won’t have to continuously apply for funding every time one of your vehicles needs maintenance or demand dries up for a month or two. You can also save interest by only using the funds you need. Flexible financing options maximize cash flow.
Commercial Fleet Financing offers personalized financing solutions tailored to specific business needs. Equipment financing can help small businesses access commercial fleets for limousine and rental vehicles. Financing provides access to newer vehicles and technology.
Financing options can preserve capital and enjoy tax benefits while growing limousine operations. Leasing a limousine provides financial flexibility and access to newer vehicles. Deciding between a limousine lease or limousine loans depends on the needs of your limousine business. Quick approvals for limousine service loans can be made within minutes, and funds delivered within 24 hours. Limousine financing programs help add profit to your bottom line.
| LOAN TYPES | MAX AMOUNTS | RATES | SPEED |
|---|---|---|---|
| Merchant Cash Advances | $7.5k – $1m | Starting at 1-6% p/mo | 1-2 business days |
| SBA Loan | $50k-$10m | Starting at Prime + 2.75% | 8-12 weeks |
| Business Term Loan | $10k to $5m | Starting at 1-4% p/mo | 1-3 business days |
| Business Line of Credit | $1k to $250k | Starting at 1% p/mo | 1-3 business days |
| Receivables/Invoice Financing | $10k-$10m | Starting at 1% p/mo | 1-2 weeks |
| Equipment Financing | Up to $5m per piece | Starting at 3.5% (SBA) | 3-10+ business days |
| Revenue Based Business Loans | $10K – $5m | Starting at 1-6% p/mo | 1-2 business days |
Limousine and rental car companies grow by providing a remarkable customer experience. Well, business loans can prevent you from falling short in this area. You can purchase new models right after they become available and maintain their appearance following the inevitable wear and tear to stay competitive in the transportation industry.
For many rental car and limo companies, the main obstacles to making necessary business growth investments are insurance and fuel costs, combined with occasional drops in demand. In addition to lowering monthly premiums, business loans can bridge gaps in cash flow so you can continue advertising your business and keeping your vehicles in top shape even when business slows down.
Also, high monthly costs and occasional dips in revenue won’t stop you from being approved. Companies like United Capital Source regularly work with businesses that experience extreme seasonality. For this reason, you can still access substantial borrowing amounts and longer terms even though your cash flow isn’t perfect, or you don’t have plenty of cash on hand. This allows our seasonal clients to obtain the necessary resources for a strong, busy season, like more vehicles and drivers.
Limousine and rental car companies grow by providing a remarkable customer experience. Well, business loans can prevent you from falling short in this area. You can purchase new models right after they become available and maintain their appearance following the inevitable wear and tear.
For many limousine and rental car companies, the main obstacles to making necessary investments are insurance and fuel costs, combined with occasional drops in demand. In addition to lowering monthly premiums, business loans can bridge gaps in cash flow so you can continue advertising your business and keeping your vehicles in top shape even when business slows down.
Also, high monthly costs and occasional dips in revenue won’t stop you from being approved. Companies like United Capital Source regularly work with businesses that experience extreme seasonality. For this reason, you can still access substantial borrowing amounts and longer terms even though your cash flow isn’t perfect, or you don’t have plenty of cash on hand. This allows our seasonal clients to obtain the necessary resources for a strong, busy season, like more vehicles and drivers.
Pros:
Cons:
The amount of paperwork required depends on the product you choose. Funds can be approved and distributed for most products within 1-3 business days. Here’s how to apply:
The first step is choosing the most sensible solution to the problem at hand. This should require some research, as each product is designed for different types of expenses and cash flow cycles. Are you looking to cover a short-term or long-term expense? Is demand expected to increase or decrease in the coming months?
Considering the funds’ purpose will also help us determine the correct borrowing and terms for your needs.
Here are the documents and information required for Limo and Rental Car Business Loans:
SBA loans require additional documents and information, such as financial statements. To learn what’s needed for the SBA-backed loans, visit our SBA loan page.
You can begin the application process by calling us or filling out our one-page online application. Either way, you’ll be asked to enter the information from the previous section along with your desired funding amount.
Once you apply, a representative will contact you to explain the repayment structure, rates, and terms of your available options. This way, you won’t have to worry about any surprises or hidden fees during repayment.
If you’re approved, we’ll contact you within 24 hours. After closing, funds for most business financing products should appear in your bank account within 24 hours to one week.
Your business loan isn’t just a way to get financing for your business. It’s also an excellent opportunity to start building (or improving) your credit.
Regardless of the type of business loan you get, make all your required payments on time and in full. If you get a business credit line or another form of revolving credit, keep your balance below the credit limit.
Consistently making your business financing payments on time and in full will positively impact your credit. And that means preferred rates and terms when you next need business financing.
If your application is declined, it’s possible that you applied for the wrong product to meet your cash flow needs. In this case, we would likely recommend a different product with a less hazardous repayment structure.
Your application might also be declined if it is determined that you cannot afford to take on more debt at this time.
If your credit score is holding you back from accessing financing, consider working with a reputable credit repair service to raise your scores.
Aside from SBA Loans, Wholesaler Business Loans require minimal documentation. If you’re applying for a standard Business Term Loan, Working Capital Loan, or Business Line of Credit, you may only need:
For Equipment Financing, you’ll also need the invoice for the desired piece of equipment. For a Merchant Cash Advance, you’ll also need three months of credit card processing statements. And for Accounts Receivable Factoring, you’ll also need your accounts receivable, accounts receivable aging report, and your debt schedule.
Limousine companies can get equipment financing through traditional lenders like banks and alternative business financing marketplaces like United Capital Source. If you’re looking for a significant amount, banks and credit unions carry the cheapest products with the most extended terms. However, these products are challenging to qualify for. You’ll need excellent credit, perfect cash flow, plenty of money in the bank, and collateral. If you can’t meet these requirements, you can still access substantial borrowing amounts through companies like United Capital Source.
Banks and credit unions also prefer to lend more significant amounts. Thus, if you’re looking to cover vehicle maintenance, payroll, or other operational costs, companies like United Capital Source will be more willing to work with you. The size of your desired amount will not make you any less likely to get approved.
An ongoing struggle for limousine and rental car companies is adapting to modern standards while covering high, regular expenses like fuel and insurance. Today’s customers want limousine companies to be equipped with the latest technology. This pertains to the vehicle and the customer experience (i.e., booking the limo, tracking the chauffeur’s location). In other words, customers want the same conveniences provided by ride-sharing companies like Uber.
Another ongoing cost is vehicle maintenance. Limousines regularly need new carpeting, seating, bar equipment, or old GPS systems. When most of your limousines are the same age and model, there’s a good chance that multiple vehicles will require maintenance or become outdated at the same time.
It’s also important to note that many limousine companies are quite small. Many of them have fewer than ten limousines in their fleet. This shows how difficult it is to drive growth with a limousine company alone. Investing in new vehicles also reduces funds for other business needs.
Timing is also a crucial factor. Suppose you want to get ready for increased demand due to an influx of corporate events, but the purchase price of a new fleet exceeds your available capital to acquire it. In these cases, a business loan could provide the necessary funding, and you could then repay the loan once you’ve improved cash flow following the acquisition of new customers.
Yes, six of the eight products mentioned above are accessible for borrowers with bad credit. Because bad credit makes you more likely to default, your rates may be higher, and your terms may be shorter. However, if you have strong cash flow or can provide collateral, your bad credit may impact your rates and terms less. We can customize your terms and payment frequency to ensure you can make payments while staying current on other bills.
For some products, your credit score is irrelevant. Approval for a merchant cash advance is based on your debit and credit card sales volume. With A/R Factoring, approval depends on your customer’s creditworthiness, not yours.
The only products that are not accessible with bad credit are business term loans and SBA loans. Compared to the other products, these two options carry higher borrowing limits, lower rates, and longer terms. If you have bad credit, you’ll be assigned shorter terms to ensure you repay the loan in full.
Fraud Disclosure:
Please be aware that individuals have been fraudulently misrepresenting to business owners (and others) that United Capital Source, Inc. (“UCS”) can assist small businesses in receiving government grants and other forgivable business loans, when in fact those grants or loans do not exist or are not available. These individuals have ulterior motives and are engaging in the unauthorized use of the names, trademarks, domain names, and logos of UCS in an attempt to commit fraud upon unsuspecting small business owners.
UCS will never communicate with a prospective client on Facebook, Facebook Messenger, or any other type of social media. Further, any email communications will always come from an official UCS email address and not a Gmail, Yahoo, or other email domain. If you believe you have been contacted by someone posing as an employee of UCS, please email [email protected].
