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, were it not for the notoriously high costs of insurance and fuel. 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 limousine and rental car companies. In addition to short-term needs and large purchases, a small business loan can bridge cash flow gaps when business slows down.
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 or cash flow issue. For example, one of the biggest challenges for limousine and rental car companies is https://www.limousineinsurancehq.com/limo-insurance-cost/ the cost of insurance. There are several ways to lower monthly insurance premiums, like prepaying the annual fee. Sensible business financing products for this purpose include Business Term Loans, Working Capital Loans, or a Revenue-Based Business Loan.
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 by focusing 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 Business Loans may be ideal for advertising costs because you must launch your campaigns in the months leading into 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 simply looking to cover operational expenses during a slow period, you might instead consider a Business Line of Credit. Like a Working Capital Loan, a Business Line of Credit makes sense for short-term, moderately-sized expenses. But what makes a Business 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.
| 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.
For many limousine and rental car companies, the main obstacles for 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.
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 for 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.
The amount of paperwork required for the application depends on your chosen product. For most products, funds can be approved and distributed in up to three business days. Here’s how to apply:
The first step is choosing the most sensible solution to the problem at hand. This should require a decent amount of 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 cost? 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 all Dental Practice Business Loans:
SBA Loans require additional documents and information. To learn what’s needed for the SBA Loan application, 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 reach out to 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 and when you’re approved, funds for Business Term Loans, Business Lines of Credit, Working Capital Loans, Equipment Financing, Merchant Cash Advance, Revenue-Based Business Loans, and Accounts Receivable Factoring should then appear in your bank account in anywhere from 24 hours to one week. For SBA Loans, it usually takes 3-5 weeks to receive funding.
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 of 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 we decline your application, it might be because you applied for the wrong product for your cash flow. In this case, we would likely recommend a different product with a less hazardous repayment structure.
We might also decline your application after determining that you cannot afford to take on more debt at this time. Instead, your needs and financial circumstances might be better suited for another financing tool, like a business credit card or even a personal loan. Both options can be accessed through UCS and are usually much easier to qualify for than business loans.
If your credit score is preventing you from accessing financing, you should consider our credit repair services. We can help you identify the issues that keep your score down and develop practical solutions for eliminating them.
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. And when most of your limousines are of the same age and model, there’s a good chance that multiple vehicles will require maintenance or become outdated at the same time.
Also, it’s important to note that many limousine companies are quite small. Many of them have less than ten limousines in their entire fleet. This shows how difficult it is to grow a limousine company on your own.
Yes, six of the eight products mentioned above are accessible for borrowers with bad credit. Your rates may be higher, and your terms may be shorter because bad credit makes you more likely to default. However, if you have strong cash flow or can provide collateral, your bad credit may have less impact on your rates and terms. We can also customize your terms and payment frequency to ensure that 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 Accounts Receivable Factoring, approval depends on your customer’s creditworthiness, not your own.
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].
