Complete Guide to Limo Financing

The taxi and limousine services industry contributes $33 billion to the U.S. economy. With more than 1.3 million businesses in this sector, it can be difficult to make your mark, though.

Whether you’re looking to ramp up your efforts or manage through slower months, taxi or limo financing can help.

Running a business isn’t always a smooth ride. Here are a few reasons you might need a taxi or limo business loan.

Buying New Vehicles

Purchasing a new vehicle is expensive, so if you’re planning to add a few proverbial ships to your fleet, a limo business loan can help you afford these new additions. That’s the case whether you’re looking to buy a stretch limo, luxury sedan, party bus, shuttle van or antique Rolls Royce.

Weathering the Seasons

If your limo business is located in a region that experiences the 4 seasons, spring and summer could be great, when weddings and outdoor events are more frequent. However, when fall and winter come into view, cash-flow shortages could make it difficult to get by.

Marketing Your Limousine Services

During the slow months, you might want to increase your advertising spend to market your services for year-round needs, including airport transportation, corporate event travel, sporting events or a night out, to name a few.

When you don’t have enough capital on hand but want to invest in your business, consider a loan for your taxi business or limo service.

Hiring Additional Staff

A jump in business could lead you to need more drivers or onsite mechanics, and you don’t want to hire just anyone. Particularly when it comes to chauffeurs, ensuring you hire quality drivers with safety training and impeccable driving records could require paying an above-average wage.

Taxi or limo financing can help your business continue to operate smoothly while you put new staff in place.

Below are a few limo financing options to consider when you’re in search of funding.

Equipment Financing

Use an equipment loan to buy the vehicles you need to operate your business. Often with these loan types, the equipment serves as collateral for your loan. As such, lenders may provide borrowers with up to 100% of the item’s value.

Business Line of Credit

In the transportation industry as in other sectors, you have your ups and downs. A business line of credit is there when you need it.

Use it to cover an emergency repair or finance a large one-time purchase. Similar to a credit card, once you’re approved for a certain amount, you can access up to that amount at any time, though you aren’t required to. As you pay back what you borrowed, your credit line is restored up to the original amount.

Business Term Loan

If you’re in need of funds for a 1-time purchase, a term loan could be a solution for your needs. Depending on the lender, loans may be short-term, payable in months, or long-term, with payment terms extending to years. Loans are repaid in regular installments, which could be daily, weekly or monthly depending on the terms for which you’re approved.

SBA Loan

The Small Business Administration (SBA) works with partner lenders to make long-term loans and lines of credit affordable and available to many entrepreneurs. The government agency guarantees a portion of all SBA loans, which means these loans are less risky for lenders.

Merchant Cash Advance

A merchant cash advance is an alternative financing product that provides fast funding to business owners who may have been turned down for conventional loans. It’s designed to provide funds for short-term needs and meant to be paid quickly, often with fixed daily or weekly payments.

You’ve got your fair share of options when it comes to financing your taxi or limo business. Here’s an overview of 2 of the most common lenders out there for business finance.

Conventional Lenders

Big-name banks or your local credit union probably comes to mind when you begin your search for a small business loan. Conventional lenders have become increasingly more stringent regarding business loan approvals, however, in spite of their competitive loan terms.

High credit score, minimum revenue and collateral requirements make it difficult for many small business owners to qualify. Plus, the application process can take some time.

Alternative Lenders

In response to the lack of funding approvals available with conventional banks, nonbank lenders entered the scene offering alternative financing products and more flexible qualification requirements.

Alternative lenders are often willing to work with business owners who are seeking limo financing for bad credit and may have been turned down by banks. Equally as noteworthy, financing could be available as fast as the same day of approval in some cases.

With Fast Capital 360, you can apply for limo financing with the following qualifications and documentation:

Minimum Requirements:

• 500+ FICO score
• 6 months in business
• Annual revenue of $120,000

What You’ll Need to Get Started:

• Basic information about your business and yourself
• 6 most recent monthly bank statements

Taxi and limo financing from Fast Capital 360 can help you keep your passenger service going strong.

Quick and Easy Application

Complete our simple online application in about the time it takes to fill your limo’s gas tank.

Multiple Loan Offers

Your 1 application with us gets you in front of our nationwide network of lending partners, which means you could have multiple offers to compare.

Expert Advice

One of our Business Advisors will reach out to guide you through the approval process and explain the details of your funding offer, so you can make the best decision.