Sunday, January 8, 2017
Expanding Business Operations with the Right Kind of Trucks
by Rachel Schwartz
Since the beginning of trade and commerce, it has heavily relied on roads and railways for the transportation of goods and its raw materials. More and new roads have always meant progress and advancements in any city. These days, there is a fast network of roads and railways in just about all countries in the known civilized world. Without these roads, transporting goods and its raw materials will be very difficult and progress will be hindered. Today, the number of trucks on the road has grown 8 times in just about a decade while the network of roads connecting cities more than doubled. Businesses need trucks to transport their products to their intended market. Having reliable trucks for transportation and delivery of goods can speed up production and send a business on the road to bigger sales revenue.
For manufacturing businesses, they have two options with regards to their trucking needs: they either expand their assets and purchase their own fleet of trucks; or they can hire a third party trucking company to get the job done for them.
Before deciding whether your business will buy new trucks or just hire trucking services, it is very important first that you know the pros and cons of each.
In deciding to buy new trucks for your business, capital is the biggest consideration. Businesses should understand that in purchasing new trucks, a huge cash outlay will be needed. If you have the funds, then by all means new trucks will be able to serve your business well. Brand new units are relatively maintenance free and you won't need to spend much on repairs. There's also the option of purchasing pre-owned trucks, which overall is not bad. Vehicles depreciate a great deal once you take them out of the dealership although they aren't used much. This type of pre-owned trucks will be your target. Once you know more or less how much capital you need to spend, then you can sort out your funding. I have business friends that started trying to get loans from banks but the process was long and tedious. They eventually found a great deal from bad debt creditors. I heard that they got their loan in no time and they were given fair rates. This greatly helped them fund their business.
There are businesses on the other hand whose operations don't really require them much to acquire their own fleet of trucks on which case, they hire third party trucking companies to take care of their trucking requirements. This option does not require a huge initial cash layout which is good. The downside however is that the cash layout is continuous, bit by bit every month. This can accumulate in time and businesses should be prepared to have this expense covered.
So when you have your own business, take note that:
- Trucking is a huge part of any industry and that majority of the products globally are still transported at one point by trucks
- Businesses can opt to buy their own trucks and they can pick from brand new units or pre owned units.
- Businesses can fund their truck purchase from bad debt creditors
- For businesses with insufficient funds or smaller operations, hiring trucking companies will do.
Rachel Schwartz is the Marketing Manager of BHM Financial - one of the most trusted names in the bad credit loan industry. This company may be able to help you reach your financial goals. Please visit our Bad Credit Loan website or our Blog and find out today.
Article Source: http://www.articlesphere.com/Article/Expanding-Business-Operations-with-the-Right-Kind-of-Trucks/268265