Think Alternative Funding When You Need a Vehicle for Business

Posted by Karen Erdelac on Oct 24, 2015

alternative fundingFrom coast to coast and region to region, there are a large number of businesses in the United States that rely on one vehicle or a giant fleet of them. In fact, according to information found at American Trucking Associations, close to 70% of all the freight tonnage moved in the U.S. requires the use of trucks. In addition, pizza companies, retail suppliers, florists and sales firms are just some of the businesses that depend on vehicles for day-to-day operations.

Some businesses need one or two vehicles while other companies need an entire fleet. According to a study released by AAA last summer, it costs an average of $8,876 to own and drive a sedan, which is 2.7 percent less than the 2013 cost of $9,122. Falling gasoline prices is one of the contributing factors to the cost decrease. In addition, the report took into account car maintenance, registration, depreciation, tire replacement and financing.

Before purchasing vehicles entrepreneurs should consider some facts related to the cost of owning and using vehicles for the business. Careful thought should be given to who the drivers will be, taxable business expenses, financial statements, property taxes and whether to lease or buy. Research at the Internal Revenue Service website can be a worthwhile investment of time.

In addition, a business owner should consider other expenses:

  • Capital Costs: purchasing the vehicle, monthly payments, add-ons and upgrades, and licenses fees are costs that small businesses have to budget for.
  • Maintenance: all vehicles need maintenance and business owners should budget for everything from fuel to filters.
  • Gasoline: we're fortunate right now: gas prices are down. But this trend won't last forever, today's gas prices are beneficial to every business out there, except for perhaps the oil behemoths. Let's hope your enterprise is stashing away those fuel costs.
  • Insurance: according to Geico, if your business vehicle is used to transport goods or conduct a service then a commercial auto insurance policy may be needed.
  • Miscellaneous Operating Costs: this can consist of parking costs, municipal violation tickets, background checks on drivers, vehicle advertising and repairs in the event of an accident.

alternative fundingBuying and maintaining a vehicle can be expensive, but for many business owners this is an essential investment. Alternative funding solutions can be a great way to finance these costs. Whether you are planning to purchase a vehicle or you need business cash to keep up with maintenance or to make repairs to your vehicles, a business cash advance may be the right funding option for you.

Quikstone Capital Solutions is an alternative funding services firm that offers small businesses merchant cash advances. This kind of business funding tool helps SMBs pay for their short-term costs in order to make substantial long-term gains. Whether you need to buy a vehicle fast, pay for a much-needed repair or acquire insurance, a merchant cash advance could be what your company needs at the moment.

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Topics: Funding Your Business, Growing Your Business