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How to Get a Home Based Business Loan: 5 Options

HOME BASED BUSINESS LOANS

Getting the funding you need for a home-based business can be challenging.

In addition to the challenges of starting a home-based business– applying for licenses, filing taxes– acquiring business capital to start, grow, or expand your business is a process all in itself. You may find you self asking your self how to get a loan for a home based business?

Many small companies usually start as home-based businesses. It is at this stage where the owner lays the foundation for their future business. It’s also the stage where owners face their biggest challenges.

Aside from getting clients, one of the biggest challenges for business owners is finding financing. Unfortunately, home-based businesses have few financing options. Many banks look down on this type of funding but we have some options for you.

That’s where home-based business loans comes in.

Fortunately, there are several programs available when it comes to home-based business financing, each with different advantages.  Read on to find out more.

Obtain fast funding for your home-based business. Apply with Excel Capital: Apply Now

5 Home Based Business Loan Options

Home-based business loan options for small business owners.

1. Equipment Financing

Equipment financing helps business owners purchase any type of equipment needed to run the business.

The loan amount is dependent upon the type of equipment needed, as the repayment term is usually as long as the expected life of the piece of equipment and if it is used or new.

2. Split Funding / Merchant Cash Advance

Split funding, also referred to as a merchant cash advance, works on a “pay as you earn” model.

It is important to know that Split Funding is not a loan. Instead, a flat percentage of your business’ credit and debit sales are automatically debited daily and put towards the repayment of your loan.

If your business does a large amount of sales one day, a larger payment is taken out to pay back the advance. If a small amount of sales is done that particular day, you pay less. There is no fixed payment amount or maturity date. This type of funding is available only to businesses that accept credit card payments.

3. Short-term Loan

Short-term loans are used as a way to fill an immediate financial needs and fix cash flow issues.

Most lenders that provide this type of loan do not require a lot of paperwork and they can be used for virtually any business purpose.

Common uses of short-term business loans are inventory purchases, new hires and employee training, equipment repairs, and filling gaps between accounts payable and receivable. This financing solution mean shorter having a shorter repayment schedule with higher costs. Short-term business loans are generally paid back via weekly ACH payments.

In contrast, traditional term loans are paid back within a fixed term and a set interest rate. While traditional term loans allow you to build business credit and have fixed monthly payments, they come with less flexible terms and rates and penalties may be charged if the loan is paid off early.

4. ACH Loan

ACH loans typically require personal guarantees, and have a fixed repayment schedule that is paid either daily, weekly or monthly. They are a popular funding solution for businesses that do not accept credit cards or want a set repayment schedule.

Whether you need the working capital obtained through an ACH Business Loan for inventory purchases, new hires, employee training, purchasing equipment, or almost anything else for your business, this funding solution can be extremely beneficial.

Unlike traditional business loans, funds from an ACH Business Loan disburse in as little as three business days after being approved for funding.

Additionally, this funding product does not require a minimum credit score to qualify, which means many up and coming businesses or businesses experiencing a rough financial period. Having collateral is not necessary to qualify, so business owners who have poor credit or lack business history can still apply for this great funding solution.

5. Business Line of Credit

A business line of credit is a rotating loan,  also known as a “LOC,” that gives business owners access to a fixed amount of money, which they can use day-to-day according to their need for cash. Interest is only paid on the amount of the advance actually used.

There are two types of Business Lines of Credit:

1. Unsecured Business Line of Credit

Unsecured business lines of credit do not require borrowers to pledge any assets as collateral.

As a result, this tends to be a more popular type of business credit line to business owners. However, they are much more risky for the lender, therefore your credit score must be excellent.

In addition, they tend to be smaller with higher interest rates.

2. Secured Business Line of Credit

A secured business line of credit requires business owners to put up assets as collateral in order to obtain the loan.

While lenders do not typically require business owners to pledge assets like property, they will require the collateral in the form of inventory, accounts receivables, and more. Consequently, if you are unable to pay back the loan, your lender will seize your collateral in order to pay the balance.   

Both secured and unsecured business lines of credit will require your business to be in good standing.

Lenders typically prefer to work with businesses that are well-established and in good financial standing, thus proving to the ability to pay back the loan. Depending on the lender, various financial documents will be requested to support this.

Get the capital your home-based business needs. Apply for an unsecured business line of credit with Excel Capital: Apply Now

How to Get a Home-Based Business Loan: What Do you Need to Get Approved?

One of the benefits that come with alternative lending is a fast application and approval process.

Business owners don’t need to fill out or submit  mounds of paperwork, or have to wait months to receive an approval or decline. Once a business has been approved, they can be funded in a little as a week.

The initial documentation is typically enough to get funding, but there are instances when additional documentation may be requested depending on the lender.

The following is the standard business documentation you should have prepared when starting the application process:

  • One-page application
  • Voided check (for your business account)
  • Copies of identification for all owners
  • Proof of ownership Last filed Tax return , By laws for corporation or Articles of Organization for and LLC
  • Proof of EIN – If you do not have a tax return most funders can use a EIN letter or SS4 Letter along with proof of ownership
  • Three months of bank statements
  • Aging AR report if your in an industry where you have billing net 30-90

While not everything may be requested, the more the better here. Getting your documentation ready ahead of time will also speed up the time to fund, allowing you to get the capital you need ASAP.

Acquire a Home-Based Business Loan with Excel Capital

Finding funding for a home based business can be tough.

However, at Excel Capital, we strive to make obtaining funding easier and more convenient for small business owners in need of capital.

The application process is quick and, if approved, you could obtain funding in as little as 24-48 hours.

Click below to start your application:

Apply in minutes, get fast funding for your home-based business: Get Started

Construction Business Loans: Get the Funding Your Business Needs Today [2024 Guide]

EXCELCAPITAL - CONSTRUCTION BUSINESS LOANS

Construction Business Loans: Everything You Need to Know

As a  general contractor, you know that obtaining construction business loans is important to running a construction business and operating in a fluid fashion.

Full payment for a project does not typically come until at least 90 days after the project start date, but construction costs don’t wait around,  which makes construction loans a necessity to function.

When a new job is taken on you receive a small down payment upfront as well as progress payments or tiered payments as the job hits certain milestones. This delayed payment structure makes obtaining construction business loans crucial to maintain positive cash flow. 

Because of this structure, contractors need to come out of pocket for many expenses such as: 

  • Payroll
  • Material Costs
  • Insurance
  • Equipment 

Contractors know that obtaining funding is the solution. But what do you do when you can’t be approved– or can’t wait– for a traditional bank loan? 

Why Take Out a Small Business Loan Instead of Going to Your Local Bank or Traditional Lender?

construction business loan quote

It’s all about timing.

Most banks and traditional lenders (such as SBA loans) take way too long on loan approvals. And even if you try to avoid the timing issue by planning when you need it, many contractors that apply for construction financing with their local bank find that they can’t be approved without collateral.

Banks use traditional underwriting practices, which places the commercial construction industry in a high-risk bracket. That means you’ll need to have something to put down to secure the loan otherwise you’re not likely to be approved.

However, this needlessly puts you at additional risk on each and every job. Not to mention, puts you under extra stress that you don’t need. 

Alternative lending offers a way around these strict requirements and gives business owners a path forward.

At excel we’ve worked with hundreds of construction business owners to offer unsecured loan options that give you the funding you need while affording the flexibility to get approved without having to put down hefty collateral.

Short application, get approved in as little as 24-48 hours: Apply Now

Types of Construction Loans: Alternative Loan Options

So, what are your options for construction loans?

Well, you’ve got a lot. And it all comes down to what you need the funds for and what type of loan fits your business and the types of construction projects you take on.

As mentioned above, no matter what you need funding for, there are several working capital loan options available. However, some construction loan options are designed for specific needs while others are more general.

Let’s break each down individually to give you a better idea of which might be a good fit for you:

1. Equipment Financing

Equipment financing is used to help you purchase whatever equipment your business needs to run smoothly.

The loan amount is dependent upon the type of equipment the borrower needs, as the repayment term is usually as long as the expected life of the piece of equipment.

2. Invoice Factoring

Invoice factoring is used for short-term cash flow issues, especially when your business doesn’t qualify for a traditional bank loan or any other alternative solution. That’s because it depends less on your credit score and more on other business factors such as your accounts receivable.

The lender will factor your business’ customer’s invoices to match your working capital needs.

This type of program is rarely used for contractors since progress payments cannot be factored. Factoring companies only use invoices for work complete. In the construction business, it typically happens this way.

3. Unsecured Business Loans

Unsecured business loans were designed for business owners to enjoy the benefits of a merchant cash advance who do not accept credit cards at there business. Most contractors do not receive credit card payments – and even if they do its typically a very small percentage of the annual gross sales.

This works as a purchase of future sale at a discount that is converted into a set payment. This payment is remitted via ACH usually daily, weekly or monthly. 

This allows you as the borrower to get construction loans without any collateral, just your sales. It also requires a lower credit score compared to traditional lending for the same reason.

4. Merchant Cash Advance

For those of you who accept credit cards at your business, split funding, or a merchant cash advance, is a construction business loan based on a purchase of your future credit card sales at a discount.

Payments are collected at a set percentage of your credit card sales, which is nice because that means when business is down– so are your payments. And when there is no business– no percentage.

For that reason, this method really helps during a particularly volatile market or rough patch in your construction business.

It also doesn’t have a stringent a credit score requirement due to factoring in your credit card sales more than anything else. 

5. Term Loans

Our fourth construction business loan option, term loans have a set repayment schedule and interest rate and mature between 1 to 10 years depending on the term of the loan. Most commonly being short-term loans which offer a quick lump sum of cash with a short repayment date. 

However, keep in mind that a short-term loan, or any other term loan, requires financial statements as well as 2 years of business history and one filed tax return.

6. Business Lines of Credit

A business line of credit is a rotating line of credit which you can dip into whenever the business needs it most.

Similar to a credit card, so long as you pay off your balance you can continue to use that line of credit continuously. Interest is then only paid off the amount that is used.

7. Asset-based Lending

Lastly, with asset-based lending, the assets of a business, such as inventory, accounts receivable, and other balance-sheet assets are used as collateral.

Plus, because this financing type is secured with collateral, interest rates tend to be low and credit score requirements are lower as well. Having applicable collateral also makes an asset-based loan easier to obtain.

Complete our short application and get approved fast:Apply Now

How to Get a Construction Loan: How Do Construction Loans Work?

how to get a construction business loan

Ultimately, it’s up to you to do your research and find out what your best small business loan options are.

It’s your business and no one is going to look out for it like you will, so take the necessary steps to educate yourself and then take action to obtain the funding your business needs, whether that’s to keep things afloat or to take things to a whole new level.

Whatever the case, don’t let a lack of funding hold your business back from realizing it’s potential.

To apply for a construction business loan with Excel Capital, only four things are required:

  1. Four months of recent business bank statements
  2. Four months of business credit card processing statements
  3. A one-page application
  4. And just a few minutes to get started

We’ve made the process of getting a small business loan simple and straightforward so you can get back to what is most important– running your business.

Once everything is received, you can be presented with an approval, your loan terms, and funded in as little as one business day– that’s right, just 24 hours.

Get the funding your contracting business needs by completing our short, 2-minute application.

Excel Capital Helps Contractor Marty Secure a Loan: A Case Study

While the construction business is one of the oldest, most flourishing, and most competitive industries around, there comes a time when many of its business owners need access to working capital.

The cost of equipment, materials, payroll, and slow turn-around rates trump the cash flow coming in, and many construction company owners find themselves weighed down by bills and overhead costs.

Since the great recession of 2008, a traditional bank loan is no longer the go-to solution when it comes to acquiring capital.

That old-school way of doing things sometimes ends in heartbreak due to waiting weeks just to receive an answer. That’s where the alternative financing industry comes into play.

With financing solutions such as the ever-popular merchant cash advance, ACH loan, asset based loans, equipment financing, and more, access to working capital is easier than ever.

Funding Needed Fast

Recently, Marty, a construction company owner from Georgia reached out to the Excel Capital team.

Marty was in a crunch. He needed funds– and he needed them fast.

With a handful of projects on his plate, along with receivables due on a large ongoing project not being paid on schedule, Marty asked us for working capital to be used towards the purchase of materials, equipment, licensing, and payroll.  

Marty’s workers and office employees needed to be paid and materials needed to be purchased. So, waiting for payouts was not an option.

In order to get things back on track, as well as to generate new growth, Marty asked our sales rep, Jordan for help in securing an ACH loan. A short term funding product, an ACH loan is paid on a daily or weekly basis by direct ACH debits.

Marty had close to $200,000 tied up in projects which wouldn’t come in for at least thirty days, plus roughly $150,000 in retainage for completed contracts. However, that was going to be payed out over six months.

He also had both a $2 million and a $1.5 million contract on the table respectively (both carrying a 20% gross profit), but those were not set in stone.

Marty’s company had no time to wait with other projects lined up and needing to be completed soon. However, they couldn’t be completed unless he had the means to hire more workers and purchase new machines to keep up with the timelines in place.

Marty Joins Forces with Excel Capital

To the Average Joe, these type of accounts receivable amounts seem amazing, but in the construction business, we know this revenue doesn’t always reflect the tangible finances.

Most, if not all, of the money is put back into the company to complete ongoing projects.

Whether Marty could wait until his own payday or not– he needed working capital now.

After supplying us with bank statements, a business lease, his driver’s license, and a few other minimal stipulations, we were able to get Marty $80,000 in working capital in a matter of only two days!

The daily repayment amount was only $400, an ACH automatically debited (so Marty wouldn’t have to worry about making any large monthly payments, he could focus on his projects at hand) which would happen over the course of 12 months.

It was as simple as that! No hassles or phone calls from banks, just fast funding, easy communication, and transparent terms. And, most importantly, peace of mind.

Get a General or Commercial Construction Loan with Excel Capital

At Excel Capital, we know that getting the funding you need is critical to completing bigger and bigger jobs and keeping your business going.

Reach out to the Excel team to find out if you qualify for a construction loan as well as to discover your options.

Apply for a construction business loan from Excel Capital: Get Started

Motel loans: What funding options are best for Hotels, Motels and Bed and Breakfasts.

Motel Financing: How to Obtain the Working Capital You Need | Excel Capital Management

Owning and operating a motel business is no easy task whether you have one location or are in charge of a franchise. Keeping up with trends and the constant competition among other motel and hotel chains can be quite difficult at times, and some additional working capital may be needed to keep up. When it comes to applying for financing help, many motel owners have a tough time going the traditional route. Traditional banks and lenders tend to list motels as high risk for various reasons such as seasonality, low numbers of  guest bookings, negative reviews, lack of collateral to pledge when obtaining financing, and more. These concerns are all justified, but it’s not the end of the road. There are many alternative funding options available to motel business owner. Let’s take a look!

Motel Financing Options

Split Funding aka Merchant Cash Advance: Short-term financing transactions that are collected through a set percentage of your Visa and MasterCard sales that are accepted at your place of business. Probably the most common term used in the industry. These do not have a set repayment schedule and are based on the volume of your businesses credit card processing sales. These are usually only guaranteed by the future sales of your business.

Split Funding aka Merchant Cash Advance: Short-term financing transactions that are collected through a set percentage of your Visa and MasterCard sales that are accepted at your place of business. Probably the most common term used in the industry. These do not have a set repayment schedule and are based on the volume of your businesses credit card processing sales. These are usually only guaranteed by the future sales of your business.

Equipment Financing: Equipment Financing is a loan product used to help business owners purchase any type of equipment needed to run the business. The loan amount is dependent upon the type of equipment needed, as the repayment term is usually as long as the expected life of the piece of equipment and if it is used or new.

Term Loans: A loan that is backed by a bank for an exact amount that has a specified repayment timetable and interest rate that are adjusted accordingly. Terms mature between 1 and 10 years.

ACH Loan: These loans may need personal guarantees, and have a fixed repayment schedule that is paid either daily, weekly or monthly. These products are catered to industries that do not accept credit cards and need a fixed payment.

Business Lines of Credit: A rotating loan that gives business owners access to a fixed amount of money, which they can use day-to-day according to their need for cash. Interest is only paid on the amount of the advance actually used.

What Can Working Capital Acquired via Motel Financing Be Used For?

wealth | excel capital managementWhat’s great about all of the aforementioned motel financing options is that the working capital acquired through any of them can be used for virtually anything as long as it pertains to the business. Whether your motel has hit a rough patch and you need the capital to fix cash flow issues, or business is booming any you want to grow bigger and better, you can use it! Here are just a few popular working capital uses among motel owners:

– Business Expenses and Tax Payments

– Payroll and New Hires

– New and Additional Locations

– Equipment and Supplies

Three Crucial Steps to Take Before Applying for Motel Financing

motel | excel capital management

As you would assume, there are many, many alternative lenders out there who can promise you the world when it comes to your motel financing needs. While most lenders and brokers out there are good guys, it is in your best interest to be cautious and to ask questions. Before you sign anything, make sure you fully understand the business funding solution you are applying for, how it works, and what the overall cost will be – literally and figuratively. Here are three crucial steps to take before you apply:

Identify Your Business’ Needs – First things first, why does your business need a loan in the first place? Sit down with your core staff members, financial advisers, or simply yourself to determine your business’ needs and how a quick business loan could help. Do you need to purchase inventory, hire additional staff, catch up on bills? Having a plan of execution once the loan is acquired is essential for success, as well as a plan for paying the loan back.

Do the Due Diligence – You may hear the phrase, “do the due diligence” a lot when researching quick business loans. In simpler terms, this means doing the necessary research before applying and accepting an offer with a lender. There are thousands of lenders and brokers out there – traditional and alternative. Don’t take everything at face value. Learn as much as you can about each lender you are interested in, compare pricing, read reviews, ask questions, and follow your gut if something just doesn’t seem right. You have the right to protect yourself and your business. The last thing you want to do is put your business in more of a financial bind or have setbacks. Research and knowledge is key. Do your due diligence.

Choose the Best Quick Business Loan Option – Maybe you did this when identifying why your business needs a quick business loan, but it’s a good idea to confirm again the type of loan product your business truly needs. Speak with your chosen lender to go over all of your options and get a better understanding of each financing option and how everything works.

Find Out What’s Needed To Qualify and Apply – All lenders have different business loan qualification guidelines. Depending on your business’ financial standing the amount of money you are looking to obtain, the documentation needed to be presented with an approval will vary. It is a good idea to at least have your last six months of business bank and credit card processing statements available, as well as additional financial documents like P&L and Balance Sheets and tax returns easily accessible.

The Application, Approval, and Funding Process

The great thing about motel financing is that the application, approval, and funding process is quick and simple. Generally, lenders that provide these financing options only require a simple, one-page application, four months of recent business bank statements, and four months of business credit card processing statements to get started. Once these pieces of documentation (and maybe a few others) are received, you can be presented with an approval and funded in as little at three business days!

For more information on motel financing options, contact one of our funding specialists today at 877-880-1106 or APPLY NOW! 

Split Funding: What are the Benefits for Your Business?

Split Funding: What are the Benefits for Your Business? | Excel Capital Management

No matter what the industry type, almost all small business run into a point over time where they need additional working capital. Whether you need the working capital to cover basic business expenses during a slow season, a little extra cash to take care of payroll, money to purchase bulk inventory, or anything else pertaining to the business – access to funding is crucial for any business owner. Today, let’s discuss on probably, the most popular, alternative funding option out there, the cash advance business loan.

 

What is Split Funding and How Does it Work?

wealth | excel capital managementSplit Funding is more commonly know as a Merchant Cash Advance. This type of business funding solutions is a flexible and cash-flow friendly way to access additional working capital for inventory purchases, equipment upgrades, hiring, employee training, payroll, taxes, and anything else your business could use the money for. Split Funding is especially great for businesses whose owners value having the amount they remit fluctuate with their daily payment card receivables.  In simpler terms, a flat percentage of your business’ credit and debit sales are automatically remitted daily. If your business does a large amount of sales one day, a larger payment is taken out to pay back the advance. If a small amount of sales is done that particular day, you pay less. There is no fixed payment amount or maturity date. A larger repayment amount is sent on busy sales days than on slow days, and the process stops as soon as the advance is paid back in full.

 

What are the Perks of Split Funding for Small Business Owners?

scale | excel capital managementThe primary purpose of Split Funding is to service the financial needs of small to medium sized business owners. However, there are unique advantages included in the service that tailors to a specific business owners need. Here are some of those advantages:

  • Unlike traditional business loans, funds from split funding disburse in as little as three to four business days.
  • Split Funding does not require a minimum credit score to qualify. Therefore, any company struggling with a weak credit profile qualifies for the funds they need.
  • Traditional business loans typically require some form of collateral to secure a loan. The collateral requirement causes many business owners to face the fact they may lose precious assets in case they cannot make their payment. However, split funding does not require any personal collateral to qualify. Business owners who have limited assets never need to worry about losing their collateral.
  • Since there is no fixed payment with split funding, business owners who run into financial trouble or weakening sales do not carry the burden of a fixed remittance.
  • Since payments come from a small percentage of credit and debit sales, a business owner will actually see their payment decrease during lean times. There is no advantage quite like this with traditional business loans.

 

 

 

What Can Working Capital Acquired Through Split Funding Be Used For?

As mentioned in our opening paragraph, many business owners obtain funding at some point in their business’ lifecycle to help out with various needs. The great thing about split funding is that it can be used for virtually anything as long as it pertains to the business. Here are some common uses:

Business Expenses

By acquiring working capital for your business, you will be able to pay for things that may have not been affordable in the past. You may need office supplies, new computer software, or you may have a few bills to pay. These payments can all be made possible with working capital.

New Hires and Employee Training

Once you business starts to boom, you may need some extra help. Maybe you want to hire additional cashiers for your store. Maybe your restaurant needs additional wait staff or hosts. Maybe your medical office needs another receptionist. Maybe you even need to hire a few accountants to help take care of your finances. Additionally, many of these employees will need adequate training. Working capital can be used for all of these things!

Inventory and Equipment Purchases

Many business owners choose to use working capital to take advantage of bulk pricing on inventory and equipment. Similarly, equipment such as machines, computers, vehicles, and more can reach well into the thousands of dollars. Because many vendors require a large upfront payment for this type of pricing on inventory and equipment, working capital gives business owners the funds they need to purchase the items they need before it’s too late.

Unforeseen Problems

Unfortunately, with every business, problems do arise. Equipment fails, vehicles breakdown, natural disasters occur, employees leave. The headaches are unforeseeable and can be expensive, but working capital can help to cover the costs in a matter of a few days.  

Marketing & Advertising

One of the most important things you can do is market and advertise your business to the world. Website development, paid ads, and social media marketing is a big job, and hiring a team of professionals can be pricey. Having enough working capital in order to cover these expenses can help tremendously.  

Research & Development

Constantly developing your products, goods, and services is essential for staying ahead of the competition in your industry. Additionally, doing the proper market research and analyzing your target audience and consumers is key to knowing what your customers want. Working capital can certainly be used to help fund this process.  

Product Manufacturing

Similar to research and development, product manufacturing may be a constant need depending on your industry and business capital may be needed during slow periods or when business is so great, that you must quickly meet the demand.  

Office Space & Business Locations

Maybe you need an office space or facility in order to properly operate. Working capital can be used to acquire the appropriate space during the startup face or shortly thereafter.

 

What’s Needed To Qualify and Apply?

office | excel capital management

Split Funding is fairly easy to qualify for! Most lenders generally only require that the business have at least two months of operating history, documented gross monthly sales of $10,000 or more, $7,500 or more in monthly credit card sales, and no open bankruptcies. As you can see, if you business is out of the startup phase, qualifying for this business funding options is simple. After this criteria is met, the documentation you must provide is simply a one-page application, four months of business bank statements, and four months of business credit card statements. Most business owners receive a call with an approval within 24 hours and are funded in as little as 3 business days!

 

 Complete our online application and see how much you can be approved for: Apply Now

Truck Overhaul Financing: How It Can Help Your Business

Truck Overhaul Financing: How It Can Help Your Business | Excel Capital Management

The trucking industry can be a highly competitive and taxing. Training drivers to operate new equipment and trucks, the length of your payment terms with various vendors, the price of fuel, and maintenance are all expenses that need to be considered. From driving through hilly terrain to hauling heavy loads, a lot of stress is put on your truck’s engine. Despite staying on top of fixing small problems before they become bigger problems you will eventually have to put money towards a major fix. This is where truck overhaul financing can help.

While you should take your truck to a shop for analysis, you can also use your senses (sight, hearing, smell, and touch) to monitor their condition. If your truck is showing any of these signs, it could mean that it’s time for an overhaul:

  • Increased oil consumption: This is caused if the valve guides are worn, or if there’s too much space between the valve stems and guides, or if the valve guide seals are worn, missing, broken or not installed correctly. The engine may still have good compression, but it will use a lot of oil.
  • Excessive Exhaust: Since they positioned in the back of the truck, your tailpipes can go unnoticed. However, knowing if it blows excessive smoke, that’s a good indication that it’s time for an engine rebuild. Thick and dark is another clue. Just keep an eye on the tailpipe and take notice of any unusual smoke or a larger amount of it is coming out of your tailpipe.
  • Black, blue, or white exhaust: See if your truck is emitting exhaust that is blue, black or white in color.
  • Water in the oil: If there’s water in the oil, it will create a foam or gunk on the fill cap or the dipstick. Water that has formed on the dipstick will also cause rust to develop.
  • Engine knocking: Listen for changes in the way your trucks sounds when running. Rough running and pinging are both signs. If you ever hear a sound coming from your engine that sounds bad, it would have to be the knocking sound that gets louder when you rev the engine. This can sound like someone is actually knocking on your engine. This sound is not just annoying, but not a good indicator. It is not normal and sometimes it can lead to other auto problems if not addressed properly.
  • Oil pressure gauge: Even if the gauge isn’t calibrated perfectly,  look out for any noticeable change in its reading.
  • Sludge: If you notice oil sludge on your oil pin when you clean and replace your oil, then you know your engine is not working well. Oil or coolant sludge is not just gross, it’s also a sure sign that you will need an engine overhaul in the immediate future. Sludge is wasted oil or coolant that is not going to be used. Plus it can cause issues that may make your engine not run very well.
  • Overheating oil: Oil that’s overheating smells like burning oil.
  • Reduction in  acceleration: This is a sign of loss of cylinder compression.
  • Low fuel economy: Fuel is be pricey and can be a nuisance if you constant have to refill our tank, especially during long distance hauls. When the engine is slow or not working well, it can uses a lot more gas just to run.
  • Low oil pressure: This happens when the oil pump does not create pressure, and as a result, oil doesn’t all of the components. It’s often due to worn rod bearings or a broken oil pump.

Truck Overhaul Financing Options

Overhauling an engine can be costly and you may need additional working capital to help. The following are some of the trucking overhaul financing options available:

  • Equipment Financing: Used to help business owners purchase any type of equipment needed to run the business. The loan amount is dependent upon the type of equipment needed, as the repayment term is usually as long as the expected life of the piece of equipment and if it is used or new.
  • Merchant Cash Advance (Split Funding): Transactions that are collected through a set percentage of your Visa and MasterCard sales that are accepted at your place of business. Probably the most common term used in the industry. These do not have a set repayment schedule and are based on the volume of your businesses credit card processing sales. These are usually only guaranteed by the future sales of your business.
  • Term Loans: A loan that is backed by a bank for an exact amount that has a specified repayment timetable and interest rate that are adjusted accordingly. Terms mature between 1 and 10 years.
  • ACH Loan: These loans may need personal guarantees, and have a fixed repayment schedule that is paid either daily, weekly or monthly. These products are catered to industries that do not accept credit cards and need a fixed payment.
  • Business Lines of Credit: A rotating loan that gives business owners access to a fixed amount of money, which they can use day-to-day according to their need for cash. Interest is only paid on the amount of the advance actually used.
  • Emergency Business Loans: Loans that are funded quickly to help your business get out of a jam quick. Generally funded within 24 hours.

Application Process

Once a business has been approved, they can be funded in a little as a week. Usually, the documentation that is initially submitted is enough for this to happen in most cases, but there are instances when additional documentation may be requested depending on the lender. The following is the standard business documentation you should have prepared when starting the application process:

  • Business license
  • Voided check for the business account
  • Clear copies of identification for all owners
  • Proof of ownership
  • Trade references
  • Four months of bank statements
  • Four months of credit card statements (if applicable)

If it’s time to get some work done, trucking overhaul financing could be right for your small business. Excel Capital Management’s funding specialists are here to help and guide you every step of the way. Excel Capital Management will work to match your business capital needs. Give us a call at 877-880-8086 or APPLY NOW!