Did you know that trucking in the United States is an almost $800 billion industry? It is, after all, responsible for moving about 70%, or 11 billion tons of goods throughout the nation.
Unfortunately, it’s also due to those roles that the industry faces worker shortages. By 2030, experts estimate it would be short at least 160,000 truckers.
So if you’ve always wanted to be a trucker, consider starting your own trucking business.
Don’t worry if you don’t have the funds yet. This guide will teach you how to start a trucking company with no money, so keep reading.
Get Your CDL First
Get a commercial driver’s license before starting a company in the trucking industry. You have three CDL options: Class A, B, and C. The one you choose will influence the type of vehicle you can operate.
Class A lets you drive a combination of vehicles weighing at least 26,001 pounds. This license also allows you to operate trucks with towing capacities of over 10,000 pounds.
Class B is similar to Class A in that it permits you to operate a vehicle weighing 26,001 pounds or more. However, it must be a single, not a combination vehicle. Its towing capacity must not be over 10,000 pounds, either.
With a Class C CDL, you can move hazardous materials or transport at least 16 occupants. Therefore, this is the license type you should get if you want to drive a passenger van or bus.
Apply for Financing
Once you have a valid CDL, the next step is to apply for a trucking business loan. Many traditional lenders, including banks and credit unions, offer these financing services.
However, you need a good business credit score to qualify for a business loan. The higher it is, the lower the interest rate you can get.
If you don’t have a business credit history yet, consider applying for a personal loan. As with business loans, you also need a good credit score to qualify and secure a low-interest rate.
You can use the loan funds as your capital or down payment for the truck you wish to buy. You can also use it to pay for your business equipment’s rental or lease fees.
Purchase Insurance
You can use part of your loan funds to purchase mandatory insurance coverage.
The type of insurance you need depends on the vehicle you plan to operate. For example, suppose you plan to drive a semi-trailer truck. In this case, you can buy affordable semi truck insurance coverage.
That’s How to Start a Trucking Company With No Money
Now that you know how to start a trucking company with no money, it’s time to use your newly gained knowledge. Then, once you’ve done all the steps above, you can already register your business and get it licensed. After this, all you need to do is to begin your business’s operations.
So, as early as now, follow our trucking startup business tips. The sooner you do, the sooner you can become a trucker/business owner!
For more startup ideas and guides, check out our recent blog posts!