With almost 500,000 for-hire fleets now operating—and that number steadily rising annually—the trucking industry has grown to make more than $700 billion in 2015 alone, which is an industry record.
However, adding new drivers and equipment expenses have made things harder for smaller trucking firms. They have had to boost salaries, provide signing bonuses and new government regulations cap emissions, and limit driver hours. Buying a new truck? Doing so now costs 60% more than in 2008.
Small- to medium-size trucking companies are struggling to adapt to new regulations since they lack the cash reserves many larger operations have for hiring or in emergencies.
Alternative financing organization Merchant Cash USA surveyed 3,287 individuals in the trucking industry, through an email and social media campaign to find out where they thought the best and the worst states to be a trucker or own a trucking company were. The survey included questions such as cost of parking overnight, certain fees/regulations in particular states, if location in the United States mattered, and how friendly states were to drivers. Here are results of the survey:
Best states to own a small trucking company or be a driver (based on data of 3,287)
Worst states to own a small trucking company or be a driver (based on data of 3,287)
4. New Jersey
What’s the answer for small business owners? Alternative financing. It is rapidly becoming one of the top ways to get funding. Most traditional banks won’t even consider business loans of less than $200,000, which eliminates many business owners who need a smaller amount.
Merchant cash advances can provide business owners lower amounts of fast capital to help repair a truck, or buy new equipment/inventory within days.
Access www.merchcash.com to find out more.