Avoid growing pains with smart planning

While many fleets grow organically over time, sometimes an opportunity for sudden growth presents itself. Maybe your fleet has been awarded a new contract or an existing carrier you’re hauling for has given you more business. You may have to take out a loan to acquire new assets to make it happen—but if it works, your business could jump into the next tier of success and profitability.

As the Business Development Manager for Mack Financial Services, Peter Chaisson has met many fleet owners in this position, and he’s seen some of those businesses rise to the occasion while others have failed. How can your business handle this transition well? Chaisson highlights four major keys when it comes to successfully expanding your fleet:

• Reinvest in your business. “In all my years of equipment financing, the most successful customers I’ve done business with are those who have reinvested back into their business,” Chaisson says. Using cash and trade equity as a down payment when buying additional trucks helps you build equity faster, resulting in less debt, and reduced overall expenses.
• Have a financial plan. This goes beyond balancing the budget month-to-month. Think about your capital expenditures: not just your next purchase, but for future years, too. Have officially prepared financial statements that you can present to commercial lenders when you are looking to finance your next Mack truck. The bigger your business gets, the more important advanced planning will become.
• Bigger isn’t always better. Don’t chase growth at the expense of your own happiness. Chaisson says, “We all want to be successful and become the next biggest fleet in the world. But managing a large fleet is hard work. Some owners find success managing fewer trucks.” In fact, Chaisson says the biggest regrets some owners share is expanding too quickly and overextending themselves financially. Take your time, grow incrementally, and find out what works best for you and your business.
• Confidently share your story. “Be open with your lenders,” Chaisson says. “There’s a story behind every company. So, you can say to a lender, ‘This is why I’m looking to buy these trucks. I just got awarded this contract for the next five years,’ or ‘this contract was extended with additional loads for two more years,’ to give that potential lender a storyline—something they can hang their hat on and say, ‘This guy knows what he’s doing.’”

For more advice and solutions for taking your business to the next level, get in touch with Mack Financial Services. Their expert team offers special loan rates, extended terms, and reduced down-payments for qualified buyers, allowing you to find the right financial solution for your business’ needs.