An unavoidable quality of many industries is the ongoing need to pivot, or change strategies to adapt to a new environment. Such businesses must continuously make significant investments in new tools that allow them to meet demands efficiently and effectively. The race to catch up is never-ending, since there’s always more you can do to be more competitive or customer-friendly. This struggle is particularly common for limousine companies, which already face plenty of massive expenditures they often cannot cover on their own. All over the United States, limousine companies are constantly weighing out what they can sacrifice in order to afford or simply focus their attention on something else.
Small business loans have been available for limousine companies for a long time. But based on the most common complaints within the industry, it seems that only a portion of companies understand that the right small business loan can essentially offset the financial risk of the aforementioned investments.
Leveling The Playing Field
Most owners of limousine companies would probably agree that the biggest threat to their survival is the growing ride-sharing industry. Companies like Uber and Lyft have the potential to take a great deal of business away from limousines. It’s up to business owners to study the ride-sharing business model and determine which elements they can incorporate into their own services. One of the more obvious examples is the convenience and transparency of a mobile app. Ride-sharing has inspired an increasing amount of limousine companies to develop their own apps and make sure their software systems are always up-to-date.
Not every company, however, has approximately $100,000 laying around to spend on these two endeavors. But since they certainly cannot be abandoned or postponed, this would likely be the perfect opportunity to contact a business lender that specializes in business loans for limousine and/or rental car companies. At United Capital Source, we offer numerous business loans geared towards long-term investments like apps, which might not directly contribute to revenue for several months. Potential borrowers might consider a revenue based business loan, merchant cash advance, or possibly our SBA Marketplace loans.
If accessed at the right time, each option could finance the app when business is slower without cutting in to regular business expenses. This way, the app would be ready when the busy season rolls around, giving you more revenue to pay off the debt.
‘Round The Clock Office Staff
Despite the capabilities of mobile apps, they are in no way a notion that limousine companies can phase out office workers or reduce staff in general. Plenty of business owners still keep their call centers staffed around the clock. Others are handling dispatch or responding to emails themselves because they have such a low budget for office staff. But it’s difficult to concentrate on sales and growth when your attention is on office-related responsibilities. With an appropriately priced working capital loan, on the other hand, limousine companies could hire more office workers without compromising revenue-generating activities.
These new hires would only produce their desired results if they are trained sufficiently and fully prepared for upcoming busy periods. This is why we frequently recommend programs like a business cash advance, which carry terms that let you hire when business is slow and pay off the majority of the debt when your new workers are trained and contributing to your revenue stream. The extra working capital will also provide a cushion for business expenses should your interviewing and training processes cut into productivity.
Insurance Premiums Are Only Getting More Expensive
While fostering growth is a top priority at UCS, we also understand that this is far from the only reason small businesses require additional business funding. In the transportation industry, companies need multiple types of insurance. There’s auto liability, worker’s compensation insurance, and medical insurance, just to name a few. If you offer bus services (like many limousine companies do nowadays), auto liability insurance can cost a ton. Business owners can build relationships with insurance carriers to keep certain premiums in check but they can’t stop the costs from going up every year.
Couple these costs with occasional expenses like vehicle maintenance and seasonality, and you’ve got a surefire recipe for a cash crunch. Rather than digging into savings or weakening a revenue-generating element of your business, you could consider a variation of a small business loan that only deducts substantial payments when cash flow has stabilized. A business cash advance is likely a sensible choice, largely because unlike other business loans, you can get approved when your cash flow is a little rocky.
You Don’t Have To Be Worried Like Your Competitors
We understand that cash is tight and your days are already hectic enough. This is why our business loans are designed to maximize performance during predictably busy periods and offset the debt you accrue. We are happy to speak to you when it most convenient for your work schedule, even if that means chatting after normal work hours. Your competitors might not have a relationship with a business lender but this likely explains why they are so worried about the future of their industry. The upcoming need to pivot will seem a lot less daunting when you know it’s safe to direct most of your attention to ensuring your new strategy or investment is carried out correctly.