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Buying a shipping container can bring new opportunities for the freight business. Shipping containers are highly versatile. They can be used for moving goods, storage, mobile offices, shops, or even temporary housing. There are many ways to make money with them.
Of course, any worthwhile opportunity requires funding. How can you best finance a shipping container? Read on to find out.
First, ask yourself why you need shipping container financing and how much you can afford to spend. Everything depends on your needs. Storage and transportation are the most profitable and straightforward uses. Yet, there are more creative ways to use it too. The question is whether they’ll be worth it for you.
New containers cost more but last much longer. Used ones might lead to unexpected expenses. Whether the risk is worth it is up to you.
It’s also worth considering renting instead of buying. If you only have a few shipments planned and don’t need the container for a long period, renting might be better. But if you’re sure you’ll use it for at least a year, buying it could save you a lot.
Traditional financing options are a good option to choose if you prefer reliable methods. Here are a few commonly used products to consider:
Sometimes, a bank loan might not work. This is especially true if you need funds urgently or your credit isn’t great. Here are a few alternatives for such situations.
If no one can lend you money and your credit isn’t good enough for a bank — your options are limited. Specialty lenders work well if they serve your area, but finding them can be challenging.
Reliable online lenders like 1F Cash Advance don’t require you to visit a bank. They skip checking your credit history with the three major credit bureaus. Instead, they use an alternative borrower evaluation system. Your credit report won’t be affected.
Online loans are deposited quickly — usually within one business day. Applications are reviewed in 30 minutes. Everything is done online — no fax required. You only need to provide basic personal information. The loan terms depend on the requested amount, repayment period, credit score, and state. Small amounts are repaid within a month. Larger loans are split into equal monthly installments — up to 60 months.
However, not all online lenders are trustworthy. Choose only reputable loan providers with real reviews on platforms like TrustPilot.
Pay close attention to your finances. Buying one container is unlikely to be the end of your expenses.
If your credit history is good, look for banks that offer equipment loans. For example, Wells Fargo and U.S. Bank provide affordable business options.
Local credit unions could also work since they often have good loan terms. But you’ll need to become a CU member to get a loan. Yet, the struggle may be worth it — credit unions provide a personalized approach and lower interest rates.
If banks turn down your loan application, don’t give up too quickly. Here’s what you can do to boost your approval chances.
The higher your credit score, the better deals you can get. If you’re planning a big purchase with a loan, improving your credit history makes sense. Pay your bills and loans on time, cover your debts, keep your credit utilization and debt-to-income ratios low, and avoid new loan requests for a while. In a few months, your score should increase.
If you’re not a fan of big loans, save up at least a small down payment. The smaller the loan amount, the less interest you’ll pay. Makes sense, right?
Use a co-signer. When a bank rejects your loan and you don’t want to use other borrowing methods, ask someone with strong credit for help. This might be a relative or close friend. They’ll become responsible for your loan repayment if you won’t be able to pay, making your application look less risky.
Many online platforms allow you to compare lender offers in one place. You could check out what loan providers offer and choose one with the most suitable terms. Occasionally, you’ll spot deals that are hard to pass up.
You can also choose to invest in containers rather than operate them yourself. Leasing containers to companies can provide a steady income. Search for reputable shipping-focused investment platforms. Don’t forget that any investment is a risk, though.
How does it work? Well, investing in containers mainly involves buying them and then renting them out. Returns can vary, but with the rising demand for containers — this market has potential.
With a thoughtful approach, almost anything can become an investment. A shipping container may cost a lot, but it offers income opportunities.
Bank loans are reliable but slow, and they are not available to everyone. Online lenders are faster and more convenient, but their interest rates are higher. Take your time. The choice is yours.
