Compare taxi loans to establish a taxi business in your city

Compare taxi loans

Looking to own a taxi company? Find out what finance options are available to you.

To own a taxi company requires some upfront cash. There are several costs you need to consider, and one of the main ones is taxi medallions. If you don’t have the finance available to purchase a taxi medallion outright, you can consider a taxi loan. These are business loans that can help you establish your taxi business and get your drivers on the road.

Kabbage Small Business Line of Credit

Kabbage Small Business Loans

Kabbage provides small business owners a revolving line of credit up to $250,000 to grow their businesses.

  • Maximum Funding Amount: $250,000
  • Minimum Funding Amount: $2,000
  • Quick approval process
  • Must have been in business for at least one year
  • Must have annual revenue of $50,000 or more or $4,200 per month for the past three months

    What options do you have to finance a taxi business?

    You have a few options to consider if you’re looking for a taxi loan:

    • Unsecured business loan. Some lenders offer business loans that are available to finance establishing a taxi company. These loans can be unsecured and cover the entire cost of purchasing the licenses.
    • Secured business loan. Some lenders may be willing to let you use an asset, such as property, as security.
    • Taxi finance from a specialized lender. Several specialized lenders operate in the taxi lending space. You can generally choose from commercial loans or standard business loans. As these are offered by specialist providers, you may find features that benefit you as a taxi company owner.
    • Loan broker. If you don’t want to find the loan yourself, you can use the services of a loan broker. These brokers can help you find the right taxi loan for you.

    Compare lenders who may offer taxi loans

    Rates last updated April 24th, 2018
    Name Product Product Description Min Loan Amount Maximum Loan Amount Requirements
    LoanBuilder, A PayPal Service Business Loans
    Customizable loans for business owners in a hurry with no hidden fees.
    $5,000
    $500,000
    Annual business revenue of at least $100,000, at least 1 year in business, personal credit score of 600+.
    LendingTree Business Loans
    Compare multiple business financing options in one place including: small business loans, lines of credit, SBA loans, equipment financing and more.
    Varies by lender and type of financing
    Varies by lender and type of financing
    Varies by lender, but you many require good personal credit, a minimum business age and minimum annual revenue.
    National Business Capital Business Loans
    Get a large business loan to cover your financing needs, no matter what the purpose is. Startups welcome with 680+ credit score.
    $10,000
    $5,000,000
    Your company must have been in business for at least 6 months and have an annual revenue of at least $180,000.
    Excel Capital Management Small Business Loans
    Get personalized financing options that suit your unique business needs in just a few simple steps.
    Varies by loan type
    Varies by loan type
    Your business must operate in the US, be at least 1 year old and have monthly revenue of $15,000+.
    OnDeck Small Business Loans
    A leading online business lender offering flexible financing at competitive fixed rates.
    $5,000
    $500,000
    Must have been in business for at least one year with annual revenue of $100K+. Must have a personal credit score of 500+.
    Kabbage Small Business Line of Credit
    A simple, convenient online application could securely get the funds you need to grow your business.
    $2,000
    $250,000
    Must have been in business for at least 1 year. Revenue minimum is $50,000 annually or $4,200 per month over the last 3 months.
    Fora Financial Business Loans
    No minimum credit score requirement and early repayment discounts for qualifying borrowers.
    $5,000
    $500,000
    Business age 6+ months. Monthly revenue $12,000+. No open bankruptcies.
    LendingClub Business Loans
    With loan terms that vary from 1 to 5 years, enjoy fixed monthly payments and no prepayment penalties through this award-winning lender.
    $5,000
    $300,000
    2+ years in business; $50,000+ in yearly sales; No bankruptcies or tax liens; At least 20% ownership of your business; Fair or better personal credit
    SmartBiz SBA Loans
    Get funding for your small business with a government-backed loan and extended repayment terms.
    $30,000
    $5,000,000
    Personal credit score of 650+; US citizen or permanent resident; Business must be 2+ years old; Annual revenue of $50,000+; No outstanding tax liens; No bankruptcies or foreclosures in past 3 years.

    Compare up to 4 providers

    How can you compare your taxi loan options?

    As there are a few loan options available, it’s important to compare them to find the right loan for you. Here’s what to keep in mind:

    • How much can you borrow? Taxi licenses and medallions can be expensive and you want to be sure you can borrow as much as you need to get your drivers on the road. Some lenders may only finance a percentage of the medallion cost or require a deposit, so check this before you apply.
    • Is the loan secured? Some lenders will not accept taxi licenses or medallions as security, but you may be able to offer personal property or vehicles you own as security for the loan. If you don’t hold any high-value assets, you may need to opt for an unsecured loan.
    • What are the repayment terms? How long do you have to repay the loan? When and how do you make repayments? Can you repay the loan early without penalty? These are all important points to consider.
    • Who is the lender? There are several specialist lenders operating in this space, and you need to make sure they are reputable before you apply for a loan from them.
    • What can you use the funds to do? You may want to use this loan for other taxi-related purposes, like improving the vehicles. Are you able to finance those kinds of improvements? Can you purchase a new or used vehicle, privately or from a dealership?
    • Are you eligible? The different taxi finance options all come with varying eligibility criteria. Make sure you’re eligible before you apply.

    taxi loan

    How much does it cost to finance a taxi business?

    Taxi businesses don’t come cheap, but they can be lucrative. Costs vary depending on the taxi license required, the vehicle(s) you’re purchasing and the state you reside in. Keep in mind that you may have additional costs associated with the business such as insurance, office space and phone lines.

    What you need to know about taxi medallions

    A taxi medallion is needed to operate a taxi business in certain cities, including New York, Boston, Chicago, San Francisco and Miami. Those who own taxi medallions usually aren’t taxi drivers themselves but instead lease taxi cabs to licensed drivers on a daily or weekly basis.

    It wasn’t long ago that taxi medallions sold for over $1 million. Taxi businesses can be very profitable in busy cities like New York and Chicago. With the recent rise in popularity of ride sharing services like Uber and Lyft, traditional taxi cab businesses have seen a dip in customers. Though, they still provide a needed service in these busy cities.

    In 2017, taxi medallions are generally selling for under $1 million, with some prices as low as $300,000.

    How much can you make with Uber?

    If you’re interested in becoming an Uber driver, working out your income – minus expenses – will help you make your decision. You’ll also need to factor in things like hours flexibility and wear and tear on your car to see a total picture.

    How much do Uber drivers earn? According to Uber, the typical income for a driver is between $30 and $40 an hour. However, that doesn’t include eventual expenses like gas and maintenance for your vehicle. Keep in mind that driving during busier hours like Saturday nights may make you more money than driving during slower hours when not many people are requesting rides and no surge prices apply.

    Things you should consider when getting a taxi loan

    Before you apply for a loan to finance a taxi business, be sure to consider the following:

    • Will you need collateral for the loan? Some lenders require an asset to secure the loan, and not many use taxi medallions as security due to volatile pricing and changes in regulation. Make sure you understand whether you’ll need to secure the loan and if you have an asset that can be used as security.
    • Do you need to make a deposit? Some lenders offering taxi loans may not cover all the costs or will require a deposit to approve the loan.
    • Have you got the legalities sorted out? Before you start a taxi business, there will be legalities to consider which will vary by state. You may need a taxi medallion to operate taxis in certain areas. You’ll need insurance for the vehicles you operate. And your drivers will need taxi licenses.

    Frequently asked questions

    Was this content helpful to you? No  Yes

    Ask an Expert

    You are about to post a question on finder.com:

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com is a financial comparison and information service, not a bank or product provider
    • We cannot provide you with personal advice or recommendations
    • Your answer might already be waiting – check previous questions below to see if yours has already been asked

    Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
    Go to site