Editor's choice: First Down Funding business loans
- Works with bad credit and most industries
- Only 100 days in business required
- No credit check
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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.
You have a few options to consider if you’re looking for a taxi loan:
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:
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.
You might. Some cities require you to have a medallion 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.
Uber drivers end up making just $9.21 an hour after fees, vehicle expenses, taxes and a benefits package — according to a 2018 study from the Economic Policy Institute. 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.
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. Don’t yet have a car? Check out our page on getting a car to drive for Uber to learn about your options.
Before you apply for a loan to finance a taxi business, be sure to consider the following:
With medallion prices soaring in some cities, an increasing number of drivers are taking out loans they can’t afford to repay. Some of these loans also came with seemingly-attractive features like interest-only repayments that only served to increase the cost and keep drivers in debt for longer. Many end up filing for bankruptcy because they weren’t able to make their repayments. Consider all sources of financing before you borrow and make sure your future income estimates leave room for an unexpected dip in revenue.
This connection service is transparent about rates — but asks for lots of personal information before you know where it’s going.
Refinancing with another lender or even switching repayment plans can free up room in your budget and even save on the total cost.
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State law may benefit you when you’re in debt.
Debt relief for VA loans, student loans and other types of debt service members face.
You won’t be able to apply for a new loan unless you’re a returning customer.
Pause repayments, look for low-cost relief to cover expenses and other tips to keep your finances healthy while unemployed.
Compare 6 lenders offering loans that you can qualify for with a credit score under 580.
You don’t need the best credit to qualify — but there isn’t much information online.
If your hospital already borrowed, consider these alternatives before payments are due.
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