Altena Trucking LLC, is seeking for $22k in small business funding for a down payment to refinance our loans. When we started our business in 2017, we had no business credit history and the financing options were very limited and expensive. Altena Trucking LLC is located in Canyon, TX and has average monthly sales of $23k-$27k.

We have an Executive Summary than can be downloaded here: https://www.dropbox.com/s/wwcdwsbqhytxtuh/Altena%20Trucking%20ES.pdf?dl=0

Please let me know if you are interested in providing the funding that we are seeking and thank you for your consideration.

Objective  -  Our objective is to obtain better rates by refinancing equipment and debt.

Owners  -  My name is Hendrik “Bas” van Altena.  I was born and raised in the Netherlands, and moved to the United States in 2007.  I married my wife, Elizabeth, that same year and in 2009 we welcomed our daughter Lilly.  After years working to obtain my US Citizenship, it was finalized last year in May 2018.  In both the Netherlands and the US I’ve worked in the agricultural sector which included trucking, running and maintaining machinery, and management capacities.

Background  -  In November 2015 I successfully transitioned from a company driver to a lease operator.  July 2017, I started my own company and have been an owner/operator since that time.  When starting a new business, I had to take the financing that was available to a new business without credit history.  Now that I have been in business for several years and have built a credit history, I am seeking better financing options for my equipment and loans.  If we are able to secure better rates, our income will increase and lower our debt.

Market  -  FCS handles the factoring of our load for a fee.  They contacted us soon after we switched to them because we had reached our credit limit with them. They were curious how an operation with only one truck was bringing in as much revenue as we were able to bring in.  After we went over how we plan and book loads, they increased our credit line to accommodate our revenue.  According to Foley, most single truck operations bring in between $4,000-$5,000 weekly.  We steadily bring in over $6,000 weekly with a single truck and van trailer.  We attribute this to several things.  We keep newer and reliable equipment to ensure fewer breakdowns, maintenance is completed more often than recommended on all equipment, and we meticulously plan our schedule to ensure on time pickups and deliveries while moving as many loads as possible within the hours of service allowance per week.  Elizabeth works diligently to ensure I do not sit at shippers and receivers unnecessarily and waste precious hours I can be moving a load.  We will routinely pass on a load with a good per mile rate because I would have to sit at a receiver for 2 days before they unload me.  That is not a good use of my time, and we pass on those loads.  Another factor that helps our bottom line is that we are not afraid to deadhead to another load in a more lucrative area to make the most money possible.  We calculate our per mile rate based upon our deadhead and loaded miles for all loads moved that week.  So, if one load was lower pay, but it relocated me to a better area, the average will still fall around our target rate per mile for the week.

Business Model  -  Elizabeth and I work together to run the trucking business.  She and I both manage my daily schedule, while she books loads and predicts departure and arrival times for pick up and delivery.  She locates loads utilizing multiple load boards, and negotiates rates and terms with the brokers and direct customers.  We’ve built relationships with several brokers, and have one weekly dedicated shipment and several others that are bi-weekly, monthly, or seasonal for specific brokers or direct customers.  We work closely together to ensure I am on time for pick ups and deliveries, and have a good working report with our regular brokers.  We attribute our punctuality to proactive planning, and built in “delays” that might happen.  It is very rare that we are late or miss an appointment.  Elizabeth and I both maintain a well organized filing system for all paperwork relating to loads, IFTA and state quarterly filings and compliance, drug and alcohol testing compliance, and a variety of other business paperwork.  Our CPA maintains our financial information and reports monthly or whenever necessary.  He also files annual state and federal taxes for Altena Trucking LLC.   

Projections  -      Year 1 |             Year 2 |              Year 3 |             Year 4 |            Year 5
Revenue  |  $  253,100  |  $  260,600  |   $  268,400  |  $  276,400  |  $  284,600
Expenses |  $  214,100  |  $  220,500  |  $  227,100  |  $  233,800  |  $  240,700
Profit         |  $    39,000   |  $     40,100  |  $     41,300  |  $     42,600  |  $     43,900

Capital Request  -  We are seeking a 5-year term, with an interest rate of 11%. The loan will be paid back in 60 payments over 5 years. The amount we seek is $22,000, $366.67 principal + $111.67 interest = $478.34 total monthly payment. The capital will be used for a 10% down payment on an SBA 7a loan funded through my local bank.
 Allocation of total funds:
·         Refinance Semi-Truck $113,000
·         Upgrade Semi-Trailer $35,000
·         Invoice Financing $30,000
·         Replacing high interest loans $24,000 + $10,000 work capital reserve = $34,000 total

Conclusion  -  We are working as a well oiled machine, and adding additional trucks and drivers in this economy is risky and something we are not willing to do at this time.  The best way for us to increase our revenue is to reevaluate and refinance our equipment and loans.  We are paying premium prices because these are loan terms based on a new business without a credit history.  Any profit will be used to pay loans down faster and for future business development in order to diversify our income.  References are available upon request.  We appreciate your thoughtful consideration of our request.

Altena Trucking LLC
Phone#: (806) 680-5566

Fax#: (806) 576-4988

Email: info at altena.us