Management

 

With School Bus Contracting on the Rise, Financial Institutions Are Stepping in to Help Keep Up With the Demand

Staff Writer - Daimler Truck Financial
Posted on March 1, 2020

A 2017 report from Onvia showed a ten percent increase in service bids and requests for proposals for school transportation services between 2015 and 2016. This report marked school transportation as one of the fastest-growing areas in government contracting today. While the trend is expected to continue as school districts face aging fleets, budgetary constraints and added administrative responsibilities are leaving some contractors rushing to meet demand.

A school bus contractor for special-needs students, James Transportation from Egg Harbor Township in New Jersey, has been experiencing this shift to school transportation contracting. New Jersey has consistently led the United States in school transportation contracting services with nearly 29 percent of all RFPs and bids requesting school transportation services.

“Our focus is first on safety, but we are passionate about delivering a consistently high level of service to students and parents who use our specialized transportation services. From GPS tracking to safety analytics reporting and high definition audio/video systems, we equip our school buses with the latest in safety features to ensure that students across New Jersey experience safe and timely transport,” said David James, owner of James Transportation. “Since we specialize in special-needs school transport, our buses require personalization for each student.”

Like many contractors, James must sometimes scale his business quickly to meet school districts’ needs. But not only must he bolster his fleet, he also must add state-of-the-art technologies to many of the buses. To do so, James has relied on a line of credit through Daimler Truck Financial, which has allowed him to quickly and seamlessly acquire new vehicles without additional applications, credit checks or delays.

“This relationship has been integral to meeting the needs of our client base without interruption or delay,” he adds.

Financial Institutions Are Answering the Call

A line of credit is just one of the ways that financial institutions like Daimler Truck Financial are providing flexibility to school contractors as their businesses expand.

A line of credit allows contractors like James Transportation to scale their businesses quickly and add more buses to their fleets right away. Contractors must not wait a month or even a week for financing to come through for new school buses. And no new applications, usage fees or CPA-prepared financial statements are required. “With a line of credit, we use your own equipment as collateral, so your bank account can serve your business expenses – not school bus purchases,” said Michael Francani, district finance manager for Daimler Truck Financial. “At Daimler Truck Financial, we work one-on-one with customers to set up the line of credit ahead of time. Then, customers can utilize the funds at the moment they need to expand their fleet – no questions asked.”

Just a few states away, Specialty Transportation, Inc. in Hartford, Connecticut used a line of credit to finance and secure 97 school buses within a couple of days – an undertaking that typically would not be possible through traditional financing. The video below shares an in-depth look at how the deal came together.

Here’s an inside look at how Specialty Transportation leverages financing to expand their business quickly.

Daimler Truck Financial is known for working one-on-one with customers to create personalized financing packages. From retail loans to TRAC leases, more and more contractors are turning to these unique financing options to expand their businesses.

To learn more about financing for upcoming school bus purchases, contact your nearest Thomas Built dealer or visit Daimler Truck Financial.

Daimler Truck Financial is dedicated to the school bus market and has regional experts located throughout the United States to serve customers personally. Their bus financing experts work in a consultative and collaborative manner with customers and Thomas Built dealers to provide competitive, cost-effective finance programs like tax-exempt municipal financing¹.

¹ Actual rates, terms, down payment, advance, and program eligibility will be determined by Daimler Truck Financial’s credit team based on creditworthiness of the customer. Daimler Truck Financial does not offer or endorse any tax advice, accounting advice or tax strategy to its dealers, customers or potential customers. Please consult with your tax or financial adviser for tax and accounting treatment. Subject to IRS rules.

Related Topics: cutting costs, Daimler Truck Financial, school bus replacement, school transportation, Thomas Built Buses

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