A 2017 report from Onvia shows a ten percent increase in service bids and requests for proposals for school transportation services between 2015 and 2016. This makes school transportation one of the fastest growing areas in government contracting today. While the trend is only expected to continue as school districts face aging fleets, budgetary constraints and added administrative responsibilities are leaving some contractors rushing to meet demand.
A special-needs school bus contractor, 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 RFP and bids requesting school transportation services.
“Our focus is first on safety, but we are truly passionate about delivering a consistently high level of service to students and parents that use our specialized transportation services. From GPS tracking to safety analytics reporting to 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. “We specialize in special needs school transport which requires some level of personalization for each student. We have experienced rapidly changing needs for additional capacity, and we certainly have faced challenges in scaling our business quickly. Fortunately, we have a great partnership with Daimler Truck Financial, who opened a line of credit for us allowing for quick and seamless acquisition of additional fleet 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.”
Financial Institutions Are Answering the Call
Lines of credit are just one of the ways that financial institutions like Daimler Truck Financial are providing school contractors with flexibility 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 don’t need to wait a month or even a week for financing to come through for new school buses. And there is no need for new applications, usage fees or CPA-prepared financial statements.
“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 Keith Courtney, national sales manager at 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.”
“Mr. James, who was relatively new to the school bus industry, came to us to see what financing solutions Daimler Truck Financial could provide,” said Michael Francani, district finance manager for Daimler Truck Financial. “After discussing his unique situation and the conditions in his market, I was able to match him up with the best Daimler Truck Financial product that specifically fit his needs. I think in the end he was certainly grateful but also maybe a bit surprised by the personalized options that we could offer.”
Watch this short story to learn even more about how contractors are utilizing lines of credit.
To learn more about a line of credit for school bus purchases, contact your nearest Thomas Built dealer or visit Daimler Truck Financial.
Daimler Truck Financial, a business unit of Mercedes-Benz Financial Services USA LLC, provides a broad range of financial and insurance products and services for Daimler Trucks North America’s commercial vehicle brands, which include: Freightliner; Western Star; Thomas Built Buses; Mitsubishi Fuso; and Sprinter. For more than 40 years, the company has been a trusted partner in the industry, creating specialized finance solutions tailored to specific customer needs.
©2018 Daimler Truck Financial is a business unit of Mercedes-Benz Financial Services USA LLC. All Rights Reserved.