Starting a ridesharing business is a great way to earn an income and be your own boss. However, as the old saying goes, “You have to spend money to make money.” You’ll need to make some big purchases to succeed in this field, like buying or renting a vehicle.
If your bank account is a little sparse, don’t worry! Here are some helpful ways to finance your Uber or Lyft rideshare business.
Take Out a Loan
If you have good credit, taking out a loan will give you access to a lot of cash at once. Choose an auto loan with a low-interest rate to finance a high-quality vehicle. You could also take out a personal loan to do with as you see fit.
Keep in mind that loans aren’t free money; you have to pay them back in a certain amount of time with interest. Failure to make timely payments will destroy your credit. Think carefully before choosing this financing option.
Open a Line of Credit
You could also sign up for a credit card to finance your Uber or Lyft rideshare business. This is a good option for people who have reliable transportation but need money for extra things. Gas, car maintenance, and ridesharing accessories can go on your credit card.
The same risks as taking out a loan apply here, too. Clear your balance every month to keep your credit card usage (CCU) minimal. Credit card interest rates can be pretty high, so be prepared to take on the extra fees if you don’t take care of your balance.
If your credit is a little worse for wear, you still have financing options. Crowdfunding is an excellent way to get money for your business. All you need is internet access and a group of supporters to help you along the way.
Sites like GoFundMe allow people to raise money for all kinds of projects, including small businesses. You could also use word of mouth and social media to collect money for your campaign.
Get an In-House Rental
Both Uber and Lyft have in-house rental programs to help you get a vehicle. Uber Vehicle Marketplace works with rental services like Hertz to put their drivers into reliable cars. Lyft Express Drive has a similar program for their drivers.
However, in-house rentals get pricey quickly. They’re good short-term solutions but aren’t cost-effective answers in the long run. You should only use these programs if you’re close to acquiring your own vehicle.
Use Fast Track Mobility
The best way to finance your Uber or Lyft rideshare business is by using Fast Track Mobility. We offer luxury TLC rentals at reasonable prices for all our New York City drivers! All of our vehicles come with insurance, plates, and 24-hour roadside assistance.
Don’t start your ridesharing journey any other way; contact Fast Track Mobility and make the most out of your professional driving career.