COVID-19 continues to have a huge impact on our population and our economy. The trucking industry is facing high demand from shippers and consumers alike to move goods, products, and equipment quickly and efficiently. However, with drivers suffering illness, and the delivery range of large trucking companies, small trucking fleets are experiencing increased demand.
Small Trucking Fleets and the Driver Shortage
For years now, some experts have stated that there is no driver shortage. The perceived shortage was simply a matter of demand. Yet with the need for capacity in 2018, and the downward pressure in the freight market of 2019, the trucking industry is, in fact, experiencing a shortage. The industry is looking to small trucking fleets to help offset the burden being placed on drivers across the country. Additionally, while large trucking fleets have designated routes, small trucking companies have the ability to make “last mile” deliveries to towns and cities that need shipment, especially at this time. If smaller fleets can coordinate efforts with their larger siblings, supply chains can keep moving and our economy can make it through the coronavirus pandemic.
Keeping Small Trucking Fleets Afloat
In order to meet the demands being placed on small trucking fleets, they will need to improve cash flow and build up working capital. Working capital allows trucking companies to pay their drivers, keep trucks fueled and in good working order, and take on larger client accounts. The big hurdle is that receivables are still being issued with payment schedules ranging from 30 to 90 days. When revenue is tied up in unpaid receivables, trucking companies of all sizes struggle to keep operations running at optimal performance. To overcome these challenges, small trucking companies use freight factoring to turn unpaid receivables to cash and remove the need for debt-based financing to stay in business.
At Express Freight Finance, we offer freight factoring to trucking fleets of all sizes throughout the United States. If your trucking company needs working capital, contact Express Freight Finance today. Our team will provide funding for your unpaid receivables within 24 hours, so you can meed the demands of today and ensure long-term success for the future.