The increased demand for capacity load trucks has been both a blessing and a curse for the trucking industry. On the one hand, we’re in a strong economy. Customers are purchasing more, and the increased shipments mean the trucking industry is back in control of client agreements. On the other hand, the lack of available drivers, the push to give incentives to recruit new truckers, limited hours of service, and the demand for capacity load shipments has placed a strain on both resources and cash flow.
Providing Quality Service for Capacity Load Demands
The trucking industry as a whole runs on a fairly tight budget. Being able to hire new truckers, pay the existing workforce, and provide excellent and timely service to clients all takes access to working capital. The increased demand for capacity load trucks means the industry will have to overcome logistic and financial obstacles to run efficiently and grow with the current economic upswing. Getting access to the working capital necessary to get over these hurdles involved moving away from debt-based financing, which can hinder growth in the trucking industry.
Improving Cash Flow for the Trucking Industry
Currently, the trucking industry can free up a lot of working capital to help meet the demand for capacity load drivers and offer hiring incentives. The barrier is that the capital is tied up in unpaid receivables. While it is a standard practice to issue BOLs and invoices with staggered payment schedules of 30 days or longer, that grace period places a strain on cash flow, especially during a period of economic growth. In order to sidestep the need for debt-based loans and get faster access to revenue, trucking companies and owner-operators are using freight load factoring. Factoring turns unpaid invoices into cash within 24 hours, which boosts cash flow and allows trucking companies to hire more drivers, acquire more vehicles, and meet customer demand for capacity load trucks. Factoring is fast, efficient, and debt-free, so the industry can grow without being held back by financial liabilities.
Capacity Load Demands Require Smart Solutions
Express Freight Finance offers the most comprehensive working capital solutions for the trucking industry. As an industry leader in freight load factoring, we can convert unpaid invoices to cash via fax, email, or through our smartphone app. Get the funding you need to run efficiently and deliver to your clients while reducing the need for debt-based loans. Contact Express Freight Finance today to get started.