As we get ready for spring, plans are being made for major construction projects throughout the United States. Carriers and owner-operators alike are being contracted to move building materials and heavy equipment to construction sites so workers can take on projects ranging from road repair to building new high-rises. To keep things moving on schedule, construction transportation companies will need an ongoing source of capital to handle these projects, as well as to maintain their regular operations.
Finding Capital in the Construction Transportation Sector
Supply chains for construction transportation are very time-sensitive and required dedicated vehicles. Carriers and owner-operators need capital on hand for those first few shipments, but then what happens? Standard business practices are to pay trucking invoices ever 30-90 days, depending on the schedule. The lag in payments can place a strain on cash flow and cause construction transportation to grind to a halt until payments are received. Slowing down productivity or stop-and-go supply chains is inefficient. For dedicated projects, some trucking companies will take out short term loans to prevent gaps in capital. However, no one wants to take on unnecessary debt, and some smaller trucking companies or owner-operators do not meet the high requirements of traditional lending channels.
Keeping Construction Transportation Moving
To ensure that shipments are made on time and that projects are a success from start to finish, the construction transportation sector uses freight factoring. Freight factoring eliminates the gap between payments by turning unpaid receivables into cash within 24 hours. This boosts cash flow and provides ample capital to cover the cost of delivering construction supplies, including payroll. Freight factoring is a debt-free solution and is accessible by carriers and owner-operators alike. Factoring services are not just used during the construction season either – the trucking industry uses freight factoring throughout the year to ensure healthy finances and even revenue cycles.
Express Freight Finance is a nationwide leader in freight factoring services. Our solutions provide working capital to the trucking industry and help carriers and owner-operators grow their operations successfully. If you are gearing up to move shipments for construction projects this spring and summer, contact the experts at Express Freight Finance today.