Maintaining finances for a fleet of any size is a careful balancing act. Expenses cannot exceed revenue, and cash flow must stay healthy at all times to ensure there is ample working capital on hand to cover payroll, overhead, and to be put towards growth projects. Yet every once in a while, revenue gaps occur, and the balance is upset. Fortunately, there is a way to eliminate revenue gaps to improve finances for your fleet.

All It Takes Is One Delay

Revenue gaps are typically caused by outstanding receivables. In the trucking industry, where invoices have staggered payment schedules of 30, 60, or even 90 days, a delay of even one payment can disrupt cash flow. This can have a snowball effect, where bills and liabilities get put off, payroll comes up short, and your fleet may feel forced to take out a short-term loan to smooth out the revenue cycle.

The debt from the loan further impacts cash flow because a portion of the revenue must go to paying off the balance of the loan. Any revenue gaps can threaten payments on that loan on top of other overhead expenses, which can lead to a downward spiral.

Eliminating Revenue Gaps

To eliminate revenue gaps and the need for short-term loans, trucking fleets use freight load factoring. When freight invoices are generated, fleets send them to be factored—that is, converted to cash within 24 hours. This boosts cash flow and gives fleets immediate access to revenue without placing debt on the books.

By using freight load factoring, fleets can cover overhead expenses, make payroll, and accumulate capital for growth. Additionally, freight load factoring eliminates the need for short-term loans, and, most importantly, factoring gets rid of revenue gap caused by unpaid receivables.

Improve Finances for Your Fleet

Express Freight Finance specializes in improving cash flow for trucking fleets with freight load factoring. Our comprehensive factoring services are used by fleets of every size throughout the United States. To avoid revenue gaps caused by unpaid receivables, contact the experts at Express Freight Finance today.