Since the first cases of COVID-19 were diagnosed, businesses in all industries have been looking for reliable sources of working capital. With new pressures placed on trucking companies to reinforce supply chains to keep products moving to businesses and customers alike, they need to find financing solutions that can be arranged quickly.
Banks Are Overwhelmed
The Paycheck Protection Program was announced when the CARES Act was signed into law, and business owners flocked to banks to get loans, which presented a number of problems. First, traditional lenders were inundated with relief and recovery loan applications, so processing other financing for businesses was put on hold.
Second, processing times for all loans became much longer as banks tried to sort out all the paperwork needed for approvals. Third, the funds allocated for relief and recovery loans ran out, leaving many businesses in a lurch over how they were going to get the financing they needed to maintain operations.
Trucking Companies Need Faster Financing Solutions
Loans have always presented drawbacks to the trucking industry. Loans can take over a month to process, and trucking companies need faster access to capital. Additionally, many trucking companies operate with lean profit margins.
Fuel, payroll, insurance, equipment, and other expenses already place pressure on cash flow; adding debt from loans on top of those costs can place trucking companies in dire financial straits. Trucking companies need fast and reliable financing solutions that do not place unnecessary debt on the books.
Financing Solutions for the Trucking Industry
Freight factoring is an all-in-one financing solution designed specifically for trucking. Freight factoring allows trucking companies to convert unpaid receivables into cash and access funds within 24 hours, instead of waiting 30 days or longer for payments from clients and brokers.
Freight factoring doesn’t place any debt on the books, so trucking companies can boost their cash flow and reduce financial strains.
Express Freight Finance is a national leader in freight factoring services. If you own a trucking company and want fast financing solutions tailored to the trucking industry, contact Express Freight Financing today.