Independent owner-operators are looking for ways to improve cash flow. With the recent ruling in California, and the nebulous state of New Jersey’s “gig economy” legislation, it is of the utmost importance that owner-operators maintain a healthy cash flow to stay in business. Apart from regular costs, such as fuel, vehicle maintenance, licenses, permits, insurance, and more, some owner-operators are trying to position themselves for growth so they can take that next big leap and launch small trucking companies of their own.
Maintaining Costs While Building Growth Capital
One of the biggest obstacles facing independent owner-operators who want to start their own trucking companies is starting capital. Regular expenses cost enough as it is, but it’s challenging to build up capital reserves to launch a trucking company on top of everything else – especially when independent drivers are waiting on invoices with payment schedules of 30 days or more. Depending on the lag between payments, there are points when owner-operators may have more money going out than is coming in. When capital is tied up in unpaid receivables, making any headway can seem like an uphill climb.
Freeing Up Capital and Improving Cash Flow
To free up capital that is tied up in unpaid receivables, independent owner-operators use freight factoring. Freight factoring removes the long waiting time between payments from clients by turning unpaid invoices into cash, which is made available within 24 hours. Owner-operators that use freight factoring experience an improved cash flow, which allows them to cover regular expenses. With the improved cash flow, owner-operators can also set aside revenue to launch their trucking companies or grow existing operations, while simultaneously reducing the need for debt-based financing.
Improve Your Cash Flow Today
Express Freight Finance is a leader in factoring services for the trucking industry. Carriers of all sizes and independent owner-operators alike use our freight factoring services to speed up cash flow and access revenue that’s tied up in unpaid receivables. Our process is fast and transparent, and owner-operators can submit receivables for factoring via email, fax, or with a smartphone. Contact Express Freight Finance today, and eliminate the lag in cash flow caused by staggered payment schedules.