Small trucking companies have great potential for growth this year. At the same time, they also can easily fall into the same traps as larger fleets, but faster. Making payroll, maintaining equipment, and keeping ample capital reserves for hiring are essential to success. Small trucking companies need a strategy to retain drivers.
Financial Fluctuation is Different for Small Trucking Companies
Every trucking company experiences uneven revenue cycles, which can impact how payroll and overhead costs are handled. However, a 5-10% fluctuation in revenue – in either direction – has a greater impact on a smaller trucking company than a larger one. Making payroll and retaining drivers is crucial for small trucking companies, who over the past year have served to take the capacity burden off of larger fleets and deliver where major carriers cannot. In fact, smaller trucking companies have seen the most success over the past year and are poised for growth in the following years. Being able to smooth out revenue cycles to make payroll and retain drivers is of the utmost importance.
Ensuring Healthy Cash Flow for Payroll
Small trucking companies are now employing a method used by larger carriers to ensure a healthier cash flow to make payroll, meet overhead expenses, and jump on growth opportunities. Freight factoring – a variation of accounts receivable financing designed for the trucking industry – eliminated the waiting period tied to receivables and staggered payment schedules. Instead of waiting 30 days or longer to see payments from customers, small trucking companies can experience turnaround on unsettled accounts within 24 hours. In addition to a healthier cash flow, trucking companies get a number of other benefits, such as insurance on client accounts, the ability to check the creditworthiness of customers, and whole host of other tools.
The Express Freight Difference
Express Freight Finance is a national leader in factoring solutions for the trucking industry. We go above and beyond by offering trucking companies of all sizes a complete suite of tools and customization options, as well as the ability to factor receivables via computer or even smartphone. With years of experience and deep roots in the trucking industry, we have the depth of knowledge to create working capital for trucking companies of all sizes to help them reach their goals and avoid cash flow issues for long-term success.
Contact Express Freight Finance today to get started!