Cities across the United States are lifting restrictions and entering “Phase 2” of the reopening process. This means more businesses are opening their doors, which in-turn could result in trucking expansion.
To understand Phase 2, we need to know where the economy has been throughout the pandemic. Most businesses have been in a state of hibernation, waiting for restrictions to be lifted so they can start selling to customers. Phase 1 of the reopening process means people can take walks freely while still maintaining a responsible social distance. Phase 2 is a key turning point, because that means select stores will once again allow crowds, and restaurants and bard will be able to reopen, though with limited seating. Phase 2 is considered a trial run. If a city reaches phase two, it could lead to phase 3, which is a gradual full reopening of the local economy. However, Phase 2 in many cities runs for approximately two to three weeks. If there is a spike in infection cases, those cities will go back to square one. But if there isn’t a spike, we may see trucking expansion.
As businesses along Main Street reopen, they will need supplies, raw materials, and inventory. This means there will be an increase in demand on truckers. While the past few months have been focused on e-commerce and critical supply chains, trucking expansion will bring the industry closer to what it was. But trucking expansion requires cash flow. Fleets and owner-operators cannot cannot wait 30 days or longer for clients to pay their invoices. Fast access to revenue will keep fuel tanks filled, drivers paid, and overhead covered. To prepare for expansion, the trucking industry is using freight factoring. Freight factoring converts receivables into cash and makes funds available within 24 hours. This gives carriers of all types an advantage heading into an economy with more relaxed restrictions.
At Express Freight Finance, we provide comprehensive freight factoring nationwide. Our team works with owner-operators and carriers of all sizes to ensure they maintain a healthy cash flow to weather all economic climates. Contact our offices today to get started.