For fleet owners to get new equipment, hire more drivers, and get the capital they need to maintain and grow operations, they need to reduce debt. Reducing debt and the need for loans allows fleet owners much more freedom and flexibility while giving them the momentum they need to grow.

Reducing debt and maintaining a positive cash flow is actually easier and simpler than most fleet owners might think.

Reducing Debt Through Consolidation

Many fleets across the country are currently trying to pay down multiple loans. Unfortunately, having multiple loans means fleet owners are juggling different payments at varying interest rates. This can cause headaches when trying to keep up on accounting. By consolidating loans, fleets can lump various debts into one manageable payment with only one interest rate. In many cases, those “friendly reminders” from creditors are handled by the agency providing the consolidation. This allows fleet owners to quickly reduce existing liabilities and improve business credit ratings.

Improving Cash Flow

Since the goal of this strategy is to reduce debt, taking out additional loans for working capital is not the desired option. But if receivables have staggered payment schedules of 30 days or more, that can place a severe strain on cash flow, so taking out loans for capital is the only option, right? No. In fact, fleets all over the country have figured out how to improve cash flow and build up working capital without relying on debt-based loans. Freight factoring improves cash flow by eliminating the staggered payment schedules on receivables, all without debt. Fleets can submit unpaid receivables for factoring, and the open invoices are converted to cash within 24 hours. This allows fleets to rapidly build up working capital so they can make payroll, pay down existing debt, hire new drivers, and grow operations. Factoring gives fleets of all sizes a financial edge while preserving credit ratings and keeping debt off the books.

Express Freight Finance is a recognized leader in freight factoring for the trucking industry. Our team has been serving fleets of all sizes, and our business is run by people with deep roots in trucking. If you want to reduce your need for loans and boost your payroll, contact the experts at Express Freight Finance today.