Recently, owner-operators found themselves in the crosshairs as California aimed to reclassify independent contractors as employees. The move, which was meant for the “gig economy” as a whole, threatened to greatly reduce pay for owner-operators.
While other states, such as New Jersey, are looking to be more in line with California, owner-operators are making a strong case for their value to the trucking industry and the economy as a whole.
The Positive Impact of Owner-Operators
Owner operators have a positive impact in a number of areas. When demand is high or driver availability is low, carriers can count on owner-operators to help offset the pressure placed on the trucking industry. In the case of a driver shortage, owner-operators step up to fill in gaps in the workforce.
While they may get higher pay or a percentage of the shipment, carriers also do not have to increase costs to provide extra vehicles to owner-operators or worry about higher insurance premiums and other expenses that are related to direct employees. Owner operators also work on more flexible schedules, so they can be ready whenever or wherever they’re needed.
California’s attempt to reclassify independent drivers not only decreases their income, but it also places a greater financial burden on trucking companies. If more states look to follow California’s lead, the overall effect could hinder growth in the freight sector.
Improving Cash Flow for Owner Operators
Depending on the terms of the contract, owner operators might find themselves waiting 30 days or longer to receive payments for their services. Whether they are working for a large carrier, directly for a shipper, or for any other business, the lag in revenue can place a strain on finances.
To speed up the rate of revenue, owner-operators use freight bill factoring. Freight bill factoring turns unpaid invoices into cash within 24 hours, which eliminates the wait and boosts cash flow.
At Express Freight Finance, we specialize in freight bill factoring for owner-operators throughout the United States. We offer personalized service and a suite of tools to manage your account.
Our team will work with you to create a factoring strategy tailored to your needs and provide a transparent process without hidden fees or other strings attached. Contact Express Freight Finance today and get access to your revenue faster.