As the weather shifts and warmer days are ahead, construction projects are starting across the United States. Everything from new, ground-up construction to long-term infrastructure projects require truckers to transport large quantities of materials. And it’s not just trucking companies who will be active in these construction projects – this time of year presents a number of opportunities for independent owner-operators as well. So how can trucking companies and independent drivers maximize their cash flow during this very busy time of year?
Don’t get caught in the waiting game
Whether truckers are hauling materials for construction projects in the private or public sector, one thing remains true – waiting on payment can take anywhere from one to three months, on average. While hauling for construction projects can be very lucrative, the lag between payments can place a huge strain on finances. Truckers need to get paid. Fuel tanks need to be filled. Tires need to be changed. Overhead expenses need to be covered. Having gaps in finances of 30 days or longer can cause productivity to grind to a halt. There has to be a way around the waiting game.
Short-term loans aren’t the answer
Some trucking companies and owner-operators turn to short-term loans to bridge the gap in cash flow. However, taking on debt and impacting credit ratings makes little sense. Once payments come through, that revenue has to go right back to the lender, which can lead to a vicious cycle of taking out loans and racking up debt until the construction project is complete. Fortunately, there is an easier way to ensure fast revenue and avoid taking on debt.
Freight factoring removes the risk and the wait
Instead of waiting on public agencies and parent construction companies, trucking companies and owner-operators use freight factoring. Freight factoring takes unpaid receivables and converts them into cash within 24 hours. This eliminates long waiting periods and removes the need to take out loans. Additionally, freight factoring boosts cash flow so trucking companies and owner-operators do not have to wait for revenue, and can cover expenses throughout the construction season.
Express Freight Finance is a national leader in factoring services for owner-operators and trucking companies of all sizes. If you are hauling materials for construction projects, and don’t want to get caught in the waiting game, contact Express Freight finance today.