As we head toward the end of the year, fleet owners are getting plans ready to make 2019 successful right from the start. With a big emphasis on getting shipments to destinations for the spring season, fleets will need a lot of working capital for equipment, to hire drivers, and to take advantage of growth opportunities. While some carriers may be weighing the viability of loans to carry them into 2019, smart fleet owners use a debt-free strategy.
Loans and Trucking Fleets Are Like Oil and Water
Loans from traditional lenders can actually hinder growth for fleet owners. Getting extra working capital is great, but loans are single-use. Once the capital is used, the only thing left is debt on the books, which must be repaid as scheduled, regardless of cash flow. For many fleets, this means setting aside revenue which can place a strain on finances, which leads to taking out another loan. A fleet’s credit ratings can only take so much before the law of diminishing returns takes over. In short, relying on debt-based solutions for growth can be counter-productive and cost-prohibitive.
The Debt-Free Method for Building Up Working Capital
After these past few delivery-intensive months, fleets build up a number of receivables. Instead of waiting a month or longer for customers to pay, fleets are using factoring services to convert receivables to working capital within 24 hours. Freight load factoring gives fleets the working capital they need without placing a strain on cash flow or taking on debt with traditional loans. Freight load factoring is designed specifically for the trucking industry and places financial control back in the hands of fleet owners so they can grow their operations, build up reserves, and preserve their credit ratings. Freight load factoring is a renewable source of financing that doesn’t hinder or limit your fleet from reaching its goals. Whether you need new equipment, want to hire extra drivers, or expand into new markets, factoring can provide your fleet with the working capital it needs to make 2019 a big success.
Express Freight Finance is a national leader in factoring services for the trucking industry. To start getting the capital you need without long waits or unnecessary debt, contact our offices today.