It’s been over a year since Donald Trump was elected president, and the US economy has seen changes large and small. Since November 2017, the stock market has continued to climb, GDP growth has been consistently improving, and unemployment is at an impressive low. At first blush, this seems like great progress. But it is important to know that many of these numbers, including job gains, are running below the average of the last six years of Obama’s term.
The largest economic questions that loom as we move into 2018 and beyond include tax reform, trade, the status of NAFTA, and tariffs on transportation goods. Economic conditions affect transportation, and transportation effects economic conditions, and the while the stability of the US economy will hinge on many factors, anyone in the transportation industry needs to be prepared if they plan to weather an economy that continually defies prediction.
If you are the owner of a trucking company, this means that you might have to rethink your traditional financing strategies. During times of economic uncertainty, owners need to look to good service and access to working capital in order to maintain a sustainable trucking company and also prepare for future opportunities.
To ensure that your company stays in the black, you need access to working capital. This is a simple truth for the owners of any company involved in the trucking or transportation industry. Without cash on hand to meet day-to-day operational expenses, you will watch your competitors thrive while you struggle to keep your margins. This is why so many trucking company owners rely on invoice factoring to provide financial stability in a rocky economy. The inherent benefits of factoring allow owners to gain immediate access to working funds, thereby helping them meet the demands of fuel costs, equipment and fleet maintenance, worker wages, and other overhead costs.
The leverage afforded by factoring your invoice receivables in order to access immediate cash flow is fast becoming mainstream financial option for trucking companies of any size. Even the largest and most successful trucking companies, experience periods during which their outgoing cash requirements exceed the money they have on hand. This can be especially true for transportation trucking companies that offer extended credit terms to their customers. Investing your resources upfront in order to deliver your freight means that you might have to wait 30 to 60 days for payment. Meanwhile you are still covering fleet, fuel, payroll, and other day-to-day costs to keep your fleet moving. Invoice factoring (factoring your freight bills) provides immediate funding to cover these operating expenses.
Third party factors such as Accutrac Capital will buy your invoices and provide you with up-front same-day funding through a number of customized plans. Visit their site today to see the role invoice factoring can play for your company — including a bevy of attractive factoring lines of credit and same-day funding plans. Consider flat fee factoring (from 1.59% of the invoice value), a factoring line of credit (preferred by larger fleets, that costs as little as 0.022% per day), or flex factoring that costs as little as 0.49% for invoices that turn around within 10 days.
Invoice factoring is a reliable and increasingly popular financing option for trucking and transportation companies of any size. As more and more owners lean toward new and innovative ways of securing funding and improving cash flow, the more mainstream freight bill factoring will become. This kind of access to immediate cash will allow your trucking company to grow because will allow you to take on new and larger accounts, while also creating sustainable financing into the future.