Running a trucking company requires a lot of attention to detail. If you allow anything to fall through the cracks, then it could wind up costing your company a lot of money. Everything in the trucking industry comes down to money. If you want the best and most reliable drivers, then you need to be able to pay top dollar for each load. If you want to be able to diversify your customer base, then you need to invest in the different kinds of trucks that are required to take specialized loads. For example, moving produce from one town to the next requires a reefer truck that is driven by an experienced driver. To make your way in the trucking world, you need to always have the necessary cash on hand to invest in the things that you need. But, as any busy trucking company owner will tell you, having that cash ready to go is not as easy as it sounds.
Why is cash so important to a successful trucking company? The biggest reason is that many of the more important expenses a trucking company comes up against are immediate expenses. In the example we mentioned earlier, the permit and the fines all happen quickly. While all trucking companies carry the necessary basic permits to haul on the open roads, special permits for oversized or special items are purchased on an as-needed basis. If a trucking company does not have the cash on hand to meet its immediate economic needs, then it will not be able to meet its customers deadlines.
The issue for many trucking companies is not a lack of invoiced sales, it is an over-abundance of past due invoices that build up over time. Nothing destabilizes a trucking company’s cash position more than customers who do not pay their bills on time. Before you engage in collections techniques that could damage the relationship you have with your valuable customers, you need to look into a relationship with a company that funds receivables. A receivables funding company such as Capital Credit takes all of your outstanding invoices and turns them into the cash you need to successfully run your shipping business.
There are several elements to the cash flow of a trucking company that need to be understood in order to be administered properly. Trucking companies need factoring partners that can approve client invoices in a matter of minutes and not days. When a trucker is on the road, he is often asked to pick up an unscheduled load from a new client. When the trucking company has the right factoring partner, then that new client can be analyzed and approved in time for the trucker to pick up the new load and deliver it by the new client’s deadline.
Trucking companies also need a dynamic finance partner that understands the difficulty of fueling a fleet of trucks. When you have the right invoice factoring partner, you can have a line of credit available at all times that allows you to fuel your trucks no matter where they may be located. Capital Credit offers a program that gives you a discount on fuel to help keep your costs down. Whether you run a fleet of trucks or you are an independent operator, the right factoring company is going to make your life easier and your business run a lot smoother. When you have the cash you need on hand at all times, then you can make those instant business decisions that will bring your company more revenue and new customers. Capital Credit is that right financial partner for your business.
Trucking company owners have a lot on their minds at any given point in a day. When you work for a trucking company, whether you are on the road or in the office, the day moves very fast because everyone is busy. That means that there is not a lot of time to pay attention to receivables in a way that would maximize the company’s sales efforts. When your sales professionals are out generating revenue, that should be the resource your trucking company needs to grow. Your customers have their own payment schedule in mind. Instead of wasting time chasing payments and worrying about cash flow, you need to work with a reputable invoice funding company such as Capital Credit.
Each trucking company has its customers that pay their bills on time and create the revenue stream that is used to run the business. But when past due invoices start to show up in the aging report, that is when a trucking company owner considers going to bank funding just to get through the month. With accounts receivable financing through Capital Credit, you can use the financial strength of your outstanding invoices to create the cash you need to meet all of your ongoing business needs. When you are able to pay your trucking company bills on time and in cash, it makes it much easier to plan for the future of your organization.
Whether you are a long-hauler, a heavy-hauler, an oilfield trucker, or a reefer; you need cash to make your trucking company run smoothly. Instead of going to the bank every time your company needs to meet its ongoing financial debts, you should use your invoiced sales to pay your way with the help of an experienced receivables funding organization. With the help of a factoring professional, your company can turn invoices into cash in a matter of hours and keep the rigs rolling on to their next destination. It only takes a few days to set up your factoring account, but it would be an account that you would use for many years to come.
Don’t let a weak cash position threaten your trucking company’s ability to prosper. The time is now to take advantage of all of the opportunities that are out there and the best way to do that is to strengthen your cash flow. Your outstanding invoices represent all of the cash you will ever need to pay for fuel, repair your rigs, get permits, and meet the various needs of all of your clients. With the help of Capital Credit, your trucking company will be able to exceed all of the expectations of your clients and grow with the confidence that comes from paying your own way.