Creating a successful, profitable business from scratch is not an easy thing to do in any industry, but it’s especially difficult when your business is trucking.
As the Harvard Business Review reminds us, one essential chapter of establishing a small business is what’s often referred to as the “survival” stage: this stage comes early on, when a business has demonstrated that it is indeed a viable venture, but there are still plenty of hurdles to jump. While the business may have already established a clientele to some degree, the biggest question that businesses this size have in mind is often “can we generate a large enough cash flow to stay in business and finance our growth to achieve a competitive size?” The fact is, too many businesses stay at the survival stage for the entirety of their existence. Because they are unable to find a large enough cash flow to create growth, these businesses tend to simply fade away without ever really succeeding.
And if that’s normal for most industries, imagine all the extra complications that can arise when you work in trucking, an industry where your customers may very well take anywhere from 30 to 90 days to settle their outstanding invoices. There are all too many expenses that can pop up at any time when you’re in charge of a fleet: things like maintenance, payroll, or repairs can prove costly and complicated, especially when you’re still waiting on outstanding bills. That’s why more and more carriers are realizing that one of the smartest decisions you can make as a growing business is to work with freight bill factoring companies that know the trucking industry inside and out.
Transportation factoring companies — especially those who work exclusively with trucking companies — offer a chance to level the playing field when you’re trying to grow. The main benefit that they offer is letting you leverage unpaid invoices, meaning that instead of waiting for your customers to settle their bills, you can often have same-day access to the funds for a small fee.
A transportation factoring company will collect a bill on your behalf while you immediately reinvest the balance of the bill into your fleet and the growth of your business. But that’s not the only advantage they offer: the best transportation factoring companies offer other benefits that you can use to give yourself a leg up. Companies like Accutrac Capital, for example, offer their clients access to fuel discounts, industry-leading rates on international currency exchange, and full accounts receivable support. No matter what your fleet size, these benefits can mean huge savings— and if you’re in a position where you’re looking to grow, they can be the difference between staying in the survival stage and expanding your fleet.
You want to succeed, and you care about your trucking business. When an opportunity to grow comes up, you want to be able to take it without worrying about whether or not you can come up with the cash you need. Making use of transportation factoring services can be your secret weapon, freeing up your funds and letting you stake your claim to the industry. Especially if you’re an up-and-coming carrier, consider taking advantage of a factor—you’d be crazy not to.