The trucking market has seen some consolidation and with that comes growing pains. Trucking companies prior to consolidating with $500,000 a month in revenues are now exceeding $750,000 to $1,000,000 a month. Large fleets with 50 or more owner operators suffer seasonal cash flow issues trying to keep trucks filled with fuel just like any other trucking company.
A bank line of credit sometimes is not the best answer for large fleets trying to keep up with covenants imposed and limits on credit when high peak seasons hit. Other issues may include concentration limits and low advance rates on the accounts receivable.
1st Commercial Credit has a new factoring program that offers comparable bank rates, high advance rates and fuel card discounts. Large fleets with monthly revenues of more than $1,000,000 can expect rates as low as 0.69% per 30 days with a high advance rate. Rates can also be customized to fit the needs of the customer.
A trucking company can have immediate funds in their fuel account without any wire transfer fees. In the past, trucking companies had to wire their funds to the fuel company and this would sometimes cause delays in crediting the account in time for operators to fill up.
If you are a large fleet owner and would like to learn more about our fleet factoring program, please visit our factoring trucking companies.
Austin, Texas (TX) May 20, 2014