Clerical Staffing Agency
Start Up Staffing Agency
The trucking industry is a vital part of the world's economy. Without trucking, it would be impossible to move goods from their manufacturing center to the retail shelves. It could be said that if the trucking industry did not exist, then someone would have to invent it. There are several ongoing expenses that trucking companies have to deal with, and many of them are unstable in their pricing. As durable and resilient as the trucking industry may be, it still requires a delicate financial balance to run a successful trucking company.
Trucking company owners will do just about anything to keep their trucks on the road. When the economy goes bad, company owners have to consider all of the financial challenges that come with keeping their rigs fully fueled and hauling product. Finances for a trucking company are tough when the economy is doing well, so it is easy to see why a bad economy leads to so many financial issues for truckers. But those rigs need to keep rolling and the company owners find themselves facing a lot of challenges when the economy takes a nosedive.
The Cost Of Fuel In A Bad Economy
The trucking industry is extremely competitive and there is always an upstart organization that will try to undercut everyone else's prices just to get loads to haul. That is why business owners try so hard to not pass on the rising costs associated with hauling product to their clients. The higher the price to the client, the less likely that the client will choose your company. In a bad economy, the cost of fuel suddenly becomes a serious issue, especially if the cost of fuel goes up. Trucking companies cannot pass that cost on to their clients, so they wind up seeing profits go down.
The loss of profits due to fuel prices means that truckers have to start watching their cash flow. As long as there is money always coming into the company bank account, then the company can avoid passing on higher fuel costs to its clients and it can retain those clients for the long term. But keeping a reliable cash flow to cover fuel costs is not always easy, especially in an industry that requires an infusion of new cash each and every day.
Slow Cash Flow Means Maintenance Issues
Trucks that spend their time on the open road need things like tires, oil changes, brake lines and a variety of other replacement parts. Once again, a good trucking company needs cash flow to keep its supply of maintenance parts current and viable. Without proper maintenance, a trucking company is going to run into problems, especially with long and heavy hauls. A reliable truck is one that is properly maintained. Without the right kind of maintenance, a trucking company could be looking at a damaged fleet of vehicles.
Permits And Special Equipment Can Get Expensive
Another ongoing cost issue is permits and special equipment. Heavy haulers are always in need of special rigging that will secure loads and offer the most reliable results for their customers. Even a company, or freight broker, with all of its permits in place will still have special needs that will require expensive permits in order to make the run. Without that supply of cash, the permits cannot be secured and the trucks will not be able to hit the road. Special equipment and permits are two elements of the trucking industry that every trucking company needs to worry about and every company needs to fund on a regular basis.
Find A Receivable Lending Company That Can Be A Partner
Accounts Receivable Based Lending for Trucking is the process of advancing cash in exchange for verifiable freight bill invoices. But your trucking company needs more than just a financial organization that will work with your invoiced sales. You need a company that understands what it means to be a trucking company and has the kinds of tools you need to overcome your financial obstacles. You also need a company that has experience in the trucking industry and can create a customized plan that fits your company's needs.
1st Commercial Credit has experience working with reefers, heavy haulers, long haulers and freight brokers. We have billions of dollars in funding that we can use to keep your trucks on the road in a bad economy. We will turn those invoices you are getting into cash and make sure that you have what you need to keep the rigs on the road. We also have special fuel programs that you can utilize to save money and make sure that all of your rigs have the supplies they need to help your company exceed customer expectations.
Asset-Based Lending Can Help When Times Are Tough
The reason that your trucking company is running into financial problems in a bad economy is because of that delicate financial balance we discussed earlier. Your company needs cash to keep the trucks on the road, but past due invoices are crimping your cash flow. When the economy is strong, the past due invoices are not quite as annoying. But when customers are not shipping as much product, or customers are forcing you to cut rates just to get business, then that is when the cash flow problems become evident.
We will take your outstanding invoices and treat them as assets. We will work with you to confirm each invoice and determine the credit status of your clients. Once we have verifiable invoices with creditworthy clients, we advance you the cash up to the face value of your invoices, minus our lending fee. It is that simple, and we can transfer cash in as fast as 24 hours for accounts that are already approved and set up. We disclose all of our fees up front and have no hidden fees at all. We also have no set-up or facility fees for you to worry about. Asset-based lending focuses on your customer's credit and streamlining the process of getting you the cash you need to keep your trucks on the road.
1st Commercial Credit Is Your Asset-Based Lending Solution
1st Commercial Credit does not have a per month or per invoice minimum, which means that we will help you no matter how much revenue you have. Since we do not require your company's credit score, we can help companies with bad credit, and start-ups with no credit at all. We are the ideal asset-based lending solution for the trucking company that is concerned about keeping trucks on the road in a bad economy.
When a recession hits, every invoice counts. With the help of the 1st Commercial Credit flexible asset-based lending programs, you can have your cash flow restored and keep your trucks on the road. This is the solution you need to keep your rigs rolling when your competition is still at the loading dock.