If running a transportation business were easy everyone would do it, right? As many transportation company owners and owner-operators know, it is not always easy. One key area that causes stress for many are the financial challenges every transportation company and owner-operator face. Here are 7 common financial challenges for the transportation industry.
- Fuel Costs – With fuel being the biggest expense for trucking companies and owner-operators, managing what you spend on fuel and saving as much as you can is important.
- Funds for Fuel – Since you have to pay for fuel in order to deliver the load and get paid, it can be challenging to ensure you have the funds upfront to pay for the fuel to keep you on the road.
- Credit History and Credit Score – Maintaining a good credit history and credit score is as important for your business as it is for yourself. Especially since many small business owners will have to use their own credit if their business’s credit is less than favorable or it’s a new business. When you do this you are also taking on more personal liability.
- Unexpected Maintenance Costs – For a business owner anything “unexpected” is not ideal but when it comes to your key asset, your truck, the costs can add up in a big way and finding the money to pay for it can be challenging.
- Managing Cash Flow – The unpredictability of when your clients pay their fright bills when you have high up front costs can be a big challenge.
- Keeping up with the Latest Trucking Technology – There are many different technology options available to the trucking industry and the list grows every day. These advances and new products are geared to keeping you safer, save you money and much more. The difficult part can be keeping up with all the new options and having the funds to pay for them.
- Managing Fraud– Fraud is a widespread problem in the trucking industry and directly impacts your bottom line. Fraud can come in the forms of a deceitful client, broker or employee.
Many trucking company owners and owner-operators don’t know that partnering with a freight bill factoring company can help with all 7 of these financial challenges. Factoring companies can get you funds immediately to pay for fuel, maintenance both expected and unexpected, technology upgrades and any other expense you encounter. Some freight bill factoring companies also offer fuel advances and fuel cards to help keep you on the road and save money on fuel as well as credit checks to help protect you mange fraud and increase your chances of getting paid in a timely manner. The best part is that factoring companies do all of this without looking at your credit history and credit score. What they look at is the creditworthiness of your clients instead.