Small Fleet Trucking Company
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A trucking company runs on fuel and it runs on cash. When the cash runs out, the fuel runs out. That is why so many trucking company owners are conscious of their cash flow and why they are always looking for ways to keep their companies properly funded. There are a lot of expenses that trucking companies have to endure, and many of those expenses require cash for payment. It is a delicate balancing act that trucking company owners have to maintain and it is difficult to do, even when the economy is in good shape.
A bad economy makes the problem even worse because cash flow is slowed due to less sales activity and there is also a pile of past due invoices that inhibit the company's ability to meet financial obligations. Those ongoing bills help to keep the trucks on the road and the customers happy. Whether a long-hauler is taking full loads or racking up LTL shipments, he still needs to have certain things to get his rig from his origin to his destination. That is why a trucking company must work harder to have the necessary cash flow when the economy goes bad.
Fuel Is An Important And Volatile Expense
Most trucks run on diesel fuel and, as any trucking company owner will tell you, diesel fuel is usually more expensive than standard automobile fuel. Trucks require a lot of diesel fuel to run and the trucking company requires a lot of cash to be able to pay for that fuel. Most companies have arrangements with fueling organizations, or they have pumps at their location where their trucks can fill up. But when a truck is out on the road and far from home, he needs a reliable source of revenue to be able to fill up and get to his next destination.
The other problem with fuel is that the price literally changes every day. If there is a crisis in the Middle East, then you can stand in a gas station parking lot and watch the gas prices go up all day long. When a necessary commodity has a volatile pricing structure like that, then cash flow becomes vitally important to a trucking company's success. A trucking company is not going anywhere without a reliable source of fuel, and it takes a stable cash flow to be able to provide that fuel. A slow economy destabilizes cash flow and creates all kinds of problems.
Road Expenses Also Start To Mount
A trucker out on the road racks up expenses in tolls, permits, food and a variety of other expenses that are all reimbursed by the company. In some cases, such as in the case of permits, the trucking company must bear those costs up front. Each day, a trucking company owner can see more and more of his profit going out the window in the form of daily expenses. When there is a slow economy, these expenses tend to go up and the costs can start to skyrocket.
Whether you are a reefer, long-hauler or freight broker, you will find that the expenses associated with getting a load from point A to point B can be almost prohibitive. The trucking company would like to rely on the cash flow from client payments to keep the trucks on the road, but that is not always an option. When the economy slows down, the likelihood that cash flow will get worse tends to increase. The last thing a trucking company owner needs is to watch as his operating expenses rapidly outpace his available cash flow.
Receivables-Based Lending Is The Trucker's Answer
The real problem is that trucking companies start to look at their customers as the enemy when the economy goes bad. Clients that used to pay their invoices on time are still demanding shipments be picked up and delivered in a timely manner, but they are also paying their invoices 30 and 60 days late. Your customers assure you that they will pay when they can and that everything will improve when the economy does, but it is impossible to put any kind of time table on that. Your company needs cash right now to keep rigs rolling and your answer is receivables-based lending.
1st Commercial Credit is the world's premier receivables-based lending company for small to medium sized trucking organizations. We have years of experience in helping you to make sure that your trucks get the fuel they need and that you are able to meet your daily expenses. We have fuel discount programs that will help you to fuel your rigs and use only the cash that your company has already earned. We know what trucking companies need to be successful, and we are here to help.
Use Your Past Due Invoices To Pay Your Bills
Your outstanding invoices are the assets you need to keep cash flow going during a slow economy. 1st Commercial Credit will work with you to confirm your invoices and establish the credit status of your clients. We can set up your account within five business days of receiving your completed application and start advancing you funds based on your outstanding invoices. We will advance you the face value of your invoices, minus our lending fee, on or before each invoice due date within 24 hours of receiving an approved invoice.
Once you get started with receivables-based lending through 1st Commercial Credit, you will look at your customers in a whole new light. Each invoice represents the cash you need to fuel up your trucks, buy the proper permits and keep your rigs rolling. When the economy starts to pick up, we will continue to provide you a flexible business line of credit based on your invoiced sales. As your invoiced sales increase, your available cash flow will also increase. It is the exact kind of funding tool you need to keep your trucks on the road and your business operating.
Instead of looking at your pile of past due invoices as a hurdle to doing business, let 1st Commercial Credit turn those invoices into your cash flow. During a slow economy, every dollar counts. We want to help you access those dollars that you have earned by advancing you cash based on your outstanding invoices. We do not charge a set-up fee and we do not have a per invoice or per month minimum. We base all of our decisions on your clients' credit scores and not yours. That means that have the ability to help trucking companies with bad credit and start-ups with no credit at all. Contact us today and let's get to work so we can keep your trucks on the road.