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Small Fleet Trucking Company

How Owner-Operator Trucking Companies Fund Their Businesses

It is entirely possible that an independent trucking company owner has never been a freight dispatcher in his career. But it would still help that trucking company owner to understand the challenges a broker faces when it comes to paying bills. Funding an independent trucking company comes from the same sources as larger fleet organizations. But the smaller owner-operators feel that financial pinch that comes from past due invoices just a bit more than their larger counterparts. The solution for the small, owner operation is to team up with a receivables-based funding company like 1st Commercial Credit and get the financial answers he needs immediately.

1st Commercial Credit understands all of the financial elements of doing business that are important to owner-operators. We have a fuel discount program that will help you to save money on your fill-ups and get a price that is closer to those bulk fuel prices you have been missing out on. We also have years of experience working with freight brokers and larger trucking organizations all over the world. We know what it takes to keep cash flowing for an owner-operator, and we have the flexible owner operator receivables-based funding program necessary to maintain that stable cash flow. We help an owner-operator to establish a solid financial foundation, which makes it easier to go out and generate revenue on the open road.

Receivables-Funding Allows You To Take More Business From Larger Trucking Companies And Brokers

Expenses such as permits, fuel, maintenance and repairs require a constant supply of cash to fund each and every day. But it can be difficult to find that cash when your freight brokers are late with their invoice payments or the trucking companies that sub-contract out work to you are behind in their invoices. You rely on these sources of revenue to keep your small trucking operation going, so the option of not taking any more work until all invoices are paid simply does not exist. 1st Commercial Credit will advance you the face value of those invoices, minus our lending fee, and make sure that you have the cash you need while retaining your business relationships.

The receivables funding process relies on approved invoices issued to creditworthy clients. When we evaluate your account application, we do not ask for your company credit score. As a matter of fact, we will never ask to see your company credit profile at all. As long as you have legitimate invoices generated to creditworthy clients, then we can advance you the funds you need to fuel your rig and keep your customers happy. You will never have to turn away business because your clients have been unable to keep up with their outstanding invoices.

The 1st Commercial Credit method is fast and simple. We can have your account approved and active within three to five days of receiving your completed application. We can advance funds on approved invoices within 24 hours of receiving those invoices. We will turn your receivables aging report into a cash monitoring report in only a few days. Let us put our billions of dollars of resources and our years of extensive experience in the trucking industry to work for your owner-operated trucking company today. You can call one of our professional financial associates, or you can use the simple two-page online application to get the entire process started. Take advantage of our fuel discount program and let us create the cash flow you need to keep your rig on the road and your customers satisfied.

If there is one thing that all truck drivers can agree on, it is the freedom that their job offers them. When you are a trucker, you spend most of your time in your rig going from one destination to the next. You don't have a supervisor looking over your shoulder and, as long as you meet the client deadlines, you have no one that you really have to answer to. The most experienced truck drivers also have the luxury of choosing their routes, which allows them to develop stops in each town that can make their entire journey much more enjoyable.

Some truckers do not mind working for companies that provide everything from the truck to a steady supply of work. A trucker who works for a regional short-hauler still has the freedom that his other brothers of the road enjoy. But the owner-operators are the truckers that truly cherish that freedom and embrace it harder than anyone else. An owner-operator has his own rig and makes his own schedule, but he still has the same financial concerns that every other trucker and trucking company in the world has. Part of understanding the financial situation of an owner-operator is knowing how the smart owners fund their business.

Owner-Operators Have Choices On Who To Work For

There are plenty of trucking companies that are more than happy to contract the services of owner-operator truckers for several reasons. First of all, contracting with an owner-operator removes the burden of maintenance and gas from the trucking company. An owner-operator that actively looks for employment from a trucking company will come to rely on that company for his livelihood and show that company a high level of loyalty. There are thousands of successful business relationships between owner-operators and trucking companies all over the world.

But the owner-operator does not have to associate himself with a company if he chooses not to. There are plenty of freight brokers who need reliable truckers that they can add to their shipping network, and owner-operators fit that bill very nicely. There is a relatively small population of owners who seek out their own business and manage to make a living. But the majority of truck owners that are not tied to a particular company find it easier to make their income with the help of a good broker. When it works right, the relationship between a broker and an owner-operator can be very lucrative for a very long time. But when it goes wrong, it can leave both parties scrambling for answers.

Trucking Costs Are The Same No Matter Who Owns The Rig

An owner-operator has the same costs that any trucking company with a fleet has; those costs are just on a smaller scale. The owner has to supply his truck with fuel, keep his truck maintained, purchase permits and insurance and buy special rigging when necessary. Independent truckers pay their own tolls, buy their own meals and pay for their own hotel rooms. They rely on their cash flow to pay these bills, but everyone in the trucking industry knows that reliable cash flow is not something that can be counted on. No matter who owns the rig, there are still operating costs to consider.

Owner-operators do have significantly reduced costs in areas where trucking companies struggle. An independent trucker does not have to be concerned about hiring a dispatch staff, paying for expensive certified mechanics or paying the tremendous overhead on a large yard to park a fleet. One of the conveniences that an independent misses out on is the potential savings in buying fuel in bulk. But when the owner finds a good financial partner, then he can get fuel discounts that can almost offset any kind of bulk deal he is missing out on. The trick is finding a qualified financial partner that will help the owner-operator to fund his trucking company business.