American trucking companies are excited for 2018, with predictions of strong demand for freight haul creating much anticipation for the big year ahead.
According to the trucking industry leaders, indicators are strongly pointing to a sustained period of business expansion in the US and globally. This confidence is boosted by Congress’s efforts on tax reform, as many in the trucking industry hope it will lead to a friendlier regulatory environment for fleet, trucking, and transportation workers.
FTR analyst Steve Grant has gone so far as to say that he expects the GDP to continue accelerating. He notes that a 1.5% increase in 2016 climbed to 2.2% in 2017, and should reach 2.8% in 2018. This is before even taking into account the impact of tax reform legislation that is currently being rolled out.
For many trucking companies in the US, this marks a moment of growth potential not seen in over a decade. Trucking companies can expect to see a boost in demand, but the major question remains whether or not companies have enough positive cash flow to capitalize.
As opportunities in the trucking industry appear, companies still require cash on hand in order to seize them. If a lack of cash flow traditionally keeps you from these types of growth opportunities, freight bill factoring might be the answer you’re looking for.
Freight factoring or truck factoring is essentially a cash advance funding arrangement that allows trucking company owners to sell their current customer invoices in exchange for a lump sum payment upfront through a third-party factoring company. This transaction increases cash flow, while fueling growth and overall prosperity. With many factoring companies (such as Accutrac Capital, for example) specializing in the trucking industry, it’s no surprise that so many owners are regularly employing this tactic in their day-to-day business operations. Visit their site to find various invoice factoring options for truck drivers — plans that are custom-tailored to operations of varying sizes and budget.
Here’s how it works: you send your customer their invoice as usual, but you also make a copy and send it on to the factoring company. The factoring company purchases this invoice. They deposit you a cash advance (of up to 97%) on the invoice total — minus a nominal factoring fee. The money is deposited into your account within 24 hours — often on the same day. Once your customer pays the invoice, the factoring company reimburses you the remaining 3% reserve balance.
This arrangement frees you as a business owner from having to make collection calls or track payments on your own. Instead, the factoring company working on your behalf collects payment from the customers. If you’re looking to turn outstanding invoices into a resource rather than a burden, consider invoice factoring as part of your AR strategy. While tax reform is on the way, those who prefer to be proactive and not reactive will be looking to transportation factoring to fill the gap.