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Trucking Companies Should Have a Financial Plan to Prevent a Cash Crisis

By 11.14.22November 30th, 2022No Comments
Trucking Companies Should Have a Financial Plan to Prevent a Cash Crisis

Trucking companies are facing increasing challenges as freight rates are declining, costs are growing, and the economy sits on the edge of a recession – it’s essential for trucking company owners to be prepared for anything.

In an unpredictable market, cash flow is particularly subject to wild fluctuations. Every transportation business has them – times when incoming cash can’t keep up with the demands of outgoing money. That can be especially true during economic downturns, and if anticipated, high seasonal demand produces less than expected freight volumes.

financial plan for these challenging periods can prevent underperforming cash flow from becoming a cash crisis.

In times of difficulty, intelligent business owners seek help from industry-leading specialists to gain resources and expertise to help guide their companies to safe ground. Working with a freight factoring company provides financial solutions, cost-saving services, and access to industry experts to help fortify trucking companies against mounting economic pressures.

This article explores the importance of having a financial plan and working with a freight factoring specialist to prevent a cash crisis and build success despite hardening economic conditions.

Implement a Financial Plan Now!

Whether you’re facing poor cash flow now or preparing for future challenges looming on the horizon, now is the best time to implement a financial plan to prevent a cash crisis.

If you haven’t already done so, meeting with your accountant, business coach, or mentor to talk it through may provide sound advice. However, these professionals cannot offer immediate solutions to funding shortfalls. On the other hand, contacting an industry-leading freight factoring company is a more direct path to developing an effective financial plan with improved cash flow and access to additional capital resources.

Industry-leading freight factoring companies provide:

Working with an industry-leading freight factoring company provides resources and expertise to develop a robust financial plan and deliver immediate funding solutions. Their industry experience and high-value services are your tickets to sustainability and growth.

Why Choose an Industry-Leading Freight Factoring Company?

Many invoice factoring companies claim to serve the transportation industry because trucking is a huge market and the ideal business sector to benefit from this powerful funding option. Many factoring companies enter the transportation market, attempting to capitalize on the industry’s size. The problem is that not all are experienced and understand the unique challenges that truck company owners face daily. Only a few factoring specialists genuinely understand the industry – these are the industry leaders in transportation financing with specialized services and dedicated industry-knowledgeable staff to provide valuable resources and expertise.

Industry leaders can be identified by their experience, knowledge of trucking, specialized services, and advanced technologies they utilize to provide more money in more ways and faster than any other factoring company.

Why is a Tech-Enabled Lender Important?

Trucking is a capital-intense industry! Trucking companies need constant access to working capital or face the possibility of having to park equipment until funds become available to fuel tanks and pay for over-the-road expenses. Even short funding gaps of hours or even minutes can sometimes make the difference between accepting a load or losing it to a competing trucking company.

The industry’s leading freight factoring companies are tech-enabled lenders (Fintechs). By developing technological advancements, they can qualify, onboard, and deliver first funding to new clients faster than the industry standard. Once onboarded, trucking clients receive ongoing funding immediately after invoices are submitted and approved for financing. Tech-enabled lenders can provide Visa commercial cards connected directly to the client’s online account portal to provide direct control of their funds. With this capability, truck company owners can set spending limits for drivers, limit the frequency of charges, and control the type of merchants and vendors where the card can be used. Further, tech-enabled lenders can process credit searches faster and with deeper insights to open more avenues to capital, such as preapproved lines of credit.

Working with a tech-enabled freight factoring company provides the fastest speed of funding with more flexibility, more visibility, and more control of your company’s finances than through any other lender.

Conclusion

With all this economic uncertainty, truck company owners need a robust financial strategy to maintain regular cash flow, create new avenues to more capital, and gain complete control of their capital management. Working with an industry leader in freight factoring provides the financial stability to plan and execute operational efficiencies to outperform the competition.

To find the industry leaders in freight factoring, search online for “freight factoring companies.” Identify the most visible companies and contact them by phone or online to connect with a factoring specialist. Ask the essential questions:

  • How fast can they qualify your trucking company and start first funding?
  • Do they provide immediate funding as soon as invoices are approved?
  • How many financing solutions do they provide to access more capital?
  • Do they understand your business and have valuable insights to help you grow?
  • Will you have full visibility and complete control of your cash account?

Your discussion with the factoring company is your opportunity to determine the resources and expertise they provide. But more importantly, it’s an opportunity to judge the value of the factoring company as a trusted lender you will be happy to work with. Their ability to understand your business, talk your lingo and provide simple solutions to complex issues will help determine their value as a trusted financial partner.

 

About eCapital

eCapital is recognized as an industry leader in specialized financial services to the trucking industry. Our technological advancements, flexible funding solutions, and industry experience combine to help trucking companies break through the financial barriers that commonly halt business growth.

To learn more about funding solutions, cost-saving services, and trusted expertise to help your trucking business succeed, visit ecapital.com.


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