There has been a steady rise of problems for the trucking industry in North America; very notably with financing, shortage of freight and slow paying clients. The three all play a role for one another; if you aren’t able to get proper financing or aren’t paid in a timely manner from clients, you won’t be able to pay your drivers on time – and drivers hate waiting to get paid. When these occur, it causes drivers to quit and shortages to form in your freights (especially in the long haul industry). There have been many reports of freight shortage and it isn’t only hurting the trucking company; it is also hurting the delivery companies. With less freight on hand and higher shipping demands, it is a struggle for the trucking companies to keep up.
Many of the shipping ports require deadlines, which cannot be missed or delayed; and this is a huge stress for the trucking industry. Also causing major driver shortages are retirements and lack of recruitments. Trucking companies are now trying to make trucking look more attractive for potential drivers by offering high-tech trucks, predictable schedules and revamped training. Many drivers quit trucking because of the lack of predictability in schedules and spending too much time away from home. Today, you see more retired and middle-aged couples trucking together; their children are out of the home and they need to bring in some money – what better way to do so? The focus is being trained on recasting the trucking industry’s nomadic image to recruit more minorities, retired militants and those looking for a second career.
Financing issues is a major concern for the trucking industry. Money is needed for the freights of the company; fuel must be bought, loads need to be delivered and drivers have to be paid. With slow paying customers and difficulties getting bank loans, it seems like impossible tasks. Even business loans are hard to come by for trucking companies these days. So is there a solution to these inevitable problems? Yes.
By factoring freight bills, trucking companies are able to focus more on running their business instead of playing the role of a collections agency. With factoring, you are paid right away; this allows bills for drivers, fuel and delivery to be paid promptly with no hassle – but how does it work? With The Transportation Software Company, our factoring services (brand new) offer trucking companies the convenience of being paid on time by paying them right away, then we wait for the customer to pay us. The great thing about factoring is that anybody can get a chance. If it’s a new business start up or credit worthy clients or freight brokers needing extended financing – no problem.
With factoring, there is no more waiting 30-60 days for payment from customers, instead receive payment between 5-7 days. The Transportation Software Company can help solve the age old trucking industry problems by offering them factoring and financing services.
If you’re a trucker, you can find deals on Groupon for discounts on rooms at Extended Stay America.