Keep Drivers in the Seat with Transportation Factoring

The US economy is experiencing an upswing with the demand for freight delivery increasing. However supporting this upswing will prove difficult considering the rate of truck drivers retiring within the next 10 to 20 years and the increased need for new drivers. According to the Bureau of Labor Statistics, the average American commercial truck driver is 55 years old. And there will be a need of 900,000 new drivers within the next few years.

Bringing new drivers into the industry has proven difficult. High school graduates are unable to garner an interstate commercial drivers’ license until 21 and can be lured into other career paths in the interim.  Complicating things further is the limited number of female drivers who cannot replace the number of men retiring within the next 10 to 20 years.

These factors contribute to the expenses and worries trucking company owners are facing. Given this climate, waiting for slow paying customers while trying to maintain reliable service is becoming increasingly difficult. It is unfeasible to wait 3 months for payment when overhead costs and daily operational needs have to be covered. This trend has led many trucking company owners to adopt factoring into their financial strategy.

A transportation factoring company can provide your trucking business with financial longevity. Factoring invoices means selling unpaid invoices at a discount rate and getting the cash you need to cover overhead, payroll, and taking on larger contracts faster. Unlike banks lengthy credit checks and restrictive financial covenants, factoring is designed to get you cash quickly. Another advantage of factoring with a reputable freight factoring company is that contracts’ terms and conditions are clear and written in customer-friendly language. Take Accutrac Capital, their process is simple and transparent. You’re approved in under 48 hours and can start factoring your invoices immediately to receive up to 97% of their face value the same day of delivery. Their plans are flexible with a small factoring fee that varies. The remaining 3% of the invoice is held in reserve, and once the factor collects the invoice on your behalf, the reserve amount is remitted back to you.