Despite the fact that the trucking sector is the vascular through line of the U.S. commercial landscape, transporting cargo across the country and pumping life into the economy, the sad truth of the matter is that the value of trucking labor - from drivers all the way up the ladder to owners - is diminishing.
According to this New York Times think piece, many American truck drivers are paid on a per-mile basis, which means that some of them are making less than the federal minimum wage. This isn't the fault of trucking company owners as they are struggling to stay in business due to the fickle nature of the industry and its unpredictable costs.
While there is a current spike in the need for U.S. freight delivery many owners are still struggling to make ends meet. Is there a chance for change?
The Value of Trucking
One of the first major steps is to increase awareness of the situation - reminding people of the value of the industry. The freight industry is a monumental force in the American economy.
You've heard of horsepower - well, trucks are the work horses of the U.S. supply chain, directly contributing roughly 5% to the national GDP, as trucks are delivering raw materials and finished products across the country - from factory to distribution center to the retail spaces where they eventually make it into the end users' hands. In 2014 alone, 68.8 percent of our nation's freight was delivered by truck - imagine if those numbers were to grind to a halt.
Freight Bill Factoring Can Help
Despite its critical role as the commercial lifeblood of the country, the trucking industry faces a considerable number of challenges that threaten its ability to survive. Emerging government regulations, fluctuating prices in fuel, a growing driver shortage, and restricted funding options from banks and other traditional lenders make it difficult for trucking company owners to get by day-to-day. This is where freight factoring comes in.
Many freight factoring companies even work exclusively with trucking companies - meaning that rates and plans are designed specifically for the unique challenges of this industry. Consider the following plans available from a top-flight provider like Accutrac Capital:
Flat Fee Factoring
- From 1.59% all-in for up to 90 Days
- A straightforward and easy to manage plan with a simple one-time cost
Factoring Line of Credit
- Designed for larger fleets
- From 0.022% per day
- A flexible line of credit that requires a one-time qualification
- Starting from only 0.49% for up to 10 days
- The ideal funding option for carriers with quick paying customers, offering some of the industry's lowest rates.
Discover the benefits of freight factoring services and learn about the freedom and flexibility the right plan can give you, helping your company access the working capital it needs quickly while also controlling your costs - all without the challenges involved in obtaining a traditional bank loan.
Factoring is easier to qualify for and considerably easier to manage and maintain than a bank loan, and because factoring companies work in tandem with your company - while banks work only for themselves - you can be assured that you're making the most informed financial choice.
If you still have questions, start your own research today into which factoring plans that will work best for you and your business. You won't regret it.