There is an abundance of technological solutions trucking companies may use to improve driving safety, improve the overall day-to-day driving experience, and help manage the business more efficiently. However, the money to fund these resources may be in a shorter supply. When your trucking business is just starting out or hits the slow period, you may not have the ideal technological resources to run your business as efficiently as you would like. So how can you compete with other trucking companies that offer more comforts and safety on the job? If you’re losing drivers faster than you’re receiving payment from your customers, partnering with a factoring company will get you ahold of your money faster so you can make necessary purchases to help your business grow and improve. In this article, we discuss how using invoice factoring and cash advances may provide the opportunity to invest in the latest trucking technology earlier than you ever could have anticipated.

Why Do Companies Use Factoring?

Whether your trucking company is new or has a reoccurring cash flow issue, invoice factoring can help. Companies commonly use factoring to cover their business expenses when awaiting payment from invoices—the trucking industry, in particular, deals with lots of logistical challenges. To be in a position best able to tackle the issues, sometimes immediate cash flow is needed.

Get Cash Immediately – The turn-around time for cash advances using factoring is often less than 24 hours. Unlike traditional financing, factoring eliminates the time spent filling out paperwork and awaiting loan approval, letting you focus on taking care of your business.

Unlimited Capital – There are no restrictions for how much or how frequently you get cash advances. Plus, you can simply get your money whenever the need arises, so you’re not locked into any long-term financing contract.

Business Growth – When you can get your money ahead of time, you can immediately address your business’ needs or issues. This means you can add more drivers and trucks to your fleet, while also addressing your drivers’ concerns and wants. Factoring allows you to finally take the next step in your business’ evolution by investing in technology to improve your operations.

Trucking Technology Trends to Look For

Curious about what kind of technology you may be missing out on? Staying updated with the latest technology will help improve driver retention. These types of advances allow truckers to stay on the job longer. By keeping truckers safe with cutting-edge technology, you may be able to attract new drivers who prefer a safer work environment over more traditional jobs in other industries. We list a few popular trucking technology trends below.

Dynamic Routing – Advanced GPS systems get as close as possible to providing you live traffic updates, automatically rerouting you when a shorter route is found based on live weather conditions, construction detours, or traffic accident information. You will save your business money by cutting down on gas costs and wear on the car, and have your drivers avoid hazardous or headache-inducing driving situations.

Safety Features – Unfortunately, heavy trucks attribute to plenty of vehicle accidents each year. Your drivers are likely aware of this risk and will look for reassuring measures to be made to assure their safety. Today, collision mitigation technology usually comes standard in most new trucks, but if you’re operating with an older fleet, you may want to find systems that can retrofit onto older trucks. In many instances, the passenger vehicle is actually the one responsible for accidents involving trucks, so finding an advanced system that uses sensing technology can avoid crashes by automatically taking emergency actions when needed. Having these features will prove you consider your employee’s safety as your top priority.

Freight Tracking – Keep track of your trailers with GPS transponders and tracking systems. Protect your assets from theft or alert your drivers when they are driving through high-theft areas. Not only can you track trailers geographically, but you can use software to track valuable information such as maintenance records, so you will never need to guess when a trailer is due for service. You can also keep tabs on how trailers are being used, which is especially handy if you rent them out. This way, you will know how long trailers are idle or how much is being transported inside at all times.

Transportation Factoring Software

Not only does trucking technology exist to improve the conditions of your business, but you can also use transportation factoring software to help manage your finances as well. Ask your factoring company about methods of tracking the status of factored invoices, wiring funds securely, and integrating with accounting software you may use. Factoring should seamlessly flow into your current financial structures, and technology can help with this as well!

Advanced Commercial Capital: Risk-Free Debt Factoring

With Advanced Commercial Capital, your trucking business assumes very few risks! Because of the unique nature of our non-recourse freight factoring service, there are no consequences to you if your clients fail to pay their invoices. We also do not require any long-term contracts and do not charge termination fees.

Additionally, we offer:

• Fast and flexible funding options, paying you in as little as one hour for your freight bills

• Strong relationships that foster your success

• And valuable benefits that save you both time and money, from our free fuel discount card program to free credit checks

All of these are just some of the reasons why our clients choose to stay with us for the long haul.

Advanced Commercial Capital can help your trucking company succeed in ways you never thought were possible.

Talk with our team to learn more about how non-recourse debt factoring works by giving us a call at 855.465.4655 or reaching out via our online contact form. We look forward to offering you the easiest and smartest way to factor your freight bills and get the cash you need, without any surprises.

Fleet managers often struggle with drivers leaving, whether it’s for a different trucking company, or leaving the industry itself. New drivers tend to quit their careers after just one year as a result of a variety of different factors the driver may not have anticipated about the job. You will have more success with keeping drivers if they feel safe, healthy, and appreciated. You must consider what the long hours behind the wheel do to someone’s mental and physical health and find opportunities to improve working conditions to keep drivers in the industry and with your company. Ready to find out a few ways your trucking company can avoid driver shortages? We discuss some helpful tips on how to improve driver retention below.

1.)Open & Honest Communication

Nothing is more valuable than open and frequent communication, especially right from the start of employment. Be open and honest about a driver’s experience during the recruitment stage; your prospective employees will appreciate the transparency. Don’t forget to mention how your company will help improve day-to-day life on the job. Continue leaving an open line of communication to create strong relationships with drivers and create incentivizing programs for drivers who put in lots of miles to show your appreciation. Ask for feedback from employees to see where you can improve. Keeping this level of rapport will make it more likely for your employees to share their positive experiences with other drivers from other companies, creating an effective opportunity for recruiting you may not have considered.

2.)Ensure Propper Training

Recruiting is only part of the battle since the bigger concern is with keeping your drivers. Having good communication includes training your drivers whenever necessary, and this is often a full-time job. Make sure your employees are set up for success by ensuring they are familiar with the technology you use, such as electronic logging devices and dashcams. You can potentially offer a mentorship program to partner up a new driver with an experienced one. This is an easy way to get new employees hands-on experience where they can ask any questions in the moment while giving your drivers a chance to feel less isolated. Outside of properly operating technology, the onboarding period can be used to educate your trainees on company policies.

3.) Provide Updated Technology

Another common reason drivers leave the profession is due to a lack of updated technology and equipment. Most importantly, drivers need reliable vehicles. If the truck they drive constantly breaks down or needs repairs, the driver will be rightfully frustrated and inconvenienced, especially if breakdowns are happening in undesirable weather conditions. This is incredibly important for safety, so it is vital this is never overlooked as drivers who feel unsafe will likely leave at the first sign of danger. Even though safety should be prioritized, it doesn’t mean you should ignore comfort as well. Investing in high-quality equipment from heated seats to advanced navigation systems will make your drivers feel more at ease.

4.) Consider Employee Working Conditions

It’s sometimes easy to forget about the extremely sedentary life of a truck driver, so showing some empathy and implementing programs to aim for a healthier lifestyle will go a long way in the eyes of your employees. Make sure you offer a strong health insurance package in your benefits, and it doesn’t hurt to add different health programs. Many fleets are focused on prioritizing employee health and offer incentives such as gyms, nutritional programs, and free screenings. It’s vital for drivers to find ways to engage physically while on the road and finding ways to address concerns will make you stand out and decrease the chances of your new employees souring to the career. You can also check for trucks that come with systems that help with working out while driving, like resistance bands.

5.) Payroll Factoring

If your company uses payroll or invoice factoring, you assure your employees they will receive their paychecks on time no matter the circumstances of your business or the trucking industry. There are numerous expenses to juggle at a trucking company, and sometimes invoices for freights delivered aren’t paid on time, but employees still depend on getting paid at the same time every payday. Make sure you can offer your employees financial security no matter what happens.
Additional benefits from payroll factoring that could be helpful in retention rates include avoiding layoffs and preserving savings. Since factoring allows you to get advances, you can prevent pay cuts or letting go of drivers, creating a more motivated and happier workforce.

Advanced Commercial Capital: An Industry Resource

Advanced Commercial Capital is here to help the freight industry continue to grow with confidence. We’re in the business of helping your business grow through fair and honest invoice factoring. We protect our clients from unpaid freight invoices due to fraud, bankruptcy, or delinquency, without any surprises. To learn more or get in touch with our team, call our office at 855.465.4655 or fill out our online contact form today.

If you have a business with employees, then yes, payroll factoring will be beneficial for you, your employees, and the overall success of your business. Advanced Commercial Capital understands the strain that owning a trucking business with unpaid invoices can create, which is why we offer non-recourse freight factoring services.

Freight bills can oftentimes take up to two months to be paid out, creating a significant delay for trucking companies from the time they deliver a truckload to the time they are paid for that delivery. For trucking companies who are trying to get established or expand their operations and need money sooner rather than later this delay in payment can pose problems. One method available to trucking companies to address this issue is freight invoice factoring.

Invoice factoring allows trucking companies to immediately receive payment from unpaid invoices. Invoice factoring companies provide trucking companies quick payment on their unpaid invoices, in exchange for a small fee. The trucking company can then use that money for whatever purposes they need, such as covering payroll, taking on more loads, or expanding their business.

How Does Invoice Factoring Work?

Invoice factoring is simple and easy to utilize. Most invoice factoring plans follow the same basic outline. First, the trucking company delivers the load to their customer as they normally would. The trucking company then sends the freight bill to the customer and submits a copy of the freight bill to the invoice factoring company. The invoice factoring company will then send you the advance by money wire or direct deposit. And finally, your client pays the invoice amount directly to the invoice factoring company.

How Can Invoice Factoring Help a Trucking Business?

The most obvious method in which invoice factoring can help your trucking business is by providing you with cash from the loads you deliver faster. This allows you to ensure you have sufficient funds on hand to cover costs such as fuel, vehicle maintenance and repair, containers, drivers’ payroll, licensing fees, and insurance expenses. Quicker payments also help improve cash flow and allow your business to operate in a more efficient manner.

Another major benefit of invoice factoring is the ability to allow your business to grow. Whether you are looking to expand your fleet, take on additional loads, hire more drivers, or invest in additional marketing and promotional work, your trucking company requires cash. When you have to constantly wait for payment from loads already delivered it can be difficult to save up the capital necessary to expand.

You may also find yourself stuck in a cycle of waiting for payment, then having to use that payment once it comes in to fund future loads. This cycle is preventing you from ever accumulating the capital necessary to grow your business. Utilizing invoice factoring services helps you get the money on hand to achieve your business goals.

Additionally, emergencies can’t wait. Every business experiences some sort of unexpected expense at some point. If you haven’t had the opportunity to save sufficient funds your trucking company may find itself in a bind. Invoice factoring can help you get the money you need when an unexpected cost comes up.

Why You Should Use an Invoice Factoring Company

First, as discussed at length, invoice factoring provides you with immediate cash flow. Additionally, invoice factoring allows you to get immediate funding even if your trucking business has bad or no credit. Invoice factoring is essentially an advance of the money your client already owes you, as opposed to a loan that is not associated with a guaranteed cash flow.

In addition, your eligibility for an invoice factoring plan is not heavily influenced by your company’s credit history (or lack thereof). In fact, it is likely that your client’s credit history may have a greater impact on your eligibility for an invoice factoring plan than your own credit report.

Invoice factoring also saves your company time and stress associated with collections. Once you have engaged in an invoice factoring plan it is as if you assign the associated invoice to the invoice factoring company. Thus, the invoice factoring company then handles the general accounting responsibilities associated with that invoice, such as collections and accounts receivable. These are major responsibilities (and potential headaches) that you no longer have to worry about, freeing up your time to focus on other tasks.

Invoice factoring companies also provide you with a great deal of flexibility. Invoice factoring plans are generally done on an invoice-by-invoice basis, therefore, there are no long-term contracts involved. You can decide how many invoices you would like to submit to the invoice factoring company. You decide whether to use invoice factoring as a one-time solution for a quick payout or you may plan to use invoice factoring regularly to simply speed up the payment process.

Another benefit of invoice factoring is that it provides lower associated costs than traditional financing. Asset-based loans or lines of credit have an associated timeline of when you need to pay back the money associated with the loan. These forms of financing also come with interest rates that require you to pay an increased premium the longer it takes to repay the loan. In contrast, with invoice factoring, there is one fee associated with the plan which is paid upfront.

Invoice factoring companies often provide additional benefits to their clients, such as fuel card programs. These fuel cards allow you to load money onto the card to pay for fuel and often provide savings options at designated fueling stations. The invoice factoring company may also provide the option to receive a fuel advance once an invoice has been booked. These programs make it easier for trucking companies to track fuel costs and provide money-saving opportunities.

As you can see invoice factoring provides many benefits beyond simply paying a freight bill faster than the typical client. The next time your trucking company is in need of cash or requires a quicker payment consider an invoice factoring service.
Fill out our contact form, or call us at 855.465.4655 if you’d like to have a conversation about how our freight factoring can be beneficial to your trucking business. We look forward to hearing from you and helping you succeed.