Freight Factoring is Solving Common Trucking Challenges

Published on: 24 December 2018 Last Updated on: 24 February 2020
trucking associations

According to the American Trucking Associations (ATA), U.S. freight volume has risen 4.2% in 2008, fuelled in no small part by a manufacturing industry rebound as well as a healthy economy.

ATA Chief Economist Bob Costello says that the growth rate is expected to ease to 2.3% per year from 2019 through 2024. This growth rate, however, will offer very little relief to shippers who still struggle with a driver shortage.

According to Fortune, this lack of qualified drivers many trucking companies competing for the same small pool of workers, with some companies complaining that only 1% to 2% of applicants meet the necessary requirements.

This shortage is creating a noticeable ripple effect, as companies vying for workers who meet the necessary qualifications are offering much higher pay and signing bonuses. According to the ATA, the median pay for drivers in this category is $59,000, while experienced drivers working for private fleets see as much as $86,000 a year.

Trucking companies are paying more than ever to secure capable drivers, and when you combine these expenses with rising fuel and maintenance costs it’s no wonder that so many owners experience frequent cash flow issues. It’s obvious why the trucking industry is considered to be a challenging one.

The good news for owners is freight factoring has become an increasingly popular and mainstream financial solution to accessing immediate funding.

Freight factoring is an arrangement between a factoring company and a trucking company, in which both parties benefit. A trucking company sells its unpaid invoices at a discounted rate to a factoring company in exchange for a cash advance, allowing them to meet their expenses.

The factoring company charges a nominal fee while holding a percentage of the invoice amount in reserve. The factoring company, as part of its service, collects on the invoice from the original customer, and when they do, the percentage held in reserve is remitted. Click here to learn more about the ins and outs of invoice factoring and how it can help your trucking company thrive in challenging times.

This straightforward arrangement solves an ever-present cash flow issue that many trucking companies face. By factoring invoices, owners have access to cash they need to pay their drivers and meet other costs, while no longer sinking valuable time into making collections and tracking down payments.

Without freight factoring, trucking companies are at the mercy of slow-paying customers and will wait 30 to 60 or even 90 days to receive much-needed payment for deliveries they’ve already made.

Freight factoring from a reliable company such as Accutrac Capital provides a much-needed cash flow surge to:

  • Start-up operations
  • High-growth companies with insufficient working capital
  • Companies in transition
  • Companies experiencing a tough year or experiencing a change of ownership

In a world where overhead costs — such as rising driver wages — can outpace cash on hand, factoring restores the value of overdue invoices and frees trucking company owners to concentrate on growth and customer service, rather than worrying about chasing down payments. If you run a small trucking company or a nationwide fleet, freight factoring could be the cash flow solution you’ve been looking for.

Read Also:

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Who Owns RAM

Ram’s Power Brokers: Who Owns RAM?

Ram Trucks, an American brand of light-to-mid-weight trucks and other commercial vehicles, is a division of Stellantis (formerly Fiat Chrysler Automobiles). Ram Truck Division (of Chrysler) went as RAM. It was founded in 2010 as a spin-off from Dodge and went with the Ram pickup truck brand. The original Dodge logo was replaced with the Ram Trucks logo. But who owns Ram? The Warren Truck Plant in Warren, Michigan, and the Saltillo plant in Saltillo, Coahuila, Mexico, are the two locations where Ram 1500 "Classic" trucks are manufactured. At Sterling Heights Assembly in Sterling Heights, Michigan, new series Ram 1500 pickups are manufactured. From the beginning, the brand has been known by the slogan "Guts. Glory. Ram." Who Owns RAM: History Before the 1970s, Dodge kept a distinct truck brand called Fargo Trucks, mostly for use outside of the US. From that moment on, Chrysler sold all of its trucks under the Dodge brand. After Chrysler filed for Chapter 11 bankruptcy protection in June 2009, Fiat Group acquired a 20% share in Chrysler Group LLC, and Sergio Marchionne succeeded Robert Nardelli as CEO. That year, on June 10, "New Chrysler," formally known as Chrysler Group LLC, acquired almost all of Chrysler's assets. The agreement received funding from the federal government in the amount of US$8 billion, or almost 21%. "World Class Manufacturing," or WCM, a system of meticulous manufacturing quality, came under CEO Marchionne. A number of products relaunched with distinction and elegance. The divisions that handled Ram, Jeep, Dodge, SRT, and Chrysler split to concentrate on their own identities and brands. In 2010, Ram Trucks set sail as a Chrysler division, taking the Ram name from the Dodge Ram pickup lineup that is currently on sale. Chrysler claims that the Ram Trucks brand will focus on "real truck customers," as opposed to irrational buyers who purchase the trucks based solely on appearance or fashion. When Daimler stopped producing the Dodge Sprinter in 2008, there was a void in the North American market that was filled by the Fiat Ducato cargo van, which is now sold as the Ram ProMaster. Truck sales were to rise "from today's 280,000 to 415,000 by 2014." Recent Past   Chrysler executives have expressed their desire to take on Ram in the semi-trailer truck market. This is possible by Fiat's ownership of Iveco and the extensive network of Dodge dealers. According to former Ram Division President Fred Diaz, "Ram trucks are not a Dodge model." Ram trucks are independent of Dodge automobiles. Ram's vehicle identification number (VIN) will never change from that of a Ram. To enable Dodge to adopt a new brand identity—one that is hip, stylish, youthful, and vivacious—we must continue to market as Ram. That won't work for the truck buyer campaign. There should be different themes for the two." Fiat increased its ownership of the company on July 21, 2011, when it purchased the Chrysler shares that the US Treasury had been holding. Diaz left Ram Trucks in April 2013 to take a position as vice president of divisional sales and marketing for Nissan. Reid Bigland took his place. In January 2014, Fiat Chrysler became a separate corporate entity. Reid Bigland, the CEO of Ram Trucks, came in August 2014 to oversee the Alfa Romeo brand in North America. Later, Robert Hegbloom would take over as head of the Ram Trucks brand. He was a longtime Chrysler employee who joined the company in 1986. He had previously served as a director for Dodge. Bigland moved to become the CEO of Ram Trucks in October 2018. Not long after, he learned that the division had been fabricating sales figures, and he sent the data to the US government for further examination. Pop Culture   Image Source: townsquare.media Having driven a GMC Sierra in the first season, Cordell Walker (Chuck Norris) spent the majority of its existence behind the wheel of a silver Dodge Ram. The truck was part of a bigger product placement arrangement with Chrysler. The villains drove automobiles from rival Detroit automakers General Motors and Ford Motor Company. While the other main characters drove other Chrysler vehicles. Throughout the CBS television series' run, the Ram received a lot of advertising during commercial breaks. The two main characters, Bill Paxton and Helen Hunt, used a 1995 red Dodge Ram 2500 pickup truck as their storm-chasing vehicle throughout the 1996 movie Twister. Unintentionally, Ram Trucks made their way into popular culture on February 4, 2018, during Super Bowl LII. The usage of Rev. Martin Luther King Jr.'s sermon "The Drum Major Instinct" in their commercial was criticized by social media users. It's advertising for promoting Ram Truck with such a sales was especially troubling. Content creators on YouTube quickly created spin-offs that presented a more truthful view of King's sermon and views on advertising. There were "What Martin Luther King Actually Thought About Car Commercials," "The MLK Super Bowl Ad Dodge Didn't Show You," "What Dodge LEFT Out Of Their MLK Commercial In Super Bowl," and so on. In Taylor Sheridan's Yellowstone television series, Ram trucks are the preferred work vehicles of the Yellowstone Dutton Ranch. It has the ranch's branding and logo on its sides. The trucks come in a range of configurations, with the majority being 2500-series vehicles running on 6.7L Cummins diesel. When Did Dodge And RAM Split? After buying Dodge in 1981, Chrysler maintained the most well-liked models, including RAM pickup trucks. Their pickup trucks were marketed as "Dodge RAM" from 1981 to 2009. Following a reorganization within the brand, Dodge and RAM separated into two distinct car lineups. In order for Dodge to concentrate on creating new cars that could rival models like the Chevrolet Corvette and Jeep Wrangler, the company split into separate entities. Due to this division, the brand was able to produce some incredible standout products. The lineup includes the SUV Durango, the Dodge Charger and Challenger muscle cars. Other fan favorites are also available at the Miami Dodge RAM dealership. So Who Owns RAM? Image Source: wallpapers.com Chrysler, the parent company of Dodge, launched RAM as a separate brand for its pickup trucks in 2009. A truck manufactured prior to 2009 is referred to as a Dodge RAM. All pickup trucks manufactured after 2009 are just RAM trucks. The only difference is that their pickup trucks have a RAM branding. While their Dodge cars, SUVs, and minivans remain part of the same company. Why Did Dodge And RAM Split? Why, then, did Chrysler split these two brands apart? New models with greater focus came into development thanks to this process. Dodge developed the Dodge Challenger to rival the Chevrolet Corvette sports car. It allows RAM to concentrate on producing more robust builds and more potent engines for Spanaway jobs. The two brands could become more distinct and specialized if they split. Wrapping Up It's possible that your old RAM still has the "Dodge RAM" logo if you bought it before 2009. After the company stopped producing "Dodge" trucks in 2009, all trucks after that time became "RAM trucks." Additionally, the same owner owns RAM and Dodge. The trucks, however, go by the name of RAM. If you have thoughts to share or questions to ask about who owns RAM, please leave a comment below. We would love to hear from you! Read More About: Truck Driver App: Revolutionizing The Trucking Industry Off-Road Adventures Await: Navigating Terrain With RC Trucks HVO Fuel Uncovered: The Secret Fuel That Could Change Everything Calculating Damages In Truck Accident Claims: Evaluating Medical Expenses, Lost Wages

READ MOREDetails
Repair Car

Repair or Replace? How to Know When It’s Time to Scrap Your Car

The line dividing when to keep or get rid of your car is one of the less appealing aspects of vehicle ownership. Sometimes we just want to be told the answer ahead of time. If you’re stuck between not knowing if you should take your car to an auto wrecker or to hold off just a little longer, here are a few guidelines that could shed some light on the answer you’re seeking. Outweighing the Odds: The first thing to consider is how much your car is actually costing you in repairs on a monthly to yearly basis. Is this quantity more than what it would cost to purchase a new car and pay a monthly payment? If so, then it’s probably safe to say that you should invest into buying a new vehicle. Of course, when balancing out these odds you must consider the insurance difference on a new car will be a lot more (with things like collision) than you might be paying currently. For the most part, if you’re already paying a whole bunch to keep it running, why not make the change for the better? When Old Reliable Is Not So Reliable Anymore: If your car is reaching the point where it's peaking at 200,000 miles (125k kilometres) things are getting a little squeaky, and the check engine light isn’t turning off, then that’s a good sign the clock is coming down to the wire on making a new purchase. Breaking down is no fun when it’s a late night after a long day of work and it’s the last thing you need in your life. And trust me, these things hit you when you least expect them to. For you, is the main question what you’ll be fixing next? If yes, then your car is past its prime.   With older vehicles, the engine and the transmission are likely to begin causing problems. Therefore, if you want to save yourself the trouble and the late night anxiety then scrapping is the best option here. Photo by Dietmar Becker on Unsplash Looks, Matter: Sometimes it’s not always about the inside, but the outside too. With appearances, compromised vehicles are those that show signs of rusting on the exterior. If you don’t mind this, then you should just be concerned about the parts below your car that are showing signs of rust and could become compromised. Aside from deteriorating metal, some of us actually want to look good when we’re driving around. If you feel like your car isn’t up to your standards, or the bodywork and chasey is beyond repair, why not trade it in for something newer? Get it While You Can: Trading in your used vehicle may be the last thing your car will ever give you. Whether it’s a little or a lot is up to you, depending on how long you wait or not. While your car is still worth something, sometimes it's better to trade it in than to wait until its worth next to nothing. What you should do at this point is check your incentives and approach certain dealerships to see what they would offer. And if the timing seems right, then so be it! Making the Right Trade: All of this information would be useless if you traded in your car for something of the same quality. Therefore, the most useful tip to give is to really consider the car you’re going to purchase in place of your scrapped one! If you are basing your reasoning on getting a newer vehicle because the payments will be equal to the repairs, then make sure that your new car won’t need any of these same repairs. Furthermore, if going through a dealership, make sure to have them provide free maintenance and oil changes for the next one or even two years, just to ensure that your trade is going to be worth it. Read Also: Useful Tips About Mobile Car Detailing To Avoid Any Costly Maintenance And Repair Issues What Do You Need To Change Car Rims?

READ MOREDetails
Potholes Formation

Helpful Tips to Prevent the Formation of Potholes

A large number of public roadways, parking lots, and even privately owned driveways need pothole repair. What many people don’t realize is that there are steps they can take to prevent the formation or worsening of potholes; regardless of where they develop. Understanding How Potholes Develop Before diving into how to prevent potholes, it’s a good idea to get to know how they form. Similar to cracks in your walls, potholes usually begin as a blemish or crack on the surface of the road. This is a clear indication of wear and tear. Understanding how they form gives a baseline to know how to prevent them. Some of the most common methods used for preventing potholes are found here. Plastic Roads A few years ago, Popular Mechanics released an article describing “the future of roads.” This article outlined how using large, hollow, plastic blocks to create the road network would minimize the dips made in the ground. The particular design mentioned also featured a hollow cavity inside of the road slabs for the wiring and pipe. Because of the durability and strength of this material, the surface of the road or driveway is much less likely to develop potholes. A plastic road aims to make any repairs needed faster and easier. Also, the damaged areas can be replaced by adding a new “slab” of road. Even though no prototypes have been tested yet, it’s assumed the work needed to maintain these types of roads would be much easier and less involved than with asphalt roads. Crack Infill As previously mentioned, the majority of potholes start with a small crack in the surface of the road or driveway. If this issue is repaired quickly, the likelihood of a pothole being created is reduced significantly. To prevent potholes, it’s essential that no water can get in through the cracks in the road. Crack infill fills in these cracks, preventing water ingress. Fog Seals Another way to prevent potholes is to apply a light, slow-setting, diluted asphalt emulsion to the surface of the asphalt. This layer of protection helps to prevent water intrusion, slow down the deterioration of the pavement, and improve aggregate retention. Chip Seals This is another type of thin surface treatment. It combines the use of one or several layers of asphalt with several more layers of fine aggregate. When applied, chip seals can help to prevent water intrusion, fill and seal distress in the pavement, and minimize reflective cracking. Micro Surfacing With micro surfacing, a thin surface treatment is applied, which includes a layer of finely crushed stone and asphalt emulsion. When applied properly, micro surfacing helps to prevent water intrusion and correct minor cases of rutting. It has the added benefit of fast set and cure times compared to other prevention methods. Preventing Potholes Before They Form The best way to prevent vehicle damage due to potholes is by taking notice of a problem and addressing it promptly. Failure to do this can result in serious potholes and, in extreme cases, the need to replace the entire paved surface. Make sure to take action as soon as a problem is seen. This is going to prevent a small crack, divot, or rut from becoming a severe and damage-causing problem that is only going to cost more to repair in the long-run. Read Also: 10 Fabulous Ways To Update Your Home Interior Using Wallpaper Find The Right Painters For Your Ann Arbor Home This Painting Season Important Things To Know Before Starting A Home Improvement Project

READ MOREDetails