Maintaining your finances and keeping the cash flow rolling is important for any business. In trucking, cash flow is a make or break to your business. Owning or managing a trucking company means running a business with high expenses and in the right market conditions, high rewards.
That’s why we’re covering the five things that can commonly reduce or deplete trucking company cash flow. More than that, we’re giving you solutions to avoid or even eliminate them.
1. Getting Paid Late by Customers
Delayed customer payments can wreak havoc on your cash flow. Waiting weeks or even months to receive payment can hinder your ability to cover expenses and invest in your business.
Instead of letting late payments drag you down – consider freight factoring to get paid upfront and improve your cash flow. Apex factoring clients can get paid in minutes by using the Apex Mobile Factoring™ app to upload freight bills immediately after delivery.
2. Rising Fuel Costs
With fuel costs constantly on the rise, it’s no surprise that they can take a toll on your cash flow. As fuel prices increase, so do your expenses, making it challenging to maintain a healthy cash flow. Look for ways to optimize your fuel efficiency. Find fuel discounts or consider using a fuel card to manage your expenses and minimize the impact on your cash flow.
The Apex TCS Fuel Card is a full-service fuel card for trucking companies, large and small, that provide big discounts at the fuel pump at more than 1,500 in-network locations across the country, including TA®, Petro Stopping Centers®, TA Express, AMBEST®, Speedway, and more. There are no fees with the Apex TCS Fuel Card – no setup, activation, membership, monthly, or annual fees. Plus, the Apex TCS Fuel Card has no transaction fees at in-network locations.
3. Equipment Maintenance and Repairs
Your trucks are the lifeblood of your business, but they also come with ongoing maintenance and repair costs. Unexpected breakdowns and repairs can quickly drain your cash flow, leaving you struggling to keep up with other financial obligations. Implement a preventative maintenance schedule, invest in quality equipment, and consider financing options to spread out the cost of repairs and preserve your cash flow.
Becoming an Apex factoring client means you automatically enjoy discounts on tires and service at TA Truck Service® Centers across the country. All you need is your trucking company’s DOT Number to unlock TA Truck Service® savings on tire balancing, repairs, mounts, and rotations, various truck preventative maintenance (PM), and more.
4. Slow Seasons and Market Volatility
The trucking industry can be unpredictable, with slow seasons and market volatility impacting your cash flow. During these periods, it’s crucial to have a financial cushion to rely on. Freight factoring can provide you with immediate funds by selling your invoices, allowing you to navigate through cash flow gaps and keep your business running smoothly.
Also, with freight fraud on the rise it is even more important than ever to check the credit of your potential customers to make sure they will pay for the load you haul. When you verify your customers’ credit before you haul the load, you remove the risk of non-payment. That’s why Apex Credit Checks are a super valuable tool. Apex Credit Checks are free and unlimited for our factoring clients. Conveniently available 24/7 through the Account Management Portal (AMP), Mobile Factoring™ app. Or over the phone with our dedicated credit department.
5. Inefficient Billing and Bookkeeping
Poor billing and bookkeeping practices can wreak havoc on your cash flow. Inaccurate invoicing, delayed billing, or mismanaged financial records can lead to cash flow bottlenecks and financial confusion. Consider implementing efficient invoicing systems, digitizing your records, and using software to streamline processes.
Another benefit of being an Apex factoring client is in-house back-office support, which includes auditing, soft collections on freight invoices, free credit checks on brokers and shippers, managing communication and paperwork, and more. It’s like having an accounts payable employee without the expense of a salary. This way, you can concentrate on delivering loads.
It’s no wonder that longtime Apex factoring client Johnny Papenfuss of Papenfuss Trucking says: “I would have to create another position or two to do all the work that Apex does for us.”
Maintaining a healthy cash flow is key to your success. By knowing how to navigate these cash flow-crushing obstacles and exploring solutions like freight factoring with Apex, you can keep your business thriving and stay on the road to success.
At Apex, we’re here to help you navigate the complexities of the trucking industry and maximize your cash flow. Contact us today to learn more about how our freight factoring services can benefit your business. Cash flow is king, and Apex is here to help you reign supreme. Give us a call at 855-369-2739 or get started here.