TruckingBlogger.com | Blog

(By Blog Contributor) Is it really becoming more difficult for the larger trucking companies to find a reliable freight factoring company?  A lot of the national factoring companies are limited on advances to $2,000,000 - $3,000,000, unless of course, you're a bank, but then you are going to face the bank's qualifying criteria, which may make it difficult for the struggling carrier to qualify. Actually, it is not that bad, we found that there are many factoring companies that are advancing as much as $10,000,000, and although qualifying criteria get's tighter on higher advances, the focus still remains on the creditworthiness of the customer, so larger carriers and those that are struggling should not have a problem finding a reliable freight factoring company.

You are building your trucking business - bought your first truck, got your insurance and received your authorization with little amounts of money here and there from family and friends, along with a strong will and firm determination, the hard work paid off, now you have secured your first load, but where is the money coming from for operating and living expenses?  In most cases in order to remain competitive you have to invoice your customers on a 10-15 days net, and in some cases the customer may take 30, 60 or 90 days to pay, if you go to the bank for an advance on that freight bill/invoice it is likely that they will say NO!  They want a seasoned well established company with strong financials as a customer.  It is frustrating for startups to find the funding they need to operate and grow when banks are constantly saying no. However, the fact is that there is plenty of money available for start-up truckers, and you can get advances on your freight bills/invoices w...

All the best to our blog participants, truckers and the trucking industry in 2015!

How is freight factoring helping your trucking company, or are you using other methods to fund your business? Please participate in this discussion,  tell us which method of funding you are using to receive needed funds: freight factoring, ACH advance company or other funding sources, and how much are you paying for that funding, is freight factoring cheaper than ACH advances?

FoxBusiness reported recently on the shortage of truckers, specifically long-haulers, as per the ATA (American Trucking Association) the trucking industry has a shortage of about 30,000 of qualified drivers, and expected to raise to 200,000 over the next 10 years.   Is DOT Secretary Foxx looking into this, there seems to be a significant opportunity to create new jobs in the transportation sector? According to the June 2014 North American freight Numbers, the Bureau of Transportation Statistics reported that "Trucks carry three-fifths of U.S.-NAFTA freight and are the most heavily utilized mode for moving goods to and from both U.S.-NAFTA partners. Trucks carried 59.5 percent of U.S.-NAFTA freight in June 2014, accounting for $29.8 billion of imports and $31.4 billion of exports." There is a strong focus on infrastructure investments which is necessary but the DOT should not overlook  an opportunity to create jobs.

The Los Angeles Times had an interesting article a few weeks ago written by Karen Levy about the nation's trucking system suggesting sleep deprivation and the need to address reform of a range of unsafe practices. The article went on to state that many trucking companies are putting tremendous pressure on their drivers to stay longer on the road than what is required by law, even owner-operator are feeling the pressure when dealing with brokers, some are losing opportunities when they hew to close to the rules. If this is true, then we have an epedemic that needs to be addressed as soon as possible and what can the industry do to avoid these pressures imposed on our nations' drivers?

By Staff Writer Actually, there is a big difference between bank and non-bank financing for trucking and transportation companies!  After the most recent banking meltdown, obtaining bank financing for a trucking or transportation company has become a long and uphill struggle.  Banks are focusing on carriers with high earnings, excellent credit history, strong balance sheet and predetermined debt service ratios. But there's a lot to be said about non-bank asset based lenders and trucking factoring companies, these lenders and factors attract those trucking and transportation borrowers and factoring customers that would not qualify otherwise under normal bank lending standards, which may apply to certain borrowers with high leverage, negative net worth, recent losses, and those faced with fast growth/expansion needs. Under traditional lending guidelines these borrowers would not qualify. Non-bank lenders in determining the lending criteria of a potential borrower would loo...