Business funding to sustain growth is a constant challenge for a growing trucking company. In this economy of increasing customer demands and open competition, your trucking company cannot afford to be complacent.
As freight volumes rise, shippers are increasingly pressured to find alternate services to move their goods. You either have enough trucks to service your customers, or risk losing the business to a larger carrier with greater capacity.
Business Financing: “Good News, Tough News” Forecast
The Good News: Forecasts of Industry Growth
Economists are predicting a comparatively safe next two years in our domestic markets. Forecasts of 2 to 3% GDP growth in the US and possibly higher in Canada are expected through 2016. Orders for manufactured goods in the US have picked up and the number of backlog orders is at the highest level in years.
Overall, 2014 was a good year for the trucking industry. A 3.5% increase in truck tonnage over the previous year helped the industry to rebound as rates began to climb. It is projected that supply and demand will further tighten across the trucking industry. As volumes rise, rates and revenue are trending higher. Experts project a 3 to 5% rate increase in 2015. Freight rates are expected to continue rising and increase substantially as the decade progresses. However, so too are costs.
The Tough News: Maintaining Profitability
Although strengthening domestic demand is propelling the economy forward, other influences are creating challenges for trucking companies to remain profitable.
- Strong potential exists for the reversal of recent fuel price reductions causing costs to rise.
- Regulatory changes being enacted will create noticeable reductions in productivity. Electronic logging devices and speed limiters, hours of service and other safety regulations will take a big bite out of productivity. Experts identify these productivity losses average about 3% across the industry. Specific trucking segments, such as food and beverage delivery, record losses as high as 8% and more.
- The long-standing driver recruiting and retention issue remains. This continues to be the main constraint putting a lid on capacity and preventing fleets from expanding.
Competing with the Larger Freight Carriers
Trucking revenue has become progressively concentrated as it flows to the bigger freight carriers. Large carrier fleets have the resources to buy equipment and hire the drivers as needed to get the job done. Despite this, shippers are starting to notice delays in freight delivery. To keep schedules and commitments intact, shippers are seeking alternative sources to move their freight.
What if your trucking company had the same advantages as the larger fleets, but offered the flexibility and responsiveness of a smaller operation? With the proper financing in place, your trucking company could actually outperform the larger freight carriers.
Business Funding when faced with Growth Challenges
For trucking companies facing growth challenges, obtaining financing from traditional banking is next to impossible. Banks consider the trucking business “high risk” and are most likely to reject your application for an operating line of credit. The capital required to purchase more equipment and to facilitate the hiring of more drivers, needs to come from other sources.
Accutrac Capital offers the solution. Accutrac is an alternative financing company that specializes in cash flow solutions for the transportation industry. Qualification is easy. Our fast and flexible services provide immediate access to working capital that is easier to obtain than a bank loan. Accutrac
also provides specialized cost saving services, such as Fuel Discount Cards. With significant discounts on the cost of fuel, your trucking company
(regardless of its size) has the ability to compete with larger fleets.
Accutrac Capital’s unique financial products are designed to meet freight carriers’ needs.
- Invoice Factoring: Immediate access to working capital at industry’s lowest rates
- Invoices paid within 24 hrs.
- Cash for operating expenses, payroll, equipment maintenance and more.
- Immediate access to working capital without creating debt.
- Discount Fuel Cards: Big savings on fuel at major full service truck stops across North
- Substantial discounts
- Credit terms available to qualified carriers
- Easy qualification for any size fleet (large or small)
- Cash Advance B4 Delivery: Get cash before you deliver your load
- Pay for over the road expenses
- Preferred Currency Exchange: The best exchange rates for cross boarder carriers
- Our combined volume provides you the same or better rates than the larger fleets
- Equipment Financing: The financing you need to purchase more equipment
- Leverage the equity of your used equipment to purchase new tractors and trailers
Are you ready to grow your trucking company?
Stay flexible and don’t load yourself down with debt. Instead, find alternative financing options like those provided by Accutrac Capital to support your growth.