Factoring for Truck Drivers and Third Party Truck Driving Companies
Factoring for truck drivers and third party truck driving companies: According to the U.S. census, there are over 3.5 million truck drivers in the United States of America and over 700, 000 truck driving businesses. On average, truck drivers earn close $to 50,000 a year. Truck driving is arguably one of the biggest sectors producing entrepreneurs in America.
Truck drivers will talk about the freedom they have in making their own schedules, operating their own trucks, choosing their jobs, and then getting paid for their work. As liberating as it can be, there are a lot of hurdles truck drivers must deal with when they are their own boss. This includes the rising cost of insurance, rising fuel costs, managing their business, compliance issues with regulations, and getting paid. This is where factoring for trucking companies comes in – you have to pay many of your expenses now, but you don’t get paid from your work for 30, 60, or even 90 days. For a small fee, you can sell part of your outstanding invoices to a factoring company for truckers like Balanced Bridge Funding and get money now.
Short Haul Trucker Drivers and Long Haul Truck Drivers Can Take Advantage of Factoring Their Receivables
Some are short haulers, long haul truckers, over-the-road (OTR), and freight carriers. Short haul drivers can only do routes up to 150 miles. They are the drivers bringing things from the warehouses to retailers and other small businesses. In 2020, the Federal Motor Carrier Safety Administration (FMCSA) made an exemption for short haulers. Long haulers can do routes over 250 miles and sometimes 1,000 according to Truckstop, an online matching service for freight haulers and long-haul truckers. They are the drivers doing cross-country deliveries and while they get paid more than short haul drivers, they must worry more about vehicle maintenance, stricter compliance with regulation, rejected shipments, and sourcing the high-paying loads. That is on top of the common problems truckers face. There are certain loads like chemicals, perishable food, and automobiles which require special handling and can bring more money.
Truck Drivers Have A Hard Life
Being a truck driver is arguably one of the toughest jobs in the United States of America. The long hours, long commutes, always being on the move, and time away from your loved ones can be very taxing. However, it is also one of the most important jobs as well. If not for truck drivers, America would be at a standstill. Goods would not get transported and that means everything will get more expensive due to the lack of inventory. The economy would literally stop.
The world got a glimpse of this during the height of the Covid-19 pandemic. The ports were full of product that wasn’t getting moved, small businesses had to ration certain items, and some businesses could not survive and closed. However important people thought truck drivers were before the pandemic, their importance was enhanced by multiples during the pandemic.
In response, the White House created an action plan to shore up the shortfall of truck drivers in America. Truck drivers were praised for their hard work while putting themselves and their families at risk to deliver the goods. Right now, the industry is facing some strong headwinds. Truck drivers are retiring at a fast pace and companies are having a hard time recruiting new people to take their place. In addition, there is the coming specter of autonomous trucking vehicles which will upend the industry in the coming decades. The trucking industry has been targeted for disruption by the tech sector at various points of operation. Truck driving schools are being pressured to push through more students while collaborating with different entities to get more drivers on the road.
Truck Driving Sector’s Problems Are International
The problems truck drivers face are not limited to just the USA. China Labor Bulletin stated in March 2022, that truck drivers in China are having a hard time making ends meet due to the continuous outbreak of Covid. The Inter-American Development Bank published a report in 2020 about the issues the trucking industry faces in Latin America and the Caribbean. In 2021, The Financial Times published a story about the lack of truck drivers in Europe. According to news reports from South Africa, Walmart and other foreign companies are increasing pay to attract more drivers.
Why Use Factoring for Trucking Companies?
Operating a trucking company is expensive. The cost of diesel fuel alone can make it hard to succeed. Plus, trucking companies often have to wait to get paid for their work. And while they are waiting for their customers to pay, every day they are racking up fuel costs, paying notes for equipment, and maintaining their fleet of trucks. The cash is leaving the checking account every day but often doesn’t come back in that way.
Factoring is a good solution. You can sell your invoices that are due to a factoring company like Balanced Bridge Funding for a fee. You get your money today, and we get paid when your customer pays (for a percentage of the invoice). Factor as many or as little of your receivables as you want. Factoring isn’t a loan. Instead, we buy your receivables from you at a discounted rate, and when the customer pays, we collect the full amount.
How Our Trucking Invoice Factoring Process Works
At Balanced Bridge, we recognize their hard work and want to help owner-operator truck drivers by helping them access liquidity faster. Our funding process is easy and the process includes:
No credit score check
No need to sign documents for each funding transaction
Submit the invoices and dump tickets
Funds are paid typically within two days
Balanced Bridge can provide owner-operator truck drivers and third-party truck driving companies with immediate liquidity on their unpaid invoices. Long haul and short haul truck drivers are welcome to apply if they are interested in funding.
To learn more about how our funding process works specifically for truck drivers, you can browse our website or call us 267-457-4540 to speak directly with our funding specialist. Balanced Bridge is happy to answer any questions you may have and discuss the funding process in more detail. We are a direct funder, not a broker. Any owner-operator truck driver or for hire truck driving company interested in funding can fill out the application on our website today.