Whether you just started a trucking company, or if you are thinking about launching a new trucking company, there are a few things to consider. The way trucking companies operate, combined with the modern economic landscape, fuel costs, insurance, and more, can become overwhelmingly complex very quickly. However, if you understand how different aspects of fleet ownership work, you can achieve long-term success.
Launching a New Trucking Company
Like any business, launching a trucking company requires the company to have a tax ID and corporate structure, such as an LLC. Beyond that, there are many forms, permits, and licenses to get on a local, state, and federal level. For first-time trucking company owners, navigating the red tape and paperwork can be confusing and frustrating. Fortunately, Single Point Capital offers a startup program for people who want to launch their own trucking companies. We will handle the administrative end by filing the forms with the proper agencies to get you up and running quickly with a motor carrier operating authority (MC Number). Additionally, for existing clients who use our factoring services, we will waive all filling and administrative fees.
Fuel Costs for New Trucking Companies
Fuel prices for trucking companies have been on a rollercoaster ride. From all-time lows during 2020 to bouts of price-gouging in 2021, and now international affairs are causing the prices to skyrocket once again. Combine this with looming inflation, and analysts in the trucking industry are forecasting that the price of diesel may not be sustainable for smaller trucking companies. This poses a troubling situation, because major carriers rely on small trucking companies to cover deliveries in the regions they cannot reach. Small trucking companies serve an integral role in the industry, and if the cost of fuel is placing a major strain on finances, it will be very difficult to weather things if the situation gets worse. However, small trucking companies can take advantage of the fuel discount program from Single Point Capital to ensure they get the very best prices at over 7,000 locations throughout the United States. Our fuel discount program allows fleet owners and drivers to manage expenses, and our app even saves time at weigh stations. Our fuel discount program allows small trucking companies to keep costs low so they can continue operating and generating revenue.
Insurance for New Trucking Companies
All new trucking companies need insurance, and the down payment can be fairly steep, depending on the size of the organization and the number of vehicles operating under the company. Many new and emerging trucking companies do not have the capital on hand to make the initial payment, nor do they have the financial records to take out a loan. Fortunately, Single Point Capital offers insurance services for new trucking companies. We will cover up to 50% of the insurance down payment to help you get your trucks on the road. The balance is then repaid from a small percentage of invoices that are factored through us. Our insurance services are only available to clients who take advantage of our factoring services.
If you launched a new trucking company, you want to start off strong by getting access to shipments with top rates. Brokers can be unreliable, and unless you have inroads to a well-established network, finding good rates and ample shipments can be hard to come by. Single Point Capital offers dispatching services for all types of haulers, including flatbeds, dry vans, refrigerated shipments, hotshots, and power only. Our team will negotiate the best rates for your trucking company, so you can generate revenue, cover expenses, and achieve growth.
Cash Flow for New Trucking Companies
Cash flow is a major hurdle to overcome, especially during those crucial first few years. A new trucking company can have lots of shipments at great rates, but the invoices are still on staggered payment schedules of 30, 60, and 90 days. This means a new trucking company might not receive any payments from their customers for the first month or longer. Single Point Capital offers comprehensive freight bill factoring, and we can turn unpaid invoices into cash within a single day to eliminate long waiting periods. We will boost your cash flow so you can cover operating expenses and build up capital as soon as you generate your first invoice.
Contact the team at Single Point Capital today to learn about all of our services for new trucking companies.