Last month, a major pain point in the supply chain problem came to a head in Texas. Currently, supply chain issues are leading to price hikes for consumers across the country. Now, produce deliveries are being delayed due to multiple long inspections in Texas that are slowing down truck deliveries. The inspections and long waiting times are causing produce to go bad before it even reaches the shelves. Additionally, truckers are burning fuel during inspections, and then they have to figure out a way to make up for lost time, due to the mandates put in place by the Texas state government. The cost in fuel, deliveries, and more has placed a major strain on trucking companies that regularly send drivers along the southern border in Texas for produce. Fortunately, there are a few things that can be done to lower expenses and improve cash flow.
Lowering Gas Expenses
Long delays caused by inspections and re-routing, combined with the general price at the pump have all been major pain points for trucking companies with active drivers in Texas and the Southwest. Drivers and fleet owners alike have been sharing their personal tips to save at the pump. First, there are apps that list the lowest gas prices in any geographic location. Sometimes it is worth planning a detour for a couple of miles to save money when topping off the tank. Just make sure you are not burning more gas than necessary to shave off a couple of dollars at the pump. The second method is to weigh the cost of converting part or all of the fleet into electric vehicles. This would eliminate fuel costs completely but the initial cost is high, and there may not be ample charging stations along major routes for electric trucks. The third option is to use a fuel discount program. Single Point Capital offers a comprehensive fuel discount program that covers major truck stops, fuel brands, and even wholesale purchases. Drivers and fleet owners alike can save money, track expenses, and get major discounts on items like tires, accessories, and more.
Improving Cash Flow for Shipments to and from the Southwest
While state mandates in Texas are impacting supply chains, trucking companies still need access to capital to cover regular costs, as well as those for drivers experiencing delays along the border. One of the easiest methods to improve cash flow and ensure there is capital on hand to cover expenses is by using freight bill factoring. Most freight bills have staggered payment schedules of 30, 60, or 90 days. Instead of waiting up to three months to receive payment, freight bill factoring from Single Point Capital reduced the time to a single day. This allows trucking companies to get paid almost immediately after their drivers finish their hauls. Additionally, freight bill factoring does not place debt on the books or impact credit ratings, which allows trucking companies to maximize cash flow, prevent invoices from aging out to collections, and they can keep expenses covered while building up capital for growth.
Beyond Fuel and Supply Chain Issues in Texas
Freight bill factoring and fuel discounts are not just short-term solutions to overcome the current issues in Texas and along the border. Trucking companies and owner-operators alike use freight bill factoring year-round to ensure they maintain healthy cash flow and have the capital on hand to meet all of their expenses and more. Similarly, fleet owners use fuel discount programs because no one can predict when prices are going to skyrocket nationally, or when certain businesses are going to arbitrarily hike the cost per gallon. By converting your unpaid invoices into cash, you can automate your accounts receivables. By signing up for a fuel discount program, you can ensure you are getting the best prices possible for your trucking company.
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Single Point Capital is a one-stop shop for trucking companies and owner-operators nationwide. From comprehensive freight bill factoring to steep fuel discounts, dispatching services, insurance programs, and more, we are committed to meeting the needs of the trucking industry. To learn more about our programs, reach out to the team at Single Point Capital today.