The oil & gas industry has performed a 180-degree spin from forecasts earlier in the year. A number of mergers and acquisitions, along with an increase in oil rigs and shale drilling have signaled a healthy turnaround for the industry. Because of this, mid and down market trucking companies are preparing for an increased volume of shipments to carry throughout the United States.
Once the COVID-19 pandemic took hold in the United States, travel, transportation, freight, and production in general were all disrupted. This placed downward pressure on the price of oil and gas, so drilling and mining operations were scaled back. In the fourth quarter of 2020, and probably well into 2021, the oil and gas industry is experiencing increased demand. Businesses are starting to reopen and supply chains are growing, causing an increased need for petroleum and gas products. At a granular level, one cannot rule out seasonal changes. There is a big demand now from businesses and homeowners alike for oil and gas to provide heat for their properties. All of these factors are coming together to paint a positive forecast for the oil and gas industry.
The Demand for Haulers
The renewed demand for oil and gas has trucking companies configuring logistics to handle large shipments across the country. This means hiring additional drivers, making sure all trucks are in working order, and even purchasing new vehicles if need be. However, trucking companies need capital to meet the demand from the oil and gas industry. Loans are out of the picture, because lenders have been tightening their credit requirements for the trucking industry since the pandemic began. In order to get fast access to working capital without the red tape or additional debt, haulers for the oil and gas industry are using freight factoring. Freight factoring allows trucking companies to boost cash flow and build up capital by converting unpaid receivables to cash. This gives trucking companies the capital they need to make oil and gas deliveries. Moving forward, freight factoring allows trucking companies to stay on top of their invoices to ensure a continuous, healthy cash flow, especially while the oil and gas markets are on an upswing.
Single Point Capital provides the most comprehensive freight factoring services nationwide. We will turn your unpaid receivables into cash within a single day and provide a number of extra benefits, such as insurance on your clients, big discounts on fuel for your fleet, and much more. Contact Single Point Capital today to get started.