Upgrading and Expanding Your Trucking Company

Supply chain issues and general demand are placing a strain on trucking companies. However, if the situation is approached from a different angle, there are great opportunities to generate revenue if trucking companies upgrade their equipment, expand their fleets, and hire additional drivers. The prospect may seem like a major undertaking with a large upfront investment attached, but enabling growth is simpler than most people think.

The Need for Larger Fleets

The pressure for trucking companies to expand their fleets is coming from multiple sources. First, there is the need for last-mile delivery. Last-mile services came to the forefront in 2017, when e-commerce took a significant part of the market share. Since then, and especially now in the age of COVID, e-commerce is gaining even more momentum. Second, LTL shipments are on the rise. As consumers and businesses continue to order online, even major fleets are investing in commercial vans to handle smaller delivery loads more efficiently, and to reach those areas that are off the beaten path for larger Class-8 vehicles. Third, the opportunity to take on more shipments and mitigate supply chain issues has trucking companies expanding their fleets and hiring more drivers. The initial investment may seem steep, but the revenue generated can cover expenses in short order.

Hiring More Drivers

Hiring new drivers go hand-in-hand with expanding fleets. Currently, the number of drivers is growing. Professional drivers who were furloughed from companies that needed to scale down their workforce during the pandemic, people exiting the military and looking for careers in the private sector, young people looking for work, and people looking for better income compared to what their current employers are offering. Trucking companies have a much better pool to draw from, since the slump of 2019 and 2020, combined with the great driver culling after the rollout of the FMCSA Clearinghouse to check driving records against drug and alcohol usage. This year is a big chance for trucking companies to bolster their roster and most more loads.

Investing in New Technology

Forward-thinking trucking companies are looking to get a jump on new technology and position themselves in front of electric vehicle legislation that is set to hit in 2025. There are a few big states, as well as a push at the federal level, to require trucking companies to switch to entirely electric fleets over the next few years. Investing in EV initiatives now – from conversion kits for existing vehicles to brand new trucks – could give trucking companies a competitive edge moving forward. In addition to marketing campaigns that practically write themselves, companies that invest in electric vehicles will get ahead of the last-minute rush once legislation is enacted, which will most likely lead to a shortage of available vehicles for fleets to purchase later on.

Solutions for Expanding and Upgrading Trucking Fleets

While expanding fleets, hiring new truck drivers, and upgrading to new technology open doors to generating more revenue, the initial investment can still be fairly steep. Trucking companies already understand that taking on debt from loans can limit growth potential. Instead of turning to banks and traditional lenders, savvy trucking companies are financing growth from within by using freight factoring. Freight factoring accelerates revenue by eliminating staggered payment schedules of 30, 60, and even 90 days. When trucking companies submit unpaid customer invoices for factoring from Single Point Capital, our team converts those receivables into cash. Going one step further, we make that revenue available within a single day. Freight factoring does not place any debt on the books, and trucking companies can preserve their credit ratings. Freight factoring from Single Point Capital allows trucking companies to accelerate revenue and build up the capital reserves necessary to expand their fleets, hire skilled drivers, and ultimately position themselves for greater earnings.

Get Started Today

Single Point Capital is a national leader in freight factoring services. We offer fast turnaround on invoices and give our clients access to a whole suite of tools so they can track payments, perform credit checks on their customers, receive personal support, and much more. Contact the team at Single Point Capital today. Signing up for our freight factoring services is free, and we can get you up and running in no time.