Inflation and the higher cost for items have companies fearing holiday shipping is going to decline. It’s a new concern that’s the complete opposite of how things were last holiday season.
FedEx and UPS are already finding themselves with more drivers than deliveries. Major online retailers are finding themselves with more inventory than buyers. It’s the exact opposite of what people experienced during the pandemic where supply chain issues were making it impossible to get items.
If your small trucking firm was expecting a flood of holiday shipping requests, you may be disappointed. With rising costs and less work, what can you do to make it through the holiday shipping decline?
Get Paid Now
How does your current billing situation work? Like most trucking companies, you complete a run, send an invoice to your broker or shipper, and wait for the payment to arrive. It may take a month or longer before you get the check in the mail.
Then, you have to deposit that check, wait to see if it will actually clear, and wait for funds to be released into your account. That process can take several more days. In the meantime, you have bills to pay, trucks in need of full tanks, and the stress keeps building.
Why go through this every month? You could work with a freight invoice factor and get paid immediately. Saint John Capital has an app you can use to submit a bill of lading, and we process that and turn it into an invoice that goes to your client. We pay you the money then and there, so there’s no more wait for you. Plus, you can upload the invoice we’ve sent to your accounting software, which reduces your administrative department’s workload.
Our freight factoring company pays you a portion as soon as you pick up a load or drop it off. A small percentage is withheld to cover the company’s factoring fee. Saint John’s factoring fee is as low as 1%, depending on the number of trucks in your fleet.
There’s another reason to choose Saint John Capital. If your broker or shipper never pays the invoice, a recourse arrangement requires you to repay the money you were paid in advance. Our non-recourse agreements don’t require you to pay us back. We take the loss, which protects you.
Your bank may charge additional fees for the bank transfer. If possible, sign up for a business debit and get paid directly to the card for the fastest deposits. With a business debit, you can have your payment the same day as long as you submit the request by noon EST.
Once fees are deducted, the rest of the money is in your hands for immediate use. Pay your bills, fill up your trucks, or invest in your company’s growth. If you choose to get a partial payment when picking up the load, the balance of the money due is transferred as soon as you have proof of delivery. You can submit your signed bill of lading through the app. You don’t have to send a fax anymore.
If you have clients who pay you as soon as the invoice arrives, you can continue working with them directly. If you partner with Saint John Capital for 100% freight factoring arrangements, you’re not obligated to factor the invoices with all of your clients. You are welcome to pick and choose. It’s a good way to work with someone new without risk.
Look Into a Low-Interest Business Line of Credit
A business line of credit is a helpful tool when you run into a tough spot. Borrow only the amount you need for an emergency truck repair that gets your driver back on the road and making money. Pay back the amount over time or in full when your business picks back up.
You can also use a business line of credit to grow your fleet, purchase your own building to stop having to pay rent, or cover unexpected bills. The other benefit to a business line of credit is that it helps boost your business credit score when you make payments on time. It can help show your reliability, which helps you grow your business and gain additional clients.
Suppose you decide to purchase a new truck. You have low-interest payments for now, but as your driver starts making a lot of money, you’re able to pay more. You’re welcome to do that. You pay off the line of credit quickly. If another emergency occurs, the line of credit is still there if you need it.
Make Sure You Have Enough Work
The more work your drivers have, the easier it is to grow your trucking company. To make sure you have enough work, you should use a load-finding app. Search for jobs in the areas along the route your drivers take. You can sort by the amount the job pays and narrow down the results after checking the broker’s or shipper’s business credit score.
Never drive when your trailer’s empty. You’re wasting opportunities to make money. If you have a haul going over to California, make sure the trailer is filled. Along the way, drop off the partial load, fill up again if there’s a load going to your driver’s final destination, and make three times the money on that one trip.
For the return, do the same. Pick up loads for the return trip. Suppose you find two half-trailer loads going to your originating city. You’ve now made three times the money on the way to California and two more times on the return trip. You’re getting five times the money you were expecting. It’s the best way to run your trucking company.
In addition to Saint John Capital’s load-finding app which has millions of loads you can look through and sign up to take, we also offer free business credit checks. Use our tracking app to know exactly where your drivers are on their routes. If you see a major weather event coming up, you can alert them in advance so that they can re-route or stop for the night instead of getting into an accident.
Sign Up for a Fuel Discount Card
Fuel discounts are essential for making it in the trucking industry. If you don’t currently have a business Visa with fuel discounts, you need to sign up. Every gallon of diesel or gas you purchase comes at a discount, which slashes your fill-ups.
The other benefit to a fuel discount card is that you can get paid directly to your business Visa. The money is already there when it’s time to fill your trucks’ gas tanks, pay for maintenance or repairs, or pay for food while on the road. Every purchase helps you save money in the long run, and you have peace of mind that the funds are there when you need them.
Saint John Capital can help you with all of this. Our comprehensive services allow for quick and easy transactions right from your phone. Fill out the online form and get the support you need to find more loads, get paid immediately, acquire fuel discounts, and get approved for low-interest business lines of credit. It’s our goal to help trucking firms succeed in difficult times.
