Easier qualification, fast funding and value-added support services produced the ideal funding solution for new and growing transportation companies. With far less credit limitations, invoice factoring provided a distinct advantage over the restrictive covenants of a banking line of credit. Invoice factoring is an ideal funding option for trucking Through all this volatility, freight factoring continues to grow as a leading financial strategy for transportation businesses. Now we are experiencing a spike in freight volumes as the supply chain struggles to find its new normal. The 2019 blood bath in rates preceded the disastrous 2020 pandemic. Strong gains in 2014/15 were quickly diminished by weak volumes in 2016 before rebounding again in 2017. Trucking companies struggled through five years of long slow recovery following the 2008/2009 Great Recession. At the same time, rising interest rates began to challenge trucking companies’ ability to secure financial backing.Īs the decades continued to unfold, the trucking industry experienced the roller coaster ride of wild swings in year over year trends. This past decade has been very difficult. Increased competition played havoc with volumes and freight rates. At the same time, partial deregulation of the industry resulted in dramatically increasing the number of trucking companies in operation. Throughout the ’60s, ’70s and ’80s, the trucking industry continued to evolve as an essential industry. A boom in funding transportation companies had begun and freight factoring had a prominent position. With the resulting surge in freight transportation, commercial banks and independent financial firms fully adopted factoring arrangements to suit the needs of trucking companies. Trucking grew in prominence as the workhorse of the nation’s economy.įollowing World War II, expansion and improvement of highway systems in the United States and Canada made it possible for the trucking industry to become a vital part of North America’s supply chain network. As technology advanced, road systems improved and the distance freight travelled increased. Trucking was first introduced to North America in the late 1800s. Invoice factoring and trucking have a long history Today, freight factoring is a mainstream financial option for trucking businesses in need of operating capital.
As over the road carrier services grew in scale and importance, freight factoring, a specialized form of factoring for trucking companies, evolved. Trucking has been a commercial venture in North America for over a century, and invoice factoring has supported the industry since its early days. It is a financial practice that many companies use to gain access to cash flow across industries and around the world.
TRUCK INVOICE FACTORING CODE
Factoring has been around since the ancient Mesopotamian times and the code of Hammurabi. Invoice factoring is older than you think
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