The Rise of Autonomous Trucks: Implications for Freight Factoring Services

Autonomous trucks are being introduced in the freight industry, and it is changing the way some things work. One thing that is changing is freight factoring services and how they work within the freight industry. Autonomous trucking is helping with the increased demand in freight, which in turn changes the way that freight factoring works and the demands of that. Freight factoring is something that many companies and owner-operators have adopted to keep themselves paid and be able to keep up with demand, while also scaling their businesses. Let’s look more into the rise of autonomous trucks and how this changes freight factoring services. 

What is Freight Factoring? 

Freight factoring is when trucking companies hire a factoring company to pay their invoices. The main reason for this is that freight companies typically have to wait thirty to sixty days in order to get paid for work that they’ve already done. This can be an inconvenience for both the driver and the trucking company. Freight factoring companies take care of the invoice so that truckers can get paid instantly for their work. This allows them to utilize the money they’ve received, and it avoids them having to wait an extended amount of time for their payment. 

The Evolution of Autonomous Trucking 

Autonomous trucking is something that is on the rise, and it’s even more so on the rise due to the addition of artificial intelligence. Although this was once just a concept, it’s now a reality for some companies and in some areas. Right now, there are many brands like Volvo, Tesla, and Aurora that are releasing and testing their autonomous trucking fleets. To some, this has seemed impossible, but with sensors, self-driving capabilities, and the addition of artificial intelligence, this doesn’t seem as far-fetched anymore. 

With this said, there have also been a lot of companies and trucking initiatives that have stepped out of the autonomous trucking industry due to issues or not being confident in the future of the autonomous trucking industry. With this said, there are still major advancements to the future, and some of these trucks have been seen on the road doing their routes without anyone behind the wheel. 

Autonomous Trucks and Freight Factoring

One thing to remember when it comes to autonomous trucks and freight factoring is that they work hand in hand. With changes to the freight industry as a whole, there is a need for freight factoring to keep up and adjust its models to better support these changes. With autonomous trucking in particular, this is new and different, which means there is a lot that needs to be established still. Here is a look into the details of how they work together and what this means for the future of freight factoring. 

Carrier Business Model Shifting 

If autonomous trucks continue to become more and more prominent, this could mean that there may be changes in who is operating these trucks as a whole. The future of this could mean way fewer owner-operators and more large-sized logistics companies. For factoring companies, this could mean there may be a larger demand for freight factoring for smaller companies, instead of the larger companies that might be implementing an autonomous truck model. 

Change in Payment Systems

For these companies that do take on autonomous trucks, there could be a huge change in the way that payment is made to them. Automatic tracking and payment could be implemented, which would mean that there’s less of a need for factoring companies. On the flip side, this could also just mean that freight factoring policies and processes need to change to keep up with automatic payments or smart contracts that might be implemented. 

Reduced Costs and Delays 

With autonomous trucking, there will be fewer limitations like we see in today’s traditional trucking system. For example, there may not be limitations on hours of service driven, since there is technically nobody driving the trucks. This could also mean a quicker turnaround due to the lack of limitations and reliance on humans, which could mean less human error and other issues delaying travel. With this comes a difference in cash flow and in return, a difference in how factoring is used for these companies. 

Freight Companies Teaming Up 

With autonomous freight companies comes a possible change in how payments are made. Ultimately, bigger companies could centralize the payments together, which would make them less reliant on factoring companies. Another possibility could be that they are creating their own kind of freight factoring company instead of using a third-party company. Factoring in general as a sector could change heavily as we look at these changes and the addition of autonomous trucking. 

Regulations and Challenges Around Autonomous Trucking 

Because autonomous trucking is still a pretty new concept and a lot of companies are trying to work out how exactly it’ll work, this means that there’s not much when it comes to regulations. Ultimately, these regulations are being created as the industry is just starting. This could leave a lot of room for changes as it gets implemented, and it could mean a lot of different changes are coming to the freight industry. Not only this, but there’s a risk of fraud or cybersecurity breaches with autonomous trucking, which has yet ot be addressed. So although autonomous trucking is emerging, there is still a lot that needs to be addressed and situated before it can go full swing within many branches and companies. 

Future of Freight Factoring With Autonomous Trucking 

The future of freight factoring is unknown, as there is a need for factoring in many freight industries, but when it comes to autonomous trucking, this could change. This doesn’t mean that factoring will be diminished, but it just means that there could be large changes in that industry as well. So while autonomous trucking is emerging and there are a lot of factoring options for trucking companies that need them. At TBS Factoring, we anticipate the potential changes that might come with the emergence of autonomous trucking, and we are anticipating what the future might look like. Although we may still be farther out from this being a reality across the country, it is something that’s in the works. If you are in the marketing for a factoring company that is here for you and for your business, we’ve got you covered.