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The holiday season is an exciting time for everyone, but it’s also one of the busiest times of the year for freight due to increased ordering. As a result, we see increased loads, tighter schedules, higher maintenance, and higher fuel usage. Due to the holiday season’s changes, there is increased financial pressure on owner-operators and small fleets, making it even more crucial to have a consistent cash flow solution. Factoring de carga is an excellent option for freight drivers who need consistent cash flow immediately, rather than the inconsistent cash flow that can take 30 to 60 days. We’re going to talk more about how TBS Factoring can help truck drivers keep cash flow steady during the Christmas freight rush and why factoring is an excellent choice for drivers during this time.
Understanding the Holiday Freight Rush
During the holiday season, several factors drive the freight rush and increase truckers’ load volume. This rush is something that any trucker must prepare for as it approaches, driven by increased loads and the financial strain that can accompany them.
Demand Spikes During the Holiday Season
During the holiday season, orders increase as people buy gifts, and e-commerce volumes rise as stores work to keep their shelves stocked. Expedited shipping and time-constrained demands to deliver by Christmas are also factors to consider, making the stress even more impactful for freight drivers.
Operational Challenges
Truckers will face operational challenges during this period due to these changes and increased freight traffic. Higher wear and tear will require more maintenance, increase fuel usage, lead to more frequent travel fees, and result in longer hours, all as a result of increased freight deliveries.
Where Does the Cash Flow Gap Come In?
Brokers in freight typically use a 30 to 60-day payment schedule, which means that even though a load was delivered today, the driver won’t get paid for that load for 30 to 60 days after that. This cash flow makes it difficult for owner-operators and trucking businesses to keep up with their bills and payments, as those payments do not wait the 30- to 60-day period. This can create a stressful situation, especially during the holiday season, which is the busiest time for freight.
What is Factoring and Why Doesn’t It Matter During Peak Season
Factoring is the process of engaging a factoring company to sell your invoices, receive payment the same day, and avoid the typical wait time. The factoring company will work directly with your clients and purchase the invoices for a fee, with you receiving 80-90% of the payment upfront, reducing the wait. The holiday season, when freight volume peaks, is the perfect time to implement freight factoring to maintain consistent cash flow and avoid payment issues and cash outflows. This also helps truckers to accept more loads without worrying about cash flow or when they will get paid. With that said, TBS Factoring is here to support you during the busiest time of the year with fast approval, same-day funding, and reliable service.
How Factoring Supports Truckers During Peak Season
Freight factoring supports truckers in various ways by providing a range of services and serving as a payment backbone. This consistent cash flow makes a significant difference for trucking businesses, as cash flow consistency is the number one issue truckers face. Let’s look more into how this consistent cash flow can support freight businesses.
Helps Manage Unexpected Costs
There are both expected and unexpected costs associated with running a freight company. When it comes to expected costs, freight factoring maintains consistent cash flow to pay bills, invest in necessary maintenance, and cover regular needs such as refueling. For unexpected expenses, as with any vehicle, there may be maintenance needs such as tire replacements, breakdowns, or holiday delays that will affect cash requirements. However, consistent cash flow makes these situations much less stressful than they would be without factoring.
Supports Owner Operators and One-Truck Fleets
For small businesses, staying on schedule, managing maintenance needs, and handling flow delays can be more critical to the company. With freight factoring, there’s no need to rely on credit cards or loans, as funds are available instantly and help keep the business running efficiently, especially during the busiest time of the year.
Stay Fully Loaded
When there isn’t enough cash flow for a smaller freight company, they often turn down profitable loads due to cash constraints, but with freight factoring, this isn’t the case. Factoring companies, such as TBS Factoring, help truckers maintain consistent wash flow and profitability by providing the flexibility to accept more loads and increase earnings.
Why You Should Work With TBS Factoring During Peak Season
If you are a freight company, owner-operator, or one-truck fleet, we are here at TBS Factoring to support your business and keep cash flow consistent during the busiest time of the year. With transparent fees, you’re never caught off guard, and you know exactly how much money you are going to make. We offer same-day funding, so you will be paid the same day, avoiding the 30- to 60-day wait that typically follows load delivery. At TBS, we offer additional services beyond our standard factoring to support your business, including fuel cards, discount programs, administrative tools, and customer support available every step of the way. If you are a trucker or freight company looking for a reliable factoring partner, póngase en contacto con TBS Factoring so we can support you during peak season when you need it most.
