With the electronic logging device mandate for this year, there are some challenges that trucking companies can face. We know that there are always changes in the industry, but some changes are easier to adapt to than others. Truck factoring companies can actually help you with the ELD mandate so that you can implement these seamlessly inside your trucking company. Let’s look more into the mandate and how factoring can help you out. 

 

What is an ELD Mandate for 2025? 

The Federal Motor Carrier Safety Administration put forth the electronic logging device mandate, which gives truckers a way to track their hours while implementing stronger penalties for non-compliance. The mandate is to help avoid data tampering and increase the accuracy of tracking drivers’ hours of service, which is required by law. Trucking companies can use the ELD to help comply with the FMCSA regulations while also running more effectively. 

 

What is an Electronic Logging Device?

An electronic logging device, or ELD, is a device that’s attached to a truck to track the driver’s hours of service. It is an automatic device that will track these hours without the driver having to manually enter anything, which eliminates the possibility of dishonest hour reporting among drivers. Not only can it track hours, but it can also track the miles driven, distance driven, and other relevant information that freight companies may need. These ELDs allow for easier compliance with the Federal Motor Carrier Safety Administration and real-time reporting to the trucking company. 

 

Challenges Trucking Companies Face with ELD Compliance

There are many challenges that trucking companies can face when looking at electronic logging device compliance. These challenges can be avoided with certain sources, but they are still problems that could arise for trucking companies who are trying to implement the ELD mandate and make the transition seamless for truckers. 

 

Cost and Implementation of Devices

The first challenge that many fleet companies deal with when implementing ELDs is the cost and implementation. The cost of getting the devices and the possible maintenance of the devices can be a burden on trucking companies, especially those that are smaller and less established. Despite the cost restrictions, these devices are still mandatory and therefore will have to be purchased by trucking companies. 

 

Device Authorization

These devices must be authorized by the FMSCA, which means they must be on the certified and registered list of approved devices. Recalls can also happen with these devices if it’s found that they have defects or other issues, and therefore, their certifications could be revoked. 

 

Driver Resistance

With a change like this in the industry, there is a possibility that there could be some resistance from drivers. Many might think that they have less autonomy, or they might worry about reduced driving hours as a result. 

 

Route Planning

Electronic logging devices need to have more precise route planning in order to get accurate readings and avoid exceeding HOS limits. 

 

Team Driving Challenges

If you’re operating in a team driving situation, then it could be more difficult to coordinate hours and manage personal driving time while staying under the hours of service compliance for team driving. 

 

Reliability of Devices

If there are any sort of issues with the data transfer or the device itself, this could cause problems and lead to potential compliance violations or fines as a result. 

 

How Factoring Companies Can Support ELD Mandate Compliance

Getting an electronic logging device for your truckers as a trucking company is something that will have to happen, whether you’re prepared for it or not. Luckily, factoring companies can actually help you with obtaining these and preparing your fleet to add on the ELDs. Factoring companies allow trucking companies to get access to funds immediately, rather than having to wait for invoices to be paid by other parties. However, they can also help with getting your ELDs for your fleet drivers. Here’s how factoring companies can directly help with ELD implementation: 

 

Financial Support

The biggest way that factoring companies can help our trucking companies with implementing ELDs is by giving them financial support. Getting invoices paid directly once work is completed is essential for being able to put forth the money for the initial investment in electronic logging devices 

 

Data Management

Truck factoring companies can also help with data management, as they can offer integrated compliance solutions that help to manage the data put out by ELDs. This ensures accurate reporting and avoids compliance issues and violations. 

 

Reduced Administrative Work 

Having a factoring company help your trucking company can free up time that you would otherwise use for administrative tasks, to use on other areas like operational tasks. 

 

Budgeting

Having a consistent cash flow provided by factoring companies can allow trucking companies to budget more easily and be prepared for the addition of ELDs or their maintenance.

 

Taking Advantage of the ELD Mandate

As a trucking company, you should take advantage of this mandate and use electronic logging devices to help streamline processes within your trucking business. You can use ELD data to assist with route optimization and performance tracking. You can also ensure that you have room to grow and scale as a business with ELDs by using a factoring company. Staying compliant is important, and having these devices paired with a factoring company can allow you the time and resources to truly scale your business to the next level. 

 

Choosing a Factoring Company for ELD Trucking Business

Choosing the right factoring company means looking into multiple options and the benefits that they bring to the table. It’s important to look at certain areas, such as when funding will take place, fuel cards, and even experience in trucking. It’s also important to find companies that understand ELD mandates and can offer any support needed when it comes to compliance and data sharing.

We, at TBS, are familiar with ELD mandates and the compliance rules that come with them. We also have competitive rates, expert service, short-term contracts, and even discount fuel cards. The fuel advances and the flexibility with which customers advance allow you to have full control over your business while reaping the benefits of working with us. Our TBS Get Paid App also allows you to upload an invoice directly from anywhere and start making the transfer of funds immediately. TBS is here for you if you are a trucking company facing ELD mandates and looking for a factoring company that understands the business that you’re in. Contact us today.