Managing a small trucking fleet in the best of times presents unique challenges and obstacles. These only get compounded when market instability and economic uncertainties fall into the mix. According to FleetOwner, intermodal volumes have been slowly improving as chassis turns, container loading and unloading, and overall supply chain movement improves. Containership backlog should ease in the coming months and allow for more capacity and flexibility at ports and distribution centers. Current trends also look to support strong import demand in early 2022, making freight factoring and trucker payment more critical than ever, especially for smaller fleets and trucking companies. The following tips can help management grow a small trucking fleet that is financially sound and on solid ground with trucking finance requirements.
1. Recognize That Small Trucking Fleets Will Have Trouble Finding Factoring Services
The little guys on the block often struggle more to find factoring services and keep up with the bigger trucking companies. Unfortunately, this is normal and expected. Rather than stressing over it and fighting against it, the best thing small fleet management can do is accept this truth as early as possible. Spending energy on the tasks at hand is always better than eating resources trying to fix something that is beyond control for the short term.
2. Lessen Your Risk by Leveraging a Freight Factoring Solution Built for Owner-Operators
Focusing on technology stacks and tools, along with innovative platforms made for owner-operators, can help lower risks and provide better financial backing and stability. Tools and software made for small trucking businesses and drivers make it easier to scale and adapt as needed to meet local demands and any disruptions. Onboarding can be quick and easy rather than spending time and resources to adapt to new systems.
3. Avoid Taking on More Freight Than You Can Reasonably Move
While it can be tempting, especially with concerns over future market standing and financial situations, to grab as many loads as possible, this can backfire very quickly. Many small trucking companies lose money and even go under because they spread themselves too thin. Trying to do too much without the right support and foundation is never a good idea—no matter how the freight factoring looks. Slow and steady is the best way to grow.
4. Leverage Lite Analytics to Understand the Performance of Your Trucks
While data collection and analysis are critical for strong growth and predictive planning, there is no need for smaller fleets to strain themselves with expensive and consuming analytics right away. Any data is better than no data, and when it can be properly reviewed and applied, even small insights and trends can help small trucking fleets better track finances and spending. Performance reviews and trucking company analytics must not negatively impact overall profitability.
5. Automate Trucking Finance and Invoicing Processes With Integrated Systems
Innovative tools and systems make it easier for management to monitor supply chain networks, fleet routes, transportation systems, financial documentation, and back-office processes. Such access and control become vital to future growth and success when dealing with invoice factoring and payment processing. Fast and reliable invoicing, charges, payments, and record-keeping allows management to direct more attention to other aspects of the trucking company.
6. Get Paid Faster With Pre-Onboarded Brokers and Shippers
Small trucking fleets already have to work harder than the larger trucking companies, including the process of finding broker and shipper partners. Accessing approved brokers and carriers to work with can take a lot of the guesswork out of the process. It also brings a certain level of assurance and confidence that the partnership will work out and be financially beneficial for everyone. That can’t be achieved when going into things blind.
Choose BasicBlock to Do All That and More
Starting as the small fish in the pond can present unique challenges and obstacles for small trucking fleet managers and owner-operators. From managing trucking finances to monitoring profits and expenses, small trucking companies face pressures and stressors from all sides. Partnering with a skilled and experienced freight factoring company can help ensure everything falls into place. Current trends within the shipping and transportation industry show strong indications that current levels of demand and trucking capacity will continue well into 2022. Give your fleet and your drivers the best chance for future growth and success by contacting BasicBlock today.