Invoice factoring is a road to financial stability for Texas trucking companies. Trucking costs are up and maintaining a healthy cash flow is tough. Invoice factoring with JOBE Services, Inc. offers a reliable solution to improve working capital and keep your loads running smoothly.

American Transportation Research Institute’s 2024 Analysis of the Operational Costs of Trucking

According to the American Transportation Research Institute’s 2024 Analysis of the Operational Costs of Trucking, operational trucking costs have increased compared to the previous year.

ATRI’s analysis found that the overall marginal cost of operating a truck was $2.27 per mile in 2023. That was an increase of less than 1% from the previous year, but when surcharge-protected fuel costs were subtracted, the cost per mile increased by nearly 7%.

The report also found that:

• Truck and trailer payments increased by almost 9%
• Driver wages increased by around 8%
• Repair and maintenance fees were up by 3%
• Truck insurance premiums grew by 12.5% after two years of negligible change
• Deadhead mileage increased to 16% for all non-tank operations

Additionally, average operating margins were 6% or lower in all fleet sizes and sectors other than less-than-truckload. Truckload and specialized sectors saw drops in per-mile or per-truck revenue. According to the ATRI report, expenses outside the core marginal line items increased as a share of total revenue for most sectors.

“These pressures combined with low freight rates strained profitability across the industry,” ATRI said.

How Can Factoring Help Trucking Firms?

Texas trucking companies can leverage invoice factoring as a practical financial tool to manage cash flow issues and propel their expansion efforts. Here’s how JOBE Services, Inc. can help.

Get Paid Sooner

Trucking companies operating in Texas frequently encounter the difficulty of managing extended payment periods from their clients, leading to financial strain. In such situations, invoice factoring can make a significant difference. By selling their accounts receivable to JOBE Services, Inc. at a discounted rate, trucking firms can promptly access funds instead of waiting for customer payments. This enables them to handle operational costs, procure new equipment, expand their workforce and pursue new contracts without concerns about cash flow limitations.

Take Advantage of Opportunities

Invoice factoring offers significant benefits for Texas trucking companies, including the ability to capitalize on early payment discounts from suppliers. With enhanced cash flow, trucking businesses can negotiate favorable terms with their vendors and secure discounts for prompt payments.

Additionally, invoice factoring can be a valuable resource for Texas freight-hauling companies seeking to expand their operations or invest in research and development. By unlocking working capital from their accounts receivable, businesses can pursue growth opportunities and more.

Eliminate the Dangers of Credit and Loans

JOBE Services provides non-recourse invoice factoring, which serves as a favorable substitute for conventional bank loans or lines of credit. This option is particularly beneficial for Texas-based trucking companies that may encounter challenges in securing traditional financing or require a more expedited and adaptable funding solution. Our evaluation process focuses on the creditworthiness of your customers rather than the manufacturer, thus making it accessible to businesses with diverse credit backgrounds.

Get Moving with Factoring through JOBE Services, Inc. Today!

If you are a Texas transportation company looking to overcome cash flow hurdles and seize opportunities for growth, invoice factoring could be the key to unlocking your business’s full potential. Contact us today to learn more!