There’s more uncertainty in the US economy than some would have you believe, and for the freight and trucking industry, any decline in economic growth could be disastrous. With uncertainty over NAFTA, freight and trucking could suffer a great deal in the years ahead. The US trades $577 billion with Canada and $532 billion with Mexico in imports and exports – the lifeblood of freight and trucking. The US economy may not be as strong as some analysts predict. Despite modest job growth, consumer spending remains anemic. Some have called 2017 the “retail apocalypse.” In the month of August, consumer spending was only up 0.1%. With the US dollar down 8 percent in 2017, consumers are about to feel the pinch and that could jeopardize future growth. New US tax changes have also failed to inspire much growth …show more content…
Sometimes trucking companies wait up to 90 days to collect, but even waiting a month can put the brakes on your cash flow. Freight bill factoring is a growing alternative to banks for fleets struggling with cash flow. Freight bill factoring is not a loan. Trucking companies sell their invoices at a discount and factoring companies pay up front. Selling invoices is a quick and easy way to guarantee an influx of working capital. Instead of waiting two or three months to collect, factoring offers carriers immediate funding often on the same day they apply. By contrast, bank loans are difficult to secure. Banks have tough expectations for credit and sustainability for companies that take on bank debt, and trucking is usually considered a high-risk industry. Trucking companies can easily find themselves frozen out of bank loans, especially if they don’t have an impeccable credit history or major collateral. Trucking companies of all sizes struggle to meet banks’ requirements for a business