If you want to gauge the condition of the economy, just take a look at the trucking industry. When truckers are hurting, everyone is hurting…or will be soon.
Trucking companies are cash spewing machines. Every single day, company trucks and owner-operators line up at the pump to fill up with $4/gallon or higher diesel. Add in maintenance, tolls and salaries and it’s all some companies can do to keep things going each day. That is why factoring receivables is so critical to the trucking industry.
With the recent problems in the financial sectors, credit has been hard to come by. Even if a company decided that they wanted to take some sort of loan, there are not many banks willing to provide financing. That is why freight factoring is so critical during an economic downturn.
A blog I found focused exclusively on freight factoring provides some pretty relevant insights into the difficulties faced by truckers and the increasingly important role of freight factoring services. Give the Freight Factoring blog a read for some good info.
