Last year when they tightened credit rules it caught many transportation businesses off-guard. In general, many truck owners had quickly gotten used to low rates on lines of credit, equity loans, teaser rates and easy plastic, so the credit-crunch reality was a dash of cold water.  Changing your credit life to cash may be easier than you think and can start today.

Digging yourself out of a financial hole won’t happen overnight but here’s how to start the journey: try factoring freight invoices for a year and see how much your business improves right along with your credit rating.

Factoring creates no debt and does not require monthly payments. It is not a loan so it does not show up on a credit report or impact your bottom line. Factoring is the solution that buys your invoice for a discount as low as 1% and advances the funds within 24 hours.

The benefits appear immediately.  Instant working capital allows you to keep current with existing payments so you can chip away at the mountain of debt. More importantly, becoming cash positive allows you to extend credit terms to more customers as well as negotiate for discounts for cash or quick payment. Best of all you can completely avoid borrowing money for unexpected expenses because you have instant access to your receivables instead of waiting 30-60 days.

Breaking the credit habit starts with a good cash flow. Next, manage it easily with Freight Capital’s Flash card that will give you immediate access to your cash from submitted invoices, so you can pay fuel expenses easily or transfer funds to checking accounts for payroll. You can even create your own Express Codes.

Still unsure of making such a change? Freight Capital has a 90-day RISK FREE trial where you can see if factoring invoices works for your company.  Even if you factor only ONE slow-paying customer, you will get ALL the benefits of cash-not-credit way of life.  Freight Capital makes it easy to change your life - - for the better.

It’s been a tough year for trucking. Heck it’s been a tough year for everyone, but indications are showing in the economy of a better year on the horizon.  It is already apparent after a pretty good holiday season, there is a pent-up demand for consumer goods that bodes well for the transportation industry. The ATA Forecast Report (available for download to Freight Capital Clients) reports “… Over the past two decades, the United States has evolved into a just-in-time/on-demand inventory economy. This tends to translate into smaller, more frequent deliveries, which plays into the inherent strength of trucking.”

Are you ready for the economic upswing that is sure to arrive soon?

If you’ve survived this year by hunkering down, cutting costs and watching expenses like a hawk, then you are primed to be extremely practical about expenses for a long time. You’ve learned to control your expenses and eliminate anything unessential. Maybe you’ve reduced your back office expense by moving your accounts receivable monitoring and collection expenses to a company who specializes in this type of business. Perhaps you’ve redirected your office staff into seeking out new opportunities where another carrier may have dropped out or a specialized need can be filled. Possibly you’ve consolidated routes and optimized your personnel wherever you can.

If you’ve worked hard to provide the best customer service during this downturn, you have positioned your company to be the one they call when they have more freight to move. Your customers will remember your dependable and courteous service, even when the freight rates were low enough to make anyone grumble. A positive, optimistic attitude will carry your business through and telegraph to your customers that you are going to be there to deliver loads when they need you. Present your business with confidence even if you do not feel it.

Just as important, don’t forget that your drivers are one of your most critical assets. Once the economy gets up to a full-head of steam, there will be a shortage of qualified drivers. Be good to your drivers!

Keep vigilant in 2010. Stay current on your bills and protect your credit by only hauling for reputable brokers and shippers. Credit check before every haul.

The bottomline is the business of hauling freight accounts for nearly 70% of all the goods that move in the USA and the economy is poised for a great comeback. Freight Capital is here to make sure you get paid quickly and save the most money on essential services. We are looking forward to everyone having a bountiful, happy New Year!

SAN DIEGO, CA – In early November, Freight Capital hosted a booth in two Southern California truck stops to personally thank hundreds of truck drivers during National Truck Drivers Appreciation Week.  After four days of handshaking and giving out goodie bags filled with Monster drinks, bottled water and treats, the gifting teams from Freight Capital agreed that you meet the nicest people who drive for a living.

Freight Capital also contracted with a professional photographer to shoot drivers with their rigs. After a few minutes of self-consciousness, drivers from Oklahoma, Wisconsin, Florida, New York, Tennessee and Washington relaxed into the spirit of the event and enjoyed the opportunity to pose for a “life on the road” pictorial.

It was surprising to learn that many drivers travel with their wives, husbands, dogs, and family members. The truckers who drive alone stay in contact with their home base by cell phones, CBs, and laptops. Both groups are sociable and talked of really liking their jobs and their chosen way of life.

“I love being my own boss out here because I’d go crazy sitting in a office all day.”

“My wife and I get to be together and we have a great time seeing the country.”

In fact, the only complaints associated with the constant travel are being ever vigilant for disrespectful car drivers on the road that cut them off as well as not enough places to park for rest periods. Almost every driver had positive things to say about driving all day.

The purpose and motive for the event was to deliver person-to-person appreciation and acknowledgement of drivers’ commitment to deliver goods to every corner of the country. The booths were located at the Pilot Truck Stop in Otay Mesa as well as further up north at the TA Truck Stop in Ontario. Throughout the week, Freight Capital also conducted raffles giving away backpacks, key chains, padfolios and hats along with additional items donated from TransWorld Media and Black Box Distribution.

Most of the drivers accepted the thanks with a little suspicion and braced themselves for the sales pitch that never came. However, there was one driver who was so surprised at the gesture, he went into the Pilot store and bought ice cream for everyone in the booth.

“In 20 years, no one has ever said thanks for driving to me before.”

Charles "Shorty" Whittington, ATA Chairman congratulates John Downing, President of Freight Capital on his induction into ATA's prestigious Chairman's Club and presented of the Blue Jacket Award.

SAN DIEGO, CA – Recently at the American Trucking Association’s Management Conference and Exhibition in Las Vegas, Freight Capital was awarded the Chairman’s Club blue jacket for exceptional service to the transportation industry. Last year the ATA choose Freight Capital to be their exclusive factoring partner in the Carrier Savings Program because of their honest, ethical approach to financial solutions for the transportation industry.

Most recently, Freight Capital negotiated with Petro/TA along with 40,000 independent fuel stations nationwide to create the most powerful discount fuel program in the country which saves the average carrier thousands of dollars every month.

Freight Capital provides free accounts receivable management and monitoring service, and as an added benefit, they auto-enroll each new client into a special one-year membership in the ATA. Since the ATA is an organization that represents the interests of the motor carrier industry before the legislative, executive and judicial branches of government, this opportunity to see first-hand how important it is to confront issues, voice concern and get action on key industry issues is a priceless bonus.

For nearly 20 years, Freight Capital has been a leader in providing financial services to the transportation industry. As the only financial services provider to be an endorsed partner of the American Trucking Association and the California Trucking Association, it is the goal of Freight Capital to improve the quality of life for their clients and the industry of trucking.

The National Truck Drivers Appreciation Week is celebrated annually November 1-7. Throughout the country, this week is viewed as an opportunity to recognize and thank the hard-working drivers who deliver goods to every corner of the country. The slogan “Trucks Bring It” was coined by the American Trucking Association and adopted as the motto for the transportation industry to remind everyone that practically everything is delivered on a truck.

This year Freight Capital is hosting a special booth Monday through Thursday from 9-2 at the Pilot Truck Stop in Otay Mesa at the junction of Highway 125 and 905 on Piper Ranch Road as well as further up north at the TA Truck Stop near I-10, Exit 57 on Milliken Avenue in Ontario. In cooperation with the truck stop vendors, Freight Capital will have gifting teams handing out goodie bags of treats, bottled water and conduct raffles throughout the day.

”Everyone at Freight Capital is acutely aware of the sacrifice and determination it takes to be a professional truck driver today. It is a physically demanding job and at times takes them away from their families for long periods of time. Their schedules are usually very tight, so dealing with weather, traffic and road conditions is a constant battle,” says John Downing, president of the company. “We don’t get out of the office very often, so we want to make the most of that time to personally thank every driver we can.”

Freight Capital also plans to have a videographer in Ontario to record small clips of “life on the road” that truckers can email home or post on their websites, Facebook or Twitter. In Otay Mesa, there will be a professional photographer there to capture images of drivers and their rigs.

For nearly 20 years, Freight Capital has been a leader in providing financial services to the transportation industry. As the only financial services provider to be an endorsed partner of the American Trucking Association and the California Trucking Association, it is the goal of Freight Capital to improve the quality of life for their clients and the industry of trucking.

In mid-October Freight Capital attended the Truck Show Latino in Pomona, California to reach out to truck drivers unfamiliar with cash solutions provided by factoring invoices. The booth attracted a lot of attention with giveaways, raffles and the enthusiastic presence of industry-savvy Spanish speakers.

“They did a fantastic job of meeting with current and potential clients, delivering personal customer service and a welcoming presence, promoting Freight Capital as the factoring company who really cares about truckers,” said Jim Silva, Sales Manager.

Freight Capital continues its outreach program to all truckers during National Truck Drivers Appreciation Week November 1-7 at two locations in Southern California. This year the company recognizes and thanks all Carriers by hosting a booth from 9 a.m. to 2 p.m. at the Pilot in Otay Mesa and the TA in Ontario, California during the week with raffles for gift cards and a goodie bag just for stopping by.

Everywhere you go these recession-laden days, retailers are talking about discounts on everything you buy. Coupon-clipping, penny-pinching and dollar-stretching is becoming an art form at every level of our society, turning some Americans away from rampart consumerism to thrifty recyclers.

Over 200 years ago, Ben Franklin said “A penny earned is a penny saved” but I’ve seen plenty of people walk by a penny on the ground, wave away a membership discount or forego sending in for a rebate.  To some, discounts do not feel like real money mostly because it is such a small amount.

In most circles, it is considered bad form to talk about how much money you make or how much you paid for something.  However, most people will drive out of their way to buy the cheapest fuel or to go to an out-of-the-way theatre to get free popcorn because it is a discount that is tangible and “real.”

At Freight Capital, we are amazed that more people are not taking advantage of our fuel discount program which delivers an average of $.15 a gallon discount. For a single truck with a 500 gallon tank to fill up each week, that translates into $15,480 a year annual savings. Now, granted in some places, the discount is less than that, but in other places, it is TWICE that amount and if you’re lucky enough to drive in Oregon, it is THREE TIMES that amount. How “real” does it get?

Maybe it would feel more gratifying if we held the money in a rebate account and once a year presented a check for the entire discount, but we think that saving an average of $75 at each fill up is a pretty good deal all by itself.

Sign up today for the fuel card that saves you real money. Every Carrier is automatically approved and opens the door to being able to access funds, create express codes and transfer money to checking or savings accounts.  It’s more than a fuel card, better than a bank - - when you’re on the road.

Sometimes an event occurs that creates news so big, you cannot and do not want to keep it a secret, even if it only benefits a select group. The good news is any carrier can CHOOSE to be a part of Freight Capital and benefit mightily from that choice with immediate, substantial savings at the fuel pump.

Recently, Freight Capital successfully negotiated with TravelCenters of America and Petro to create the BEST discount fuel program in the country, and it is ONLY available to Freight Capital Clients who have Freight Capital’s Universal Fuel Card. In addition to significant discounts at over 40,000 fuel stations throughout the country, Petro and TA sweetened the deal to reward our Clients with a spectacular discount program.  Please call us for more details about discounts available along your driving routes.

The best part is you do not have to do anything special, other than use your Freight Capital card. All the discounts are calculated daily and uploaded so you will see a lower price at the pump right away. To find fueling locations in your state, please call 1-800-775-0391 and ask for a Diesel Directory.

Ordinarily, discounts and rebates do not add up to enough money to make a serious change in routine, but this one will make it worth your while to change fueling stations. For the average truck driver who uses 500 gallons a week, this is an easy, immediate $75 savings. If you have a couple of trucks, the savings could easily add up to over $1000 a month.

There is no other fuel card in the industry that has better discounts and rebates and that is saying something. If you are not a Freight Capital Client, call 1-800-775-0391 and sign up right away. Even if you only factor one customer, you still can reap ALL THE BENEFITS of having a Freight Capital Universal Fuel Card. By the way, your fuel card application approval is GUARANTEED and so is your SAVINGS.

If you ARE a Freight Capital Client, but have not applied for the fuel card, you definitely need to do that now.

Download the application form
and fax it back to us at 1-760-929-6920 so we can get you fueling for a lot less.

Excess capacity, reduced freight levels and less accessible yet more costly capital have shifted the concerns of many trucking CEOs from profitability to survival.

Cost control has always been a critical success factor in trucking but in today’s environment, without capital to invest in new technology, trucking CEOs need to take a second look at their existing operations and use analysis, creative thinking and new processes to improve financial performance.

The following ten actions are analytical and process based cost reduction measures trucking CEOs should consider to improve current operations.  Each action should be approached with objectivity, creativity and a mindset that embraces the hard fact that disrupting or severing employee and vendor relationships are often the only options available for survival.

Reduce Overhead

Corporate overhead is frequently the largest, and most painful, cost reduction opportunity.  Research what your corporate budget was as a percent of total revenue prior to the recession and then reduce headcount until you obtain that same percentage for current revenue levels.  Enlist the aid of your executive team, give each department head a budget threshold they must meet and require that they submit ‘roadmaps’ detailing how each will obtain their reductions.

Audit Operations

Look internally for operational improvements that can be captured without expensive investments in new technology.  A thorough and objective Operations Audit reviewing in detail how terminals manage drivers and equipment will almost always identify significant improvement opportunities.  Effective Operations Audits identify new processes that improve driver performance (head haul, back haul, productivity and home time assignments), fleet utilization and general cost control.  Use a professional to audit and identify your opportunities and then act upon those results.

Technology Review

Review all technology purchased in the last 5 years to determine if full value is being received from those tools.  If not, call the vendors that sold your company the technology and require that they come back with recommendations and support on capturing the full promised benefit.  Make sure to include the personnel in your organization using that technology in defining current performance issues and training needs.

Solicit Vendors for Price Reductions

Solicit all vendors for price reductions.  Send a letter out explaining that tough economic times have forced you to require a 5% reduction from all vendors.  Those vendors not willing to reduce their price will have their business put up for bid.  You most likely will have to grandfather current pricing for some vendors but aggressive efforts will bring significant savings.

Reduce Inventory

Inventory is cash sitting on the shelf or shop floor.  Lower terminal inventories by establishing reduced inventory goals for each location and aggressively managing the sale/return of obsolete inventory.  Focus on expensive items such as tires, batteries, fuel, etc…   Where possible, put more of the inventory burden on your supplier and require more frequent ‘just in time’ deliveries.

Establish a Performance Management Program

Employees, particularly those that most influence cost and revenue, need performance goals.  Define aggressive performance goals for all employees within your organization.  Drivers should have goals in terms of what makes sense for their particular application - miles driven, hours worked, revenue; etc…  Driver Managers should have goals in terms of the productivity and retention of their assigned drivers.  Effective Performance Management also requires that there is positive (bonus) and negative (coaching/discipline) consequences for individual performance to goals.

Improve Driver Caliber and Positioning

With Driver Turnover temporarily in remission, carriers need to take full advantage of the hiring opportunities they now have.   Replace unproductive drivers that fail to respond to coaching and discipline.  With more driver candidates currently available than there has been for years, now is also a good time to focus on hiring only drivers living in close proximity to their assigned terminals to minimize empty miles associated with getting a driver home for scheduled days off.

Train Driver Managers

Driver Managers, based on the number of drivers assigned, run a $2-4 Million business.  They make literally hundreds of decisions each week that influence the cost and profitability of every mile run within their individual driver groups.  As a result, Driver Managers need to be professionally trained in all areas of their responsibility including: Driver Productivity, Driver Retention, Breakdown Resolution, Service Performance and General Cost Control.

Review Equipment Assignments

Review all equipment assignments to make sure every asset is placed in the best application for its particular profile.  APU equipped trucks should be on runs with the most frequent overnight stays.  New trucks should be on two-shift operations to minimize night breakdowns.  Older, high maintenance equipment should be on shorter runs and assigned to terminals that have shop locations.

Analyze Your Freight Network

Networks are dynamic and therefore need to be analyzed constantly, especially during times of low revenue.  Terminal interaction should be monitored frequently to make sure load exchanges are performed to maximize company, not terminal laden mile performance.  Have each terminal submit a Laden Mile Improvement Plan complete with improved laden mile performance goals and new actions to support those goals.  Review and scrutinize the plans, make revisions where needed and then require managers to implement and manage their plans.

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Joe White is CEO of CostDown Consulting, a trucking consultancy that provides ‘Programs and Training that Reduce the Cost of Trucking’.  Specific service offerings include Laden Mile Improvement Plans, Operations Audits, Driver Manager Training and Fleet Efficiency Planning.  Joe is also author of the 8 video series ‘Driving the Costs out of Trucking’ produced by Big Truck TV and publisher of TruckExec, a blog for trucking industry executives.  Joe can be reached at: JoeWhite@CostDownConsulting.com.

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