Freight Factoring

It is no secret that times are hard, and the key to any service business to survive is to have positive cash flow. In the trucking industry, this can be a problem for small and medium sized outfits, as the best contracts are often on 30, 60, or 90 day terms, sometimes even longer. In the meantime, drivers have to be paid, trucks maintained, fuel bought, as well as other overhead expenses.

In 2012, about 73% of commodities (valued in excess of $10 Trillion) were hauled by trucks, of which the average distance was 212 miles. With such a relatively short distance, much of these commodities are carried by the smaller trucking companies which operate more efficiently within a certain radius from their base of operations. The outlook is good for the trucking industry, although the pace is slower than it was in 2011. That should be good news, but with the delays in payment plus the penalties for late deliveries, tougher regulations, and shortage of drivers, the cost of money is not always in favor of the truckers. As a result, many trucking companies have been forced to file for bankruptcy.

And yet many other businesses would not survive without the services provided with these small to medium truck operators. The biggest problem for these truckers continues to be keeping the cash flowing when it is needed. In order to make it work for everybody, may small- and medium-sized trucking companies turn to freight factoring to keep their businesses afloat.

Freight factoring is primarily the selling of the accounts receivables of the trucking company to a financing company for a fee. In most companies, the fee takes the form of a percentage of the signed invoice. The trucking companies get about 60%-90% of the total payment due at once, and the remaining when the customer has paid, less anywhere from 1.5% to 5%. Sometimes the service advances as much as 95% immediately. It all depends on the freight factoring service conditions. Some require a minimum volume and a reserve account, some also require a sign up fee.

Freight factoring is not for everyone, and a 5% fee may seem a lot. But when it spells the difference between closing up shop now and continuing for another 30, 60 or 90 days, then it is a small price to pay.

Personal Injury and Truck Accidents

Whether you are from Fort Worth, Texas or in Oklahoma, a truck accident on a highway is sure to result in some injury, and in most cases results in serious injury or death. Truck accidents are statistically more likely to cause injury than a crash involving two passenger vehicles mostly because of the sheer size and weight of the truck. It is like a physical argument between a large, muscled guy with tattoos and a short, undersized guy with glasses; who wins is a foregone conclusion.

To qualify, a truck accident involves at least one vehicle with a trailer in excess of 10,000 lbs. The “other guy” could be another truck, a passenger vehicle, or a pedestrian. Whatever the cause of an accident, anything that large and heavy moving even at the minimum speed on a highway is a potential threat to anyone or anything that strays onto its path. According to the Abel Law Firm website, 18-wheelers or other large trucks make especially dangerous road companions. This is the main reason why commercial truck drivers are subject to more stringent requirements than a regular driver; they need to prove that they have a healthy sense of responsibility when it comes to operating large vehicles on a highway, and that they are in good physical condition.

Unfortunately, too many truck accidents still occur because the driver made an error due to fatigue, not enough sleep, or due to the influence of drugs or alcohol. A truck accident injury can potentially lead to a personal injury claim for any of these reasons as well as for equipment malfunction due to poor maintenance.

The truck driver, together with the truck owner, has a duty of care towards others each and every time they take a big rig out into the highway. Any of the reasons stated above is a breach of the duty, and makes the driver and owner liable for compensation in case of injury or death. Any person injured or killed as a result of negligence on the part of the truck driver or owner has the right to get compensation for economic and non-economic damages suffered as a result of the truck accident.