Managing Trucking Expenses: How to Keep Your Business Afloat
Trucking Expenses Can Cost Owners An Arm and a Leg – Trucking expenses can bog down companies and create unwanted stress for owners. Many trucking companies and owner-operators expect to bear the burden of fixed costs as part of the job.
However, many truckers would be surprised by just how much money truck operators have to front-load just to do business. Truck owners who don’t perceive this burden may face an insurmountable financial hole. The monetary inconvenience is not the only setback of trucking expenses.
Trucking company owners and operators are burdened with the inconvenient task of managing fuel receipts, invoices, and bureaucratic paperwork. They are expected to take on multiple roles, acting as accountants, administrative assistants, and collections specialists to handle overdue invoices.
Breaking Down Annual Trucking Expenses
Commercial trucks require an estimated $180,000 worth of trucking expenses to conduct business. A staggering $70,000 of these trucking expenses go towards fuel. Typically, trucking companies must cover this cost on their own instead of receiving transportation expenses upfront. Likewise, pulling a trailer increases fuel costs by approximately 24 cents per mile!
When you factor in unpredictable traffic congestion, these trucking expenses continue to rise even higher. The average fixed costs for a truck include driver’s salary, vehicle repairs and maintenance, insurance, tire upkeep, permits and licenses, state tolls, and fuel taxes. On top of that, drivers spend an average of $600 per year on coffee – with some exceeding thousands.
So where is all of this money coming from? The trucking company, of course. As the owner of a trucking company, you may feel like you’re paying for something you shouldn’t because of front-loading costs that require invoicing. Not only that, but you and your company legitimately may not have the funds available to pay for fuel upfront. If you operate a fleet of trucks, your business might shell out hundreds of thousands of dollars in just a short time. It is thus important that truck company owners find ways to maintain free-flowing capital available to pay for these expenses. This is where Thunder Funding comes in to help.
Working with a freight factoring company to manage mounting trucking expenses will stabilize cash flow and keep unpaid invoices in check.
By exploring freight factoring, you can avoid having to pay for trucking expenses that are owed to you. Our trucking reimbursements ensure that your trucking business is never in a financial hole. We understand that because you make transactions with lots of businesses, waiting lengthy periods of time for invoices to roll in just so you can pay off trucking expenses is a big hassle. Thunder Funding seeks to turn the page on outdated trucking industry payment protocols and is happy to step up to the plate as your partner.
For more information about starting your own trucking business be sure to check out this blog post: Thinking of Starting your Own Trucking Company?Back to All Posts