Managing Trucking Expenses: How to Keep Your Business Afloat
Trucking expenses can bog down companies and create a lot of unwanted stress for owners. For many trucking companies and owner-operators, there is an expectation that footing the bill for fixed costs is simply part of the job. However, many who are new to trucking and even some veterans of the trucking industry would be surprised by just how much money truck operators have to front-load just to do business. Truck owners who don’t view this as a burden may someday find themselves in a financial hole that’s near impossible to get out of.
The monetary inconvenience is not the only setback of trucking expenses. Keeping tabs on fuel receipts, invoices and all kinds of bureaucratic paperwork is incredibly inconvenient for trucking company owners and operators who are expected to serve as accountants, administrative assistants and collections specialists when it comes to overdue invoices.
Breaking Down Annual Trucking Expenses
For commercial trucks to conduct business, it is estimated that trucking expenses can amount to $180,000. 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, if you pull a trailer rather than simply tugging a bobcat, these expensive fuel costs go up by about 24 cents per mile!
When you factor in unpredictable traffic congestion, these trucking expenses continue to rise even higher. The remainder of the average annual total fixed costs include the truck driver’s salary, truck repairs and maintenance, annual vehicle insurance, tire maintenance, permits and licenses, state tolls and fuel taxes. Then there’s the $600 average annual cost for coffee, a necessary trucking expense which many drivers likely exceed in the thousands.
So where is all of this money coming from? The trucking company, of course. And, as the owner of a trucking company, front-loading costs which need to be invoiced can make it seem like you’re paying for something that you shouldn’t ever have to pay for. 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.
If you’ve never explored freight factoring, it can save you the trouble of having to pay for trucking expenses which 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