Each year, predictions claim the trucking industry is turning around. Each year, some improvements and setbacks leave trucking companies unsure of what will come next. As 2026 kicks off, it’s clear this is the year when technology will help companies stay competitive.
Many companies faced financial struggles, leading to a high number of business closures, Chapter 7 bankruptcies, and Chapter 11 restructurings. The trucking industry saw big players with decades of history shut their doors. It’s time to look at freight factoring trends that will help small and large trucking companies and owner-operator truckers succeed.
Fast Payments Through AI-Driven Factoring
Years ago, a truck driver delivered a load and returned the bill of lading to the office. There, an office worker entered data into bookkeeping software, generated an invoice, and mailed, emailed, or faxed it to the client.
Most invoices had Net 30 or Net 60 terms, meaning the client had 30 or 60 days to submit payment. Most payments were sent through the mail and made by company check. You’d have to add time for the check to clear both banks before the payment cleared and became available to spend.
Technology advances, and banking is now lightning fast. Checks are being phased out as electronic funds transfers (EFT) become the norm. In some cases, you have the money you’re owed the same day you submit an invoice.
AI is a big part of that. With a photo or scan of an electronic bill of lading, AI can extract the necessary information to generate an invoice. It takes AI seconds to do what used to take hours. Entire batches of invoices are generated in seconds with high levels of accuracy. This means payment requests are approved in seconds, and it’s unlikely you’ll need to ask for reconsideration.
Once an invoice is generated, AI also analyzes your payment request for fast processing. Once approved, funds are sent directly to your fuel card. That’s how same-day payments are possible. You have funds available for gas or diesel, repairs, maintenance, and more. No more relying on credit cards until you get paid. You don’t pay high interest rates or stress over upcoming bills you can’t cover until your client pays you.
Boost Profits Through Green Initiatives
While the federal government has backed off on green energy initiatives, such as electric or hybrid trucks and vans, some states still embrace them. In California, the Clean Truck and Bus Voucher Incentive Project provides qualifying trucking company owners with vouchers to reduce the cost of new, efficient trucks.
Even without vouchers, the price of hybrid and electric vehicles is expected to drop if demand wanes. This makes it the perfect time to invest in hybrid or electric engines, especially if you are looking to expand or replace your fleet.
With a hybrid engine that requires less fuel, you save money on gas or diesel. Electric engines eliminate the need for oil changes. That’s an additional benefit of going green. You spend less, which means you’re able to save more.
Help Avoiding Identity Theft and Fraud
The trucking industry is rife with fraud. One of the most common is a double-brokering scam in which a fake broker agrees to deliver a load for a real broker at a low rate. The fake broker then hires an unsuspecting carrier at a higher rate. Once the load is delivered, the fake broker gets paid but never pays the carrier.
Imposter scams occur when a fraudster uses someone else’s USDOT and MC numbers to get work. They demand fuel advances or upfront payment, then disappear once they have the funds.
Sometimes, hackers gain access to a trucking company’s email accounts and send fraudulent invoices. They reroute the payment to themselves, leaving you without the money you were counting on.
Being proactive is essential. Do your research, but you can also use freight factoring to protect yourself. With the factoring company handling invoicing through a secure app, your invoices don’t go through email. You submit and check your request status from one place.
Lower Business Expenses With Factoring Apps
With fast payments powered by AI processing and analysis, freight factoring apps do far more than let you submit and check payments. Many factoring apps offer exclusive fuel discounts that slash your fuel expenses. TMS integrations allow you to access these features quickly.
You also have options, such as a 50% cash advance when you pick up a load or waiting until delivery to receive 100%. If you’re just starting out, a 50% advance helps a lot when your truck needs fuel.
Have you considered the benefits of paying your bills on time? Some insurance companies use your credit score to determine your rates. Creditors, including credit card companies, dealers, and banks, consider your credit score when extending financing or setting interest rates. A strong credit score saves money.
It’s Time to Build a Strong Cash Flow
A resilient trucking business maintains steady cash flow and reserves for the unexpected. One way to ensure you have savings is to avoid late fees and keep your credit score as high as possible.
High credit scores mean lower interest rates on truck and equipment loans, business lines of credit, and company credit cards. The lower those necessary expenses, the more money there is to invest in your business.
To pay bills on time, you need to be paid in a timely manner. A freight factoring arrangement with Saint John Capital ensures that happens. There are several benefits to a partnership with us.
- Business credit checks help you determine a company’s payment history and financial standing before you agree to work with them.
- Gas discounts help you save even more.
- Load finding services allow you to search databases for additional work that helps you fill your trailer to avoid deadhead miles.
- Non-recourse arrangements are available and offer financial protection from a client’s unexpected bankruptcy or closure.
- Same-day payments are possible.
- We offer some of the lowest fees in the industry.
- You can pick and choose which clients we handle and which you prefer to take care of.
It’s free to sign up and get started with same-day payment schedules. Stop waiting months to get paid. We’ll pay you quickly so you can focus on the hard work you do.
