People across the country are finding ways to save money. Interest rates started climbing at the same time grocery prices, utility bills, and fuel prices also went up. There have been companies laying off workers across the nation, and that’s led to less spending online and in stores. All of this impacts your trucking business too.
The senior analyst and research president at ACT predicts the net income of U.S. carriers will drop by 27% in 2023. It seems certain that a recession is near, and that’s going to have a lot of impact. Plus, spot rates have dropped and contract rates are starting to follow. It’s time to start looking at ways to lower your expenses in order to increase your revenues.
Save Money With a Low-Interest Line of Credit
It may be advantageous to sign up for a low-interest line of credit, especially if you’re carrying high-interest credit card debt. Once you’re approved for the loan, you can pay off your credit card and put the money you were paying towards your line of credit and pay off the debt faster while incurring lower interest charges.
With a line of credit, you’ll learn if you’re approved within seconds. You don’t have to use the entire loan balance at once. Only take out as much as you need and leave a pad in case you run into an emergency. You have peace of mind knowing you have the money available to pay for unexpected truck repairs.
Get a Fuel Discount Card
Sign up for a debit card that offers fuel discounts. The amount you save on each gallon of gas or diesel builds up quickly when you’re saving several cents on each gallon. If the fuel discount is 5 cents, you’ve saved $5. After ten fill-ups, you’re at $50 in savings. It adds up fast.
Sign up for the Saint John Capital Visa Card. You can use it at any store, restaurant, or gas station that accepts Visa, and you can use it at the pump so your drivers do not have to go inside to pay. The card has no hidden fees and you don’t need a personal credit score to sign up.
Use Forethought When Planning Routes
When you’re arranging your drivers’ routes, plan routes that make the most sense. If you have a driver going from Chicago to Dallas, routing them to Atlanta isn’t logical. As you plan each route, look for loads using a load-finding app to make sure trucks are full for the majority of the trip there and back. You maximize profits and aren’t wasting fuel with an empty trailer.
Have someone tracking the driver’s progress and reading road alerts. Say your driver has been on the road for an hour, but there’s a whiteout snow squall that has traffic at a standstill 45 miles away. Having your driver stop early and fuel up and get lunch now gives the roads time to clear up. This can make a big difference when it comes to avoiding unnecessary delays.
Regularly Maintain Your Trucks
Routine maintenance of your rigs is essential when it comes to saving money. Catching problems when they’re minor lowers the repair costs and prevents costly breakdowns and emergency towing. Keep records to ensure your team is never overlooking important repairs or preventative measures.
Checking the braking system, tire tread and inflation levels, and inspecting for leaks are all things that you should have someone checking as soon as a driver returns. Have a checklist that becomes a routine. Everything on the checklist is completed and that sheet is handed to the office staff to enter into computers. Make a log of it in a spreadsheet that details who performed the return inspections, what needs attention, and what repairs or improvements were made.
Investigate Tax Incentives for Upgrades You Plan to Make
Your HVAC system stopped working or isn’t working effectively, so you know you have to replace it. Before you make the arrangements, research the current tax incentives for businesses. You might qualify for a grant or tax incentive if you install a system that meets the ENERGY STAR specifications.
Tax deductions of almost $2 per square foot are offered to owners of commercial buildings who make energy-efficient upgrades that reduce energy usage by 50% or higher. Purchase ENERGY STAR office equipment, water coolers, smart thermostats, and commercial lighting after you look to see what qualifies for rebates. As an example, companies can get instant rebates of up to $5 per bulb on directional LED light bulbs.
With the reduced electricity, heating, and cooling costs, you’ll have more money going into your savings each month. You can invest that into growing your business or put it into savings in case there is a lengthy recession.
Trimming Unnecessary Staff Is a Hard, But Sometimes a Necessary Decision
No one wants to have to lay off workers, but sometimes it’s necessary. You save money on insurance costs, vacation pay, sick pay, and wages. Look over your administrative staff. Suppose you have several part-time workers and a full-time one. If you could combine positions into two full-time positions, you’ll save money.
If your workers don’t have a lot of responsibilities, you might be able to switch to part-time workers and eliminate full-time positions. This is often preferred with smaller companies as you often get out of having to offer a benefits package. Be aware if you do this, however, part-time workers may not be as motivated as all they’re getting is the pay. They’re not going to receive insurance benefits, 401k, etc. Benefits can keep your employees happy.
Partner with a freight factoring agency and you’ll eliminate some responsibilities from your full-time worker. Saint John Capital generates invoices for you. You don’t need a full-time bookkeeper to do the invoicing, track payments, and send out late notices. All you need to do is upload them to your accounting software, which is something your full-time office manager can manage.
Save Time and Get Paid Now
Freight invoice factoring allows you to get paid immediately. You do pay a small fee to your invoice factoring partner, but that fee is far less than the late fees you face if you can’t pay your bills on time. Instead of waiting weeks or months for your clients to pay you, factor those invoices with Saint John Capital.
We pay you the money you’re owed, minus our low factoring fee. You have the money you need to pay bills and wages, and you can set aside the rest of the money in your business savings accounts. We invoice your clients and wait for them to pay. If they don’t, it’s our responsibility to chase down payment. You don’t spend time worrying about unpaid invoices or trying to get your client to pay.
Talk to us about same-day payments. They’re possible if you submit your bill of lading by the noon EST deadline and have our debit card. Imagine completing a morning delivery and getting the payment for that delivery the same day. It’s a game-changer when it comes to staying ahead of bills and trucking company expenses like fuel-ups, tire replacements, and licenses.
Another benefit you don’t want to miss out on is the free business credit checks. We have a load board with over a million jobs to browse through. When you see a job you’d like to take, use the free business credit check to investigate the broker or shipper before you agree to haul their load. Reduce risk as you take on new clients. Sign up online or call us to learn more about our freight factoring arrangements.