Natan Krivorutskiy started his trucking company back in 2014. It was a good year for the trucking industry and everything looked promising for starting a trucking business.
Relieved to have finally found an industry where he could enjoy an active role in managing a company, Natan decided to take a gamble and to take on loans to finance the purchase of an older truck. Unfortunately, it didn’t take long before he realized that trucking was anything but easy. Like many industries, trucking has its ups and downs and it can be difficult to get a steady cash flow going.
Starting a Trucking Business
The next couple of years were tough ones for the industry and Natan was introduced to the difficulties of trucking. Just the vehicle itself constantly sucked money out of his bank account, with fuel, vehicle repair and maintenance fees, insurance, and the payments on the trucks. He still had to pay the drivers, as well. It was a rough start to what had first appeared to be a terrific business opportunity and this is where many companies end up going under.
Fortunately for Natan, he learned of a helpful solution. Working with a factoring company helped him stay on his feet. While he normally would have suffered a stop and start cash flow in those early years, the factoring company made it possible to stay afloat until things improved.
A new carrier can find it tough to book loads until they’ve been around for a bit and have proven themselves. It generally takes a minimum of six months to prove reliability, so when Natan decided to open his own authority in November of 2014, he ran it as an owner operator under a different operator. This went on until his company was old enough to start booking its own loads. While he waited, Natan studied the routes and the top paying markets for the various seasons. With a better understanding of how to make money in the business, he was able to land more lucrative jobs once the company was properly aged.
Growing the Trucking Company
By the end of 2016, business was starting to pick up and he was able to finance two more trucks. The price was kept low, thanks to buying out another company that was going under at the time. The vehicles were only a year old, with minimal wear, but were offered at a big discount. Natan managed to factor accounts receivable for all the trucks, eliminating the need to come up with a large chunk of cash.
More trucks meant more income for the company and more credibility with brokers and shippers. Natan was improving his rates and getting better loads. By now, he found that the brokers came to him, rather than the other way around. High quality freight, time sensitive loads, and other specialty jobs were coming in quickly.
Early in 2017, Natan financed a brand new truck and trailer and picked up another used vehicle to help with local deliveries. His business continues to grow rapidly and he expects to add more trucks in the near future. Now comfortable with the fast growth of the company and the boost of income from his new clients, he expects to continue expanding his company with the help of a factoring company that will address his cash flow needs and help him hire more staff, as needed.
The Power of Factoring When Starting a Trucking Business
While Natan’s story is one of success and impressive results, it would never have been possible without outside help. A factoring company can change the way you do business. With the ability to receive your payments immediately, you can reinvest the money, just as Natan did, to create more business opportunities and expanding your company faster. Eliminate the uncertainty of those early years and get your business on track today.