Business www.thetrucker.com • 31JANUARY 15-31, 2011

JOIN THE TIME-TESTED LEADER IN SPECIALIZED SERVICE.Since 1927, Hunt Transportation has provided service to the 48 contiguous states. Today we operate some 250 trucks and 650 flatbed, drop-deck, RGN and curtain side trailers. While recent times have been challenging, we are poised to take advantage of the increasing freight in our markets. Now is a great time to join Hunt Transportation and take advantage of this opportunity.

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OVER 80 YEARS OF FLATBED EXPERIENCE

Small business truckers need to work smart to stay viable and on-the-roadBy James DiCamilloSPECIAL TO THE TRUCKER

The stability in fuel prices in 2010 and the generally higher insurance costs now be-ing absorbed by the industry have not meant major financial relief for America’s small business independent truck owners. They continue to fight against the economic tide which appears to favor the large trucking corporations.

As a result, the trend shows small opera-tors and entrepreneurs are selling out to the giants. Some of them become sub-contractors

grabbing one-shot load gigs to survive. They make a living but no real profit. And growth expan-sion is very hard to come by given the difficult pres-ent marketplace and tax consequences against small busi-ness in general.

It is risky for a small trucker to come under the undue influence of a freight broker. A

broker with a history of slow or non-payment, or who distorts the scope of a shipment, could be ruinous to the trucker.

Especially in the past year, increased pres-sure on small operators comes from retailers who put inventory deliveries on such a tight, ultra-efficient schedule. It becomes thorny for the small trucker to perform service and meet demand. Again, the larger transporters are in a more advantageous position to accommodate retailers here.

For the smaller trucker, factoring invoices, receivables and bills of lading generated to distributors and retailers, is one option to nav-igate cash flow and working capital issues.

Especially for the trucker who is essential-ly working out of his shirt pocket, the factor takes on a back office function which then en-ables the trucker to focus on bringing in more business to handle navigation and operations. These functions which can be performed by a factor focused on trucking include: access to fuel cards and rebates at discounted prices, debtor credit reports, detailed reporting sys-tems which monitor accounts receivable and expenses, collections of past due accounts and bond filings as needed.

For example, fuel card use eliminates any casual handling of money or spur-of-the-moment cash that might be handed out to a trucker for incidentals and miscellaneous costs. Fuel cards can be restricted for fuel so the trucker cannot get caught up in diverting money for a lottery ticket, a box of donuts or other unreported items.

Fuel cards also provide a clear statement and history. Many truckers tend to overlook even two pennies per gallon which a fuel card rebate may yield. On 20,000 gallons, this re-bate becomes $400!

A debtor credit report protects a trucker by determining the credit-worthiness of entities they are shipping for. Is your broker or retailer

rated A-quality or C-quality? Making use of a qualified factor’s report-

ing system helps a trucker from anywhere on the road monitor issues like cash flow avail-ability, seeing what has been paid, what is not paid, and what is placed in reserves.

Letting a factor handle past due accounts solves the issue of being on-the-road not in a position to make collections. The factor acts

as a buffer representative so the trucker does not lose a sales relationship with the broker, distributor, or retailer owing money.

Of course, all brokers are required to have a surety or trust bond in place for transacting business. So if the trucker does not get paid, the factor is able to handle the paperwork and follow up in contacting the bonding firm.

If a trucker goes the factoring route, check the factor’s past experience in truck trans-portation which includes its memberships in recognized trade organizations like the Inter-national Factoring Association or the Com-

mercial Finance Association. In joining, the factors have subscribed to a code of ethics established by the organizations.

Also, factors in this niche will typically make themselves known among the various state truck owners’ associations. It is wise to verify a factor with two of their recent clients who can provide references. 8

James DiCamillo is executive vice presi-dent, RMP Capital Corp., (rmpcapital.com) a national factor with a focus on truck inven-tories and bills of lading, based in Islandia, N.Y.

Small Fleet Focus

Courtesy: RMP CAPITALCORP.

JAMES DiCAMILLO