Can Fleet Factoring Build Loyalty?

Loyalty goes both ways in fleet factoring

It’s not enough these days just to do good business. The business landscape is shifting, and it is showing that an excellent product or service is not the only thing that customers are looking for. The lowest bidder or the least expensive product is not driving loyalty; not even quality alone can build loyalty. Customers are focused on an integrated experience where relationship is everything. Along with strong and lasting relationships come trust and commitment. Loyalty in the trucking industry can be a particular challenge because of all the moving parts, both literally and figuratively. However, one thing that is clear — when it comes to loyalty, fleet managers and owners need to focus on the relationships that developed around payment. They need a streamlined process and immediate access to cash on a daily basis, which is why fleet factoring can be the primary component that keeps employees, drivers, contractors and customers satisfied and loyal.

A positive company culture facilitates loyalty

The driver shortage is a topic that has been discussed for more than a year and it does not seem to be going away. The trucking industry is focused on anything and everything that will help to recruit and maintain drivers, and it is not just compensation. While salaries are rising, there are other factors that drivers are asking for and many of those requirements have to do with culture. It is said that money talks, but the industry is seeing that an honest and strong company culture is an even better conversation. Authentic relationships built within the company and with drivers will provide more trust and loyalty than a bigger paycheck. But what does that mean?

Relationships are mutual and are strongest employees and drivers feel like they are being listened to and included. And while money is not everything these days, access to it and an easy process in getting it is one of the things that can stabilize company culture. Fleet factoring is the number one motivator for increased cash flow which can answer these driver requirements. The best part is that if the internal team and the drivers are happy, the customer engagement is positive, and they are satisfied as well. It is worth it to pay attention to internal loyalty in achieving external loyalty. Here is how fleet factoring can aid in that loyalty.

Here are the top 5 ways that fleet factoring can answer driver requirements, strengthen culture and nurture loyalty.

1. Payroll Funding

Making payroll is critical to retaining drivers and ensuring that your freight gets delivered on time. Factoring turns your outstanding invoices into cash and can be used to issue paychecks or fill payroll cards on a consistent basis. Drivers don’t have to worry about anything except getting their job done. A consistent payroll should never be taken for granted and the dependability of funds when you need them should not either. Fleet factoring enables immediate access to payroll funding as well as company purchases and expenses on the road. Drivers can be confident that cash flow on the road and monetary responsibilities are guaranteed. That confidence goes a lot way in maintaining relationships and retaining staff.

2. Vendor and Contractor Payment

Loyalty goes both ways when discussing contractor or vendor payment, and fleet factoring can address both needs. With dependable cash flow, fleet factoring not only guarantees that contractors and vendors will be paid, it also instills confidence in the internal team knowing that their payment responsibilities are met. A reliable Accounts Payable process can build loyalty with contractors and partners through strong, long term relationships necessary for sustainable growth.

3. Accounts Payable

It is worth repeating that when it comes to Accounts Payable, the process can sometimes be a challenge. However, the financial experts within an experienced fleet factoring company like FleetOne factoring can take on the challenge so fleet owners and managers can focus on the aspects of the company with which they are better suited. A reliable fleet factoring company will handle collections, credit checks and billing, relieving internal employees and building more loyalty in delivering on their own expertise.

4. Repairs and Maintenance

Funds that are also immediately available to your company can be spent for repair and maintenance. Trucks remain in good running condition, which means drivers can feel safe and secure while they’re out on the road. Funds can also be used for emergency repair providing even more security to the drivers and speaking to the culture of the company. Maintaining a dependable vehicle also goes a long way in building trust and loyalty with in the fleet.

5. Dependable Routes and Reliable Customers

Unless you are in the trucking industry it is hard to imagine doing business with an unreliable company, but it is a very concerning issue for fleets because if a customer can’t pay, the fleet can’t run. Fleet factoring can mitigate that risk by vetting each customer to ensure the reliability necessary for success and growth. Drivers can benefit from the process as well as knowing that their routes will be dependable because their customer base is reliable.

While there are varying recipes for success, we can determine that for the most part, what is good for the driver is good for the company. Keeping employees and drivers happy will lead to loyalty. Although there are many considerations and questions about how build and maintain a culture of loyalty, one thing is certain — easy and fast access to cash is critical which means fleet factoring is one very clear answer.

RESOURCES:

www.wexinc.com/wex-fleet/3-ways-factoring-can-help-with-driver-retention/