For trucking companies, cash flow management can mean the difference between growth and going out of business. This guide provides a practical framework for weekly cash flow forecasting.
Why Weekly Forecasting Matters
In trucking, expenses are constant:
Fuel costs fluctuate weekly
Driver payroll is typically weekly
Maintenance can be unpredictable
Insurance and permits are ongoing
Meanwhile, broker payments often take 30-60 days. This mismatch creates the "cash flow gap" that trips up many trucking operations.
Building Your Weekly Forecast
Step 1: Track Current Cash Position
Start each week knowing exactly what you have in the bank and what's already committed.
Step 2: List Expected Inflows
Invoice payments due this week
Factoring advances expected
Any other income
Step 3: List Required Outflows
Driver payroll
Fuel estimates (based on scheduled loads)
Insurance payments
Truck payments/leases
Maintenance reserves
Operating expenses
Step 4: Calculate the Gap
Inflows minus outflows = your weekly cash position. If negative, you need to either delay expenses or accelerate income (through factoring, for example).
Using Factoring Strategically
Invoice factoring can be a powerful tool in your cash flow strategy. Instead of factoring every invoice, some trucking companies:
Factor only during tight weeks
Factor large invoices while waiting on smaller payments
Use factoring to fund growth without depleting reserves
The key is having a factoring relationship in place before you need it urgently.