RoadEx Trucking Finance Company Offers Freight Factoring and Shipping

A Detroit metro trucking financial services company is growing rapidly and plans to double its revenues this year compared to before the COVID-19 pandemic.

Livonia-based RoadEx was started in 2014 by Jagdeep Dhillon, who previously ran a trucking business with her husband. She attributes RoadEx’s growth spurt to the increased demand for shipped goods linked to the pandemic, as well as the company’s decisions in 2020 and 2021 to expand services to its customer base consisting primarily of truck carriers and small and medium-sized owner-operators.

RoadEx’s revenue has grown from $ 60 million in 2019 to $ 130 million forecast for all of 2021.

It is rare for companies in the trucking industry to be owned or run by women, and only about 12% of the industry’s workforce were women in 2020, according to the state Bureau of Labor Statistics. -United.

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RoadEx has around 30 full-time employees in its Livonia office, as well as an additional 15 overseas based in India. The company was previously known as the Flat Rate Funding Group before being renamed last year as RoadEx.

The company does not own or operate large platforms. Rather, it provides financial services to trucking companies, typically those with fleets of one to 20 trucks, although some of its clients are larger.

One of RoadEx’s main services is freight factoring, which involves providing funds to trucking companies in exchange for purchasing their accounts receivable.

Trucking companies use factoring because they have large upfront costs like fuel and repairs, and companies that receive their deliveries can take 30 days, 45 days, or even longer to pay. An average invoice per truck delivered is approximately $ 2,300.

“They need cash all the time to pay their drivers and pay for fuel,” said Dhillon, who chairs the company.

Factoring providers such as RoadEx buy invoices for slightly less than the amount owed, around 95-97%. They then make profit as businesses pay the bills.

RoadEx finances its factoring business through a mixture of money on its own balance sheet and bank loans, according to Dhillon.

The trucking industry is notorious for the extra and hidden costs in contracts. Kevin Main, co-owner of Florida-based Winstar Total Logistics, a 26-truck trucking company that uses RoadEx for factoring, said he values ​​the transparency of the company.

“What I love about RoadEx is when I look at my contract, as everyone should for shipping, fuel and factoring, there is nothing hidden – everything is there for me, “he said. “It’s very easy to understand … and that’s why I stayed.

Over the years, RoadEx has been steadily adding services, including Truck Dispatch, which sets up truckers’ routes and finds loads to pick up and deliver.

Without shipping, trucking companies run the risk of having little or nothing to transport on their return trip from a remote location. Dispatchers typically take part of the payment for each load they find for the trucker.

A dispatcher is different from a freight broker, who acts as an intermediary between the shipper and the trucking company.

Other services offered by RoadEx include truck insurance, emergency loans and fuel saving credit cards.

“We offer five different services – typically, factoring companies don’t provide all of them,” Dhillon said.

Brother in trucking

Although neither Dhillon nor her husband had ever worked as a truck driver, Jagdeep Dhillon learned about the financial services needs of the industry through his brother, who started driving trucks after immigrating to Canada. from India.

Dhillon was also born in India and immigrated to Canada in 1994 at the age of 22. She is originally from the Punjab region of India, and the Punjabi community as a whole has deep roots in the trucking industry in the United States and Canada.

She and her husband started a trucking business in Canada in 2005. They then closed that business after moving to the United States in 2012.

Here, they started a new Romulus-based general cargo trucking business, DF Carrier, which they sold in 2017 to focus on growing what is now RoadEx. The proceeds from the sale helped Dhillon invest more in RoadEx and its growth, she said.

Dhillon, who goes by the nickname “Deep” at work, said she knew little about other female financial service trucking business owners.

Her daughter, Simran Dhillon, said people are often surprised to learn that her mother is the boss of RoadEx.

“You would hear it on the phone and (callers) say, ‘Can we talk to the person in charge? And she said, ‘That’s no more responsible than I am,’ her daughter said. ‘And they say,’ What about the owner or the manager? ‘ and she’s like, ‘it’s me.’ “

Deep Dhillon said some of the supply chain delays currently in the news are exacerbated by a shortage of trailers in addition to truck drivers.

“Right now it’s very difficult to get a trailer,” she said. “We have so many businesses where they have drivers, they have trucks, but they don’t have trailers.”

Contact JC Reindl To 313-222-6631 or Follow him on twitter @jcreindl. Learn more about the business and join our company newsletter.

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