When a trucking company grows weary of depending on customers that do not pay for services rendered in a timely fashion, invoice factoring is a fast, easy solution. Invoice factoring not only provides trucking businesses of all sizes with the convenience of turning unpaid invoices into immediate cash, but they also provide a hands-on, loyal service that includes AR management and other perks.
With so many day-to-day expenses in the world of trucking, receiving an immediate return on services offers much-needed consistency and a chance to plan for the future with confidence. Carriers need to stop playing the waiting game to get paid on time — and if customers take months to pay on outstanding invoices, it’s easy to see why trucking or transportation companies rely on a factoring company for truckers when they need cash right away.
Freight factoring improves your cash flow
Rather than waiting for your customers to pay on their outstanding invoices, you can access immediate cash through freight bill factoring. The ease and convenience of receiving same-day payment for the selling of your invoices is a better alternative than waiting 30, 60, or 90 days to get paid on invoices from slow paying customers.
Freight factoring can be easier to secure than a bank loan
Many traditional financial institutions avoid lending to invoice reliant companies, while also placing unrealistic hurdles, limiting your ability to acquire the funds that you need to operate and grow your business. Freight bill factoring, on the other hand, gives you same-day access to working capital while the third-party factoring company takes care of the responsibility of collecting on the invoices you are owed.
Freight factoring allows you to seize new business opportunities
Because cash flow is directly tied to the collection of invoices, freight factoring positions a third-party company such as Accutrac Capital to worry about collecting the value of the invoices on your behalf, which consequently frees you to take advantage of new opportunities for growth. While your factoring partner is helping organize your AR and collecting on overdue invoices, you’ll also receive up to 97% of the value of said invoices often on the same day you apply, allowing you to allow those funds to marketing and expansion initiatives. On top of securing you much-needed funds, factoring frees up your time and labor to focus on other tasks.
Freight factoring allows you to maintain strong customer relations
Freight factoring allows you to collect on the value of invoices upfront by selling them at a discount. This eliminates the need to continually hound your customers and allows you to maintain strong relations. Many successful transportation ventures will tell you that staying service-driven and catering to customer needs is ultimately what landed them their success. Additionally, securing funds up front allows you to ensure that you have the cash on hand to pay for overhead costs and employee salaries.
In the fleet, courier, trucking, and transportation industries, invoice factoring allow small, medium and even large companies to secure the working capital necessary to meet expenses, cover payroll, take care of their fleet, and pay their drivers.