When cash is flowing out faster than it is flowing in, keeping on top of things can be difficult — especially in trucking. If you are a trucking company owner looking for a way to improve your business, consider teaming up with a freight factoring partner.
When customers can take from 30 to 60 or even 90 days to pay for deliveries, it can really strain your operations. For many carriers, their customers include multi-level corporations, meaning that before they can pay an invoice, the paperwork must pass through endless bureaucratic hurdles, acquiring numerous signatures and passing through many hands.
This process can be taxing on any carrier of any size. During this waiting period, trucking companies must continue to pay their bills in order to stay above water. This is why so many carriers have decided to stop waiting to collect payments for trucking jobs and have come to depend on freight factoring to help them through lean periods, or when they simply need extra cash on hand.
With the upfront funding provided by the process of freight bill factoring, trucking companies can then pay for materials, overhead costs, employee salaries and benefits, and any other financial need. Factoring has been in use for thousands of years — in fact the first rules for factoring are mentioned in the Code of Hammurabi. In the 21st century, it has quickly become one of the most mainstream and popular funding options for trucking companies in the U.S.
With the help of a freight factoring company, you no longer have to decide between investing in maintenance vs. growth. If you need money for both endeavors, you know you can factor your outstanding invoices to secure the funding you need.
A reliable factor such as Accutrac Capital will deliver cash advances quickly — often the same day you factor the invoice — which means you’re no longer in the lurch, waiting 90 days for payment.
There’s no need to go it alone when a proven factoring company can help. Accutrac Capital was created with the goal in mind to help small and medium trucking companies secure the cash flow necessary to building their trucking businesses and their reputations as leaders in the market.
A trustworthy factoring company will also offer more than just cash advances on unpaid invoices. Included with their factoring services will be offers like:
- Fuel cards and other fuel discounts
- Billing services and other back office support
- Credit checks on present and prospective customers to help carriers choose reliable partners
- Equipment financing
Now that you’ve been made aware of the benefits of teaming up with a reliable freight factoring company, it’s time to start looking for the right partner. New trucking companies or companies in transition are especially sensitive to the burden of cash flow freeze-outs, so it’s always wise to find a factoring company that specializes in the trucking industry and works with trucking companies exclusively. So, make the necessary calls to find the right factoring company — one that understands your business almost as well as you do.