Whether you work directly with clients or with other businesses, every trucking and transportation company knows the frustration of waiting on an invoice to be paid. Some invoices can sit for up to 90 days without payment and during that time, you’re still trying to maintain smooth operations. Many industries feel this strain, but the biggest impact is on companies with larger fixed outgoing expenses and smaller operating capital. Companies could be at risk of downsizing or slowing operations during long payment waiting times. This can be a real killer for fast-paced industries like trucking and freight that rely on quick and dependable payment turnaround times to pay drivers, maintain vehicles, and fund fuel needs.
To keep their work running effectively, many trucking companies find a solution in invoice factoring. This is a reliable and efficient way to earn immediate payments and end long invoice payment periods. In fact, according to the International Factoring Association’s 2017 Annual Report, over a third of all factored invoices in 2016 came from trucking or transportation companies. Money in hand means better bids and faster turnaround times.
Focus on Trucking, Not Collections
Invoice factoring allows your business to gain cash quickly and immediately by selling invoices to a factoring company. Many companies have relied on invoice factoring as a growth strategy for their business at different stages. The flexibility comes from a wide range of the amount of an invoice that can be factored. Small businesses and owner operators may only need to factor a few thousand dollars a year, which is fine for many factoring companies. However, the freight companies and oil companies that are filling the tankers may factor up to $50 million in invoices each year. This flexible funding allows an influx of operating capital that promotes growth and security within each businesses financial situation. This benefits industries that rely on the fast exchange of cash for services.
Trucking invoice factoring allows businesses to meet their outgoing expenses head-on, ensuring delivery times are met and products get to where they need to go without delay. The process is simple and fast, requiring only invoice documentation and rate sheets in most cases. Invoice factoring is different than taking out a loan, so no need to provide credit scores for approval. As long as your invoices are in good standing, they should qualify for this type of funding. So where can you find reliable trucking factoring companies?
Finding a Reliable Factoring Partner
While a search online can help you find many of the major providers of invoice factoring services, it is easier to use a comparison list of factoring companies. One of these lists is available at the Factoring Directory. It provides information on industry specialties, location and memberships or affiliations that help you determine if a company is reputable. This also puts you in immediate contact with the right company for you. Companies listed here have been verified which puts you in control of the search for your company’s perfect invoice factoring solution. In addition to finding excellent options for your business, Factoring Directory provides you with the resources and information you need to make informed decisions about your company and its financial needs. You can use Factory Directory for more than just a free quote: browse their articles to learn if factoring is actually right for your situation as opposed to other financing options.
Benefits and Beyond
What are the benefits of freight bill factoring? Freight factoring companies provide fast – and more importantly, predictable – cash payment, which enables you to cover outgoing costs like fuel and vehicle maintenance. Invoice factoring takes away the risk; selling invoices guarantees payment and ends your obligation under the invoice, regardless of whether or not the freight bill is paid in a timely manner. If you are waiting for your last load to pay out and then freight bill factoring might help you spend less time waiting on that payment and more time growing your business.
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