Because traditional lines of credit can be hard to obtain — especially for trucking companies without sufficient collateral — many owners in the trucking industry are turning to freight factoring as part of their overall financial strategy. Lack of available funding can lead to serious cash flow problems, but freight factoring offers a sudden injection of cash flow quickly and easily.
Freight factoring – or freight bill factoring — allows trucking and transport companies to receive immediate cash for outstanding invoices. With the help of a partner factoring company, these invoices can fund you, the carrier, to help you invest in your fleet, your staff, and future growth opportunities.
Advance payment on your invoices through factoring enables you to:
- Increase your business’s cash flow
- Pay staff promptly
- Pay your suppliers on time
- Take on more jobs and haul more loads in order to grow your business
Qualification for receivables factoring is easy as it is largely based on the credit worthiness of your customers, not your personal credit or the financial strength of your business.
Factors provide financial solutions to:
- Start up operations
- High growth companies with insufficient working capital
- Businesses in transition or who are experiencing a tough year
- Companies going through a change of ownership
- Companies unable to secure loans from traditional lenders such as banks
- Any trucking company that has not already turned their accounts receivable into collateral
If you know where to look you can find an experienced freight factoring company with the lowest rates in the industry that provides dedicated customer service and unlimited, free credit checks.Accutrac Capital, for example, serves trucking companies and only trucking companies; they are specialists in the transportation trucking industry and so you will never have to explain your business to them.
Visit the Accutrac website to learn more about same-day funding, simple document submission, and how you can access your account online 24 hours a day, seven days a week. With additional perks such as fuel discount cards which help you save thousands of dollars every month as well as cash advances before your load is delivered, the right trucking factor can help you turn your invoices into cash without slowing down your daily activities.
Ifyou find yourself waiting too long for customer payments, often waiting for invoices to clear for 2 to 3 months at a time, freight factoring will provide you the instant cash you need to keep your business running smoothly. With trucking and freight invoice factoring, your Accounts Receivable turn into instant cash flow. The benefits of factoring for trucking and transportation and freight companies are immediate, and cash from factoring can be used on the spot to take care of fuel, equipment, payroll, and other needs.
Additionally, freight bill factoring is different from a bank loan or a bank line of credit because the cash is available to you based on your customers credit worthiness and ability to pay. The more reliable your clients, and the more invoices you factor, the more access you gain to the funding your trucking company needs.
