Factoring Helps Cash Flow
Just like with any business, cash flow is king. You may have millions of $ in outstanding invoices but that doesn’t help you when you need to pay your bills now. It is just a fact of life that as a trucker, you will invariably deal with people who want you to move their goods from A to B but will only pay the invoice in 30, 60 or 90 days. If you can’t pay your immediate bills, especially fuel, you won’t be trucking for long. If you have more money going out (paying for fuel, maintenance etc) than you have coming in, then you are cash flow negative. This is where factoring helps cash flow problems. For a small fee, factoring companies will take on your unpaid invoices and pay you out, helping you to have positive cash flow and keeping you solvent.
Normal people with office jobs tend to think of high gas prices as an inconvenience, making it more expensive to commute to work or go see a friend, even to take a road trip. This is, when you get down to it, an irritation and arguably not much more than that. As an owner-operator, any rise in fuel costs directly affects your bottom line in a very real and immediate way. That standard trip you do? It will cost you more when the fuel price goes up. Do you know how much it costs to run your truck per mile in just fuel? Well, that just increased.
A trucking factoring company can come to the rescue here and help reduce the pain brought on by fuel price increases. As a commercial trucker, you transport freight and this requires the constant purchase and use of fuel. We all know that normal people don’t have the same size gas tanks in their cars, and due to the huge size difference, your truck doesn’t have the same fuel economy as a family car – especially when hauling freight. You also don’t have the luxury of only filling up when you want to, or putting off a trip. No freight moving = no pay. If a fuel increase has wrecked your carefully planned budget, you need money now. This is where factoring can get you cash up to 90 days ahead of schedule, improving your cash flow and getting you on the road again. You don’t want to miss your delivery appointment for your current load or a chance to get a higher paying load.
We all know that time is money. If a client is slow in paying you, this can be a big problem for an owner-operator as you won’t have the capital on hand to be able to absorb the initial increase in fuel prices. The price went up today for the load you are hauling but you will only see the cash in 30+ days if you wait on them. Convert your current invoices to quick cash through a specialized factoring company and you have cash on hand to fill your tank for the next load you need to haul.
Trucking factoring is more accessible than other forms of financing in most cases. To be able to qualify for trucking factoring, your trucking business needs to have reliable and solid commercial clients, not have any outstanding judgements or debts against your name and also have the potential for good growth and a stable future.
Based in Flower Mound, Texas, Pay4Freight is happy to offer freight factoring across the country. Our focus is to work with owner-operators at every level across the industry and help you grow. We see ourselves as being in it with you for the long haul, helping you grow and provide excellent rates and the best customer service in the industry.
Take a look at this article and see reasons to factor with us, many truck drivers and trucking companies have trusted us over the years to handle their invoice factoring because we are the only 4.9 stars Google rated freight factoring company (Pay4Freight Google review) Why wait? Click here to fill a simple form and sign up with us today.
