Maintaining proper cash flow is always critical to business operations, but during the first 12 months of your new trucking business it is especially difficult to achieve as you have no “track record”. You already pay for your truck, insurance, fuel, and overhead expenses. After delivering that first load, you can expect to wait 30 to 45 days or longer to get paid on your freight invoice.
One slow paying or uncollectible invoice could make it impossible to purchase fuel to haul that next load. Without enough cash, you could be out of business before you really get started. This is where the help of freight factoring companies could be very beneficial.
Use Freight Factoring Companies & Don’t Get Stuck at The Pump
With the help of freight factoring companies you won’t get stuck at the pump or lose drivers by not paying them on time. Many small businesses underestimate the impact of a slow paying invoice, but that extra thousand dollars could make the difference between getting that driver to the next load or spending the weekend on the telephone trying to figure out how to pay for fuel. Your business may have paper profits with large account receivables balances, but without cash, the business could fold before these bills are collected.
Let Freight Factoring Companies be your Slow Paying Invoice Solution
Freight factoring companies can solve the problem of a slow paying invoice by using a solution that provides the equivalent of a quick payment. It’s called freight bill factoring. It works by using a financial intermediary (Freight factoring companies), who advances funds against your freight bills. They settle the transaction once your client actually pays the bill. One advantage of factoring is that it provides the equivalent of a quick payment, without requiring your clients to pay faster. This makes it easy to integrate in most organizations.
Freight factoring is easier to get than other forms of financing. To qualify for this type of financing, your business must have solid commercial clients, be free of lawsuits and encumbrances and have good growth and stability potential.
There are many freight factoring companies to choose from, but Pay4Freight.com’s focus is to work directly with small trucking companies and owner operators, so they can compete equally in the transportation marketplace. Their specialists take pride in providing you the best non-recourse freight factoring services in the industry. Call Pay4freight.com today and leave your slow paying invoice problems behind!