It only takes a few nonpaying or slow paying freight clients to ruin an independent truck driver’s dream of owning a successful small trucking company. Once the cargo has been loaded on your truck and delivered per the terms of your agreement, you have already incurred costs to keep your end of the bargain. Even when a freight client is not technically slow paying, they take an industry average of 43 days to pay an invoice, making it hard for a small company to keep enough cash on hand for the next load. Using factoring for trucking companies is an important option for the independent truck driver to keep that small trucking operatior’s business dream alive.
Bridge the Gap between Slow Payments & Steady Cash Flow with Factoring for Trucking
Maintaining proper cash flow is always critical to business operations, but during the first 12 months of a new trucking business it is especially difficult to achieve as you have no “track record” to take to a bank. Adequate cash flow is also an issue at times when business expansion opportunities appear. 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. Factoring for trucking is a flexible solution that should be considered by new and growing transportation companies.
Direct Benefits of Factoring for Trucking
Factoring for trucking can solve the problem of a slow paying invoice by using a solution that provides the equivalent of a quick payment. It works by using a financial intermediary (Freight Factoring Company), who advances funds against your company’s freight bills. The freight factoring company settles the transaction once your client actually pays the bill to them.
One advantage of factoring for trucking is that it provides the equivalent of a quick payment, without requiring your clients to pay faster. Other direct benefits of factoring for trucking include: immediate payment for much of an unpaid invoice’s value; your energies and time do not have to be further wasted in tracking down a nonpaying client; and these cash inflows will let you continue with normal operations and business growth.
Factoring for Trucking Services from Pay4freight.com
While there are many factoring for trucking companies to choose from, 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!