Freight and trucking companies have cash issues most of the time. This is because there are high expenses that are associated with the running of the trucking company. Since they are costly, the company may find itself in the fix if it has to wait for 30 up to 90 days to get the payment from its customers. One way that the business may free some cash for its immediate needs is using freight factoring. As a company, finding out how you can benefit from the freight factoring, it can be the lifesaver when you need to have the payment at once.
Transportation factoring is the process that gives the chance your company to get the money based on the amount of money that you have for your invoices. Most of the factoring companies can advance the outstanding amount of the invoice to the company and they can collect such invoice so that they can wait for the repayment. After the factoring agreement, the business can receive its money after only one day or just two days.
When it comes to the freight factoring, there is few qualifications that the company is required to fulfill and there is no need for the credit check. The companies that need factoring, they need to do the business with some reliable customers while the customers may need to have the record of paying on the right time. The company also at its turn needs to be free from any issue about its tax. These two are the only basic requirements required for the company that needs to be factored. You can still qualify for the factoring even if you may be new into the business since factoring companies do not consider the time as a condition when they give their services.
There are many ways that you can get the help from the trucking company. The first thing they will help you with is to get the cash immediately instead of waiting for around two months for your customers to pay. This is very important in case you may be having an emergency like improvements or repairs on your car and the payroll. You will not be required to chase your customers for payment if you factor your invoices. The factoring company may assume the responsibility that you should take to collect the invoice meant for you. This will give you enough time for focusing more on the operations of the company. When you use the invoice factoring, you will get an instant cash and you will be saved from the trouble of trying to collect the invoice at your own.
You do not have to lose or to turn away any opportunity because of the cash flow. You are working too hard to get your customers so you should not lose them because there is a slow pay, a harassment and lack of capital. You can also go for factoring option if you have already tried other options like family, investors, bank loans and credit cards to get the money but you failed. With factoring, you will be able to survive and to thrive during a hard situation.