The most important element in the successful ongoing operation of a small business is the direct flow of money into the company. When you find that a client is slow paying after you have already committed the labor and resources to uphold your end of a contract, the consequences can be severe. The loss of expected cash flow can leave you and your trucking company unable to meet its obligations, making it difficult or impossible to keep your trucks on the road making promised deliveries.
You’re already paying for your truck, fuel, insurance, maintenance, and other overhead expenses. After delivering that first load, you can expect to wait the industry average of 43 days to get paid on your freight invoice. One slow pay or uncollectible invoice could make it impossible to purchase fuel to haul that next load. Consider using the services of a transportation factoring company to provide needed operating cash.
Transportation Factoring Helps Close the Gap Between Slow Payments & Steady Cash Flow
Many trucking company owners address this cash gap by trying to get business financing from a bank. Unfortunately, they soon learn that banks seldom provide business loans to small transportation companies. So, what is the answer? In many cases, trucking companies have an option that is better that a business loan: transportation factoring. This type of factoring can provide trucking companies with the financing they need to meet their current expenses and grow. Better yet, compared to bank financing, transportation factoring is generally easy to obtain and can be setup rather quickly.
Transportation Factoring Makes more Sense For a Small Trucking Company
Traditionally, when a business has needed money to continue with operations, the most commonly sought source of funding has been through the extension of credit or loans from a bank. While this is a viable solution in some cases, it makes less sense for a small trucking company than does transportation factoring.
For a small trucking company, transportation factoring is simply the better alternative. It can provide the equivalent of a quick pay by using an intermediary. The intermediary, called a freight factoring company, advances you funds against your freight bill. The transaction is settled once your client pays the invoice in full.
There are many transportation 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!