Running a business can be a lot of work and very stressful, you want to push hard and succeed but sometimes you need a bit of extra help along the way. Trucking companies are always on the go looking for new customers and require cash flow for new freight, new employees, repairs, gas, and much more. If a company finds themselves short on cash and hasn’t been able to go to the banks for a loan, transportation factoring companies are able to help keep a continuous cash flow to help your business grow and maintain itself. So what is a factoring company and what else can they do to help?
Trucking factoring service helps to get you funding immediately for unpaid freight bills, and other things your company requires to run smoothly. This makes sure you will be paid on the same day, rather than waiting weeks or even months for your customers to pay their bills. Lots of trucking companies work with freight factoring because it gives the business the reliable cash necessary to haul more, hire more, and grow your business. The Wall Street Journal states that “The factor pays most of the invoice amount—most of the time 70% to 90%—after checking the credit-worthiness of the invoiced customer. When the bill is paid, the factor remits the balance, minus a transaction (or factoring) fee.”
Think of transportation factoring companies as invoice advance loan companies that will provide the funds that would normally be inaccessible for your trucking business. Many factoring companies provide multiple other services to make your life easier. If your business requires gas cards, load board service, credit checks, 24/7 account access, and even insurance services that can be used for newer trucking companies. Most factoring companies will do all of the work for you and assign you an account manager that will walk you through the process and ensure everything flows smoothly. The factoring companies can offer a number of different contract terms that work for you and the rates are very reasonable.
So if you find yourself struggling while holding up a trucking company think about how transportation factoring companies can help change your life.
