As a trucking company owner, you know how frustrating it can be to have to wait 30 to 60 days or more to receive payment for your latest freight delivery. While you wait for that invoice, and others, you are still stuck paying upfront for insurance, truck maintenance, fuel, and other expenses in order to operate and keep your business running. Because of this overhead, many truck owners like you run short on available cash for operating expenses, even though there are payments being processed.
Complex bureaucracies and slow processing times make for slow invoicing and reimbursement on the customer end and while larger business may have reserve cash enough on hand to accommodate this wait time, most small- to medium-sized enterprises feel a pinch when customers take months to pay. Many start-ups and smaller ventures find very few options and are often stuck borrowing money from banks or other financial institutions, leading to even further cost.
Invoice Factoring Eliminates the Problem
This is why so many trucking companies are turning to invoice factoring — as an owner, it allows you to get paid faster and solve your cash flow problems because factoring the invoices on your freight bills allows you immediate funding. By selling your invoices at a discount, you guarantee immediate funding to solve short term overhead issues, and the improved cash flow keeps your business up and running. In fact, invoice factoring (also known as Accounts Receivable factoring) happens to be growing as the most popular form of financing for American trucking companies today because, even though profit is a key factor in any business, cash flow is actually the heart that keeps everything pumping.
An Elegant Solution To A Complex Problem
Factoring your invoices to a third-party company is a top-tier financing option if you want to be more profitable as a trucker or trucking business because it allows you to sell what you have in abundance for much-needed funds. When factoring invoices through a third-party company such as Accutrac Capital, you deliver your freight just as you normally would, but instead of sending your invoices and documentation to your customer, you instead send it to the factoring company, who will pay you a generous advance on the spot. You will be paid up to 97% of the invoice usually on the same day. Payments from the factor are usually sent directly to your bank account, and the factoring company will then collect on the invoices they sent directly to your customers, allowing you to focus on more important element of your business. The burden of waiting the typical 30 to 90 days for customers to pay will now be taken on by the invoice factoring company.
As the owner of a trucking company, you know how frustrating it is to be dependent on your customers for prompt returns on their invoices. But because truck factoring is one of many ways to attain financial certainty by thinking creatively, you can take your customers effectively out of the picture, retrieving your much-needed funds quickly and leaving it up to a third-party factor to follow-up on your Accounts Receivable after you’ve sold them.
With a company like Accutrac Capital, you can improve your company’s cash flow and you’ll be pleased to learn of the approval process is simpler than those involved with a conservative bank or other lending partner. Working with an invoice factoring service allows your fleet to stay on the road and allows you to take control of your business once again.