Working capital is key when managing a trucking company. Capital needs to be readily available for fuel costs and paying drivers – and if it’s not, that’s a problem. Waiting on invoices to be paid can take 30 to 90 days, and if you manage a smaller trucking company, you may not be able to get a bank line of credit. So what are your options?
You may not know about freight factoring, but if you run a trucking business, it could be the solution you’re looking for. Let’s discuss why freight factoring could be a good option.
What Is Freight Factoring?
Freight factoring allows a trucking company to receive payments for invoices for freight that has already been delivered. Like general factoring, freight factoring involves the help of a factoring company that pays a percentage of an invoice to your company swiftly, then receives the total invoice amount from the entity that received the service.
How Can Freight Factoring Benefit Your Trucking Company?
Most invoices take anywhere from 30 to 90 days to be paid, but your company’s costs can’t wait 30 to 90 days to be paid. While payroll, fuel costs, and insurance payments might be anticipated, repairs and other emergencies are unexpected. Freight factoring gives your trucking company the working capital it needs to function day to day and the peace of mind to run during times of emergency. Freight factoring alleviates the stress of past-due invoices, defaulting on insurance payments, or any other issues related to not having capital when you need it.
Partner with Corporate Billing Today!
Corporate Billing offers accounts receivable funding for the transportation industry with these benefits:
- Low Fixed Rates
- Same Day Funding
- No Contract Period
Also ask about Corporate Billings cbCharge product, where you get free maintenance credit at participating repair shops.
Contact Corporate Billing today to learn how your trucking company’s cash flow can benefit from freight factoring.