You may have heard about freight factoring, but for someone who already owns a successful trucking company, you may be thinking, “What good is freight factoring for me?” If you already own a trucking company or you’re about to start one, you probably know that these types of companies need a strong cash flow to run. Freight factoring can take care of your cash flow problem and contribute to your business’s success. Here’s how.
Time Is Money
Invoicing clients and waiting on payment can be a pain. When you work with a freight factoring company, they take on the responsibility of collecting payments. You no longer have to worry about tracking down your customers because the factoring company will do it for you. You’ll save yourself some worry, but the biggest thing you’ll save is time.
The time wasted on invoices and collecting late payments can be used on maintaining relationships with your customers and truckers. Now, you’ll have time to better organize your spending, engage with your clients, and gain new business.
Avoid Loans and Quick Pays
If you’re just starting a trucking company, you’ll need money for your everyday operations. Your fleet needs fuel and your drivers need to be paid. Unfortunately, it may take a while for you to receive payment for the shipments you’ve delivered. You might want to immediately turn to a bank for a loan, but loans can be hard to get if you don’t have a credit history. These loans can also take weeks or months to be approved. In the meantime, your business still needs cash to run.
Many companies offer trucking companies quick pay options. The problem with this option is that it typically takes 10 to 15 days to receive that payment, most quick pays are more expensive than factoring with a freight factor, and with a freight factor you will receive payment within 24 hours of the load being completed.
Through freight factoring, you can receive immediate payment for the shipments that you deliver. Your daily operations can run without any cash pitfalls.
Expanding
Expansion and growth are good things, especially for a business. Sometimes, though, expansion can be stressful for a trucking company that doesn’t have the ability to meet an increase in demand. You will always be at a loss for money if you’re constantly waiting on invoice payments. You may even turn down new business because you don’t have the cash to keep your business running.
Corporate Billing can help you enjoy your business’s success. Through freight factoring, we can help provide the cash that you need to run your business and take away the stress of invoices. You’ll be able to regain control of your trucking company’s success.
Corporate Billing Cares About the Success of Your Business
Corporate Billing is dedicated to the success of your business, and we’re always happy to start a conversation about what we do and how it can help trucking companies function more efficiently. If you’d like to learn more about factoring or any of our other services, contact us today.