Make Your Trucking Business More Lucrative With Factoring
Due to a soaring US economy, the average value of the typical invoice issued by trucking companies is increasing quarter by quarter. The number of available jobs in trucking has also increased and the average company’s customer base has grown. There is one element, however, that is preventing these trucking enterprises from becoming truly successful and that’s the time their customers take to pay back invoices. Any owner will tell you that customers can take anywhere from ten days to three months to pay on their outstanding invoices. This often happens as a result of bureaucracy on the customer’s end, and many tucking start ups find that they are unable to invest in growth because so much time and energy is spent on Accounts Receivable management. Thankfully, there are services that can help to alleviate this concern.
Freight factoring is an efficient way to receive payments on your invoices quickly, especially when your company doesn’t meet the often-stringent criteria for a bank loan. When you contact a reputable trucking factoring company you’ll see that qualification is fast and easy. Because factoring invoices is a sales transaction and not a loan, the fees are nominal. One company, Accutrac Capital, will provide their clients with 97% of the value of the unpaid invoices upfront less a small factoring fee.
They have three packages to choose from; the first is flat fee factoring which starts at 1.59% ALL-IN for 90 days. Flex factoring is another option with a 0.49% factoring rate for up to ten days — a convenient go-to if you know your customers will pay their invoice back within that time. Finally, if you’re a large enough company to manage a fleet, this factor offers invoice factoring starting at 0.022% per day.
Freight factoring allows those in the trucking industry to reap the rewards of a booming market by alleviating the frustration of insufficient cash flow. Trucking companies no longer have to think twice before taking on a larger contract with a corporate partner out of fear they’ll have to wait three months to receive payment. Other services some factoring companies offer include discounts on fuel, your companies largest operating expense. If you’re looking to expand your fleet, factoring companies also allow you to turn the equity of old, dated equipment into an opportunity for growth.
For decades, trucking start ups have found themselves unable to make the strides they’ve wanted to as time of payment has grown so wildly out of their control. Whether you need cash up front to pay utilities on time, pay worker wages, or replace your vehicles with more modern, efficient models – consider obtaining an advance for your invoices rather than wasting time hunting down slow customers. You’ll get the bulk of your payment within 24 hours guaranteed, awarding you both the time and headspace to focus your efforts on revenue building initiatives all while making you a competitive force to be reckoned with on the road.