Banks, Factoring, Equity and More: What's the Best Way to Finance Your Trucking Business?

So you’re in a tight spot. Every business owner has been there, but this time it’s you, and you don’t know where to turn. Even the most successful and profitable businesses experience the occasional cash pinch, but what are your options, and which one makes the most sense?
Those who run a trucking business know that banks don’t really suit their needs well. Not only do business owners have to deal with lengthy paperwork, extensive credit checks, high interest rates, and the risk of denial, they may not receive the needed cash for weeks or months if their loan is approved. Profitability in the trucking industry is based on quick turnaround times, rapid load matching, and getting back on the road. The weeks or months that a bank takes to give you the loan may as well be a year.
With traditional loans from banks out of the picture, trucking companies need to consider other options, such as invoice factoring or working capital advances.

What Is Invoice Factoring?

Invoice factoring is the key to meeting both your short-term cash flow needs and financing your business’s growth. It’s simple: You complete some brief paperwork and submit your existing invoices online, via email or fax. Within 24 hours, eCapital reviews the invoices and advances you 80-95% of the invoice amount. We then handle collections for you. Once your customer pays, we send you the remaining 10% of the invoice, minus a small fee for our services. Better yet, you can use invoice factoring only when it suits you. If cash flow is good and you don’t have pressing salary or fuel needs, simply collect invoices on your own.
Many truckers choose invoice factoring even when they don’t need immediate cash. They save both time and money by not having to deal with paperwork and the hassle of chasing customers down for late payments.

7 Key Benefits of Invoice Factoring

  1. Provides quick cash without putting your business in debt.
  2.  Simple and flexible. You can use it all the time or only when you need to.
  3. Gives your business an unparalleled ability to deal with short-term, immediate needs, such as fuel, equipment repairs and purchases, or payroll.
  4. Receive your money faster. Instead of taking months to receive money from potentially delinquent customers, you get your cash immediately.
  5. It’s Inexpensive. Only a small fraction of your total invoice is retained by eCapital.
  6. Removes the risk of late or non-payment and saves you from dealing with paperwork and collecting from customers.
  7. Built for the trucking industry, we understand your business and your needs.

What Is Working Capital?

Of course, not every trucking company has financing needs that can be met through existing invoices and invoice factoring. If a larger loan is needed, even up to $500,000, there are better options for truckers than going to a bank and hoping for the best. If additional capital is required, a working capital advance through eCapital is often a suitable option. This type of financing has a much quicker turnaround time than traditional loans and is available for companies that have been in business for six months or longer. Better yet, no personal collateral is required. There are multiple term options and eCapital places no restrictions on the use of the funds.
If you’re looking for fast, hassle-free funding for your business, eCapital is here. No matter what your financial needs may be, contact us today at 760.456.3786 or fill out our form above to request a no obligation quote.