When you start a transportation company, strong cash flow is just as critical to your business success as your trusty semi truck. As you may know, truck factoring or freight factoring can be an ideal financing option for a trucking company.
Unlike the lengthy process of securing bank loans after deep dives into your credit history, a freight invoice factoring company can get you started right away, giving you fast cash when you need it. In fact, savvy truckers often recommend that new freight trucking companies secure a factoring partnership right away. That way, you’re all set up and ready when you need it.
So why is freight factoring such a big deal in the transportation world? Why do most successful owner operators swear by it, and how can it help your trucking business? There are several reasons. Here are six:
1. Truck Factoring Companies are Perfect for New Businesses
When starting a new trucking business, it often is necessary to have cash up front to pay for fuel and expenses to deliver your load – all before you get paid. New small trucking companies may have a hard time securing bank loans if they don’t have a favorable credit history. Truck factoring helps avoid bank loans so you can start your business by getting your trucking invoice paid in advance. It’s not a loan, it’s your hard-earned money made available early.
2. A Freight Invoice Factoring Company Can Help When You Need Cash to Manage Demand
Business is picking up and you need cash flow to hire drivers and keep up with demand. Factoring services for trucking put cash in your pocket when you need it most. Rather than waiting on long invoice cycles, you can pay yourself or your drivers in advance with the cash you receive from the invoice factoring company. It’s a simple way to have access to cash and keep up with the demands of your business.
3. And When You Want to Avoid Debt
Starting a trucking business doesn’t mean you need to go into debt. You can avoid business loans by funding your business the easy way with freight invoice factoring. You’re simply getting paid for your job in advance minus a small fee, and you won’t owe any lender money after the job is done. Freight factoring service is the best way to grow your business without going into debt.
4. You Want to Expand Your Freight Business
Taking on more jobs and growing your freight business can be difficult when you don’t have cash on hand to hire workers and pay for gas, rigs, and repairs. When you sell new jobs, use factoring as a way to get your payment upfront so you can complete each job and continue to expand your business.
5. You Need Help Tracking Invoices
Invoicing clients and collecting payment after completed jobs can be a hassle. You may not see your money for 30-90 days following your services. Save yourself from managing accounts payable or hiring extra staff by choosing freight factoring to keep track of your invoices. You get paid up front and we take care of making sure your client pays. Less stress for you creates more time to accept and manage the new business.
6. You Need Flexible Options
Freight factoring offers the ultimate flexibility by allowing you to choose when you use factoring services. Maybe you don’t need factoring services for each client. That’s okay. Use it when it’s most convenient for you. Whether you need more cash in your pocket or you’re interested in expanding your business, freight factoring offers the flexibility you need.
Moral of the story? Don’t wait. Sign up for our truck factoring service now. You’ll have cash in advance while avoiding debt and freeing your time to focus on new sales and growing your business. Contact us to sign up.