We understand that companies use invoice factoring for different reasons. Some may want to improve their cash flow so they can hire more employees. Some want to be able to meet each payroll. Whatever the reason, many businesses are finding invoice factoring to be a great addition to their financial plan.
eCapital client Tina M., president of a transportation company in Maryland, understands the value of factoring. We recently sat down with her to hear why she decided to use invoice factoring, and why she feels it’s the best financial strategy for her company.
Tell us about your business. We provide our customers with oversize band freight, mostly for Government accounts that we service.
What payment terms are typical for you? Sometimes 60 days but most Government accounts are 45 days. For me to hold that debt myself just doesn’t work for my company. With eCapital’s factoring services, I can keep a constant flow of money, and I don’t have to worry about stalling the growth of my business due to cash flow issues. Also, with eCapital, I can offer my carriers services like quick pay, and that keeps them happy.
Where did you first learn about factoring? I worked at a transportation broker and dealt with a lot of carriers. One of those carriers worked with eCapital. It sounded like a good idea to go with eCapital versus a line of credit. And it takes the accounting burden off of me. I never have any issues!
How did you go about determining which factoring service provider would be best for your company? Searching online, reading articles, talking to peers? I talked to a few factoring companies, but eCapital had the best program out there. I felt even more confident after talking to them.
Ultimately, why was eCapital right for your company? eCapital had best rates, professionally handled all the details, and had experience dealing with both transportation brokers and carriers. I have nothing but good things to say about factoring and this company. If you’re trying to build your business without dealing with the financial stress associated with it, this is the way to go.
Is invoice factoring right for your transportation business? Check out our transportation andfreight factoring solutions and download our guide – 5 Ways Your Trucking Company Can Boost Its Profits in 2014.