As the owner of a trucking company, you understand how frustrating it can be to wait 30, 60, or even 90 days before you receive payment from your customers on their outstanding invoices. Without working capital on hand, carriers continually miss out on opportunities to grow and expand their businesses and some of them even fall behind on major expenses. It is no surprise, then, that so many carriers are choosing to factor their invoices to a third-party factoring company to keep strong cash flow and fund their businesses. The added flexibility and convenience afforded by invoice factoring explains why this is now such a mainstream financial tool among carriers of all sizes across the US.
The benefits of factoring include simpler application processes than you’d find at most lending institutions, competitive rates, and faster funding overall — all of which help to explain why so many truckers use invoice factoring services for their businesses.
Invoice factoring, for those who are unfamiliar with the term, is a type of accounts receivable financing that allows you to sell outstanding invoices due within 90 days to a third-party factoring company. The factoring company will then typically grant you an advance of roughly 80 to 90 or even as high as 97% of the value of the invoice. The factoring fee is usually small and differs depending on the plan you choose. One of the biggest advantages of freight bill factoring is the fact that you can often receive the money on the same day you submit invoices.
The speed of the turnaround allows many trucking businesses of all sizes to take advantage of the funding for immediate growth opportunities or to take care of financial crises as they arise. Additionally, high approval rates mean that carriers qualify even if they don’t have the best credit. This is because a freight bill factor looks at the credit worthiness of your customers, and not you as a carrier.
The features and benefits of freight factoring with a reputable company such as Accutrac Capital are designed specifically to meet the grueling demands of hard-working trucking companies. When looking for the right factoring partner, it pays to keep a few important things in mind. Of paramount importance is to look for a company that you would want to work with in the long term (as most carriers don’t use freight factoring as an emergency button — but rather employ this type of financing as a sustained, ongoing financial strategy). Accutrac Capital offers transparent plans that suit any carrier’s needs. Choose from any one of the following plans:
Flat Fee Factoring
- A simple, easy to manage option with an easy to calculate one-time cost
- From 1.59% for up to 90 Days
Factoring Line of Credit
- Designed for larger fleets and carrier operations
- From 0.022% per day
- A flexible line of credit providing maximum value and control
- Only 0.49% for up 10 days
- The ideal funding option for carriers whose companies pay their invoices quickly
Freight factoring affords your trucking company increased flexibility. The same day funding you receive will offer cash flow solutions that turn your past-due invoices into much needed cash on hand. This means that your trucking company will appreciate the added liquidity and security that comes with factoring.Copyright 2017 Original content authorized only to appear on Money Beagle. Please subscribe via RSS, follow me on Twitter, Facebook, or receive e-mail updates. Thank you for reading.