Financing Your Trucking Company with Freight Bill Factoring

There are few businesses that are as cash flow intensive as a trucking company. The list of ongoing expenses can be endless and can easily overwhelm small and medium size trucking companies. There are fuel expenses, truck repairs, rentals and salaries. Although most trucking companies are very profitable, few can afford to wait the usual 30 to 60 days it takes to get paid for their freight bills.

Unless the trucking company has a significant cash cushion in the bank, waiting 30 to 60 days to get paid can cause serious problems. It can jeopardize existing operations and furthermore, it can prevent you from growing your business. The only way to get out of the cash flow rut is to find a way to capitalize on your slow paying invoices. The best tool to do this for a trucking company is called freight bill factoring.

Freight bill factoring enables the trucking company to get paid for their freight bills within a day of invoicing, eliminating the usual 30 to 60 day wait.. With a factoring agreement in place, you can stabilize your company’s cash flow and eliminate the stress of not knowing when you’ll be paid. Since freight bill factoring eliminates the worries of waiting for your payment, you will be free to focus on what you do best: running your business.

Interested in a free online freight bill factoring quote? Please click here to get the best factoring rates. Want your quote now? Please call (877) 300 3258 (toll free)

Who qualifies for freight bill factoring?

Most small and mid size trucking and transportation companies should qualify for receivable factoring. There are two main requirements to qualify fo factoring receivables. First, your company must do business with reputable clients or freight brokers. Second, your company must be free of tax problems. If you meet these two criteria, more often than not you will qualify. Most factoring companies are comfortable working with new businesses, so you should be able to qualify even if your company is a start up. Best of all, you can get a financing agreement in place within a few days.

What services does a factoring company provide?

The main benefit of working with a factoring company is that this will provide you with advanced funds on your freight bills. That means you can get paid very quickly after invoicing. However, most factors will also provide you with collections and credit protection as part of their services. This enables you to focus your energies and your staff on growing your company rather than on expensive and time consuming back office work.

Freight bill factoring for growth

Although many truck and transportation operators initially obtain factoring financing to avert the problems of dealing with slow payers, eventually most owners realize that invoice factoring can help them grow their business. It eliminates their biggest worry by ensuring that invoices get paid immediately, freeing up cash and enabling the owner to grow the business.

Interested in an instant factoring quote? Please click here. Prefer to speak to a professional right now? Please call (877) 300 3258 (toll free USA and Canada)

Need more information? Go to the freight bill factoring resource center or to the main freight bill factoring page.

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