How Can Invoice Factoring Improve Your Business?
Trucking factoring companies help keep your fleet moving along. Invoice factoring services are a great solution for any transport service, large or small. Waiting to get paid by clients can be a huge stressor when you have payroll and other expenses to meet now.
That industry average 30-day invoice turnaround period, can really put a chink in your operation. Waiting 30 days to get paid can put a stop to those wheels in motion. Trucking factoring companies help to ensure you do not have to wait on that revenue flow.
Invoice Funding Is a Simple Solution
Being able to settle your debt by selling that debt at a discount to trucking factoring companies puts cash in your account without delays. Instead of managing debt collections or having to ask customers to pay upfront, invoice funding pays out the debt. You can focus on growing your business instead of worrying about collections.
You can sell your invoices to get the working capital that you need to keep your business growing. There are about 12 million trucks, rail cars, and other transport vehicles that move goods around the world, and many of those activities depend on factoring financing to keep moving.
How Does it Work?
The process is simple. Trucking factoring companies offer simple financial agreements to help you stay in the black. You can sell some or all your invoices. The process can be something you do temporarily or in the long term. In other words, it is a very flexible solution to raise the capital that you need.
You choose from the trucking factoring companies that service your area. You discuss terms. You turn over the invoices that you want to use, and you get your money.
The Pros of Invoice Factoring
Obviously the biggest plus here is that you get the working capital that you need but that is not the only benefit to using this solution. There are other benefits including:
- Your customers will benefit from longer net terms. Customers like flexible net terms that give them time to pay. You do not have to sweat your customers for payments when you use trucking factoring companies.
- Your creditworthiness for the factoring is not only based on a FICO score. This type of advance is based on historical invoice performance and your customer base as well.
- It takes a lot of stress off your plate.
You may be eligible for 70%-90% of the face value of your invoices and tap into that money now, instead of waiting. A trucking factoring service can help. If you need working capital now and there is money owed out to your company, invoice factoring can be the ideal solution. Learn more about how this financial option can help your business.