For business owners who think factoring companies are a hindrance to profitability, it might pay to re-examine the situation because these days many trucking and transportation companies are using freight bill factoring as part of their regular business operations.
Waiting 30 to 90 days to be paid by your customers can have a detrimental effect on the cash flow of any carrier. A reputable invoice factoring company, especially one who specializes in the trucking industry such as Accutrac Capital, provides access to credit information which enables you to search a customer’s ability to pay before you haul. Minimizing this kind of exposure to risk is a massive benefit to any company’s bottom line and will help ensure your financial stability.
The main advantage to freight bill factoring is immediate access to working capital, but some freight bill factoring companies also offer:
- the ability to identify the credit worthy customers you want to haul for
- significant fuel discounts across North America
- credit terms on accrued fuel expenses
With the boon of immediate cash ready for you at your disposal, fleet operations are therefore unencumbered and are better able to not only meet the day-to-day expenses of operation, including driver wages, fleet maintenance, and other costs, but they are also better able to follow through on growth opportunities.
In a state of readiness offered by freight bill factoring, you’re free to concentrate on generating revenue. Financial strength of this kind not only helps you maximize equipmentutilization, but also fosters better driver recruitment and retention, two important elements of any good trucking company. Being able to pay salaries on time, provide driver benefits, and keep your fleet tiptop, means you are always one step ahead rather than being two steps behind.
A new generation of invoice factoring companies have helped to change the financial landscape of the industry by allowing owners convenient and quick access to funds as well as increased customer service and the lowest factoring rates in the business. As this form of factoring becomes more mainstream, attitudes and perceptions are changing. In fact, according to industry experts at Accutrac Capital, industry surveys are revealing that users of invoice factoring rate the benefits of factoring as significantly higher than traditional nonusers. This is to say that anyone with actual experience working with factors and freight bill factoring are actually embracing this strategy as part of an overall game plan to help them grow their business.
Reliable invoice factoring from Accutrac Capital provides financial solutions to:
- high-growth companies with insufficient working capital
- businesses in transition
- start up operations
- companies that have tripped their bank covenants
- companies experiencing a challenging year
- companies going through a change of ownership
- companies who can not acquire the funds they need from traditional lenders
As freight bill factoring continues to grow as a mainstream financial tool for fleet and trucking companies, factors are taking a lead role in developing better features, procedures, and benefits to improve the experience of all carriers in the transportation industry.