Freight Factoring Helps Trucking Companies Stay Afloat
When it comes to trucking and transportation companies, economy is everything. Facing weakening economic activities as well as port closures, trucking and fleet businesses face a lot of challenges. This means maintaining a sustainable fleet or trucking business is more of a challenge and comes with more obstacles than ever before. As the US economy continues to underperform, it’s more and more important for businesses to have the working capital to stay afloat.
But despite these setbacks, the pendulum also swings the other way. Accelerated consumption and investment, along with improving labour markets, lower fuel prices, overall wage growth, lower interest rates, and a strengthening housing market continue to drive financial and economic movement and momentum upward, despite under-performing economies.
During the fall peak season, the market remains profitable for trucking companies that understand how to use finance to their benefit. In order to survive and grow in the 2017 market and beyond, trucking and transportation companies need to adapt to survive.
Sustainability is key, and maintaining cash flow is critical to survival and growth. Without much needed cash on hand, companies lose the ability to grow their operations to meet demand, and day-to-day operations will grind to a halt. The costs of fleet management, equipment upgrades and maintenance, fuel expenditures, worker wages and benefits, and administration costs are ever present in the trucking industry, which is why it is important to maintain strong accounts receivable tactics. Many trucking companies are using invoice factoring as part of an overall financial strategy that helps them keep access to working capital as they need it.
Invoice factoring, also known as freight bill factoring, provides an advance on slow paying invoices, so that companies can keep up with costs. Factoring allows carriers to sell outstanding invoices at a discount. The factor pays out an advance and then collects on the original invoice, and charges a small fee. Factoring gives you the money you need to pay for important expenses such as supplies and payroll, while improving your cash flow.
When you set out to find freight factoring companies onlineit pays to keep a few important things in mind. In general, look for a company that you want to work with long term (as invoice factoring is not an emergency protocol but rather a sustained, ongoing financial strategy). Accutrac Capital for example, offers transparent plans that suit any carriers 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
Get same day funding for invoices that usually take 10 to 90 days with freight bill factoring. For cash flow solutions that turn your past-due invoices into much needed funding, your trucking company will appreciate the added liquidity and security that comes with factoring.