A standard freight and trucking invoice can take anywhere from 30 to 90 days to be paid. If all of your costs were predictable, it’s a system that just might work, but more often than not your costs can’t wait. While you can anticipate costs like payroll and insurance, costs like repairs and unexpected emergencies can blindside you. Even fuel costs can suddenly spike and cause problems with your cash flow.
Using a truck factoring company can help you cover cash flow problems while you wait for invoices to be paid.
When emergency expenses come up, freight factoring can give you the peace of mind that you can cover your costs — especially when you work with a reputable factor such as Accutrac Capital who works exclusively with trucking companies. Stop worrying about past-due invoice, covering payroll, or the risk of defaulting on your invoices that have gone past due. You can get capital anytime you need it with freight factoring.
Covering unexpected costs isn’t the only benefit to freight factoring. These are some of the hidden benefits to freight factoring that you may not enjoy from a generalist:
Credit Checking: With each new client you take on, you take on new risks. If you’re like most freight company owners and operators, you don’t have enough time to run credit checks and payment histories on every new potential client. Business is business and you’re intent on growing.
You can get credit checking done by the freight factoring company as part of your agreement. You both reduce the risks that you face when you take on new clientele.
Fuel Cards: Cash is tight for trucking companies and you constantly need to find cost efficiencies. That’s something a reputable freight factoring company can help with. Factoring companies that specialize in the trucking space provide discount fuel cards that deliver major savings on the cost of fuel. Taking advantage of these savings build up over time resulting in huge savings.
Fuel Advances: When you’re operating on a tight budget, it can be a struggle to fill up a truck before you haul your next load. Freight factoring can provide a fuel advance to get you moving again.
A fuel advance is an advance on the advance. You get a large enough deposit to fill up and get your haul on the road fast, while the remainder of the advance is deposited at the usual time, shortly after delivery. Never worry about fueling up again.
Back-Office Services: Have you ever calculated how much of your time is spent on back-office work? That includes billings and collections and the odds are it’s a big investment. Hiring someone to work the back office comes with a significant bump in operating costs. A freight factoring company relieves some of the work involved in collecting on invoices.
Cash flow is only one of the benefits of freight factoring. When you need invoice factoring, don’t work with a generalist. Specialist freight factoring companies like Accutrac Capital know the needs of your trucking business and help you get the job done. Find a specialist freight factoring company that doesn’t charge hidden fees, provides superior customer service, and most importantly, gets your trucks back on the road.