Trucking Freight? How to Get Truck Loads of Financing with Factoring


As a trucking company owner you are very aware that transportation companies are quite demanding when it comes to cash flow. They need regular cash to be able to meet all the ongoing expenses. As long as cash is coming in at a nice rate, your trucking company operates like a well-oiled machine. But if there is a hiccup in the cash flow, the well oiled machine starts creaking. And if there is a major cash flow problem, gears start flying all over the place and the well oiled machine comes to a grinding stop.

What is the biggest source of cash flow problems for small and mid sized trucking companies? Slow paying clients. Clients that take up to 60 days to pay their freight bills. Although large trucking companies can certainly handle waiting – small trucking companies with few power units usually cannot afford the wait. As an owner, you need the money and you need it now.

Is the solution to turn away slow paying clients? Absolutely not. That would be business suicide. The solution is to eliminate the wait by financing your freight bills using freight bill factoring.





According to TBS Factoring, "Freight factoring is is a financing tool that provides your company with capital. Factoring is not a business loan. Rather, factoring involves selling your invoices at a discount for immediate cash. The factoring company waits to get paid, while you get immediate use of your funds."

The concept behind factoring is very simple. Factoring companies provide you with cash for your freight bills. Usually in 24 hours or less. You get immediate funding while the factoring company waits to get paid. With factoring, you get immediate money for your slow paying freight bills, which allows you to pay drivers, maintain power units and buy fuel.

Factoring is very easy to qualify for and very common in the trucking industry. Most trucking companies can easily qualify since the main requirement is that they do business with good (although slow) paying clients. It allows you to easily do business with clients that pay in 30 to 90 days and eliminates the stress of having to wait to get paid.

How does freight factoring work? It’s simple:

1. You deliver the load and submit copies of the documents to the factoring company

2. The factoring company advances you about 90% of the freight bill in 24 hours (the remaining 10% is used to cover billing disputes). You get money almost immediately

3. Once the factoring company is paid by the client, the remaining 10% (less a small fee) is rebated to you!
As you can see, factoring eliminates the wait to get paid and gives you the cash you need to run your trucking company.

Here are the top 3 Google Page One results using this Keyword Phrase - "freight bill factoring services"

Best Transportation Factoring for Trucking and Freight Brokers

https://www.interstatecapital.com/factoring_industries/transportation-distribution/
Rating: 5 - ‎Review by - Freight brokerage, New...
Today's busy trucking world keeps rolling through transportation factoring, the process of selling freight bills to a specialized trucking factoring company in exchange for upfront payment. Freight bill factoring works very smoothly for the freight delivery business model and factoring companies for trucking have proliferated ...

Freight Bill Factoring – Low 1.5% Rates – Commercial Capital LLC ...

https://www.comcapfactoring.com/products/freight-bill-factoring/
Our factoring program finances slow-paying freight bills and provides you with funds quickly. It helps you handle cash flow problems due to slow-paying shippers and clients. You can use the funds to pay for drivers, fuel, and repairs.

Apex Factoring | Freight Factoring for Trucking Companies

https://www.apexcapitalcorp.com/factoring/
Freight factoring is an easy way for trucking companies to get the cash flow they need at low rates. Apex is a full-service freight factoring company. 

Also, here is the company we quoted to help define the Subject/Topic term...
Freight factoring is is a financing tool that provides your company with capital. Factoring is not a business loan. Rather, factoring involves selling your invoices at a discount for immediate cash. The factoring company waits to get paid, while you get immediate use of your funds.
Looking for text marketing services? Need a website developed? Just text the word "Website" to this text number: 554-98
 
Visit www.nowitsonyou.com to check our other services.

Comments

Post a Comment

Popular posts from this blog

Entrepreneurs Find New Way To Finance Dream

Statistics show that more than one million people in the United States start a new business each year. That number would be much higher if all the would-be entrepreneurs had the financing required to get a business up and running. In order to accomplish their dream of business ownership, entrepreneurs are finding new and innovative ways to finance their new ventures. According to Leonard Fischer, President/CEO of BeneTrends, one of these financing options is the use of a person's existing retirement funds - a pension, profit sharing, 401(k), IRA, etc. Under the Employment Retirement Income Security Act (ERISA), retirement funds can be transferred into usable capital for business investments or operations. If a person has more than $40,000 in a retirement account and is not currently employed by the company that holds those funds, he or she qualifies for this Small Business Administration (SBA) - recognized financing approach to start a business. Retirement funds can be used
Read more

From Daily to Weekly - New Post Schedule

Peace and blessings! Please forgive the week of no blogging... My schedule changed and it has been constant running back and forth. Everything I have ever done, I have invested years and thousands of dollars. 6 years on my first business. 5 years on this business. 1 year on my cleaning business. and so on... Trial and error is an expensive process - and not just monetarily speaking. You think you do everything right and wonder why the desired effect or results are not the end product. I realize one thing, one of the most important things, I have overlooked. My attitude. A saying I have carried for years and have always loved - " Attitude + Aptitude = Altitude !" Unfortunately, I do not know who to credit with that quote.  I have always had the best results when I cleared my path of the things which could distract me by having a negative emotional impact. I hold onto things until I can figure out how to fix them. So, it is a taxing process to say the least! However, I can
Read more

6 Succession Planning Myths...Debunked

Of late, the topic of succession planning has sparked much concern. However, it seems few organizations have heeded the warning. According to a Human Resource Planning Society and Hewitt Associates study, fewer than 60% of companies have a succession plan in place. Below are some of the most common myths about succession planning. Myth #1: If there are no imminent retirements, succession planning does not need to be a top priority. According to a survey conducted by Capital H, nearly 22 percent of respondents expect to lose between 10 percent and 25 percent of their top performers to retirement within the next five years. These top performers play a significant role in a company’s success, often serving in high-level, supervisory roles. For successions to progress smoothly, the people chosen to fill these roles need to be prepared and adequately trained. That process takes time.  Myth #2: Succession planning is only an issue for big companies. 85 to 95 percent of all the companies in t
Read more