For many trucking company owners, with mini fleets of 1-10 trucks, when it comes to the financial side of running the business there are several key things they are looking for including immediate access to cash, cost savings, easy and transparent partners and back office help with billing, invoicing, collections and record keeping. Many transportation company owners are unaware that many freight bill factoring companies can help with all of these critical items. Freight bill factoring allows transportation companies to get the working capital they need without waiting 30, 60 or 90+ days for their customers to pay and often offer many additional services that can help with running the financial side of the business.
Having immediate access to cash to cover expenses such as fuel and repair costs
In order to keep your trucks on the road and your business running a major financial consideration for every trucking company is having immediate access to ample cash flow to cover expenses such as fuel and repair costs. One option to help with that is freight bill factoring. A freight bill factoring company will give you access to immediate working capital without your customer having to pay quicker than they normally would. All you have to do is deliver the load, submit your paperwork and most freight factoring companies will get you the funds within hours. The factoring company then waits to get paid by your customer and once they do, they will submit the balance of the funds minus their fee to you.
Cost savings
Every trucking company owner is looking for ways to save money. Freight bill factoring companies offer several different ways for your company to save money on many different aspects of running your business. Some freight factoring companies will offer fuel cards with their programs. This, as many transportation company owners know, can help you save money every time you put fuel in your truck. Additionally, membership to customer loyalty programs or even Truckers B2B could be included. These programs offer your trucking company discounts on common expenses such as tires, technology and payroll services.
Back office help
Some freight factoring companies might offer back office support such as billing, invoicing, processing, collecting on all your receivables/loads and financial record keeping. Not only does this save you from having to take the time to do it, it saves you from having to hire someone to do it for you.
Easy and transparent partners
Since the financial aspects of running your trucking company is not typically what any owner with a mini fleet wants to spend a lot of time and energy focusing on, partners who make things easy and are transparent can be a key to your financial success. If you decide that freight factoring is an option for your trucking company than you want to look for a partner who makes things easy for you and is transparent with all aspects of the process. This includes not requiring originals for funding, ways of getting you funds that work for you and no hidden or unexpected fees.
Factoring your freight bills is quicker and easier than you might think and will give you the working capital you need for fuel, repairs, payroll and more. Once you deliver the load a factoring company, such as Tetra Capital, can make cash available to you from 90% to 95% of the face value of your unpaid freight bill within hours. The factoring company pays the balance, less a service fee, to you when your customer pays the invoice. While the factoring company waits to be paid, you have a large portion of your money to use as needed.
