How long does it typically take you to get payment from your brokers and shippers for your freight bills? For many carriers, it takes anywhere from 15 to 90 days to collect payment. But with receivables financing, we can get you paid within hours.
According to a carrier in Idaho who hauls construction equipment and materials it was taking over 30 days to receive payment, and they couldn’t run as they wanted with the slow collections. Because of the strain the slow collection times were putting on their business they turned to Tetra Capital for receivables financing, also known as freight bill factoring. Receivables financing has helped them continue to stay in business as it has allowed them to be able to count on Tetra for their running money. Receivables financing has also helped them in cases of emergency, which they encounter from time to time, with Tetra providing the funding they need to help keep them running and in business.
So what is receivables financing and how can it help your trucking business? With receivables financing, you deliver the load, as you normally would, and then submit your freight bill to your broker or shipper and a copy to your finance partner, such as Tetra Capital. The finance company then sends you funds for the freight bill within hours. The finance company waits for your broker or shipper to pay, ultimately eliminating your need to wait for the funds.
There are many benefits to receivables financing in addition to receiving your funds quickly, including:
- The finance company uses your brokers and shippers credit history to approve you. Making it a good option for trucking companies with limited or not perfect credit.
- The approval process only takes a few days and requires fewer documents and forms compared to traditional bank financing.
- The finance company will conduct credit checks on your new customers, so you can know who you are working with and some, such as Tetra Capital, will even do it for FREE.
- Some finance companies, such as Tetra Capital will handle your invoicing, processing, postage, collecting and more for FREE.
- In many cases, the finance company will save you time and money by loading the funds directly onto a fuel card providing you with discounts every time you fill up.
If your trucking company could benefit from receiving funds quickly, like the carrier in Idaho has, let’s talk! Our team is just a phone call away at (801) 676-0182 and can answer any questions you have about receivables financing. We are in the business of helping you get the funding you need to grow your business, and we love what we do, and it shows, check out our reviews on Google to see what other trucking companies are saying about us.
