The struggle for access to working capital is real and more prominent than in the past five years for small and medium-sized businesses, including trucking companies! This is according to new results from the second quarter 2017 Private Capital Access (PCA) Index report from Dun & Bradstreet and Pepperdine Graziadio School of Business and Management.
The Q2 PCA Index results show that 66% of businesses surveyed reported working capital as the reason for seeking financing in the last quarter, an all-time high for the survey since its origination in 2012 and up 22% from Q2 2016 (54%).
The good news for small and medium-sized trucking companies is you have an easy option to solve your struggle with access to working capital. It is as easy as partnering with a freight bill factoring company, such as Tetra Capital.
Not only does freight bill factoring get you the working capital you need, but it also solves the key reason for these challenges, your slow paying customers. The PCA Index also reported that 22% of small (less than $5 million in revenue) firms and medium-sized ($5 million to $100 million in revenue) businesses reported their accounts receivables payments slowed over the past three months. How would you feel about not worrying how long it takes your shippers and brokers to pay?
Your next question may be – so then what is freight bill factoring? The answer – an easy way to immediately access the working capital from your unpaid freight bills. After a quick and pain-free application process, you simply submit the freight bill as you normally would, then send a copy to the factoring company. The factoring company will then send you up to 95% of the value of the invoice. They will then wait to be paid by the shipper or freight broker and then send you the balance of the invoice, if there is any, minus their fee.
So what are you waiting for? If you are like one of those 66% of businesses in the PCA Index Report give us a call today to alleviate your working capital struggles.
