6 Reasons Why Trucking Company Owners Choose Freight Factoring
With a number of regulations easing in the trucking industry, owners of freight and transportation companies are more concerned than ever with keeping positive cash flow and staying in the black – in order to capitalize on growth opportunities. On top of overhead costs including wages, benefits, as well as fleet maintenance and fuel needs, trucking owners need sound funding options to facilitate expansion and growth initiatives. If you’re wondering why so many freight and transportation company owners are turning to factoring for their cash flow needs, here are some of the main reasons this type of financing is so popular.
1. Factoring eliminates waiting periods
One of the most challenging hurdles of running a trucking company is waiting to collect on invoices for deliveries you’ve already made. Sometimes clients will pay for 30, 60, or even 90 days, but you have bills to pay. Factoring your freight invoices with the factoring company such as Accutrac Capital allows you to effectively sell your invoices and discount and receive the money off in the same day you factor the bill.
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Factoring helps improve cash flow
If funds are low, or your or you simply don’t have the cash on hand you need to seize a growth opportunity, you’ll be happy to know that factoring allows you to streamline your cash flow. An unpaid invoice is no good to anybody, but factoring allows you to turn that unpaid invoice into cash on hand for a small one-time factoring fee.
3. Expanding your business is easier with transportation factoring
Receiving immediate payment for the delivery of your loads, you’ll be able to cover your trucking companies overhead and expenses easier than if you didn’t factor those invoices. Having more cash on hand gives you the flexibility and breathing room to take on more customers and more
With a number of regulations easing in the trucking industry, owners of freight and transportation companies are more concerned than ever with keeping positive cash flow and staying in the black – in order to capitalize on growth opportunities. On top of overhead costs including wages, benefits, as well as fleet maintenance and fuel needs, trucking owners need sound funding options to facilitate expansion and growth initiatives. If you’re wondering why so many freight and transportation company owners are turning to factoring for their cash flow needs, here are some of the main reasons this type of financing is so popular.
1. Factoring eliminates waiting periods
One of the most challenging hurdles of running a trucking company is waiting to collect on invoices for deliveries you’ve already made. Sometimes clients will pay for 30, 60, or even 90 days, but you have bills to pay. Factoring your freight invoices with the factoring company such as Accutrac Capital allows you to effectively sell your invoices and discount and receive the money off in the same day you factor the bill.
2. …show more content…
Factoring helps improve cash flow
If funds are low, or your or you simply don’t have the cash on hand you need to seize a growth opportunity, you’ll be happy to know that factoring allows you to streamline your cash flow. An unpaid invoice is no good to anybody, but factoring allows you to turn that unpaid invoice into cash on hand for a small one-time factoring fee.
3. Expanding your business is easier with transportation factoring
Receiving immediate payment for the delivery of your loads, you’ll be able to cover your trucking companies overhead and expenses easier than if you didn’t factor those invoices. Having more cash on hand gives you the flexibility and breathing room to take on more customers and more