Are you faced with more than just worrying about getting a load delivered on time? And not just juggling the finances, but concerned about paperwork and the administrative burden? Freight factoring may hold the key.
When cash flow becomes the main problem, due to the fact that your customers are taking 30 – 90 days to pay their invoices, then you are worrying about paying the bills, and not worrying about running your business. Regular, on-time payments are vital for:
- Paying drivers and for fuel
- Taking care of repairs
- Buying new equipment
Why a loan is not always the right answer – firstly it is often hard to secure a loan from a bank or other financial institution. Secondly, a loan is just adding to your debt burden. Once the money from the loan is spent, and you have not caught up on bills, you have one more issue to worry about.
Imagine eliminating the slow payment cycle with freight factoring. Receiving payment in 24 hours on outstanding invoices, rather than waiting 30 – 90 days for payment. Not only would you be able to pay operating and capital costs on time, you would have the ability to take on more work.
Establishing predictable revenue through access to funding now for invoices due to be paid later can only help your business. As your cash flow improves, the necessity to juggle payments becomes a problem of the past. You can also offer better rates to your customers, and build your business.
More than this, the factor takes on much of the administrative headache, as well as collection of payment. Factors are concerned primarily with the number, validity and dollar amount of your invoices, not your credit. They concentrate on the creditworthiness of your customers, and perform this check for you, thus minimizing the likelihood of non-payment from customers with bad credit histories.
So if you are considering freight bill factoring, you don’t need to be established, or large. You can be a start-up just as long as you have good prospects, a healthy amount of lien-free accounts receivables from creditworthy customers and shippers, and provide the correct company paperwork. It is also worth keeping pace with the truck fleet management trends to make sure you are on the right track.
A final note about fuel Cards – FTS fuel cards offer fuel card discounts, helping to finance fuel costs and manage fuel expenses. Savings can be up to 24 cents a gallon, and they are accepted at more than 5,000 truck stops.
Bay View Funding has been helping with freight bill factoring since 1985. We can also help you from the road by enabling you to scan your invoices from the office or the road, since we have the ability to fund from copies, saving even more time from invoice to payment.