Factoring For Trucking
It is one of the most popular methods of funding for trucking companies. Invoice factoring or account receivable is the method where you sell your uncollected invoices to the factoring company and receive instant cash that you can use as capital for the growth of your business.
In case your client is unable to pay their invoice than your company will be responsible for paying it. The fee for this factoring service is less as you share the risk if debtor fails to pay.
If your client is unable to pay the invoice bills your company will not be accountable. The fees is generally high as the factoring company assumes the risk, in case your client doesn’t pay the invoice.
Immediate Cash Flow
As you know payment processing usually takes time but invoice factoring company provides you the cash immediately so you don’t have to wait until the next payment from your debtors.
Bad Or No Credit
You can get access to cash flow for your business even if you have limited or poor credit history.
Saves Time And Money
Factoring companies handles the responsibilities such as collection or account receivable paperwork for your business. You don’t have to worry about these responsibilities and you can focus on other tasks.
Flexible Contract Terms
There are no long term contracts offered by factoring companies, you can submit as many invoices as you want. You can decide how often you like to use the services for getting funds.
Why Invoice Factoring For Trucking?
Invoice factoring stabilizes your cash flow, covers your expenses, gives you the option of fast funding and is flexible compared to traditional loans.
When You Can Use Invoice Factoring?
Need of cash to manage the demand
You want to avoid debt
Expand your freight business
In tracking invoices
In need of flexible options
What You Get By Invoice Factoring?
It helps in releasing tension of having less or no funds at time of need. As you get access to immediate funds through invoice factoring you don’t have to worry anymore for not having funds and can focus on growth of the business and on the opportunities that will come on your way.
No Debt To Repay
Invoice factoring prevents you from getting any new debt as it is nothing similar to loan so you don’t have to pay back anything. There is no interest rate or hidden fees so you only have to pay one time small amount from your loads.
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How Does This Benefit Trucking Company?
The trucking company transports the loads all over the country they have to wait for 30-90 days to get the payment for their invoices after dropping the goods. This waiting period gets eliminated by the factoring company and provide you the cash immediately so that you can operate your services without any problem.
Is Factoring Worth It?
Obviously it is worth for your trucking business as you don’t have to worry about the cash flow, you can focus on the growth and moving of goods as it is most important task for any trucking company.
How Much Does Factoring Costs?
You get 96-99% of you invoices. Usually 80-90% is given as upfront and remaining is given when invoices are collected. You don’t have to worry about collecting the invoices as we do it for you. You only have to keep going in transporting loads and getting paid.
Right Financing Option
As you know there will be fluctuations in your business, so you have to be prepared with the right financing options for your business. Factoring service can be used whenever you need so you don’t have to keep waiting for the cash in case of emergency.
What Our Clients Say?
Here are few reviews and comments from our clients.
The Financing Compass worked extensively with me to help me anticipate some of the issues that my business may face. Not many lenders would go to that length. They’ve been extremely supportive and a great resource.
Financing Compass enabled me to take advantage of an incredible opportunity to relocate and expand my business, at a pivotal time. The support I received from Financing Compass staff was priceless.
Working with Financing Compass helped me develop my business plan, ideas, and brand before getting started so that I was prepared to open a successful business when I received my loan.
Are You Looking For Our Services?
If you are intrested in our service “Factoring for trucking”, Contact us we will provide you with our best services