Because the key to running any successful trucking company is easy access to working capital, many owners are finding it difficult in today’s economy to meet the costs of doing day-to-day business while also maintaining positive cash flow. A healthy accounts receivable department that generates working capital fuels growth and prosperity. Yet, many trucking owners struggle with everyday costs, and some find that they do not have the cash on hand to meet immediate needs such as wages, fuel, and other overhead costs.
Trucking is a difficult industry, and when you combine that with a slow economy (like the one we saw in 2017) owners are facing more and more challenges each year. With greater competition, slow volumes, and the increasing demand to incorporate emerging technologies — all while maintaining a healthy driver pool — it can be difficult to keep cash flowing.
Many owners are looking to invoice factoringin order to maintain positive cash flow and to continue operating at peak capacity. Every owner knows that it’s very difficult to wait 30 to 60 days for an invoice when you have to invest in manpower, equipment, and other costs upfront. Even the largest, most successful trucking companies face periods where outgoing cash requirements exceed what cash they have on hand. Factoring freight bills gives these owners access to immediate funds to help them pay for operating expenses, and the practice is becoming ubiquitous for both small trucking companies and larger fleets alike. Immediate access to revenue means the trucking companies can operate at the most productive levels, proving that efficiency is always the key to profitability.
An experienced freight invoice factoring company will not only offer cash advances on loads in transit as well as equipment financing, but also offer several factoring plans to help trucking companies of any size. Plans available at a trusted factoring company like Accutrac Capital include:
Flat Fee Factoring
  • From 1.59% for up to 90 Days
  • A simple, easy-to-manage option with an easy to calculate one-time cost
Flex Factoring
  • Only 0.49% for up to 10 days
  • The ideal funding option for carriers with fast turnaround on invoices
Factoring Line of Credit
  • Designed for larger organizations and fleets
  • From 0.022% per day owed only on funds withdrawn
  • A flexible line of credit that provides maximum value and control
Factors that specialize in the trucking industry offer the ability to factor invoices into immediate funds, but they also offer a bevy of other financial tools and strategies — custom tailored to the trucking industry — to help companies stay in the black.Invoice factoring places your company’s hard-earned money in your hands right away, and leaves the responsibility of collecting on unpaid invoices to a third-party factor.
As the American economy begins to recover, volumes in the trucking and transportation industries are expected to grow throughout 2018 and well beyond. If you’re trucking company wants to position itself for growth, and wants to react quickly and efficiently to new opportunities, partnering with the right factoring company that specializes in the trucking industry is the right way to go.