AN INVOICE FACTORING GUIDE
When you’re out on the road, it’s important to make sure you can afford to maintain your truck as well as your company. Since cash flow is critical to trucking companies, the following guide to invoice factoring can help you stay on track.
WHAT IS INVOICE FACTORING?
Invoice factoring is a financial solution that allows trucking companies to access and receive immediate cash from unpaid invoices. With cash in hand, companies are then able to pay for materials, equipment, payroll, and overhead costs. While there are other traditional loans out there, invoice factoring is quickly becoming one of the fastest, most secure funding methods for trucking companies.
THE PROCESS OF INVOICE FACTORING
Not familiar with what a freight factoring company does or how factoring works? The first step to invoice factoring is easy. In fact, you’re probably already doing it – delivering your loads as you normally would. After that, all you need to do is submit a copy of your invoice or related paperwork to an invoice factoring company like Integrity Factoring. Once received, they will then verify the invoice, and you receive payment for most of the invoice’s value right away. The factoring company works with your customers to collect payment.
The factoring setup process is also simple. Setting up factoring in trucking usually involves submitting standard documents such as invoices and customer account details.
THE BENEFITS OF INVOICE FACTORING
What makes invoice factoring appealing is its many advantages over traditional loans and financial solutions. These include:
EASIER FINANCING
Traditional bank loans and other long-term financing options are often hard to get. If you don’t have good credit, invoice factoring might be the best option for you. Simply put, your customers pay an invoice factoring company instead of you, so their credit is typically more relevant than yours.
FAST CASH FLOW
It’s no secret that carriers need to be paid, and they need to be paid what their customers owe them. Unfortunately, however, this can take between 30 and 90 days. Invoice factoring provides trucking companies with the cash they need the same day without any waiting period.
YOU’LL HAVE THE MONEY YOU NEED
When you own a trucking company, you know it’s more difficult to take on jobs if cash flow is tight. Invoice factoring, however, alleviates this issue. You’ll have the money you need, making it easier to meet growing demand, hire new drivers, and pay for day-to-day expenses.
NO DEBT TO REPAY
Invoice factoring helps you avoid going into debt. Since it’s not a loan, there’s no expectation to pay anything back. Furthermore, there are no hidden interest rates or fees. Instead, it’s just a small, one-time payment taken from your paid invoice.
WHY YOU SHOULD USE INVOICE FACTORING
- Provides immediate cash flow.
- No credit required.
- Saves time and money on collections.
- Provides flexible contract terms.
Every business owner knows there are going to be fluctuations in business. That’s why it’s important to be prepared with the right financial solution when you need it. Trucking companies can use invoice factoring so they won’t be stuck on the road when they need cash the most. Don’t miss out on growing your business. Work with a partner like Integrity Factoring that will provide you with a fair, honest, and stress-free experience.
IMPROVE YOUR CASH FLOW WITH INTEGRITY FACTORING
When it comes to invoice factoring companies, Integrity Factoring stands out from the rest. Dedicated to your unique needs, we’ll help you get the funding you need to save time and money while you manage your business. If you want steady cash flow to help your trucking company grow, contact us today by filling out the online form.