THE ULTIMATE GUIDE TO INVOICE FACTORING FOR YOUR TRUCKING COMPANY

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. In this Ultimate Guide to Invoice Factoring, we’ll walk you through how to maintain cash flow by unlocking the cash trapped in your unpaid invoices.

WHAT IS INVOICE FACTORING?

Not sure what a freight factoring company does or how factoring works? Simply put, 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 one of the fastest, most secure funding methods for trucking companies.

THE PROCESS OF INVOICE FACTORING

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 to an invoice factoring company like Integrity Factoring. Once received, we will then verify the invoice and work with your customers to collect payment. You will then receive money (typically the same day) after an invoice has been verified. Finally, once the invoice is paid by your customer, the reserve is released minus your factoring fee.

While contract terms can vary by provider, some offer short-term agreements that allow flexibility, such as how long you’re required to use a factoring service, which can sometimes be as short as 30 days. This level of customizability makes it easy to create an arrangement that truly fits your needs.

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.

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. 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.