When you’re running a business, it can sometimes feel like you’re caught in the middle of a flurry of information. There are many details to keep track of (especially when it comes to financing), and it’s not always easy to find the time to crunch numbers. Where transportation factoring is concerned, many people involved in the trucking industry have heard good things about the process, but haven’t had the time to sort through it themselves — so here’s a quick guide to its benefits and why it’s easier than ever before.
Transportation factoring, also known as freight factoring, is an option that seems to become more and more popular with trucking company owners every year. The simplest explanation is that transportation factoring lets you turn current, unpaid invoices into cash — but that doesn’t give you a sense of the larger picture.
First, it’s important to know factoring has come a long way in the past few decades. Trucking is an industry with its own ins and outs, so many factoring companies have chosen to specialize in transportation factoring — meaning that you don’t need to explain your business to them. These companies know that above all, carriers want simple, convenient funding solutions. In light of this, many transportation factoring businesses go out of their way to ensure that funds reach you as quickly as possible. The benefits of invoice factoring for trucking companies include a straightforward qualification process that should lead to approval in just a few days, and once you’re approved, you’ll have access to same-day funding for your invoices. What’s more is that approval is based considerably on the credit history of your customers — so as long as your customers are reputable, approval tends to be an easy procedure.
Unlike a traditional bank loan, transportation factoring will not dilute equity. Factoring services are easy to acquire, and even easier to manage and maintain. Companies like Accutrac Capital, for example, go out of their way to keep things as straightforward as possible for the businesses they serve. They provide a dedicated accounts manager to work with you on a daily basis to help you reach your financial objectives, and access to your account is made easier than ever with streamlined online access available 24/7. Transparency, they say, is paramount.
They also offer both free Accounts Receivable support and unlimited free credit checks on your current and prospective customers in order to help you manage risk. With the help of the right transportation factoring company, you’ll never have to feel unsure when taking on a new customer. Factoring companies work for your benefit — if you succeed, they succeed.
The simple truth is that now is the best time to enlist the help of a transportation factoring service. If you’re a startup operation, or a high-growth company having trouble raising sufficient working capital, a transportation factor can provide you with the liquidity you need to maintain steady progress. If you’re a larger operation, partnering with a transportation factoring company can have other benefits, like fuel discounts, preferred currency exchange rates, or simplified expense monitoring. If you’ve been considering it, pick up the phone and make a call — you’ve got nothing to lose and a lot to gain.