How Trucking Companies Benefit from Invoice Factoring
Invoice factoring is an incredible service that many trucking companies benefit from. Here are just a few advantages that factoring companies can provide their clients with.
Improved Cash Flow
The improved cash flow is the most significant benefit of working with a factoring company. This allows owner-operators and fleet managers in the trucking industry to get cash owed to them almost immediately. This improved cash flow can help the company make investments right away that they would typically need to wait months, sometimes years for. These investments can help the company grow and succeed on a faster timeline that isn’t restricted by unpaid invoices.
A Great Alternative to Traditional Funding Methods
Factoring has many benefits over traditional funding methods. The main advantage is quick approvals based on the credit scores of your customers, and not your company. This permits a fairly-new start-up trucking company to qualify for credit. Another benefit is that factoring is scalable, meaning funds are made available to your business in proportion to your billing, which allows finance costs to be kept to a minimum.
A growing amount in accounts receivable can be stressful for any trucking company’s owner-operator or fleet manager. It’s even more stressful when the amount of bills for operating expenses is growing just as quickly. Furthermore, the process of following up on all of the outstanding invoices can just be frustrating to think about or even strategize. For this, and many other reasons – trucking companies choose to work with a factoring company to take this entire process off their plate. They want their team and resources to focus on providing excellent logistics services for their clients instead of following up on invoices.
At FourWinds Capital Group, we’re proud of the fantastic benefits we provide to our clients. Give us a call today to find out how to get started and hear about our incredible rates!