It can be frustrating to put in the time and effort to successfully haul a load just get stuck waiting for payment from your customer. Freight invoice collection can be a pain for small trucking companies and owner-operators who have to focus much of their time and energy into finding and hauling the next load. Stopping business because of a delayed payment from a customer is never the route a trucking company wants to take, but when late payments start to pile up it can become too costly to keep hauling more loads.
Trucking companies should try following these steps in order to make freight invoice collection easier. Some companies find that using invoice templates could help them keep track of their invoices especially if you’re a new trucking company.
1. Tracking System
Paying the small fee for a tracking system to be added to your invoices can end up being more than worth it when your customers are slow to pay and causing you a hassle. These system will automatically send out an alert when the invoice becomes overdue and helps trucking companies ensure that their customers pay.
2. Follow Up System
Along with tracking your invoices, consider establishing a consistent follow up system for every time you have freight invoice collection issues. Once an invoice is overdue, have an email, letter, or phone script transcript ready to be sent out to the customer that notifies them of their need to pay. By already having this plan in place, trucking companies save time in the freight invoice collection process.
3. Make Payment Easy
Don’t let you customers have any excuse not to pay the invoices on time. Make sure your invoice format is clean, neat, and easy to understand with the amount due clearly stated along with applicable taxes, payment terms and options, and where to send the payments. You can even get free invoice templates to make it easier for you and your client.
4. Offer Incentive
By providing incentive or discounts for customers that pay early, you might save yourself a headache later on. Early payment incentives often help to encourage faster payment from customers that would otherwise take their time and hold back your trucking company.
5. Don’t Wait
Issue invoices as soon as a job is completed and any freight invoice collection issues immediately as they arise. Procrastinating will only hurt your trucking company later on make customers think that can get away with late payments.
How can factoring save me money?
Factoring is a financial solution that can help you save money in several ways. The process involves selling your unpaid invoices to a factoring company. Here’s how factoring can benefit you and your business:
1. Fast access to cash:
Factoring provides quick access to cash by advancing a significant portion of the invoice amount, usually within 24 hours. This immediate infusion of funds allows you to cover short-term expenses such as payroll, fuel, maintenance, and other operational costs without having to wait for your customers to pay.
2. Improved cash flow:
Instead of waiting for your customers to pay their invoices, factoring enables you to receive payment promptly. By eliminating the long payment cycles and delays associated with traditional invoicing, you can better manage your working capital. This improved cash flow ensures that you have the necessary funds to meet your financial obligations and seize business opportunities as they arise.
3. Reduced administrative burdens:
Factoring companies assume the responsibility of collecting the unpaid invoices from your customers. This relieves you of the time-consuming task of chasing down payments, allowing you to focus on core business functions. Additionally, factoring companies often have dedicated teams that are experienced in managing collections efficiently and professionally.
How can I ensure accuracy in my trucking invoices?
To ensure accuracy in your trucking invoices, follow these essential steps:
1. Utilize professional invoice software:
Investing in a reputable invoice software system can streamline your invoicing process and greatly reduce the chances of errors. Look for a program that offers features specifically designed for trucking invoices.
2. Automate the invoicing process:
An excellent software system will enable you to automate various aspects of invoicing. For instance, it can help you identify loads that still need to be invoiced, allowing you to generate detailed and professional invoices with just a few clicks.
3. Double-check all details:
Before sending out an invoice, make sure to meticulously review all the information entered. Verify that all load details, such as pick-up and delivery locations, dates, and times, are accurate. Additionally, confirm that any specific charges or fees, such as lumper fees or additional stop-offs, are correctly included.
Learn more about starting a trucking business.