Sometimes in trucking, delivering a load is the easy part. The real struggle can be trying to collect unpaid freight invoices from your customer. Small trucking companies and owner-operators have enough on their plate with daily operations without having to act as a collection service as well.
Not only is the hassle of collecting unpaid invoices time-consuming, it’s costly as well. A delayed payment means a lack of cash to help your operation function. Too many unpaid invoices can make it hard to take on new work. We’ve compiled this list of tips to help make collecting invoices a bit easier so you can spend more time focused on new opportunities and less time trying to collect on work already done.
- Use an invoice tracking system– While not always free, the cost of an invoice tracking system can be a real value to your business. In addition to keeping track of the status of your issued invoices, these systems can also be set up to send out alerts if an invoice is overdue. When choosing a tracking system, be sure to consider how well it works on mobile devices, so you have easy access on the road.
- Implement a follow-up system – Having a consistent follow-up system for outstanding invoices can help avoid any confusion during collection. Once an invoice is overdue, have an email, letter or phone script ready to be sent out to the customer, notifying them about their need to pay. Having this system in place prior to needing it saves time in the collection process. Using an automated follow-up system can save even more time.
- Make paying easy – Make sure your invoice format is clean, neat and easy to understand. Clearly state the amount due, along with taxes, payment terms and options, and where to send the payment. Don’t let a confusing invoice layout serve as an excuse for late payment. Check out this link for a few free invoice templates.
- Offer incentives – As the saying goes, “you can catch more flies with honey than vinegar.” By providing customers with incentives or discounts for early payment, you can save yourself trouble while rewarding them for working with you. Early payment incentives can encourage faster payments from customers that would normally take their time, getting you the cash needed to keep business going.
- Don’t wait – One surefire way to ensure a late payment is by sending a late invoice. Your freight invoices should be issued as soon as a job is completed, and any issues should be addressed as soon as they arise. Procrastination on your end can influence procrastination from your customers.
Use Freight Invoice Factoring and Avoid the Headaches of Invoice Collection
If you’ve still had enough with invoice collection and our tips didn’t change your mind, freight invoice factoring may be the right choice for you. Let Factor Finders’ experienced staff connect you with the factoring company that best matches your business needs. You can get paid for your outstanding invoices within 24 hours, giving you the funds to move your business forwards. Fill out this form or give us a call to get started today!