Factoring freight bills can benefit trucking companies in a variety of ways. By providing immediate working capital for outstanding freight bills, freight factoring helps trucking companies grow and remain successful. There are a variety of reason to start factoring freight and all types of trucking companies are eligible to receive the benefits. Look for these signs to know if your trucking company is ready to start factoring freight bills:
1. Seasonal Downturn
During the winter many trucking companies enjoy significantly less business and can struggle to cover the expenses of keeping their business running. Factoring freight bills can help in times of financial trouble because trucking companies can quickly get the working capital to cover their expenses so business never has to stop.
2. Need to Expand
In contrast, when times are going well and it your trucking company is ready to expand and add to its fleet, factoring freight bills can be a great advantage. By getting the necessary cash up front, trucking companies can move forward with their expansion without any hesitation. Factoring freight makes expanding your trucking company easier and helps a thriving trucking company grow even faster.
3. Slow Paying Customers
Instead of holding onto outstanding freight bills and waiting for customers to pay, send the freight bills to a transportation factoring company and enjoy immediate funding. Factoring freight frees trucking companies from being dependent on slow paying customers. By providing fast funding, freight factors help trucking companies keep their business running smoothly.
4. Compete Against Bigger Carriers
As a small trucking company it can be difficult to fund larger loads because you don’t have the necessary cash flow. Yet, factoring freight bills is a solution for any small trucking company looking to fund a large load. By fronting the value of the freight bill, transportation factoring companies allow trucking companies to haul larger, more lucrative loads and compete against the bigger carriers.
5. Financial Freedom
Receiving funding for factoring freight bills is easy and the application process is quick and without hassle. Taking out a traditional bank loan can be difficult for trucking companies with little or poor credit and can still take weeks to months to get approved. Trucking companies that are factoring freight will know if they are approved within 3 to 5 business days and will receive funding immediately upon approval.