14 Apr Get Paid Faster While Trucking & Access Your Freight Cash Flow
Get Paid Faster While Trucking & Access Your Freight Cash Flow
There’s no question that a thriving trucking business is essential to the success of the American economy. With fuel prices on the rise and regulations constantly changing, it can be difficult for truckers to stay ahead of the curve. One of the strongest components of driving your trucking company’s growth is to have easy and quick access to cash flow. That’s where invoice factoring comes in.
Every business, no matter how big or small, accesses cash flow in some manner to pay bills and meet payroll. One of the best ways trucking companies access cash is by using invoice factoring. By using invoice factoring, you can get immediate funding for your invoices, which can help you keep your business running smoothly during times of flux. So if you’re looking for a way to improve your cash flow and grow your trucking business, invoice factoring may be just what you need.
How Invoice Factoring Makes Access to Cash Flow Easier
There are two types of invoice factoring: freight invoice factoring and brokerage factoring. There are also two subtypes of factoring: recourse factoring and non-recourse factoring. Invoice factoring is a process where financial services companies purchase invoices at discounted rates resulting in immediate access to funds. The majority of the time you will be able to access virtually all of your money within 24 hours vs waiting 30 to 60 days for your accounts receivables to be paid by your vendors.
Usually, when your bank looks at your balance sheet it does not look favorably on invoices that are not paid to you within 30 days. It can be even worse when your receivables are past due, causing your bank to require access to some sort of collateral in order to give you credit or access to cash for your business.
Invoice factoring can provide access to capital without requiring collateral or access to credit. Because trucking companies operate with delayed payment terms longer than most industries, invoice factoring can help make your access to cash flow much easier than dealing with banks that may not understand the unique business needs of the trucking industry. Once you have access to your capital you can use it for whatever needs your company has at the time such as payroll, equipment maintenance or even growing your fleet by buying newer trucks.
OTR Capital is an industry-leading company that provides same-day payment for invoices with BOLT with complete back-office support. They offer both recourse and nonrecourse programs to carriers, brokers & suppliers alike through their invoice factoring system which streamlines the billing process so you can focus on making money instead of worrying about getting paid!