12 Apr The Best Factoring Companies for Trucking: How to Find the Right One for Your Business
If you’re seeking the best factoring company for your trucking business this guide will help identify what to look for from the best factoring companies. There are many reasons trucking companies look to partner with a factoring provider. Having easy access to capital without waiting on paid invoices, resolving outstanding invoices and reducing the burden of chasing payments from slow paying clients are just a few.
How can a factoring company help your business with these cash flow issues?
- Consistent and Reliable Cash Flow
- This is one of the biggest benefits that good factoring companies offer, especially if you run an independent trucking business. Factoring companies provide reliable cash flow allowing you to focus on growing your business and delivering loads on time. Cash flow management is vital to running a successful operation, and partnering with the right factoring solution will ensure you have the funds to continue operating.
- Experienced Back Office Support
- Reputation is everything when it comes to building relationships with customers in the transportation space. A factoring solution ensures your customers are billed on time and correctly, helping you build a lasting relationship. Waiting 30 or more days for invoice payments from your customers can also put an unnecessary burden on your ability to operate. Instead of waiting on payment, the right factoring solution pays you instantly and handles keeping track of all outstanding payments. Not only will this help your cash flow, but it’ll also make sure that your customers see you as a reliable and professional carrier who they can trust with future shipments.
- Protection when you need it
- If you’re like most trucking company owners out there, then you know all too well how difficult it can be to get paid on time; especially when dealing with slow payers or clients who never seem to keep up with scheduled payments. Not only will a factoring solution ensure you are working with quality, credit worthy, customers, but also protect you if they are unable to pay on an invoice. The best factoring companies provide this solution so you don’t have to spend valuable resources keeping track of what hasn’t been paid, and even chasing down customers for payment.
Additionally, relief from managing your back office and invoicing will help you focus on actually running your company. The time, money and human capital spent on invoicing issues can instead be focused on maximizing your cash flow so you can better manage business expenses. Your company will also have immediate access to money to grow your business and expand operations.
Choosing The Best Trucking Invoice Factoring Company
How exactly do you find the best fit for your business? What makes one factoring company different from another and what should you be looking for when choosing a factoring provider?
First things first – it’s always best to take your time when making important decisions that will impact the future of your business. Make sure you identify your must have solutions before making a decision. Factoring partnerships are designed to be long-lasting and will play an integral part of your business for years to come. Considering the number of options available, knowing what you are looking for will set you up for success when choosing a factoring partner.
Your primary focus should be finding a company who offers the right program to fit your business. Many companies are not fully aware of the various types of factoring programs, check out our Non-Recourse vs. Recourse post to learn more. After all, if you get stuck with a bad company it’s going to be much more difficult to grow your business. Other important factors to pay attention to include the discount rates they charge, the lower the rate, the less back end services they provide. Keep an eye out for hidden fees/expenses as well, these can hide the true cost of the service.
You aren’t alone in the decision either, take the time to read online reviews from other carriers who have worked with them in the past. This can give you an idea on what they’re like before deciding whether or not they’re the right choice for your business.
Keep in mind that factoring is about getting paid for your invoices without having to jump through hoops. You’ll want to find a company who will make it easy on you and offer some benefits too.
OTR Capital is an industry-leading company that provides same day payment for invoices with complete back office support. They offer both recourse and non-recourse 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!