Does Your Trucking Company Have Cash Flow Issues?
Do you feel that your trucking company is heading straight for a cliff? Do you feel that your trucking company is stuck in neutral? Or worse, do you have lots of slow paying freight bills and not a lot of cash in your business bank account?
Having slow paying clients is one of the worst problems that you can have. Especially when you own a cash hungry trucking company that needs money to pay for drivers, repairs, fuel and equipment. The biggest cash flow issue comes from your slow paying customers that can take up to 60 days to pay your freight bills.
If you are like most owners, your first reaction is to try and get a loan. However, a loan will only cure the temporary problem. What will happen in four months when the loan money has run out? You will be left exactly where you are standing now. Back to square one.
A better solution would be to eliminate the slow payments all together. Note that I did not say that we should eliminate the slow paying clients…..just the payments. What do you think you could do if all your freight bills were paid in two days instead of 30 or 60?
There is a solution that can help you accomplish that. Is called freight bill factoring and is one of the best financing tools for transportation companies. It eliminates the guesswork of having slow paying clients. Freight factoring provides you with immediate funding from the moment that you generate invoices from approved clients.
Factoring provides you with the necessary funding to meet your expenses. But more importantly, it provides you with the necessary funding to capture new opportunities and new contracts so that you can haul more loads and grow your company. With factoring, you no longer need to turn away opportunities just because they may be slow payers.
Qualifying for factoring is usually easy. The main requirement is to have freight bills from good credit worthy clients. Things such as financial statements or personal credit reports are seldom required, making the application process fast, easy and very user friendly.
Factoring is a cost effective solution that can help you drive your freight company to the next level.