A low influx of revenue from invoice payments that lead to tight cash flow situations is nothing new to truckers and fleet owners. The causes for tight cash flow situations can be many, but most can be traced to staggered payment schedules. Fortunately, fleet owners and independent truckers alike can free up the capital from unpaid invoices to maintain a strong and steady cash flow.
Staggered Payments Lead To A Tight Cash Flow
It is virtually impossible to avoid standard business practices and retain customers. If fleets and truckers demand upfront payments from their customers, business will dry up very quickly. However, the standard practice of issuing invoices with payment schedules of 30 days or longer can make for a tight cash flow. Staggered payments mean fleets and drivers are waiting at least a month to see revenue which goes toward covering their overhead. Between fuel, maintenance, payroll, insurance, and more, the tight cash flow often forces professionals in the trucking industry to take out short term loans to cover expenses. However, there is a method of improving cash flow and getting access to immediate capital, while still offering customers staggered payment schedules.
Free Up Capital From Unpaid Trucking Invoices
To remove tight cash flow situations and get access to revenue, fleets and independent drivers are factoring trucking invoices. On the back end of business, factoring converts unpaid trucking invoices to cash within 24 hours. This improves cash flow, and completely removes the need to go into debt with bank loans in order to meet overhead. On the customer-facing side of things, nothing changes. Customers still have a window of 30 days or longer to make payments. The difference is that fleets and drivers are not responsible for hunting down those payments. Back end accounting becomes more streamlined due to freed up resources and a greater influx of capital. By factoring trucking invoices, fleets and drivers are not only able to improve cash flow and meet overhead expenses, but are able to accumulate growth capital in short order.
Get Rid Of Tight Cash Flow Today
Express Freight Finance is a nationwide leader in factoring services for the trucking industry. We provide debt-free working capital solutions for owner operators, and trucking fleets of all sizes. We can convert unpaid invoices to working capital within 24 hours, so you can get out from under a tight cash flow, without having to take out loans. Contact our team today to get started.