If you own a trucking company, odds are that you and your staff understand logistics and supply chains like no other organization short of the military. However, your accounts receivable department may seem like a whole other world by comparison. Tracking unsettled client accounts, sending out reminders, sending outstanding receivables to collections – there is a lot to manage. By implementing something like freight load factoring, your accounts receivable department can free up a lot of resources so you can focus on running and growing your trucking company.
Stop Playing the Waiting Game
In the trucking industry, it isn’t unusual for receivables to be issued with staggered payment schedules ranging from 30 days up to 90 days. This has been a standard business practice for a very long time. While waiting for payment on receivables, trucking companies need to cover overhead expenses, make payroll, and handle unplanned costs like maintenance. What is considered a standard practice can end up placing a huge strain on finances and even reversing cash flow. Freight load factoring eliminates long payment schedules by converting receivables to cash within 24 hours. Freight load factoring allows trucking companies to stop waiting for payments by automating their accounts receivable departments.
Say Goodbye to Collections
It is not uncommon for unsettled customer accounts to lapse and go into collections. Your accounts receivable department tries to send out friendly reminders about the balance owed, but there’s still no response. At this point, there is no course of action but to perform a collection. From the time our accounts receivable department initiates a collection, it can take weeks to receive the amount owed. So in the best case scenario, a trucking company with receivables on a 30 day payment schedule would have to add a few more weeks onto that to see revenue from an unsettled account, which can cause big cash flow issues. Because freight load factoring is non-recourse and has such fast turnaround times, there is no need for collections. Freight load factoring automates accounts receivable so you no longer have to send out those “friendly reminders” or perform collections because receivables are converted to cash within 24 hours.
Express Freight Finance is a national leader in freight load factoring services. Contact our offices today to find out how we can help automate your accounts receivable department and improve your cash flow.