Every time a fleet or an independent trucker takes on a client, it becomes a gamble. Far too often we hear stories about customers who are late on payments for open invoices, those who keep asking for extensions when hounded for payment, or those who skip out on payment completely. Most of the time, these risky customers do not have good business credit, and the resulting non-payment places a strain on cash flow for truckers.
How Good Business Credit Is Tied To Payments
For many in the trucking industry, finding out if your customers have good business credit is an impossibility. Most find out, for good or ill, if customers have good business credit usually happens well after the invoice is delivered. Then the wait begins, which can be anywhere from 30 days up to 90 days, depending on the payment schedule. That is a long time to wait in order to discover your customers cannot make payments. With a regularly staggered payment schedule, people in the trucking industry already experience a delicate cash flow. Discovering your customers do not have good credit and cannot make payments, only tightens that strain. Unfortunately, using a collection service for delinquent payments will push that payment schedule back even further by 45 days. However, there is a way to check if your customers have good business credit.
Checking Your Customers’ Business Credit Ratings?
If fleet owners and independent drivers want to see if their customers are “creditworthy,” freight factoring can help. Freight factoring can kill two birds with one stone. First, factoring services take open invoices and turn them into cash within 24 hours. This eliminates payment schedules completely. Second, factoring services can give fleet owners and drivers a heads up on the business credit of their customers. That service can help people in the trucking business make decisions on which shipments to take well in advance, to avoid delinquent customer accounts.
Get The Comprehensive Factoring Services You Need
Express Freight Finance not only provides fast and efficient factoring services, but we also can let you know about the creditworthiness of your customers. If you would like to learn more about our factoring services and all of the benefits that come with them, contact Express Freight Finance today.