If you’re having problems with funding payroll, you aren’t alone. If you’re an owner or general manager in the transportation industry, you know just how tough it can be to cover the margins with your expenses. And nowhere does this become more apparent than when your working capital is trapped in invoices that you have to wait on when dealing with your customers. So what happens when your capital is tied up and you don’t have an apparent option for paying your workers? The answer is freight bill factoring, which can clear you over the hump.
Freight factoring (or truck factoring as it is sometimes known in the industry) can get needed capital for payroll and other needs within hours by turning those freight bills into cash while reducing the cost and hassle of bill collection. Another advantage of working with a freight factoring company is that they often offer a variety of services that can make the entire task of collections easier, as well as other services you might not have expected:
Software: Freight factoring companies often provide software to help make your financial tasks much easier
Fuel cards: These not only often provide fuel discounts but help you manage fuel expenses
Accounting services: Freight factoring companies will often automate and manage your invoicing, processing, postage and collection, saving you time and money
So how does it work? Simple. You do what you were already doing — delivering goods — and submit your paperwork to your freight factoring company. They’ll get you the funds within hours, and sometimes even handle all the processing and collecting on your receivables. Then it’s just a matter of waiting for your customers to pay the balance to the freight factoring company, who will take out their portion of the balance as well as fees for covering your expenses!