Running a trucking company takes an incredible amount of financial, equipment, human, and logistic resources. For those fleet owners who are experiencing growing pains, or for owner-operators thinking about launching their own companies, securing adequate financing can be a challenge. Traditional lending institutions frequently have prohibitively high entry requirements which compromise business credit ratings and place large amounts of debt on the balance sheets. Fortunately, freight factoring offers a debt-free financing solution for growing your trucking business.
Eliminating Collection Services
When faced with a backlog of unpaid customer invoices, many trucking companies feel the need to bring on collection services. What they do not tell you is that collections can extend the waiting period on payment out to 50 days. That can cause an even greater strain on cash flow. By using factoring services, you can receive guaranteed payment on open invoices without having to resort to collection services, or sending out those awkward “friendly reminders” to customers, in the hope of receiving payment before the aging period closes.
Most trucking company owners are all too familiar with the process of taking out a loan, and then spending years paying down the interest, before being able to zero out the remaining balance. Traditional loans place debt on the books which can hinder chances of financing new equipment, expanding facilities, or securing additional funds. Unlike bank loans and similar financing programs, freight factoring does not place any debt on the balance sheets. At its heart, freight factoring is a simple sale on receivables, allowing trucking companies and drivers to get paid much faster than waiting on remittance from customer invoices with aging periods of 30 days or longer.
Get Started Now
If you would like to get debt-free financing from your open invoices, get in touch with the experts at Express Freight Finance. At Express Freight Finance, we will work with you directly to tailor a customized solution to fit your needs and help you reach your goals. Call our offices at 877-807-3006 for a no-obligation quote to get started.