Freight Receivables Financing: Staying Ahead Of Payment Schedules

Fleet owners rely on timely customer payments to maintain overhead and grow their operations. Unfortunately, waiting 30 days or longer can place a big strain on internal finances, often leaving fleet owners to look elsewhere for short-term financing. Instead of taking on debt through bank loans, or getting caught in the red tape of merchant cash advances, fleet owners are using freight receivables financing.

What Is Freight Receivables Financing?

Freight receivables financing is the fastest way to clear out unpaid invoices in exchange for cash, without waiting on payment schedules. Most trucking fleets issue invoices with payment schedules of 30 days or longer. Those invoices are eligible for freight receivables financing. When the invoices are submitted, they are converted to cash within 24 hours, regardless of the amount owed. Trucking fleets can use freight receivables financing for individual invoices, or large batches to take the burden off of accounting and get the books up to date.

Freight Receivables Financing Is Not A Loan

Unlike loans, freight receivables financing does not force trucking fleets to take on debt, nor does it negatively impact business credit ratings. Freight receivables financing is a simple exchange of invoices for cash, so there is no collateral involved and no fixed payments schedules. Also, receivables financing is a non-recourse program. Once invoices are submitted, fleets get the capital and the burden of hunting down payments from customers is removed. By extension, this also means that the need to perform collections are also removed, as even backdated unpaid invoices can be submitted for cash.

Taking the Burden Off Accounting

When a fleet finances receivables, the time and other resources that are used to track payments schedules for multiple customer accounts are freed up. Accounting can be re-positioned to focus planning for growth, instead of trying to chase every outstanding dollar owed by customers. Financing receivables streamlines accounting, allows fleets to meet overhead expenses, and accrue growth capital quickly.

Get Started Today

If you are a trucking fleet owner, and you are trying to fix or prevent cash flow issues, and loans are not a desired solution, contact the experts at Express Freight Finance. We can convert your open invoices to cash within 24 hours, and provide a host of tools to help manage receivables and ensure a steady cash flow. With deep roots in the trucking industry, the team at Express Freight Finance understands the needs of fleet owners, and will help design customer solutions to help you reach your goals.