For many fleets and independent drivers, having access to working capital is the key to success. However, since the majority of working capital comes from customer orders, having unsettled accounts can tie up money which can be used for growth, equipment upgrades, or simply covering fuel expenses. The good news is that there are ways to free up capital from unsettled accounts, instead of waiting on payments from customers.
Collection Services Are Not The Answer
Usually when the topic of unsettled accounts is brought up, fleet owners immediately think of using collection services. Because collection services add another layer to the process, and those service agencies also need payment, freeing up working capital from delinquent accounts can add even more time onto the payment schedule. Second, collection services do not work on all accounts. Delinquent accounts comprise a small percentage of all unsettled accounts. Most are simply awaiting payments on aging periods of anywhere between 30 and 120 days. Fortunately, there is a way to take care of unsettled accounts, and prevent situations where unpaid balances become delinquent.
Financing Unsettled Accounts
Invoice factoring provides a blanket solution for unpaid accounts. Fleet owners and independent drivers can do away with the waiting period, and convert unpaid invoices to working capital. Moving forward, truckers can also follow the same process with invoices as they are generated. By using freight factoring services, accounting can stay up to date, cash flow will remain healthy, and working capital will be available to cover basic costs, like payroll and overhead, plus there will be capital available for growth and expansion. Finally, invoice factoring completely eliminates the need to send out reminders and chase down customers for payments. Because freight factoring services provide a centralized source of working capital, drivers and fleet owners no longer have to waste time and energy keeping track of unsettled accounts and when payments are due. The invoices are simply submitted and turned into capital within 24 hours.
Free Up Accounts And Get The Working Capital You Need
Express Freight Finance has decades of experience working with truckers and fleet owners. We specialize in getting people the working capital they need by providing invoice factoring services. We offer a quick turnaround on all submitted invoices, and provide the working capital people need to keep operations moving, and to grow successfully. Contact our offices today to learn more.