Did you know that your company can use freight factoring from the first day it becomes a business? It is true, because freight factoring, also known as accounts receivable financing, relies on your customer’s creditworthiness rather than your company’s history.
When should you consider freight factoring?
Here are several critical scenarios that suggest you should look at freight factoring:
Cash flow issues
If you cash cannot keep up with the demands on it, you won’t be able to fund expenses like buying fuel or paying insurance to meet customer demand. Freight factoring can advance more than 80 percent on each invoice, frequently within 24-48 hours to help build up cash reserves to add employees, buy equipment or cover other expenses.
Waiting so long
If you provide services on credit, you know that the wait can be 30, 60, or 90 days before payment is received. Freight factoring gives you same-day funding and handles the collections work.
You want to grow quickly
Factoring allows you the flexibility for quick growth, and no waiting. Without shopping for traditional bank loans, you can use freight factoring almost instantly and there is no limit to your funding. Remember also that freight factoring is not a loan, and your company does not add debt.
Your company is new
Lack of a business history and cash flow statements will make it hard for you to qualify for traditional lending sources. But you can use factoring since it is based on your client’s credit histories and not your own.
Minimal resources
Collections take time and manpower, which can be a problem for small businesses. Freight factoring takes on that task and assigns collection specialists that will follow up until invoices are paid in full. You spend your time growing your business and serving customers.
No matter how long your company has been in business or its size, freight factoring can be a viable option for getting the financing that you need for many purposes. Further, it is a debt-free and cost-effective way to fund your company and its growth.
We are pleased to announce the opening of EXPRESS FREIGHT FINANCE, an independent factoring company…
[et_pb_section admin_label="Section" fullwidth="off" specialty="off"][et_pb_row admin_label="Blog Post Row" make_fullwidth="off" use_custom_width="off" width_unit="on" use_custom_gutter="off" padding_mobile="off" allow_player_pause="off" parallax="off" parallax_method="off"…
Popular driving service company Uber recently announced its bid to launch a fleet of self-driving…
Running a trucking company takes an incredible amount of financial, equipment, human, and logistic resources.…
Darrell and Erica Beverly are the owners of Beverly Transport, a growing Mobile, AL-based steel…
Statistically, drivers have more health issues than almost any other group of professionals, and even…