Invoice backlogs have always existed in the trucking industry. Since the standard business practice is to issue invoices to customers with payment windows of 30 days or longer, the staggered payments can cause open accounts to pile up. Fortunately, there is a way to get rid of invoice backlogs, and prevent them from accumulating every again.
Staggered Payment Schedules Make Invoice Backlogs Unavoidable
For truckers and fleets, it may seem like invoice backlogs are impossible to escape. The staggered payment schedule means revenue comes in a bit at a time. If you are in the trucking industry, this can cause major headaches. Keeping track of various customer accounts, when the payments are due, and which ones are late can take up a lot of your time. Calling customers and sending out “friendly reminders” takes up a lot of unnecessary resources. On top of it, there is the matter of sending overdue invoices to collection services, which draws out the payment schedule even further. A driver or fleet can make a tin of sales, but it means nothing if all that exists are huge invoice backlogs with no payments actually coming into the business.
Wiping The Slate
Freight factoring services allow truckers and fleets to completely get rid of invoice backlogs. This frees up time and other resources that would go to trying to get payments. Essentially, freight factoring takes all unpaid accounts from invoice backlogs and turns them into cash within 24 hours. No hassle. No phone calls to customers. No collection services. Just a simple submission of invoices, and the burden of managing accounts receivable is off your shoulders.
Say Good-bye To Loans
As invoice backlogs grow, cash flow gets tight. This causes many truckers and fleets to turn to loans and cash advances to get the capital thy need, simply to cover overhead and additional expenses. High interest rates and debt from loans and other financing can leave drivers and fleets in worse shape. Freight factoring removes debt from the equation. Invoice backlogs are submitted, are converted to working capital, and give truckers and fleets a healthy cash flow. Beyond that, fright factoring can be used as deliveries are made, to maintain an influx of revenue without giving invoice backlogs a chance to pile up ever again.
Get Rid Of You Accounting Headache
Express Freight Finance is a leader in factoring services for the trucking industry. We can help you get rid of your invoice backlog, regardless of size. Contact our offices today to learn more.