Invoice financing has been used by industries across the United States to help businesses maintain a healthy cash flow and build up growth capital. Since those other industries are dependent upon fleets and independent drivers to move their goods, there is every reason to take advantage of invoice factoring to keep shipments moving.
The Trucking Industry Without Invoice Financing
Right now, trucking is a $726 billion industry. There is no aspect of the US economy that does not depending on truckers moving goods and raw materials from one place to another. The logistics involved are not cheap to manage and implement. Because the invoices issued to customers have payment schedules of 30 days or longer, the staggered revenue can cause a strain on cash flow. As payments are delayed, the strain on cash flow can cause operations to slow down and eventually grind to a halt. It is not unusual to see trucking fleets fold due to lack of payments on open invoices. Staggered payments mean the trucking industry often does not have the capital to sustain payroll, advertising, fuel, maintenance, and more, without digging deep into their own cash reserves.
Invoice Financing Turns Everything Around
When fleet owners and independent drivers use invoice financing, they are able to remove the burden of staggered payment schedules. Invoice financing converts submitted BOLs to cash within 24 hours. The responsibility of tracking down payments from multiple customers is lifted, along with the need to perform collections. Fleets and drivers can focus on their business, instead of chasing down outstanding payments, or wondering if they have enough capital on hand to meet overhead costs.
Invoice Financing Is Debt Free
Invoice financing is not a loan. When cash flow is tight, it is not uncommon to see truckers and fleet owners take out short term loans to cover the gaps. Unfortunately, those loans place debt on the books, so when the money runs out, the cash flow issues are even worse. Invoice financing provides a healthy cash flow, without any of the debt and other restrictions of traditional bank loans.
Get Invoice Financing From The Industry Leaders
Express Freight Finance is run by people with deep roots in the trucking industry. We work with independent drivers and fleets of all sizes to create customized working capital solutions with our invoice financing program. Contact our offices today to get started.