Cash flow has become the main focus for trucking fleets of every size. Especially now, when trucking companies need to maximize their access to working capital, speeding up cash flow can make a huge difference long-term financial health.
Shippers and Brokers
Apart from direct clients, trucking companies get revenue from jobs with shippers and brokers. However, even after jobs are completed, shippers and brokers can take a long time to make payments on their invoices. A lot of the delay comes down to the standard business practice of issuing invoices with 30, 60, and even 90-day payment schedules. Staggering payments for a month or longer can place a large strain on cash flow, making it harder for trucking fleets to cover overhead, make payroll, or keep operations rolling in general. If there was a way for trucking companies to speed up cash flow, they could maintain a source of working capital instead of playing the waiting game.
Speeding Up Cash Flow
There really is no way to make shippers and brokers pay faster. They operate on their own schedules and generally adhere to the staggered payment schedules on the invoices they receive. To avoid the wait and speed up cash flow, trucking fleets use freight factoring. The method is simple – once an invoice is generated, a trucking company can submit that invoice for factoring. Once received and approved, the invoice is converted to cash and funds are made available within 24 hours. This allows trucking companies to eliminate long waiting periods between payments and boost cash flow so they have ample working capital on-hand. Additionally, freight factoring is not classified as a loan, so fleets can preserve their credit ratings and avoid debt.
Speed Up Your Cash Flow Today
Express Freight Finance offers fast and comprehensive factoring services to trucking companies throughout the United States. At a time when working capital is essential to business success, eliminating waiting times caused by staggered payment schedules can boost finances for your trucking company. If you want to speed up cash flow for your fleet, contact the team at Express Freight Finance today.