In the trucking industry, upgrading equipment is necessary. Not only does upgrading equipment keep current operations running smoothly, major overhauls allow long trips to be handled more efficiently, which can cut down on expenses in the long run. However, finding the capital necessary to upgrade equipment can be challenging, to say the least.
Equipment Financing Programs
There are a number of equipment financing programs available, but not many understand the needs of smaller fleet owners or independent owner-operators. Equipment financing usually locks truckers into long contracts with unnecessary charges tacked on. Additionally, equipment financing agreements are usually for large pieces, such as entire cabs, when some truckers only need to upgrade one aspect of their vehicles. In the case of upgrading equipment, it frequently makes more sense to purchase what is needed, rather than getting trapped in long-term agreements.
Using Invoices For Upgrading Equipment
Instead of taking out loans or compromising credit ratings with equipment financing programs, truckers and fleet owners are upgrading equipment by getting caught up on payments from customers past and present. By using freight bill financing services on open customer accounts, truckers and fleet owners are converting invoices to working capital immediately, instead of waiting on payments aged out to 30 days or longer. This provides working capital for operations, growth, as well as the purchasing power for upgrading equipment. Using freight bill financing gives truckers and fleet owners the capital they need to upgrade incrementally, or to make large purchases on entire equipment overhauls. What’s more, freight bill financing turns open invoices into cash within 24 hours of submitting a claim, so truckers will find themselves flush with working capital, instead of waiting on payment from customers.
How Does Freight Bill Financing Work?
When you have open customer accounts, the waiting time on payments can place a strain on cash flow and prevent you from upgrading equipment for your truck or fleet. Freight bill financing eliminates both the strain and waiting period by converting invoices to working capital within 24 hours. Freight bill financing also provides a centralized source of working capital, so you no longer have to chase after multiple customer accounts for payments.
Get The Working Capital You Need To Upgrade Equipment
Whether you are looking to upgrade the interior of your cab, or completely overhaul your entire fleet, Express Freight Finance can provide the working capital you need with our invoice financing program. We also have fuel cards and other programs, which offer discounts on trucking equipment. Contact our offices to learn more.