The trucking industry is starting to gain a firm foothold in the economy, despite the challenges posed by pandemic restrictions, high unemployment in other sectors, and new legislation. In order for trucking companies and owner-operators to keep up their momentum, they cannot be held back by long waiting periods between payments from brokers and shippers.
Waiting for Payments Hinders Success
Despite the much faster rate at which the world does business, freight invoices are still issued with staggered payment schedules of 30, 60, and even 90 days. Before the pandemic, staggered payment schedules would place a strain on cash flow. Now, as the trucking industry is picking up speed, gaps in revenue of 30 days or longer can force operations to grind to a halt. With traditional lenders tightening their requirements for all industries, including trucking, loans are going to be out of reach. At the same time, trucking companies do not need to take on unnecessary debt from loans in the current economic climate. There needs to be a way to eliminate long waiting periods to get faster access to revenue.
Eliminate the Wait
Freight factoring eliminates staggered payment schedules and converts unpaid receivables to cash within 24 hours. Instead of waiting a month or longer to receive payments from brokers and shippers, trucking companies and owner-operators can get quick access to the revenue they are owed. What’s more, freight factoring is not a loan, so credit scores are preserved and no debt is placed on the books. Factoring is simple, fast, transparent, and can be used to unlock revenue tied up in receivables that typically sit for 30 days or more before your clients make payments. By using freight factoring trucking companies also eliminate the need to perform collections, because receivables never get a chance to “age out” due to lack of payments.
At Express Freight Finance, we provide fast and comprehensive factoring services for trucking companies and owner-operators, nationwide. We also provide a suite of tools you can use 24/7/365 to track payments and manage your account. Contact Express Freight Finance today to get started.