The trucking industry employs millions of people and transports trillions of dollars of products every year. Many of us rely heavily on the work transportation companies provide. Without it, the convenience we have come to expect from product deliveries would create a big dent in production to businesses and people’s lives everywhere. Many people don’t know much about cash flow issues trucking companies often face despite making such a significant impact. Due to the importance of transporting goods, transportation companies need cash advances to cover expenses while waiting for invoice payments, called factoring. Factoring lets the trucking industry experience tons of benefits to help their companies grow and focus on what’s important. Read on for more on several different benefits of transportation factoring.
What is Invoice Factoring?
Factoring works differently from bank loans in many ways. Factoring companies buy invoices from your business, so you get your cash upfront right away. The factoring company, in turn, collects the invoice once paid by the client and claims a small percentage. Businesses starting with low cash flow use factoring companies to help pay for necessary expenditures while waiting for payments from their customers. Companies that also experience slow business during certain times of the year or companies dealing with exponential growth can also take advantage of factoring where an advance is needed.
You are not borrowing from anyone, taking out a loan, or putting yourself into any debt with factoring. Instead, you are simply given your own money in advance. Approval is given much quicker than a bank since there are no contracts or debts involved. This way, cash is given quickly, usually within a day or two, so you can take care of important expenses almost immediately.
Transportation Factoring Benefits
Due to the importance of the transportation industry, seeing the benefits to financing options such as factoring is pivotal to some trucking companies staying afloat. For those struggling with cash flow issues, review some of the benefits of transportation factoring to see how your trucking company can expand with the help of cash advances on your invoices!
Get Cash Immediately – Perhaps the greatest benefit to factoring is the immediate payout. Unlike traditional financing, where you fill out loan paperwork and await approval, factoring lets you get the cash you need in less than 24 hours.
Unlimited Capital – Instead of long-term financing, you can get cash advances as the need arrives, regardless of what it is, and you can do this as often as needed.
Protection from Bad Credit – Factoring allows companies, especially ones just starting out, to get the cash flow they need without any limitations based on bad credit or poor credit history. Non-recourse factoring also protects you from ruining your credit by covering the loss if your invoice cannot be paid and your company still gets paid.
More Flexibility – When you use a factoring company, your bookkeeping is covered so you can focus your time elsewhere! You won’t accrue any additional debt while using factoring, so you’re not adding onto your money going out while still getting your money quicker. With this flexibility, you can put more time back into your business or maintain a better work-life balance.
Simple Process – With factoring, you won’t have any hidden fees. Your factoring company will charge a flat fate for each invoice purchased but won’t charge you for applications, credit checks, or account management. Factoring tends to be straightforward, so you don’t have to worry about the logistics of a long-term contract.
Business Growth – Your immediate cash flow allows you to take on more loads than you otherwise could. Getting cash when you need it means adding on more drivers, purchasing new trucks, and paying for extra gas. Before you know it, your business will grow faster than you imagined possible without the help of cash advances.
Advanced Commercial Capital: Risk-Free Debt Factoring
With Advanced Commercial Capital, your trucking business assumes very few risks! Because of the unique nature of our non-recourse freight factoring service, there are no consequences to you if your clients fail to pay their invoices. We also do not require any long-term contracts and do not charge termination fees.
Additionally, we offer:
• Fast and flexible funding options, paying you in as little as one hour for your freight bills
• Strong relationships that foster your success
• And valuable benefits that save you both time and money, from our free fuel discount card program to free credit checks
These are just a few of the reasons why our clients choose to stay with us for the long haul.
Advanced Commercial Capital can help your trucking company succeed in ways you never thought were possible.
Talk with our team to learn more about how non-recourse debt factoring works by giving us a call at 855.465.4655 or reaching out via our online contact form. We look forward to offering you the easiest and smartest way to factor your freight bills and get the cash you need, without any surprises.