What is freight factoring, and what are the benefits?

Let’s face it, as a business, you want to be paid as quickly as possible for the work you do. For many trucking companies, invoice factoring can be crucial to maintaining positive cash flow, especially if you have to wait a month or longer to collect on larger invoices.

Your business could often benefit from collecting the money sooner to pay for countless expenses like fuel, insurance, bills, payroll, payments on vehicles or equipment, and more. While researching options for getting paid faster, I found this factoring company, TBS Freight Factoring, that provides SAME DAY cash for invoices.

Seems like this would be a great option for trucking companies since they can:

  • Maximize cash flow – businesses that depend on clients to pay invoices often have to wait for payment to come through. Even if your invoices are net 30 or net 60 days, that’s still 30 to 60 days that you are waiting for your client to pay the invoice. With factoring, you could get the payment immediately and won’t have to wait to get the funds into your account.
  • Simplify the process – Hand-in-hand with the point above, waiting to get paid is never convenient for anyone. Trying to track down invoices, remind clients to pay, and waiting to get it processed is time-consuming. Why not let the invoice factoring company handle it, while you move on to what you do best…delivering for your clients.
  • Credit checks done for you – You never want to do business with a client who can’t pay their bill. Companies will often perform credit checks on your clients beforehand to determine whether or not you should consider loading them.

In an industry that relies on prompt payment, invoice factoring could be a lifesaver for businesses that need to maintain a steady cash flow. There’s nothing worse than waiting on an unpaid invoice, so why not take that stress and strain out of the picture and get paid right away?

When researching this topic for my trucking-company readers, I was surprised that more industries don’t offer this. It seems that any industry that has purchase orders and large invoices could benefit from collecting the money earlier and leaving an invoice factoring company to collect the payment from the client.

Fortunately for carriers, this service exists and could be the financial solution that helps keep the company flush with cash for the inevitable business expenses that every company faces.

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