Small and medium sized fleet trucking companies can find themselves struggling to keep up with their own current liabilities due to the nature of their customers. The following are the benefits of freight factoring;
Cash flow is important in the transportation industry .Freight factoring assists the small and medium size trucking companies with cash flow they need to prosper and grow. In addition it helps to cover all your business expenses. This makes it easier for the company to meet some short term expenses like repairs and maintenance, fuel expenses, insurance etc. In short, a freight company has ready supply of working capital at hand, in order to settle and satisfy sundry expenses that will crop up for the trucking company. They understand the unique funding needs of each trucking business. The cash available depend on the invoices and the customer’s ability to pay. Freight factoring is generally used to manage cash flow emergencies. It’s more convenient because the process of seeking funds from the bank can be slow and frustrating.
Proper record keeping
It becomes easy to collect invoices as well as checking their status since most trucking factoring companies have an online system to handle that. It’s also easy to process them. In the long-run it saves time for the trucking company. They ensure that the trucking company gets paid within hours of pick-up and delivery.
They have access to credit information
Through freight factoring, it’s possible to access the current credit information for shippers and brokers. Further, they do the approvals very fast. It becomes possible for the trucking company to eliminate those who are not credit worth. This saves money for the company. They do free credit checks for new customers making it possible to identify who you can work with. You don’t have to worry about slow-paying customers. Truck factoring lets you look ahead to new opportunities.
Many lending institutions only work with a fixed amount. If clients meet the criteria required by the factoring company, the trucking company clients will increase.