Operating a small trucking company with one or two trucks or a fleet of several trailers working cross-country is always a difficult industry for success. Getting paid on time is essential if you are to attract high-quality drivers who work efficiently and effectively and stay within the law. Factoring companies for trucking can boost your cash flow, but will you want your customers to know?
Enjoy Working Capital from Your Invoices
Rather than waiting for 60, 90 days or more for companies to pay you for shipping their goods cross-country or locally, you can use specialized factoring companies for trucking who understand the demands and financial difficulties of the trucking industry.
Some trucking companies will expect to be paid late because the goods you are transporting are not likely to be paid for until the goods you have delivered are sent to a warehouse or to a retail outlet before the goods can be sold to the customer. It is for this reason that you may be paid late.
You may be worried that when your customers find out that you are using factoring companies for trucking, they may believe that your company is in financial difficulty.
What usually happens is that the company you are dealing with understands about factoring companies and will not be worried because they understand the advantages of turning your invoices into quick cash flow.
Companies that understand about invoice factoring know that this is a business arrangement and ensures that your cash flow is improved.
Talk with your professional factoring company and decide how you are going to approach the matter with the companies whose invoices you are going to sell. The factoring company will receive the invoice from you and collect payment directly from your customer. You may wish to stay in control of the communication process so that your customers are not put out and understand that you still form a large part of the process.