Freight factoring is designed to convert invoices into immediate cash to provide cash flow you can count on. Start-up or established, as long as your transportation company is operational, working capital is needed each and every day your equipment is hauling freight.
The more invoices generated, the more access to working capital The more your business grows, the more invoices your trucking company generates Freight factoring was designed exclusively for the trucking industry – providing the ability to increase credit limits as your business grows is a major benefit of this unique funding option. But growth takes capital, and that is what holds back many trucking companies from taking on new customers, opening new lanes and expanding fleet operations.
No matter whether your company is big or small, new or established, growing or transitioning, qualification is fast, simple and easy.įlexible credit limits: “If you’re not growing, you’re dying” – it’s the mantra that drives a majority of trucking companies to grow and expand operations. As this describes a hefty sector of the transportation industry from start-ups to large established fleets, non-bank funding is the best option for these businesses.īecause freight factoring is the purchasing of your company’s invoice receivables at a discount, qualification is not based on the financial status of your trucking company, it is based on the credit worthiness of your customers. No bank will consider lending to a company with no credit history, bad credit history or has a history of poor financial performance. There are many features and benefits that justify the use of freight factoring to improve cash flow – easy qualification and flexible credit limits are just a few of the features that most benefit new and growing trucking companies.Įasy qualification: New start-ups have no credit history and growing fleets may have unbalanced financial ratios that frighten off conventional lenders. The ability to effectively manage regular and reliable cash flow has a substantial impact on the success or failure of any trucking company, whether it is a new start-up or an established fleet. Only start-ups and small trucking companies benefit from freight factoringįreight transportation is a capital intense industry that demands continuous access to working capital to support fleet operations. Following is a list of the most misunderstood myths that still confuse some people who remain unaware of the true nature of invoice factoring. Of all the industries, trucking has benefitted the most – freight factoring has been developed as a specialized form of invoice factoring designed to meet the exact needs of a capital intense industry. This is quickly changing as today’s business owners are discovering the refined features and benefits of this powerful financial strategy. Yet, despite its ancient history, invoice factoring is poorly understood by many and clouded in myth.
In fact, it has supported numerous industries for thousands of years before trucks were even imagined. Invoice factoring has been part of the trucking industry from day one.
0 kommentar(er)
