We have seen in previous posts how Factoring of Accounts Receivable can help many different types of businesses. From the service industry to the distribution sector, Factoring can make a big difference for almost any company. But what about the specific case of trucking companies? Here are four benefits of Receivables Factoring for these organizations.
Manage Your Cash Flow
Cash flow is a key aspect of any business, and this is particularly true for trucking companies. Just consider this: 30 to 90 days can pass between the delivery of the goods and the moment a trucking company is able to collect payments. Expenses don’t stop during that time: fuel, insurance, repairs, and other resources must still be covered.
Factoring helps solve this problem by giving transportation companies easy access to the cash tied up in their outstanding invoices. When you Factor your accounts receivable, you sell them to a company called a Factor that pays you immediately and takes care of the collection process in exchange for a small fee.
Easy to Get
Securing a conventional loan is a long process that hinges on the creditworthiness of your company. Trying to take out a bank loan without having a long, solid credit history can be next to impossible. Luckily, Factoring is a viable alternative for most companies, including new carriers, because the approval process is less stringent. After all, you are not taking out a loan, but selling your own outstanding invoices.
Manage Your Time
Not only does Factoring help you with a fast infusion of cash, but it also helps you free up time you can use to fine-tune the operation of your trucking company. When you Factor your accounts receivable you don’t have to worry about the collection process and all the related paperwork and bookkeeping. This way you can work on getting more loads to continue growing your business.
Flexible
Factoring of Accounts Receivable gives trucking companies the flexibility they need to thrive in a competitive market. With fast approval times and easy-to-increase limits, Factoring is a financing solution that can grow with your business. Additionally, when you choose ACS Factors you get even more benefits that include:
- Only hours to approve
- No deposit or application fees
- Month-to-month deals
- No early termination fees
- No minimum funding
- No fee if you don’t factor
- Access to owner/CEO
- ACS takes the risk if your customer cannot pay
Learn More About Factoring of Accounts Receivable
Interested in learning more about Factoring? These previous posts are a good place to start.
- Ask these 4 questions to find the right Factoring company
- Some frequently asked questions about Factoring
- 5 Factoring terms every small business owner should know
- How to deal with slow-paying clients
At ACS Factors our mission is to advance the capital you need to move your business forward. We are a Factoring company located in Upland, California, and have many clients in the distribution and logistics corridor which includes Ontario, Riverside, Fontana, Jurupa Valley, and Moreno Valley.
Reach out today by email (info@acsfactors.com), telephone (909-949-5599), or through our social media accounts on Facebook, Twitter, and YouTube to learn more about the benefits of turning your invoices into immediate cash!
