In 2018’s uncertain economy, invoice factoring is becoming a mainstream method of procuring funds quickly, conveniently, and reliably. Factoring is a method of financing that has been implemented in many industries, from retail to IT, marketing to PR, and trucking to transportation.

It remains a popular financial strategy because it provides a way for businesses to collect on their services quickly and to keep companies in the green while they wait for invoices to clear.

Rather than waiting for their customers to turn over payment (which sometimes can take up to 90 days), a third-party factor will take over the invoice and provide a cash advance to the carrier worth up to 97% of the invoices value. This type of financing is especially useful for transportation and courier services whose customers often take 2 to 3 months to pay outstanding charges.

Relief

Tracking down customers to pay outstanding invoices can drain any carrier’s energy as well as their resources. For example, when a trucking company partners with a reputable freight factoring company, the factor will not only provide immediate funding, but also professional AR management . This frees up the carrier’s time and resources to work on future endeavors rather than struggling to collect on past invoices due.

Accelerated Growth

Additionally, many factoring companies offer clients extra services besides simply factoring invoices. Discounted fuel and free credit checks are some of the perks that often come with factoring. Many companies will even offer equipment financing for fleets who wish to expand by adding new vehicles or replacing existing ones.

Startup Friendly

Factoring is a mainstream financial tool especially among startup trucking companies because very few banks will approve startups for business loans. Often, major financial institutions will require new companies to have a credit score they’ve not yet had the time to accrue. Factoring companies will advance money to start up trucking carriers based on the credit worthiness of their customers and not the carrier itself. This means that even the smallest start up trucking industry can rely on factoring to develop vital cash flow early on.

Improved Customer Service

Recently, invoice factoring companies have been helping to change the financial landscape of the trucking industry by allowing carriers convenient and reliable access to funding as well as increased customer service, plus the lowest factoring rates in the business. Visit the Accutrac Capital blog today to see how attitudes are changing as factoring becomes more of a staple, and to learn how trucking companies can save time and energy. More and more carriers are embracing this strategy as part of an overall financial strategy to help them grow their business — rather than a one-time tactic. Reliable invoice factoring from Accutrac Capital, for example, provides financial solutions to:

• high-growth companies who require additional working capital
• companies experiencing a challenging year
• transitioning businesses
• companies experiencing a change of ownership
• start up operations
• companies who are unable to acquire funds from traditional lenders

Whether you’re in marketing, PR, IT, trucking, or any other industry, it comes with a number of hurdles and challenges. Freight factoring allows you to avoid a number of these hurdles, to capitalize on a resource that often takes months to pay off, and to turn the frustration of outstanding invoices into upfront cash to help you deal with day-to-day expenses.