Free Up Your Freight Company’s Time And Money

Freight bill factoring is a financial transaction that allows businesses to sell their accounts receivable to a third-party factor in order to free up cash flow. Freight bill factoring involves three parties: the company that originally issued the invoice, their customer who now owes payment on the outstanding invoice (who is also known as the account debtor), and the factoring company who supplies the cash, known as the factor. Small, medium and even large trucking companies often use freight factoring services to secure working capital that thereby allows them to meet expenses, cover payroll, take care of their fleet, and pay their drivers.

Many trucking companies wait 30, 60, or even 90 days before payment arrives from their customers. This means that the companies, without working cash, miss out on opportunities to expand their business or fall behind on major expenses.There are many benefits to factoring invoices in order to fund your business and keep your cash flow liquid. These benefits include a simpler application process, a much higher approval rating then bank loans, competitive rates, and faster funding overall.

This quick speed allows many businesses of all sizes to take advantage of immediate growth opportunities. Additionally, the high approval rates mean many companies qualify even if they themselves don’t have the best credit. This is because freight bill factoring companies look at the credit of your customers — those who owe on the invoice — and not your own.

Chasing down invoices is a drain on any company’s energy as well as their financial resources. Partnering with the right factor alleviates the need for liaising with accounts payable departments and frees you up as a business owner to concentrate on more important things. This gives businesses the room they need to concentrate on future growth, rather than worrying about past-due invoices.

Of course, you’ll want to deal only with the most transparent and reliable factoring companies. If the company is not upfront with its fees and pricing schemes, it is likely to their advantage. Also, beware of any hidden fees which aren’t always presented upfront.

Ultimately, when you decide on a factoring company keep all of the above criteria in mind. As a general guiding principle, look for a factor that you want to work with long term and whose prices and fees meet your budget. At Accutrac Capital, for example, simple, transparent factoring is just a click away. Choose between flat fee factoring that allows you to secure funds from 1.59% of the invoice value. Or you could choose a factoring line of credit, a favourite of larger operations, from as little as 0.022% per day. You might also opt for flex factoring, which is designed for invoices that turn around within 10 days, and costs only 0.49%.

Find cash flow solutions for your past-due invoices, and get cash same day for invoices that usually take 10 to 90 days. You’ll appreciate the added liquidity, quick turnaround times, and peace of mind that comes with freight bill factoring.