Freight bill factoring presents advance cash option for people into the trucking company business. Besides same day funding, flight bill factoring comes with many other benefits and saves trucking companies a lot of money and time. Read on to discover the advantages of factoring freights.
1. Fast funding.
A company that is into this program can receive cash quickly by selling their invoices. The company dealing with the factoring will collect the invoices, take their fee and advance the remaining value in cash.
Often, the freight billing company verifies your bills for the completed deliveries and gives you, sometimes, up to 95 percent of the values in just 24hours. Did you know that many of these companies accept faxed or scanned documents of your freight bills? This fact means that they save you the mailing costs.
2. Customer credit quality improvement.
The factoring companies help you work with good clients. They do reviews on the credit quality of your potential customers and your current clients. These reviews make it easier for you to see which of them have good payment records, therefore, allow you to work with the best.
3. Supports growth through flexibility.
Growth is necessary for any business. In this program, the financing line and your revenues can grow together. Unlike business loans which are often limited to some amount, freight billing factoring allows the funding line to quickly increase provided the clients satisfy the factoring criteria.
The fact that the business can get most of their cash within the time they need it unlike having to wait for three months means that there is a business boost and consequently growth.
4. Fuel-related benefits.
Factoring fuel cards and fuel advances help trucking companies get loads from their origins and deliver them to their destinations.
A fuel advance is money advance you receive after you pick up a load. Your factoring company releases to you some small percentage of the bill. This cash is supposed to cover all the fuel costs while on the road. On the other hand, fuel cards give discounts at several filling stations.
5. Quick approval.
As a matter of fact, to complete the due diligence, most factoring companies will only need a brief list of necessary documents. As soon as you have your account set up, you can begin factoring. The financing lines are often approved within 24 hours after an application package is received. This speed conducting business makes freight bill factoring very useful in cash flow emergencies.
6. No hidden fees.
To begin with, the factoring program is free for any trucking company to join. So this should mean that there are no setup fees. Also, the factoring fees are always presented to the clients while making the factoring agreement. After the agreement, you can factor assured that there will be no surprise charges.
7. More loads
The basic idea here is that freight bill factoring works to improve your cash flow. This translates to you taking on more loads and getting new clients. You can comfortably pay your expenses and meet your needs. The final result is business growth.
It is also important to note that you can factor freight bills as often as you need. You will work at the frequency that will maintain the cash flow you want for your business. Freight bill factoring is a business solution you should consider.