Accounts receivable management, which is a very important task for any company, needs to be performed professionally and in regular order to help your trucking company stayin the black. Managing your Accounts Receivable will help you to avoid negative cash flow snags, and is essential to sustaining ongoing operations.
If you’re trucking or fleet company can turn invoices into cash quickly you will see an increase in health and profitability of your business, and you will also see greater opportunity for growth. The benefits of invoice factoring are myriad, including professional account receivable management which is an integral part of the service. Furthermore, when you deal with reliable first-rate factors — visit Accutraccapital.com to learn more — invoices are paid within 24 hours allowing you to maintain your cash flow easily and reliably.
Invoice factoring, also commonly known as freight bill factoring, is now a dominant part of many trucking and transportation companies’ growing financial strategy. Freight bill factoring is an innovative way to improve cash flow because it gives you access to immediate funds which allow your company to grow by taking on larger accounts, and keeping up with day-to-day expenses such as fleet management and salaries.
Freight bill factoring is a kind of business funding that enables carriers such as yourself to finance slow paying bills and turn them into cash. The challenge of moving loads for shippers who take sometimes upward of 90 days to pay their bills put you in a position where your company cannot pay for drivers, fuel repairs, or other issues without some sort of financing option.
Owners of trucking and fleet companies will use factoring as one tool in a wider kit to help them overcome cash flow issues and to ensure that their company is operating at peak efficiency. Factoring is a quicker and often times easier financing option then bank loans or lines of credit. Freight factoring (factoring your freight bills) provides immediate cash to cover operating expenses and is used to manage both your Accounts Receivable and overall cash flow management.
Any trucking company owner will tell you that delayed payments are one of the biggest problems, however, one of the key tricks to keeping your cash flow healthy is to manageinvoicing and to turn it into cash upfront. This combination of financing, Accounts Receivable administration, and credit checking, means that your company will see more control and less administrative costs with fewer headaches overall.
The qualification requirements for freight bill factoring are straightforward. Your transportation or trucking company must:
- Be a carrier or freight broker
- Work with commercial clients who are credit worthy and solvent
- Have lien-free freight bills
- Have proper documentation, licenses and authorities up to date.
If you’re trucking company is looking for a way to turn the common obstacle of overdue invoices into immediate cash, you should learn more about invoice factoring immediately. One way, is to contact a reputable factor who can help walk you through the terms and conditions. Once you find the right partner, cash flow solutions are right around the corner.