When it comes to trucking, cash flow is king. Having immediate access to capital is vital, whether it’s for fleet maintenance, payroll, or any one of the innumerable expenses that can pop up over the course of normal operations. In an industry where some customers can take as long as 90 days to settle invoices, however, sometimes cash flow can be hard to come by.
With that in mind, you’ve probably heard of transportation factoring. Transportation factoring is a system that allows trucking companies to turn pending invoices into cash, and it’s becoming increasingly popular with businesses across North America. The basic benefit of transportation factoring is clear: a factoring company takes on your unpaid invoices, advancing you up to 97% of the value, less a nominal fee. You can then use that cash to focus on running and growing your business, instead of waiting for your money to come in.
Cash advances on outstanding invoices is only part of the benefits package that transportation factoring can provide, though. Many factoring companies use their size to their advantage, allowing them to offer you additional benefits that can have a major impact on the success of your business. Here are just a small sample of things that will make you want to contact a transportation factoring company today:
Currency Exchange
If you’re a cross-border carrier, you likely find yourself needing to exchange an enormous amount of currency in order to operate in multiple countries, and if you’re not getting a good rate, it’s money directly out of your pocket. A savvy factoring company can combine the currency exchange volume of all of their clients to negotiate the best possible rate, and then pass those savings along to you. A phone call is all it takes to get a quote, and then you can enjoy the peace of mind that comes with knowing you’re making the best decision for your business.
Fuel Cards
As any carrier knows, fuel is one of the biggest expenses to deal with. No hauling happens without fuel, so it’s an unavoidable cost. Factoring companies like Accutrac Capital, for example, offer fuel discount cards that can save larger fleets thousands of dollars a month. They’ve partnered with North America’s largest network of truck stops to make the process as simple as possible, and savings like that can offer a fleet an edge over their competitors. What’s even better is that they’ve used their relationship with those truck stops to secure added satisfaction for drivers through things like clean showers, fresh food, and on-site security.
And that’s not all. Accounts receivable support, equipment financing, and access to unlimited credit checks on your customers are also available through some transportation factoring companies, all of which can provide your business with the tools it needs to be highly competitive. While having easier access to cash flow is undeniably a boon to any business, it’s worth remembering that with transportation factoring, the advantages don’t have to end there.