As the world around us undergoes rapid change, so too does the trucking industry. It is important to embrace new technologies and rethink old perceptions. Invoice factoring is a prime example of an old concept deserving of re-evaluation. It is now regarded by a growing sector of the industry as an important financial tool to leverage capital, improve collections, minimize risk and reduce expenditures. Invoice factoring has become a mainstream financial strategy to grow fleet operations in this low growth environment.
New Generation Invoice Factoring Companies for Trucking
For those who regard factoring companies as a hindrance to profitability, it would well benefit them to reexamine the value benefits offered. New generation
invoice factoring companies have emerged with specialized products and services to meet the arduous demands of the freight transportation industry.
Imagine if you had the ability to dictate ideal terms for conducting business and were able to enact them:
- Payment within 24 hours of delivery (quicker than Quick Pay)
- Choosing only credit worthy customers to haul for
- Significant fuel discounts across North America
- Credit terms on fuel expenses
Choosing to partner with an Invoice Factoring company affords your operations all these advantages and more.
Payment Within 24 Hours of Delivery
The principle advantage to using the support services of an invoice factoring company is immediate access to working capital. With the financial strength of ready cash at your disposal, fleet operations are unencumbered. Regular maintenance, unexpected repairs and equipment enhancements are all easily managed keeping your working equipment fully operational and able to generate revenue. With this state of readiness, you are free to concentrate on maximizing equipment utilization, the key to success in trucking. Financial strength fosters improved driver recruitment and retention, yet another vital element of success. Able to pay salaries on time and provide driver benefits is essential to building a strong driver pool.
Choosing only credit worthy customers
Waiting 30, 60 or 90 days to be paid will have a detrimental effect on your cash flow. A customer that defaults on payment can cause serious damage to your financial stability. A reputable invoice factoring company that specializes in the trucking industry will provide access to credit information enabling you to search a customer’s ability to pay before you haul. Accutrac Capital provides unlimited credit searches on 1,000s of debtors allowing you the choice to select only credit worthy customers. Minimizing exposure to risk is a huge benefit to your company’s bottom line and financial stability.
Significant Fuel Discounts and Credit Terms
Every dollar saved from operating costs goes directly to your bottom line. Use of a Fuel Discount Card will provide huge savings every month on the cost of fuel, your trucking company’s largest operating expense. Look for the supplier that provides significant discounts at major truck stops across North America, credit terms and easy qualification. Accutrac Capital offers the ideal fleet card solution to trucking companies of all sizes. The Accutrac Fuel Discount Card is simple to manage, provides the ability to control driver expenses and is safe and secure to use.
Freight Factoring is becoming Mainstream
Previously, most factoring companies served multiple industries and offered just invoice financing. Today, specialized Invoice Factoring companies have emerged with dedicated products and services for the trucking industry:
- Flat Fee Factoring
- Factoring Lines of Credit
- Unlimited Credit Searches
- Load Advances
- Fuel Discount Cards
- Equipment Financing
- and more
These new generation invoice factoring companies have changed the financial landscape of the transportation industry providing faster and convenient access to cash, increased customer service and greatly reduced factoring rates. As freight factoring (a specific form of invoice factoring) is becoming more mainstream, more owners are discovering the strategic advantages of using factoring companies for trucking. An interesting trend is developing; attitudes and perceptions are changing. A recent industry survey reveals that users of invoice factoring rate the benefits of factoring as significantly higher than non-users. In other words, those who have actual experience working with these new industry specific factoring companies are embracing the power of immediate access to cash as a viable strategy to help grow business.
For more information about Invoice Factoring, contact Accutrac Capital. Call 855-790-0906 today.