Factoring Your Account Receivables: The Solution for your Trucking Company

Factoring Your Account Receivables: The Solution for your Trucking Company

Accutrac Capital 0 Comments

Trucking factoring is a fast growing concept in many parts of Canada. Many factoring solution providing companies have increased their focus on providing high-quality freight financing solutions to customers. Since a major part of the Canadian economy is agriculture-based, transportation is the lifeline of the economy. It becomes really important to ensure that the transportation industry in Ontario and other parts of Canada get the adequate factoring finance. Now, let’s discuss some key aspects of trucking factoring in a bit more detail. 

Working Capital: Trucking factoring provides you with much needed working capital. The daily expenses for freight companies are touching new highs with every passing day. So, cash liquidation is extremely important for the transportation system. Good freight financing solution companies can provide you with more than 80% of the total value of invoice receivables, the rest to be given after the account receivables get cashed. This will help cash flow for your day to day business functions.

Interestingly, commercial truck's poor gas mileage is to be blamed on the size and weight of the total load they carry. Since this dramatically increases the gasoline intake requirements of the truck, factoring your account receivables is the right solution for upkeep and maintenance of the trucks.

Immediate Payment: The payment cycle in the transportation industry is very erratic. At times, you have to wait for months for payments to get cleared. However business operations cannot stop so this is where trucking factoring comes into the picture. A factoring company provides you with direct access to the funds that you need immediately so you can receive payment with minimal hassle and delay.

Fuel cards: This is one of the special services offered by a trucking factoring company. Good factoring companies offer fuel cards that help companies to pay for fuel, truck repairs and hotel rooms while on the road. This is another way freight financing solutions companies help trucking companies manage their working capital.  I hope these points help you understand the fact that factoring the account receivables is a key financial solution to a trucking company.

Accutrac Capital Solutions is a leading trucking factoring solutions company in Ontario and other parts of Canada. 

For more details log onto: https://www.accutraccapital.com/   


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