Why do a growing number of trucking companies include invoice factoring (also known as freight factoring) as part of their financial strategy? The answer lies in easy access to working capital to fuel growth and prosperity. Factoring companies that specialize in freight transportation provide tailored funding options to help your trucking business grow and increase profitability. Cash Flow is affected by Ongoing Industry Issues Business dynamics have grown increasingly complex for trucking companies. This is due largely to the ongoing challenges of a difficult industry combined with the under performing nature of a sluggish economy. Greater competition in the marketplace, slower than expected volumes, increasing demand to incorporate emerging technologies and the ongoing pressures of maintaining a productive driver pool continues to plague the trucking industry. All of these aspects affect your trucking companys cash flow. Efficiency is the Key to Profitability Profitability is enhanced when your trucking company operates at peak capacity. When you have to invest manpower and resources upfront to deliver your services, its often tough to wait 30-60 days for an invoice to be paid. In the interim, you still need to make payroll, pay for fuel and maintenance, and the dozen other day-to-day expenses needed to keep your trucks rolling. Even the most successful trucking companies go through periods where their outgoing cash requirements exceed cash-on-hand. The factoring of freight bills to access immediate cash to pay operating expenses is now a common practice for both small trucking companies and larger fleets. With immediate access to revenues, trucking companies can operate at their most productive levels; efficiency is the key to profitability! Choosing the Right Factoring Company Essential to the financial success of this strategy is choosing the right factoring company to work with. The three most important aspects of factoring that will positively or negatively affect company are; cost, service and trust: Cost: When business owners first seek a factoring company, it is often the cost of factoring that governs the decision process . . . and rightfully so. If the cost of factoring your invoices exceeds any savings gained through the process, you may improve cash flow management, but itll be at the expense of your companys bottom line. However, if you keep your factoring fees under 3% and offset the cost with the additional savings offered by discount fuel programs, improved AR Management, free credit search tools and more, your trucking company gains a huge financial advantage. Service: Trucking is difficult business at best, with unique challenges specific to a capital intense industry. Utilizing the services of a factoring company that understands your business is essential to ensuring correct action is taken when additional financial support is required. A factoring company that provides a dedicated and knowledgeable Accounts Manager to work with you on a daily basis is the ideal option. Trust: Working with a financial partner that you can trust to watch your back and respond in a helpful manner when special circumstances arise is critically important. Be sure to choose a factoring company that delivers transparency and a sense of urgency to keep your fleet moving during financially challenging circumstances. Combine Factoring with Cost Saving Benefits A factoring company that specializes in the trucking industry will offer not only freight factoring, but a number of financial tools and strategies to ensure your company stays cash rich. Cash Advance on loads in transit and Equipment Financing are key alternative financial services a good Factoring Company will provide to ensure positive cash flow. Fuel Discounts and preferred Currency Exchange for cross boarder carriers are additional specialized services provided by the industrys top rated factoring companies to maximize your companys bottom line. Utilizing the financial benefits of invoice factoring places your hard earned money in your hands immediately. Combined with the cost saving benefits of specialized services, your trucking company gains the immense power of positive cash flow while enhancing the profitability of your company. React Quickly and Efficiently to Opportunities As the economy seeks revival, volumes are expected to grow throughout 2017 and beyond. For trucking companies that are positioned for growth, this is an exciting period as we head into spring, the first high season of the year. It is the trucking companies that react quickly and efficiently to emerging opportunities that will capitalize the greatest and benefit with the most profitability. For more information about invoice factoring, discount fuel programs and other profitable strategies, visit www.accutraccapital.com.