Every US trucking company wants them. Those big lucrative contracts from great customers that keep your drivers busy and your trucks rolling. However, many American freight and transportation companies don't go after these big ticket contracts. And, it's not because they can't physically perform the work. It's because they can't manage the cash flow challenges a large contract creates. The good news, bad news dilemma Big contracts can bring in big revenue. So what's the problem? Revenue isn't cash flow. Large companies often demand extended payment terms. 30 to 60 days payment terms aren't uncommon. Putting more drivers and trucks on the road to service a large contract means more payroll, fuel, insurance and all the other daily costs your trucking company experiences. Let's face itÉyour drivers aren't going to wait 60 days to get paid. Cash flow is critical to make sure that operating costs are paid on time. Factoring your freight bills to create cash flow Factoring your freight bills and trucking invoices to create cash flow is an excellent way to turn an invoice into immediate cash. What is factoring? Factoring is selling your trucking invoices to a factoring company at a discount in exchange for immediate cash. You deliver a load, submit an invoice and receive your cash right away, while the factoring company waits for your customer to pay. Factoring is different from a bank loan or line of credit Factoring is a form of alternative financing that's different from applying for a business loan or line of credit. Here are the key differences: Qualifying isn't based on your credit rating, income history or freight business assets. It's based on the creditworthiness of your customers. It's not considered Ôdebt' and doesn't show up on your trucking business's balance sheet. It's faster and less hassle to set up. The initial process to set up a factoring agreement takes about two weeks. You don't have to keep applying every time you need more financing. After a factoring agreement has been signed, you can obtain funding as quickly as you can deliver loads and issue invoices. Additional solutions to cover your operating costs Fuel Cards and Load Advances are great solutions to help your trucking company access operating capital and save on expenses prior to delivering your load. Accept larger contracts and grow your US freight and trucking business By removing the cash flow challenges of landing a large customer contract, your US trucking company can confidently go after the larger contracts to grow your trucking and transportation business and feed your bottom line. For more information about factoring to help your US trucking company accept more of the bigger contractsÉwithout the cash flow challenges, visit www.accutraccapital.com.