You've Had a Tough Year and the Bank Won't Extend Credit. What Now?

You've Had a Tough Year and the Bank Won't Extend Credit. What Now?

Accutrac Capital 0 Comments

There are lots of reasons why a trucking business may go through a tough year:

  • the loss of a major contract
  • an aggressive competitor
  • excessive receivables resulting in bad debt
  • the loss of partners or key employees

A steady and predictable stream of cash flow is the lifeblood that keeps your trucking business's heart pumping. Unfortunately, the times when you need financing most are often the times when traditional lenders, like banks, refuse to extend credit.

You can trim back expenses and staffing to improve cash flow (and most likely will), but take care not to take your trucking business to the point where it can no longer grow. The best scenario to see you through these times of cash flow crisis is to find enough financing to generate sufficient funds to let you grow your business while controlling your costs.

But the bank has already turned you down. Now what?

You may think that because your trucking business has been refused credit by the banks, there's nowhere else to go. There are alternative forms of financing available to your trucking business offered by factoring companies. They're solutions that:

  • won't create or increase your debt
  • are available even if you don't qualify for traditional financing
  • are easier to acquire than traditional financing
  • provide funds quickly
  • are designed specifically for the trucking, freight and transportation industry

Low Cost Invoice Factoring

Low cost invoice factoring (also known as invoice discounting or freight bill factoring) from Accutrac Capital are inexpensive forms of factoring ideally suited for the transportation industry. All forms of factoring involve selling your trucking invoices and freight bills to a factoring company at a discount in exchange for immediate cash. However, some suppliers provide simple to understand products that are easy to manage, while others do not. Be careful to select a factoring company that understands the trucking industry and provides services that will work for you.

When searching for low cost factoring, look for a factoring company that understands trucking and offers the following features:

  • Same day funding
  • Up to 100% advance
  • Industry low rates
  • No originals required
  • No monthly minimums

Trucking Load Advances

Can't wait until you've delivered your load and created an invoice? Load Advances are offered by factoring companies that specialize in the trucking and transportation industry, like Accutrac Capital. Here's how they work:

  • Once your driver picks up freight, submit your load confirmation to the factoring company.
  • The factoring company advances you up to 50% of the contract amount.
  • You deliver the load to your customer and submit an invoice.
  • The factoring company receives payment from your customer.
  • The factoring company pays you the profit (invoice amount, minus amount of Load Advance and a small fee).

For more information about trucking load advances and a choice of factoring options for your trucking and transportation business, visit


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