Alleviate the Pain of Payroll with Freight Factoring

Alleviate the Pain of Payroll with Freight Factoring

Alma Bailey 0 Comments

How Freight Factoring Can Help With Payroll

Its mid-week and all your trucks are outbound delivering freight. Sounds like a good scenario, but is it? Friday is looming, drivers will be returning and payday is just a few days away. Do you have the cash flow to meet payroll? This financial bind ranks as one of the most common issues plaguing the minds of truck business owners as the work week draws to a close. Fortunately, owners of trucking companies can easily qualify for freight factoring, a cash flow solution designed specifically for their needs.

Facing cash shortages is a common condition shared by trucking companies. It is characteristic of the industry. As your trucks hit the road operational expenses such as fuel costs, maintenance costs, tolls and over-the-road expenses have to be met. It’s a constant drain on financial resources, further aggravated by the typically slow paying nature of shippers. Maintaining positive cash flow is extremely difficult to sustain week over week and month over month. Hitting a period of cash shortage is only a matter of time as the constant bombardment of bills fly in and the demand on volume fluctuates. Having a cash flow solution like factoring is critical for your company’s ability to meet payments, especially that constantly looming payroll every week.

Maintaining your pool of professional drivers is essential to the continued success of your transportation company. A qualified truck driver is in the envious position of being a sought after professional, expecting a median pay of $43,680 per year. If they are not satisfied with current employment, they’ll jump ship. Once you have the drivers you need on staff, do all that you can to retain their service. Meeting payroll reliably and on time is essential. In order to create and maintain the availability to working capital, an increasing number of trucking companies are utilizing freight factoring.

Freight factoring is the practice of converting your freight bills into immediate cash. No longer is there a need to wait 30 or 60 days for customers to pay their invoices.

Here's How Freight Factoring Works

  1. Pick up freight from the shipper.
  2. Deliver freight to your customer then send invoice and bill of lading to the factoring company.
  3. The factoring company purchases your invoice and advances you cash immediately, minus a small fee. A percentage amount (usually less than 5%) is held back as a Reserve.
  4. Your customer remits payment to your factoring company.
  5. When your customer pays, the factoring company remits the Reserve amount back to you.
  6. The transaction is complete.

How to Choose a Good Freight Factoring Company

Select a factoring company that specializes in freight transportation.

What to look for in a freight factoring company:

  • Easy qualification and speedy onboarding of new clients to begin first funding in a few short days. Ensure ongoing funding will be fast and reliable.
  • Best factoring fees and high advance rates
  • Experienced back office and responsive customer service
  • Integrity and full transparency
  • Additional cost saving services
  • Positive reviews and high customer satisfaction

Why Choose Accutrac Capital

  • Industry leading freight factoring specialists
  • Instant Approval with 99.8% Approval Rate. First funding in 2 days
  • Starting from 1.59% All-In Flat Fee with high advance rates
  • Zero Hidden Fees and No Set-up Costs
  • No Monthly Minimums
  • Transportation experienced back office and dedicated Account Manager
  • Easy 24/7 access to your online account
  • Unlimited Free Credit Reports
  • Fuel Discount Cards, huge saving every month on your largest operating expense

The freight market had a banger year in 2018. Volume for this year is predicted to be good, just not as great. Despite this, major carriers are increasing pay and benefits to attract and retain professional drivers. To grow and prosper you need to create a positive working environment and pay your drivers without delay or failure. Trucking companies of all sizes, whether they are start-ups or established, are turning to freight factoring as the ideal cash flow solution to ensure financial stability and fuel growth.

Let freight factoring help you make payroll. Get started today!

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