Factoring helps trucking companies collect from clients
In a typical day, trucking company owners juggle a wide variety of tasks. Their days speed by with finding loads, maintaining equipment, negotiating with freight brokers and shippers, staying compliant with regulations, paying bills, and much more. Fleet owners run their offices as efficiently as they can and individual owner operators running one-truck businesses manage their companies from both home and highway while they put in long hours behind the wheel.
Administrative tasks, such as sending out invoices and tracking when they get paid, can get lost in day-to-day demands and time-sensitive load pickup schedules. If motor carriers can’t find the time to follow up on brokers and shippers that delay payment, they can quickly find themselves in a serious cash flow crunch. When customers take 30, 45, or even 60 days to pay their freight bills, it is even more critical to maintain a strong collections effort to ensure that invoices are paid by their due dates.
Falling behind on collecting from can severely affect a trucking company’s cash flow and profitability. Without steady income, a trucking company owner can’t pay fuel bills or drivers’ salaries and has to park his or her trucks. This is where freight bill factoring comes in to get the trucking company back on track with an effective and timely collections program.
How does factoring work?
To understand why factoring is your most efficient way to collect from your customer, let’s take a look at how factoring works. Your trucking company “sells” the invoice that you would submit to the customer for a delivered load to the factoring company. The factoring company then immediately advances you the amount of that invoice, minus a small factoring service fee. The factoring company’s courteous and professional collections team will collect the payments from your customers.
Successful trucking company owners know that getting paid upon pick up and delivery speeds up their cash flow. However, they also like the convenience of factoring and the back office support that tracks invoice payments and manages collections for them.
Since 1993, more than 9,000 trucking company owners have chosen Interstate Capital to help them manage their invoice and collections processes so that they can focus on what they do best: keeping their trucks on the road and becoming more profitable. The experienced freight bill factoring specialists at Interstate Capital work hard to provide their clients with fast funding and other benefits including:
- Free collections services provided by one of the most experienced collections teams in the factoring industry
- Free credit checks on customers to protect against business losses
- Free fuel discount cards
- Free online account management access to track payment
- Free mobile app for submitting invoices instantly
- Fuel advances upon loading
- Equipment discounts and financing
To learn more about Interstate Capital’s affordable freight factoring programs and collections services, speak to a representative who can answer your questions and share how factoring can help your company become more profitable. You can start with a no-obligation instant factoring rate quote today.