The result is that you can spend more time growing your business, and less time tending your books.Īs you can see, there are many benefits to invoice factoring for trucking companies.
This results in large, lump sum payments to you so that you can grow your business, without having to worry about things like loan interest rates, or how to categorize business advances in your ledger. With trucking factoring, businesses can get the cash they.
Fat expenses and slim profits dominate the trucking and freight industry where cash is routinely in short supply. Invoice factoring is far and away the most popular financial solution for owner operators. This speed of funding is one of the main reasons so many trucking companies prefer invoice factoring to the other alternatives.įinally, invoice factoring helps simplify your books, as you can factor many invoices at once. In fact, transportation factoring made up 36.4 of all factored invoices in 2016. Many factoring companies will provide funding in 24 hours or less, so you’ll have cash on hand for things like equipment, training, labor, and other expenses, without having to worry about when your customers are going to pay for your services. Take on more loads without worrying how you’ll pay for staffing, gas, fuel, and other costs associated with doing businesses.Īdditionally, invoice factoring means that you’ll get your cash fast. The first, and most obvious, is that invoice factoring gives you the money you need now to expand and grown your trucking business. There are many benefits that trucking companies can receive from factoring their receivables. As a result, you’ll have the cash on hand for your business when you need it.īenefits of Invoice Factoring for Trucking This process makes it easy to focus on your trucking business and doing what you do best. The factoring company will pay out an initial funding, usually 80-95% of the value of your factored invoices, and you’ll get the rest once the customer has paid, minus the factoring firm’s small discount rate. Invoice factoring is a business-oriented financial product that involves selling your receivable invoices to a factoring service. We provide finance and factoring for companies that are already operational, earning revenue and have adequate financials. We also offer truck factoring finance or invoice financing in South Africa. Therefore, it’s no surprise that so many trucking companies use invoice factoring and the benefits they get from invoice factoring companies to make sure they have the liquid capital necessary to grow their business. What is truck invoice factoring and how can it benefit your trucking businessFor more information on Paul DeLuca and Meritus Capital for truckers, visit htt. Welcome to .za where our speciality is financing large trucks/buses and business asset finance. In addition to the high price you have to pay for equipment and skilled labor, there’s also the matter of paying for the fuel that is being used to ship your load, as well as other miscellaneous costs associated with running a trucking firm.
Trucking might be one of the most capital intensive industries around.