6 Reasons to Consider Freight Bill Factoring

Freight bill factoring has become a mainstay in the trucking business. Fleet owners and independent owner-operators who haven't made the switch yet may want to consider the following points to see how freight bill factoring can make running a business easier.

Fast Access to Cash

Traditional working-capital solutions like bank loans and merchant cash advances take time to set up and process before funds become available. Freight bill factoring, on the other hand, can deliver cash from open invoices within 24 hours.

Freight Bill Factoring Is a Zero-Debt Option

Loans force truckers to take on debt in exchange for short-term capital. When that capital is used up, the original financial strain returns - this time with the added burden of debt. Factoring advances money you've already earned, so there's no new debt to repay.

Keeping Trucks Moving

Freight factoring services are often paired with fuel card programs. Fuel cards help drivers keep their tanks full and usually offer discounts at service stations along with other benefits. Revenue from converted invoices can be deposited directly onto fuel cards to ensure timely deliveries and lower costs across the board.

No More Cash Flow Problems

Freight bill factoring eliminates the gaps in cash flow that regularly occur due to payment schedules. When invoices have aging periods of 30 days or longer, staggered customer payments can create stretches where no revenue is coming in. For fleets, a cash-flow gap can strain operations, forcing owners to scale back on accepting orders - or worse, miss payroll. For independent drivers, a gap can mean not having enough money for the trip home.

Your Credit Isn't on the Line

For many truckers and fleet owners, getting a bank loan can be a challenge because of credit ratings. Freight bill factoring isn't tied to your credit. Owner-operators and fleets alike can preserve and continue to improve their credit while accessing the working capital they need from open invoices.

Growth

Factoring services grow as you take on more customers and make more deliveries. Instead of relying on a trickling stream of revenue, factoring turns your cash flow into a steady, reliable river as your business expands.

Apply for Doft Factoring.