The business model of a trucking company is not only straightforward, but one that will likely always be in demand. Goods will always need to be shipped, and there a lot of roads to cover. The reality is that the cash flow and financing does not work the same way as it does in many other industries, often requiring outside help to make ends meet faster. That’s why seeking help from trucking factoring companies can help your business run more smoothly.
Deliveries are made and then invoiced for. Those invoices are generally not paid for on the spot and almost certainly never paid for up front. As such, there’s a lag between the delivery and when you see the cash roll in. Although you’ve likely found dependable clients and you’ll get that money eventually, the lapse in time between services rendered and getting paid can cause serious operational difficulties, such as paying for fuel and insurance. With a trucking factoring company, you can get financial help to weather financial storms that may arise in between receiving checks.
Discounts and Other Benefits
Companies that specialize in trucking factoring often offer assistance with expenses such as fuel. Some are known to give fuel discount cards, which can include rewards programs. These rewards might involve cheaper fueling on certain days or times of the month, incentives to drive more efficiently, or credit toward unexpected fuel expenses. Other benefits may include access to free load boards to keep you on the road longer and making more money.
Steady Cash Flow
One of the most important aspects of running a trucking company is having a reliable cash flow source. As already mentioned, there is often a gap in time between delivering your load and receiving payment. You need money now to refuel your truck and get to your next delivery. Waiting 30, 60 or even 90 days isn’t going to work for you. Trucking factoring companies give you immediate access to cash for the work you have completed to keep you on the road. They can also take care of receivables servicing meaning you don’t have to send time doing administrative paperwork, chasing for payment or worrying about if you will be paid.
As trucking remains a constant in today’s shipping industry, seeking out the help of a trucking factoring company in Atlanta, GA, can keep your startup profitable and on the road for longer.