Whether during strong or weak economic conditions, businesses have to deal with a number of hurdles that affect their ability to sustain and grow. During times of growth, businesses require extra cash on hand to keep pace with expansion opportunities, but during periods of economic downturn, companies of all sizes — especially those in the trucking and transportation industries — require that same working capital to face economic challenges directly.
Transportation factoring is a proven method used by numerous trucking businesses to access the working capital they need to stay in operation and to continue to grow year after year. The right transportation factoring company will purchase your invoices at a discount, immediately advancing you money for deliveries you already made, rather than waiting one, two, or even three months to get paid. Instead of waiting upwards of 90 days to collect money you essentially already made, a third-party factoring company will buy the invoice from you for a nominal factoring fee, and some can even forward you up to 97% of the invoice value upfront, so that you can concentrate on more important things like employee salaries, fleet maintenance, and other overhead costs.
As you begin the search for the rightfactoring partner, it pays to narrow your search. You should look for a factoring company that has proven industry experience and you should also look for companies that offer transparency. To be sure you’re dealing with a legitimate company — one that wants to foster long-term business relations — be sure that the factoring company has a phone number and email address displayed clearly on their site. Also look for a company whose site contains testimonials as well as an FAQ section. You likely have many questions, and checking those boxes online saves you time and allows you to narrow your search before you actually start making calls. When looking for a potential factoring partner, note also any issues that you might find while browsing their website. If you see something you don’t like, or notice language in any of their plans or contracts that sounds suspect, scratch that company from your list and keep searching.
When looking for the right factoring company consider how quickly they will turn around your invoice, how much they will charge by way of a factoring fee, what type of businesses they serve, whether they are specialized in your industry, and how reliable their customer service might be. All of these will be solid indicators of how well they are likely to treat you as a client.
Because you own a trucking company, you will want to work with a third-party factoring partner that specializes in the trucking industry. A factor such as Accutrac Capital for example works exclusively with businesses in trucking and transportation — this ensures that they understand your business and the types of customers you deal with on a daily basis. Working with a factoring company that understands your industry inside and out means that you don’t have to explain every last detail of your business to them, buying you more time to focus on the things that matter — such as maintaining and growing your business.
Once you’ve decided upon your factoring company, you’ll need to contact them to set up your account. Hopefully, you’ve found a company that prides itself on quick and easy qualification, as well as fast turnaround on each invoice you factor. From fast qualification to first funding in only a matter of days, as well as the lowest rates available in the industry, a reliable factoring company such as Accutrac Capital can provide you with the cash flow support you need.