Freight bill factoring

Freight Bill Factoring: How Can it Make Your Transportation Company More Efficient?

Nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network. Every load has a lot of paperwork – rate confirmations, BOLs, lumpers, detention. You get it. It’s a lot of paper for one load. So how can owner-operators manage all that paperwork, submit your invoices while calling to find the next load or driving to the next pickup?

The freight invoice process can be frustrating for any transportation company. But there’s a solution: freight bill factoring. Investing in invoice factoring services can help make your trucking business more efficient and improve operations for your entire business. Here are just a few ways transportation factoring companies can improve efficiency.

Quick funding and approval process

Invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 30 to 90 days into immediate cash for your small business. If your transportation company has a sudden change that could cause cash flow problems, freight bill factoring can provide income in as little as 24-48 hours. Getting approved for invoice factoring is a relatively fast process that can be completed in as little as 2 to 3 business days. If you just started your trucking company or you have bad credit or no credit history, invoice factoring for truckers might be the right solution for you.

Money to grow your trucking business

As mentioned, invoice factoring services are intended to provide immediate cash flow to your business. According to the Federal Motor Carrier Safety Administration, approximately 5.9 million commercial motor vehicle drivers operate in the United State. Depending on the size of your company, this cash flow can help you meet your daily expenses and expand your business: new truck, more drivers, etc. Keep in mind that nearly 60 percent of invoices are paid late. Without these types of services available, your business growth could be limited or even stay stagnant as a result of cash flow problems.

Invoice factoring is a service, not just money

It’s important to look at freight bill factoring as more than just immediate money. Most invoice factoring companies charge a small percentage of the total invoice as their fee. But when you sign up with a factoring company, they take over the invoicing and collections for you.  Be sure and check to see which factoring companies do or do not charge a fee for invoicing.  There are many reputable factoring companies who do not charge an invoicing fee.

As a business owner, you’re getting more than just your money. You’re getting a back-office team to support your business growth. Remember that when you’re considering factoring or securing a line of credit or other types of financing to grow your business.

Taking the time to understand how these services can optimize efficiency, revenue, and growth for your transportation company is the key to making the right financial decisions. For more information about freight bill factoring, contact Triumph Business Capital.