Long Haul Trucking Company
Small Fleet Trucking Company
In the trucking world, it takes money to make money. In other words, you can find yourself in the lurch waiting for the last job to pay you. In the meantime, a new client waits for you to gas up your fleet and prepare for your next contract. Instead of going through the process of taking out a bank loan for a line of credit, trucking companies can get upfront cash based on outstanding freight bills. If you are unfamiliar with alternative financing companies or factoring businesses, stay tuned. Unlike a bank that requires a credit report and property appraisal, freight bill factoring companies are an economic option that gives you cash within a short period of time.
Getting cash upfront quickly for trucking companies
Banks will give a trucking company with an excellent credit rating a line of credit in exchange for collateral. In general, this is difficult for trucking companies because the property is usually limited to the trucks. On top of that, a company that has invested wisely may have a lease on their vehicles. In other words, trucking companies can find it is difficult to get cash upfront on a short-term loan from a bank. Instead, there is a specific type of financing business that addresses the issues that a trucking company has with accessing loans. This business is called a factoring company, and they base their collateral upon unpaid invoices or freight bills.
Help for trucking company start-ups
Do you need money for fuel cards or to pay your suppliers? When you start a new trucking company or take on a client that expands your business, you need to give your drivers access to cash upfront for expenses and fuel. By offering your upcoming invoice as collateral, you can get a percentage of your future payout within hours. This cash flow allows you to haul more loads, pay your employees and suppliers on time.
Never miss another payment
Does the idea of having freight bills used as a line of credit appeal to you? One of the hidden incentives of using factoring companies for the trucking industry is building your credit score. On top of the fact that your employees will never have to worry about getting paid again, your suppliers will let you know they are happy to receive prompt payment when they boost your credit rating. In other words, if you have future financing goals for your new trucking company, freight bill factoring companies are a positive way to get your credit rating up to snuff.