Does your trucking company suffer due to slow paying clients?

Slow payments can cripple a business. Knowing that your business has alternative finance options an be a game changer.

For freight and trucking industry companies cash flow is king. Whether it’s licensing, maintenance or fuel and insurance the ability to keep your rigs on the road could mean the difference between keeping the doors open or lock em up and throw away the key. 

Alternative Finance Options for Trucking Co's

Is your trucking company constantly waiting and in a precarious position because you must wait 30 to 60 days to get your invoice paid? Few growing companies can afford to wait that long for a payment since they have a number of expenses to pay. At best, you risk cash flow problems. At worst, you could run out of funds and be unable to pay for drivers, repairs, or fuel.

According to the American Trucking Association, there are more than 500,000 trucking companies in the United States. It is safe to say that the majority of these trucking companies at some time have had to wait 30-60-90 days or more for payment after a haul is delivered. This can create significant shortfalls in cash flow between payments. Fortunately there are options and Invoice financing is one of them.

Invoice financing can be used to greatly shorten the time from invoice submission to payment.

Bank loans can be difficult to acquire. The popular micro-loan is typically difficult to get for most small and medium sized businesses in the current economic climate. Using a receivable factoring agency can be a viable and convenient solution for transportation and logisticsorganizations.

When you contract with a factor to fund your invoices you get up to 97% cash upfront and the finance company keeps the remainder for their risk and fee payment. Now all transactions vary and depending on the financial strength of the company that is obligated to make good on the invoice that up front percentage may be a little more or a little less. In any case the terms of the agreement re spelled out clearly up front so if those terms are not agreeable to you you can decline and pay no cancellation or up front fees!

Fasst Finance Options for Trucking Companies

Speed of funding is also a huge advantage most invoice financing transactions can be completed within 48-72 hours of initial submission and review of your delivered outstanding invoices. There is a similar form of financing for purchase order financing but we will cover that another time.

It is even possible once you have an account established to submit invoices and get paid on a regular basis like a rolling line of credit.

If you are seeking an alternative finance option for your trucking business vs waiting on slow paying invoices contact NorthWest Finance Invoice Finance professionals for the trucking and long haul industry. Factoring Purchase Order Finance and Equipment Leasing programs to help your business grow.

NorthWest Finance
Minneapolis St Paul
612-615-8196
www.businessinvoicefinancing.com

Invoice Financing, Factoring, Purchase Order Finance, Equipment Leasing, Merchant Cash Advances