Trucking is a business that has its highs and lows. There’s always an invoice to chase, you are trying to keep your wheels moving, but sometimes it seems like you are driving in a storm. The truck factoring industry can ease your travels. You can see Orlando truck factoring for more information.
Imagine this: after delivering a cargo across state boundaries, you wait for 30, 60 or even up to 90 days until you receive payment. Imagine watching as bills accumulate while you wait for your invoices to be paid. Consider truck factoring, a new way for Orlando trucking companies to make money.
What is the truck factoring business? Simple. The factoring company will discount your unpaid invoices. Usually within 24 hours, they give you instant cash. Like getting your salary advance from your employer without needing to plead with them.
Joe, an Orlando-based operator was drowning under unpaid accounts. The trucks were left idle as he didn’t have the money to cover fuel or maintenance expenses up front. Joe became a truck factor and now had the necessary cash flow to keep all of his trucks in operation and to run his business.
Now let’s discuss turkey. What does it involve? Finding a company with a good reputation and who understands trucking is the first step. A factoring company that doesn’t know the ins and outs of trucking is not someone you want. Send your invoices in for their approval once you have located them. It’ll look at your clients creditworthiness and not yours, so you can still go even if it looks like your score has been shredded.
After approval, you’ll receive a large portion of the total invoice amount – usually 80-90%. If your client does pay up, it’s better late than never. When they do finally pay you get back the rest of the invoice amount minus their fees. Simple as pie!
Please wait! Some factoring businesses are not the same. They may have hidden fees and lock you into long term contracts with more security than Fort Knox. It’s important to read everything before you sign. There is nothing worse than being surprised that the coffee pot has run out.
By handling the collection process, you can reduce your stress and save yourself time. Imagine avoiding those uncomfortable conversations with clients, who are as good at avoiding calls as Neo is in The Matrix! Professionals can do the work for you, so that your time is spent on more important things.
Hey, you know when they say that “time = money”? The good news is that you can get both with truck factoring! With instant cash advances and collections outsourced, you’ll save valuable time.
You’re not done yet! Additional benefits include discounts on fuel at national truck stops, which is great when diesel prices are rising faster than Fourth of July fireworks.
You must think, by now, that “this all sounds too good!” You must remember that everything has a downside. Truck factoring is no exception. Their fee can vary depending on the monthly volume and level of risk.
So whether small fleet owner struggling meet ends meet–or seasoned veteran looking streamline operations–invoicing woes behind once embrace power-truck-factoring-Orlando-style-baby!
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