Long pay terms or staggered payments have become common in the trucking industry. While this payment system has become the norm, it often leaves truckers worrying over daily expenses.
- fuel costs
- maintenance repairs
This is when freight factoring comes in handy. Below are some reasons why truckers and shipping and transportation companies love freight factoring.
1. They need immediate funding for unpaid freight bills.
Running a trucking business can be exhausting. Truckers need to make payroll, upgrades, repairs, etc. Not to mention cumbersome fees here and there and the endless demand for fuel. If they don’t have a safety net of cash, they could be up a creek at a moment’s notice. Working with a freight factoring company can hehlp. After submitting an invoice, payment is usually given within a day. Long gone are the days of waiting weeks or even months.
2. They couldn’t stand long term payments anymore.
Most payment systems now run thirty to ninety day cycles. Waiting that long for invoice payments and without any financial reserves could throw a business off track. Freight factoring solves this problem.
3. They want to upgrade their business.
Who doesn’t want to grow their business? Expanding means spending. As what the old cliché says, “It takes money to make money.” Freight factoring could provide that needed cash for expansion.
4. Banks stop lending them.
Many banks are tightening up lending guidelines. Fuel-based businesses often fall victim to they way the economy flows up and down. When lending hits a dead end, freight factoring can help.
5. Freight factoring is reliable.
Simply put, a trucking company needs financial support from time-to-time. Freight factoring can be that reliable safety net that any trucker or shipping and transportation company needs.