As a business owner, cash flow is key to keeping invoices paid and the company moving forward. A lot of businesses struggle with getting paid, especially in the trucking industry.
The use of invoice factoring, receiving cash against your receivables, has become important for many businesses who struggle with timely payments from their clients. It provides immediate cash flow against issued invoices, allowing your business to maintain its cash flow processes.
Invoice factoring is especially helpful to start-up businesses that aren’t seasoned enough to qualify for bank financing. Because they don’t have a proven financial track record, banks aren’t the solution for helping to finance their business in the early years.
Invoice Factoring is Perfect for Trucking Companies
The process to receiving factoring funding against issued invoices provides cash in hand within 24 hours, thus eliminating the days and weeks that it takes to qualify for a bank loan. Having a quick turnaround in receiving funds is just what is needed, in some cases, to keep a positive cash flow with your business.
For trucking companies, being able to manage your cash flow can make the difference between being a successful trucking company and ending up in the failed business graveyard. Submitting your unpaid freight bills to a freight invoice factoring company, like Venture Capital, means you don’t have to wait 60 to 90 days after the completion of a delivery to receive funds to pay your day-to-day expenses.
Freight invoice factoring isn’t going to meet every trucking company’s needs, but for those that are running tight on funds, it is a quick and easy solution to keeping the cash flow moving in a positive direction.