The trucking and transportation industries have long been dedicated users of the cash flow solutions afforded by factoring companies. Truckers’ unsteady cash flow makes them appreciative of the stability that Texas freight bill factoring brings to their business. Bills of lading that have terms of 30, 45, or 90 days make it tough for truckers to pay their own bills and stay on the road.
What Factoring Brings to Trucking Businesses
Factoring brings peace of mind to truckers who otherwise would be constantly concerned about keeping their trucks rolling. Repair bills, fuel, drivers’ pay, breakdowns, and new equipment–these are no problem with a good cash flow. If there is plenty of money in the bank, your business thrives and unexpected problems are immediately taken care of. transport services
What if you have just one truck? This is your livelihood, and it has to keep going regardless of cash complications from customers who are slow to pay their bills. What factoring does is enable you to keep your business going with sufficient cash to pay all the expenses involved in this transportation industry. Like all factoring, truckers sell their bills of lading to a factor (a company or bank that buys the invoices) and receive a percentage of the face value immediately.
The factor handles the collection and assumes the risk for a fee that is deducted from the customer’s payment of the invoice. Factoring is a simple arrangement, with no hidden fees and no complications. It provides for a stable enterprise so truckers can think about growing their business instead of possible financial disaster.