Truck and Freight Factoring
Small business owners and those who seek occupational independence face a hard road, to be certain. They are subject to the conditions of the marketplace, shifts in consumer preferences, employee behavior, and even in some cases to the weather. But while there are no guarantees, the freedom and the hope of significant financial rewards are an attractive lure for those equipped with the entrepreneurial spirit. The last thing that you need as you are seeking to grow and develop your own trucking business is to be left with a substantial log of unpaid receivables for the loads that you have delivered. Truck and freight factoring can help you to weather these storms successfully.
There are many different reasons – or excuses -a client might offer to explain away the failure to make a full or timely payment for the services that you took such great care to professionally render. Though these efforts may or may not serve to reduce your negative perception of a negligent payer, it is absolutely certain that they will do nothing to support your bottom line. Accumulating an excess of these deficits can cripple your trucking quickly, whether you are operating on your own or running a small fleet.
Ways that Factoring Can Help
The day to day expenses of long haul trucking is massive. Commercial trucks get poor gas mileage due to the size and weight of the loads that they must pull and which dramatically increase the gasoline intake requirements of a vehicle. Accordingly, fuel costs alone represent a daunting demand on corporate accounts. Adding truck maintenance and driver sustenance into the mix makes the picture even more intimidating. With careful financial management and clients who uphold the contractually agreed upon terms of payment, these costs pose little threat to your viability.
Regrettably, even those clients who seem to be well organized and committed to protecting their reputation are often inclined to put your interests far on their own. can be advantageous for the following reasons:
•Immediate payment – a factoring company knows that you need access to the funds that you were expecting as soon as possible, so you receive payment with minimal hassle and delay
•Eliminates your responsibility – barring willful deception or misrepresentation, once a truck factoring agency takes on your unpaid invoices, you will typically not have to repay them if they struggle to recover the funds
•Allows you to focus – as an independent trucker, your time and energy are incredibly valuable commodities and having to expend them to track down and persuade nonpaying clients is inefficient at best