Truck Factoring Essay

537 Words2 Pages

How Freight Factoring Can Help Your Trucking Company Many businesses in the trucking industry turn to freight bill factoring in order to solve their working capital issues. When a trucking or transportation business chooses to factor invoices through a factoring company, they have the freedom to offer longer credit terms to their clients as they know they will always receive their funds quickly — often within the same day — for their invoice factoring. Freight bill factoring, also known as accounts receivable financing, will allow you to increase your inventory, keep your fleet in tiptop shape, grow your business, and maintain solid credit, knowing you have the capital to pay her staff and keep your trucks on the road every day. Many companies in the trucking industry …show more content…

The business owner sells their account receivables in the form of invoice to the factoring company who will then advance up to 97% of the face value of the invoice (while the other 3% is held in a reserve account). The factoring company then collects the full amount from the customer (relieving the carrier of the burden) and then pays the balance amount due to the business owner after deducting the factoring fee, which is based on a specific plan. Factoring is not based on your personal credit, but rather on the credit of your clients which means that even small or new trucking companies can benefit. The advantage of working with a factor who understands the trucking business intimately is that you never have to explain your business. With a specialist factor such as Accutrac Capital, you have access to same-day funding, simple document submission, easily-calculable factoring fees, 24/7 access to your account online, unlimited free, credit checks, as well as dedicated customer service. Because qualification is based on your clients’ credit-worthiness, it’s fast and easy. Essentially, if you own a trucking company and you have credit-worthy customers, you’re

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