BP Factoring Loan Services vs. Traditional Bank Loans

December 13, 2021

When you’re establishing a freight company, waiting for customers to pay their invoices can put undue strain on your business. Building your enterprise to the point where you have sustained cash flow regardless of how long it takes customers to make payments takes time. In the meantime, accruing additional debt can over-leverage your small business, with interest payments becoming a significant monthly expense. There’s an alternative to traditional bank loans, with factoring services. If you have a growing freight business but need additional cash flow while waiting for customers to pay their invoices, then you should be using BP loan factoring.

BP loan factoring services

Factoring isn’t a bank loan. It’s a series of transactions between a factoring company like BP Financing and your invoiced customers. It’s a more streamlined, relationship-focused money lending system that helps small to mid-sized freight businesses develop the cash flow they need to maintain operations and build momentum.

Fast payment

Often you can get your money the same day you submit paperwork. BP loan factoring is committed to getting clients the cash flow they need, which means expediting the process of releasing funds to your account as fast as possible.

It doesn’t add to your current debt load

Factoring isn’t a traditional loan, so it doesn’t add to your current debt load. Your existing debts don’t affect your eligibility for factoring either. You submit your invoices to BP Financing, we give you money up to 95% of the invoice balance, and then your clients pay the invoice directly to us.

No interest payments

One of the significant downsides of taking on additional debt is that interest payments can quickly add up. With factoring, there’s no interest and no interest payments. It’s not a traditional loan, so you don’t owe interest. BP Financing deposits a percentage of an unpaid invoice in your account, and then your clients pay the invoice to us.

Truck driving on the road

Traditional bank loans

Traditional bank loans are essential for starting a new business, purchasing equipment, expanding your operations, but they’re not ideal for problems with cash flow. Use all the financing products at your disposal to build a thriving freight business, including factoring services.

Long wait time for money

Traditional bank loans can take anywhere from 30 to 60 days to receive the money you need. In freight, a lot can happen in that amount of time. Traditional banking loans aren’t ideal for improving cash flow in the way factoring is.

Approval depends on your current debt load

Unfortunately, many new businesses already have significant debt during their initial years of operation. While waiting for customers to pay their invoices, a new loan from the bank may not be feasible.

The loan approval amount is unchanging

No matter how long you work with a bank, their loan requirements won’t change. The loan amount you qualify for depends on your revenue, debt load, and credit. However, building a relationship over time with a factoring company makes a difference. The more you work with BP Financing, the larger the factoring amount you can qualify for––up to 95% of the invoice amount.

truck with clouds highway 395

Work with BP Financing for an easy-application loan that doesn’t accrue debt.

BP Financing provides freight factoring services to give small and mid-sized businesses cash flow while they’re waiting for clients to pay their invoices. Factoring doesn’t require you to take on additional debt with a small business loan. We look at your outstanding invoices and provide you with some amount up to 95% of the balance. After uploading your rate confirmation, bill of lading, and invoice, we can deliver money to your account sometimes as fast as the same day.

We’ve been in the freight industry for over 15 years and understand unpaid invoices can cause strain on a small business. That’s why we strive to develop long-standing relationships with our clients so that they have the funding they need when they need it. A BP loan is a solution to cash flow problems without the stress of additional debt.

Image of a freight company using a BP loan for additional cash flow.