Does your business need a trucking factoring company?
July 11, 2022
Waiting 30, 60, or 90 days for customer payment makes running a business more stressful than it needs to be. When customers don’t pay their invoices on time, you can end up dealing with collections instead of focusing on running your company. While there are other ways of operating a successful business, having a reliable partnership with a factoring company eliminates the stress and uncertainty about getting paid after completing a job and sending the invoice. Here are some of the reasons your trucking business needs a factoring company.
Get reliable cash flow for your business.
After a load is completed and you send an invoice, you can end up waiting up to 90 days to get payment from customers. If a customer doesn’t pay, you have to deal with collections and fighting to get the money you depend on to stay operational.
Trucking factoring companies pay your invoices, sometimes as fast as the same day as you upload the information. Knowing you’ll have cash on hand to cover operational expenses gives you peace of mind. You’ll always have the revenue to cover weekly and monthly costs so you can focus on growing your business.
Avoid the restriction and hassle of working with brokers.
Brokers offer some of the same features as trucking factoring. However, some additional hurdles and downsides aren’t ideal for small and mid-sized companies.
No additional services: you don’t get the same customer support and back office services as a factoring company that operates as your partner.
No quick pay: one of the benefits of factoring is that you can get same-day payments from your invoices, adding predictable revenue to your operation.
Work with one company: instead of dealing with different brokers for every carrier, you can partner with a single factoring company for cash flow.
A trucking factoring company aims to help small to mid-sized businesses improve cash flow and monthly operations with quick invoice payments.
Don’t acquire additional debt.
One of the major benefits of a trucking factoring company is that you don’t have to add to your current debt burden to improve cash flow. Factoring pays your invoices and then takes responsibility for collecting payment from your customers.
You bring in your regular revenue without the long wait times associated with invoicing. Especially if you’re already carrying a high debt burden, factoring improves your monthly operations without the stress of applying for new financing. Keep your trucking company’s financials streamlined while positioning yourself for future growth.
You don’t need a high credit score.
Because factoring isn’t a loan product, it doesn’t require an application or approval from a financial institution. Factoring provides the answer if you have a less-than-perfect credit history that might make you ineligible for a loan.
A trucking factoring company doesn’t look at your credit score before providing cash payment for completed invoices. BP Financing only needs your rate confirmation, Bill of Lading, and invoice.
BP Financing is a trucking factoring company improving cash flow for greater security and freedom.
We partner with small to mid-sized businesses to eliminate the stress between when they perform work and when they get paid. BP Financing established its customer base in the trucking industry. Now, we work with companies in diverse sectors to help them scale their business with the security of reliable cash flow. Factoring isn’t like other financing products, and we operate as a partner to our clients by providing predictable payments. Always know when you’re going to get paid by working with us.