What a factoring company like BP does for trucking businesses
May 10, 2022
For trucking businesses, accessible cash is essential to optimal performance and growth. However, receiving payments from customers can take weeks or even months. Fortunately, a factoring company for trucking businesses can streamline this process. At BP Financing, we boast 15 years of experience providing factoring services to trucking companies. We can provide same-day cash advances when you need them most. We always take a positive, proactive approach to tailor solutions to customers.
Here’s what factoring services do for trucking businesses:
Factoring protects you from debt.
Utilizing a factoring company for the trucking industry protects you from debt. Most factoring companies offer non-recourse factoring plans.
These plans mitigate your risk if a customer does not pay because they declare bankruptcy or go out of business. Without non-recourse factoring, you will be waiting behind creditors, banks, employees, and the government for payment.
Factoring protects you from losing money when working with companies with poor credit because the factoring company assumes responsibility for payment. If the customer doesn’t pay, the factoring company incurs the loss. Plus, factoring enables you to avoid falling behind on payments and eventual penalization.
If you’re worried about sinking into debt due to slow-paying customers or customers who don’t pay at all, at BP financing, we protect you from that liability.
Factoring optimizes cash flow.
Electing to use a factoring company for your trucking business also optimizes cash flow. By receiving accessible money quickly, you can maintain critical operational costs.
Things like paying drivers, buying fuel, and paying for repairs are critical to day-to-day operations, and optimized cash flow ensures these things are always taken care of. Otherwise, you can’t even keep your trucks on the road.
Moreover, waiting on payments often results in a backlog of charges, which adds to debt and stress. In the end, this hinders operations. Instead of relying on financing from banks or credit cards to cover expenses and incurring extra fees, factoring services keep money flowing.
Healthy cash flow ensures you don’t incur unnecessary debt and operate at peak performance, and it provides you with a cash reserve in case of unforeseen expenses, spikes in fuel prices, or other operational costs.
If maintaining optimal cash flow is a priority, at BP Financing, we can keep cash circulating so your business runs like a finely tuned carrier.
Factoring enables you to grow your business faster.
Using a factoring company for trucking organizations enables you to expand your enterprise faster. Taking on new customers requires cash flow to cover things like repairs and investments.
Moreover, slow-paying customers are characteristic of the freight industry, and receiving a payment within hours provides you with a significant competitive advantage over other carrier companies.
Having access to working capital enables you to reinvest in your business and accelerate growth through rapid access to funds that would otherwise be unavailable for weeks or even months. More importantly, factoring provides flexible, dynamic financing options.
Factoring adapts to you and your growth, enables you to operate more efficiently as you expand, and enables organizations to purchase new equipment and vehicles to add to their fleet and even receive fuel advances.
Factoring makes it possible to haul more loads at higher rates, resulting in taking on more work and accelerating organizational growth.
Get in touch now to get started!
If you need a factoring company for your trucking business to accelerate growth and optimize cash flow, BP Financing is the premier solution. With 15 years of experience providing factoring services to trucking companies, we can get you the money you deserve when you need it most with no interest. Get in touch now to get started!