How Independent Truckers Benefit from Trucking Factoring Companies

Independent truckers need a lot of funds to operate efficiently. It’s for that reason they may turn to factoring companies for their working capital, because getting a bank loan is usually an exercise in futility for them. The process takes too long and the chances of getting a loan aren’t good to begin with. And to really maximize the benefits, choose the best factoring companies which in this case are factoring companies that actually specialize in trucking.

How does it help you as a trucker if you only choose among AR factoring companies that specifically cater to your industry? Here are some advantages:

  • The application process is simpler and faster. You don’t have to explain to the factoring companies the specific nature of your industry. They already know all about it. And that means they also know how to investigate your customers quickly so that they can determine if they have the capacity to pay you what they owe and on time.

It’s actually a relief when you deal with these types of factors, because you can avoid a lot of troublesome miscommunication. They’re familiar with your needs, and setting up a factoring line is much quicker because they’ve already done it before numerous times. If you really want efficiency in getting your capital quickly, then you need a specialist factor.

  • Higher invoice value. Since these factors are already set up for trucking companies, they can arrange for you to get more money and at a faster rate. For example, while many standard factors offer 70% of the value of the accounts receivable in advance, with factors that cater to truckers you may get more money in advance. You may even receive up to 90% of the value in advance.
  • They provide real-time reports. With a smartphone, you can check what’s happening with your accounts right away while you’re on the road. You can see how much advance cash you’re likely to get, and you can check which of your customers are due for payment. The state of your finances becomes much clearer and you can access these accurate reports right away.
  • You’ll receive credit reports on your customers. When you apply for factoring, the factor isn’t really concerned with your ability to pay them pack. You’re getting money based on what you’re customers owe you, and so your factor checks on the creditworthiness of your customers.

You don’t have to hope that your customers will pay on time (or pay you at all), nor do you have to check their credit yourself. The factor can do this for you, and they will even give you their credit information so you are better informed.

  • You get other freebies. These factors are very much aware of what you need, and some of them may offer perks to win your business. For example, they may offer a fuel card if you do business with them.

So if you’re an independent trucker or you own a fleet of trucks, make sure that the factoring companies you consider are those that already cater to businesses like yours. A regular factoring company can help you, but specialist factors are way better.

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Chris Lanchech

Hi everyone, my name is Chris and I am a junior analyst at Neebo Capital and an inspiring blogger. We enjoy speaking with business owners and entrepreneurs who come to Neebo Capital looking for cash flow solutions. Give us a call toll free at 1-888-382-3766 or Visit us online at www.neebocapital.com

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