Invoice factoring also referred to as freight factoring, is a funding solution many trucking companies use to obtain steady cash flow.
Invoice factoring works by selling your invoices to a factoring company in exchange for immediate payment. The factoring company advances you up to 95 percent of your invoice, same-day. Once payment is received from your customer, the remaining balance is remitted to you, minus a small fee for the services.
6 Benefits of Invoice Factoring
Same-Day Cash: Instead of waiting for 30, 60 or even 90 days or more for customer payment, invoice factoring pays you same-day on your invoices.
Cash for Fuel: Since invoice factoring eliminates the cash-flow gap caused by slow-paying customers, you’ll have the cash to fuel your trucks.
Many factoring companies, including TCI Business Capital
, also offer fuel card programs. This helps you save money and makes fueling up your trucks even easier as the funds from your invoices are deposited directly into your fuel card account.
Catch-up on Bills: When you’re waiting for customer payment, it can be challenging to keep up on your bills. Invoice factoring speeds up your cash flow, giving you the ability to meet your business obligations such as bills and payroll.
Ability to Grow: With many factoring companies, the programs are designed to give you the ability to grow.
For example, TCI Business Capital’s programs range from $10,000 a month all the way up to $20 million a month. The more loads you haul and the more contracts you accept, the more cash they’ll provide. This gives you the ability to hire more drivers, purchase more trucks or invest in any other resources you may need.
No Debt is Created: Unlike business loans and lines of credit, invoice factoring does not create debt on your balance sheet.
The best factoring companies offer back-office support services. These services allow you to focus on your business while the factoring company handles your accounts-receivable management and collections.
TCI Business Capital offers several other services at no extra charge. These include:
- Dedicated relationship manager
- Professional account collectors
- Credit analysis and risk assessment
- Full treasury department
- Fuel card programs
Learn More About Invoice Factoring and TCI Business Capital
Since 1994, TCI Business Capital has provided cash-flow solutions to thousands of trucking companies all across North America. As one of the top sources of operating capital, TCI prides itself on providing “Best in Class” service to every customer. Learn more by clicking here
(or) by calling 800-707-4845.