Invoice Factoring for Transportation Companies
Using factoring finance as a transportation company involves a few simple steps and begins with obtaining your factoring company's approval for a particular account debtor. After you've completed the job, you provide your invoice documents to the factoring company and receive a direct deposit from the invoice factoring company. The factor then invoices the customer to obtain the payment.
The amount of money you receive directly after completing the job may be somewhere between 80 and 90%. When your customer pays the invoice, the factoring company will send the rest of the balance due to you less any agreed-upon fees. Factoring companies are an excellent option for transportation companies that require flexible financing or immediate cash.
Some of the benefits of using freight factoring services include:
- Having cash on hand to pay for all fuel and operating costs on time
- Having the financial backing to take on new loads or higher-paying work
- Being able to expand the business into new areas
- Reducing the amount of time spent invoicing and requesting payments
Setting up service with invoice factoring companies like Security Business Capital is usually quite straightforward and fast, and it helps to work with an accounts receivable factoring company that specializes in a certain area of industry, like transportation.
When you work with Security Business Capital, we promise that you can:
- Get started quickly, in just a few minutes.
- Enjoy professional accounts receivable management.
- Speak with knowledgeable account representatives.
Factoring can offer your transportation or freight company an advantage over other companies when you have the cash on hand to pay for various transport costs in advance of receiving payment for the project.