Throughout the United States, truck drivers transport shipments of all sizes. Research from the Federal Motor Carrier Safety Administration reports that there are about 5.9 million commercial motor vehicle drivers working throughout the United States. Many of these drivers are working for small trucking companies. If you own a small trucking business, you’ll want to learn about factoring company freight. Considering that, here are three benefits of freight factoring for smaller trucking companies.
- Obtaining Funding Faster Than Normal
Research shows that there are almost 28 million small businesses throughout the United States. Unfortunately, these businesses often find themselves in direct competition with larger companies. In order to stay competitive, it’s important for your company to receive funding as fast as possible. However, certain small companies must wait long periods of time to obtain funding. Fortunately, freight factoring companies help ensure these small businesses receive the funding they need as fast as possible.
- No Need to Provide Collateral
Traditional lenders often want to partner with large and established companies. Therefore, this makes it difficult for certain small businesses to receive funding without providing collateral. It’s understandable to want to avoid placing your house or something as important on the line to receive funding. However, you won’t have to worry about this while partnering with freight factoring services. This type of financing doesn’t require any collateral, making it easier for small or new business order to receive funding.
- Saving Time Collecting Debts
Small business owners know they often have to complete a wide range of tasks throughout a typical day. This often makes it difficult for small business owners to take care of everything they need to accomplish. If you partner with a trucking factoring service, you’ll not have to worry about collecting debts. In turn, you’ll be able to focus on other important business matters.
In conclusion, it’s important to learn how freight factoring services help small businesses. Factoring company freight helps small trucking companies bridge payment gaps, sometimes providing up to 90% of the value of original invoices. In turn, this allows small businesses to thrive and compete with larger companies. If you want to take control of your company’s finances, consider partnering with a small business factoring service.