If you’ve been working in the transportation industry, you’ve no doubt heard of freight bill factoring, the new kid on the block in small business financing. Traditional invoice factoring services buy your unpaid invoices, allowing you to make up for a cash shortfall. This is especially valuable for trucking and freight companies, where time is of the essence and you can’t always take out a small business loan to cover costs.

Invoice factoring is a good option for small businesses. Over half of all invoices are paid late, and if you’re still building your business, that means you may have a shortfall. Traditionally, small businesses would take out a bank loan in this instance, but that can take weeks. With invoice factoring, you can sell your unpaid invoices to a third party broker for a lump sum (usually 85% of its value). The best invoice factoring companies will advance the funds in a few days, then collects the invoice from your client. You receive the remaining balance.

In freight factoring (also known as trucking factoring), you’ll often receive funds from freight factoring companies in just one day. Small operations can typically borrow anywhere from $1,000 to $100,000 per month and need to demonstrate that they’ve been in business for three to six months. High volume freight factoring companies can allow you to borrow up to $20 million, but as with a bank loan, you’ll need to demonstrate an ability to pay invoices and that you’ve been in business at least two years.

Freight invoice factoring is designed to serve the transportation industry. It’s perfect for when you need a fuel advance or to repair some of your older rigs. It’s also handy to have easy access to cash in case of emergencies or unexpected costs. It also means that new companies don’t need to incur any debt (or, at least, any more debt) when they’re just getting started.

Don’t hesitate to freight factoring companies to find one that is a good fit for you. When chosen right, your invoice factoring company will be a business partner, collecting your invoices, supplying cash, and helping you focus on running your business.