Is Your Trucking Company Looking for a Way to Pay Bills While Waiting to Receive Payments from Customers?

Many of us as individuals live from paycheck to paycheck. Often, in fact, we literally borrow from Peter to pay Paul when we are in the most challenging of financial times. Like individuals, there are also many companies that find themselves trying to find a way to make the payments to creditors while they await payments from customers who owe them money. Fortunately, there are freight factoring companies that can help bridge these financial gaps.

When, for instance, a trucking company needs to pay its drivers long before the company receives the money from the customers, freight factoring companies can provide advance funds to make certain those drivers are paid and that they stay on the job. Without paying their salaries, truckers can drop a load and those materials are left and at risk of being destroyed or stolen. With pay, often provided by truck factoring companies, loads can be delivered on time so that bills can be both sent and paid.
Transportation Factoring Companies Offer Financial Options to Trucking Businesses Both Large and Small,br>
From the clothes that we wear to the farm equipment that is used to harvest the foods that we ear, our lives depend on he timely deliveries. And while we are often used to the fact that our highways and interstates are full of trucks, we do not always understand the complex network of work that needs to take place for all of these deliveries to reach their destinations on time.
Consider these facts and figures about the services that trucking factoring companies offer and the role that these invoice funding companies play in the economy of our nation:

  • As many as 12 million trucks, rail cars, locomotives, and vessels move goods over the global transportation network.
  • 28 million small businesses are in operation in the U.S. and many of these companies rely on invoice factoring companies to bridge the financial gap that is a part of their monthly operations
  • Approximately 5.9 million commercial motor vehicle drivers operate in the United States, according to the Federal Motor Carrier Safety Administration. Every one of these drivers expects to be paid on time for the services that they provide.
  • From 24,797 companies in the first quarter of 2016, bankruptcies in the U.S. increased to 25,227 companies in the second quarter of 2016. Companies that were able to avoid bankruptcy may have relied on the important financial services that are provided by freight factoring companies.
  • Fortunately, factoring companies can help small businesses bridge invoice payment gaps with upfront payments that are equal to as much as 90% of the original invoice.

In its simplest terms, invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 90 days into immediate cash for a business. Often, it is small businesses that benefit from these financial services the most.


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