When Waiting 30-45 Days for Your Money Isn't an Option

By Bibby Financial Services

01 May 2017

Factoring as a Funding Solution for Trucking Companies

We’ve all heard the old saying “it takes money to make money” and in the trucking industry no truer words have been spoken. Transportation and freight brokerage companies have many expenses including fuel, truck/trailer and equipment payments, insurance, maintenance, paying drivers, and other costs. As in any business venture, there are startup costs and costs to keep the business going.

It is not uncommon for companies in the transportation industry to wait 30 to 45 days for their customers to pay for delivered loads. To keep the business running, naturally these owners and operators must move on to running the next load. For those established companies that have cash flow to float them through the billing cycle waiting period, this may not pose a major issue. However, for some transportation companies the wait for payment puts them in a serious cash flow bind, one that hurts many small to medium sized enterprises even to the brink of going out of business. It doesn’t have to be that way. To help keep their businesses operational, transportation companies can look into financing alternatives like freight bill factoring, or accounts receivable factoring, a funding solution that works well when business loans and credit cards are not an option.

Ok, this sounds great. But how exactly does transportation factoring work?

Bibby Transportation Finance’s (BTF) factoring solutions are designed to address the pain points caused by slow or insufficient cash flow by advancing a portion of the money owed to the company for its freight bills. Here’s what you can expect:

  • Once the load is delivered, the company’s customer then pays the invoice directly to BTF per the payment terms, and BTF pays the company the balance of the invoice less a fee.
  • BTF assumes the back office support role of submitting invoices and collecting payment. The back office support provided by BTF allows the owner/operator to focus on running loads and expanding the business instead of worrying about chasing payments.

BTF has helped many transportation companies by providing the financing needed to keep their businesses moving and is an integral part of the long term business stabilization and growth strategy for many of the clients we fund. Contact us today to learn more about Bibby Transportation Finance or to get a quote: (877) 692-4229


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