Many businesses struggle when invoices aren’t paid on time but transportation businesses are particularly susceptible. Growing transportation companies need quick funding to cover emerging operational costs including handling their back-office, business expenses and paying their drivers on time to keep the best employees. For trucking company owner/operators when customer payment terms vary from load to load, ensuring stable cash flow for the business can be tricky and unpredictable.
Late customer payments or customers carrying an unpaid balance should be promptly followed up on as it becomes more difficult to collect payment as time passes. As the business grows, invoicing and collections processes (a.k.a. back-office work) can take up significant amount of time and interfere with day to day operations. Smaller companies with limited staff can become overwhelmed trying to keep up with clients who take long to pay or make partial payments.
Freight Factoring provides you with the cash flow to grow your business
Quick funding through freight factoring is an ideal solution for trucking companies seeking cash flow relief for day to day business expenses. It takes away the strain business owners commonly feel when their activity and invoice volumes are increasing, but customers are late on making payments.
Bibby Transportation Finance (BTF) is an expert in working with the trucking industry, enabling transportation companies to get paid in advance on issued invoices. The customized freight factoring we provide helps owner/operators pay for operational expenses, add more trucks to their fleet, and for other growth initiatives such as driver retention programs.
Freight Factoring can pay for itself
The right factoring company will offer additional services and support along the way. BTF’s back-office support including invoicing and collections allows our clients to collect on more invoices than they could on their own. As a result, the client receives money that otherwise would have been lost due to customers making only partial payments or delaying payment indefinitely.
To deliver a load, Transportation businesses spend a lot of money up front (paying for fuel, driver salaries, insurance, etc.) which can result in a significant loss if at the end the customer doesn’t pay. BTF’s Transportation Debtor Portal is a free online service providing credit reviews for thousands of transportation brokers and shippers. The tool allows clients to assess the credit worthiness of their customers to help them decide whether or not to do business with them, thus limiting potential losses due to customers inability to pay.
Focus on your business, not on chasing payments
The services of a factoring company can significantly benefit owner-operators. When Mid-KY Trucking was looking for additional funding for its business, they turned to BTF for assistance.
MID-KY Trucking LLC and Clear Spring Inc.:
“After meeting with a BTF representative it was easy to switch over to invoice factoring. There are other trucking companies that don’t want to pay a small percentage of each invoice for this service but it makes such a difference to our cash flow that I don’t pay attention to the percentage at all,” explained Randy. “Before, an invoice might slip through the cracks and thousands of dollars that we thought had been paid hadn’t. When we did get paid on time, it could be that we were paid short. Now, I don’t have to go back in and figure out what went wrong, BTF just takes care of it. We’re collecting money we would have previously lost. I think many trucking companies don’t realize how many invoices they have on the books more than 120 days overdue!” - Randy Curry
Randy Curry, along with his brother, Keith Curry, are co-owners of MID-KY Trucking LLC and Clear Spring Inc. They are current BTF clients.
Bibby Transportation Finance has representatives throughout North America who would like to learn more about your business and customize a solution to help with your cash flow challenges. Contact us today at firstname.lastname@example.org or 877.882.4229.