Trucking companies need cash flow to operate, but the costs associated with running a trucking business can be quite expensive. So what do you do if you require money and don’t have the available capital? You rely on the services offered by a trucking factoring company. In this blog post, we will cover some key services offered by trucking factoring companies, including financing options, back-office support, and more.
At BP Financing, we’re a factoring business which allows companies that normally operate on net 30 day payments terms to pay their service partners immediately. Our team is dedicated to helping trucking companies like you by providing factoring services that ensure you’re paid up quickly and on time. Now, let’s get into some of our key services below.
One of the primary reasons why truckers seek out a factoring company is to access financing when they need it. A factoring company will purchase your invoices at a discounted rate in exchange for immediate payment—usually within 24 hours or less. This helps ensure that your business has enough cash flow to keep going and remain profitable. The amount of money you can borrow from a factoring company depends on the size of your invoices and how much credit risk there is associated with those invoices. The better the credit risk, the more money you can borrow.
Another great benefit of working with a factoring company is that they often provide back-office support services as well. This means that they are able to help you manage your accounts receivable so that you don’t have to worry about it yourself. They will handle all of your collections efforts, as well as any disputes or discrepancies with customer payments. This can save you time and energy so that you can focus on other aspects of running your business more effectively.
Finally, many trucking factoring companies also offer customer service services to their clients as well. This means that they are able to answer any questions or concerns that you may have about their services in a timely manner. This helps ensure that any issues are resolved quickly and efficiently so that you can go back to focusing on running your business smoothly and profitably.
Invoice Management Services
One of the most common services offered by trucking factoring companies is invoice management. This service helps to streamline the process of issuing invoices, collecting payments from customers, and maintaining records of customer payments. An invoice management service can help save time and reduce paperwork, allowing truckers to focus their attention on more important matters like keeping their drivers safe and on schedule. Furthermore, this service can also help ensure that customers are paying their invoices promptly and not taking advantage of long payment terms.
Fuel Card Management Services
Another service offered by some factoring companies is fuel card management. A fuel card is used to purchase fuel for trucks while they’re out on the road. The cost of this fuel can add up quickly if not managed properly, so having a fuel card management system in place can help ensure that your company stays within budget while still providing your drivers with the fuel they need to complete their trips. Fuel cards also provide an additional layer of security for your company since each card has its own PIN which must be entered before any purchases can be made.
In conclusion, trucking factoring companies offer many valuable services for those in need of quick cash flow solutions or assistance managing their accounts receivables more effectively. From financing options to back-office support and customer service assistance, these companies have it all covered when it comes to helping truckers stay ahead financially and professionally in today’s competitive industry landscape. If you're looking for an affordable option for managing your finances while expanding your business operations, then consider turning to a reputable trucking factoring company like BP Financing today!