Are you considering to get engaged with freight bill factoring companies? First, there are certain things to know before you take any action in particular.
How is the use of freight bill factoring companies reflecting your business? Are they leading your business to success or failure?
Sometimes the cash flow is uncontrollable and might slip out of your hands. Then you start panicking and you do not know what to do.
Then you start wondering how to solve the problem, what to do in order to improve your business etc.
We have all been there.
More importantly, we have heard about the freight bill factoring companies. They are the famous rescuers to companies and businesses.
And while there are facts to know about the world of trucks, there are secrets referring to the freight bill factoring.
What Is Freight Bill Factoring?
The freight bill factoring companies offer you services that will help you keep your trucks on the highways.
Thus, you avoid the time waiting in order to get paid. The freight bill factoring companies respect the timing needed for your operations.
To emphasize, freight bill factoring is a solution offered by freight bill factoring companies which are debt-free. Further, it helps the trucking companies to speed up the cash flow.
Regarding this matter, the freight bill factoring is solving the money problems that the trucking companies might face with.
Why Is Freight Bill Factoring Important?
Let us say that you are one of the best trucking companies in Chicago. Further, you have no money problems, or at least you think you do not.
Continually, you think everything is going fine, until there it appears, at the time when you least expect it – the cash flow problem.
The customers start to delay with their pay and you run out of cash.
It always comes unexpectedly.
It is like a virus. It continues to spread quickly and starts affecting your bank accounts.
Then the wondering begins: ‘How did I get here?’; ‘How do I get out of this mess?’ etc.
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Correspondingly, you start contacting your lawyers and accountants and accuse them of not doing their job as they should.
Although, sometimes, it is not their fault.
That is the time when you need help from the freight bill factoring companies.
Whether you are a small company at the very beginning, or even a big company just dealing with financial problems.
Do not worry, the job of the freight bill factoring companies is to help you get back on your feet.
In times when you notice that you are not profiting like you did before, or like you should, you need to take the business in your hands.
Moreover, you need access to the money that you need in order to pay the essential costs and investments in your business.
What is a better way to get the cash than getting it from the freight bill factoring companies?
What You Need to Know About Freight Invoice Factoring
No matter if you are a healthcare logistics company, a flatbed truck company, or a freight brokerage company, the invoice factoring is definitely useful.
It is a powerful tool that is used in companies dealing with freight transportation. Furthermore, it is a process that is used for a cash advance in a short time.
However, in order to get cash quickly in the trucking industry, there is a certain process to get through:
- Once you receive the client’s order you send details about the customers (the transaction, the load and the rate charged)
- The freight bill factoring companies then notify you whether the customer is approved for the freight factoring. (checking the credit and making sure if the pay will be made timely)
- You continue with the transaction and doing your part of the service
- Once you are done with the trucking service, you provide invoices regarding the freight to the factoring firm.
- Depending on the factoring company, you get a certain amount of the invoice you sold.
- Once the customer pays fully the price, you receive balance
Although there are phases to pass, the entire process of getting involved with freight bill factoring companies is simple.
Things to remember: Freight bill factoring is not for everyone but will definitely make the wheels turning for you. More importantly, it will provide you with stability.
Find Freight Bill Factoring Company That Knows the Transportation Business
Normally, a successful trucking business is the one that is leading the company according to the Government’s rules.
Continually, a reliable freight bill factoring is the one that understands and complies the following regulations:
- Department of Labor (DOL)
- The Department of Motor Vehicles (DMV)
- Department of Transportation (DOT)
- Federal Motor Carrier Safety Administration (FMCSA)
- Better Business Bureau (BBB)
- International Factoring Association (IFA)
- IFTA Management
These are considered as the regulations that only trucking companies should respect.
Well, not really.
To put it differently, they need to know and respect the regulations just like the trucking business does.
For instance, if there is a crash or other law problem that might affect you financially, they need to understand that.
More importantly, they need to know the particular process that is taking time and need to respect it.
On the other hand, knowing the above-mentioned rules is also necessary for them. They most certainly do not want to be played by trucking companies.
Furthermore, they do not want to be used only for fast cash although the biggest part of their function is quick cash flow.
To continue with, they do not want to be taken away from profiting because it might ruin their business, and yours in particular as well.
Remember: Once you ask them for financial help, you start depending on them financially.
What You Should Look for in a Factoring Company!
When looking for the right factoring company there are certain things that take consideration. For example, every trucking business has its principles and requirements.