Imagine that you are driving along the highway hauling goods. Your mind is on your journey. In the back of mind is that persistent worry about your cash flow. It’s like you are watching paint dry while waiting to receive payment for your invoices. Truck factoring is your stop for financial relief. You can see Orlando truck factoring company for more information.
Truck factoring – What exactly is it? Think of it as exchanging your unpaid bills for cash. You don’t have to wait 30, 60 or 90 days to get paid by clients. Instead, you can hand those unpaid invoices over to a company that factors and receive payment immediately. The factoring companies are like a magical wand, which turns the paper you have into money.
What would make you use this item? A trucking operation is not inexpensive. It’s expensive to run a trucking business. Cash flow hiccups are more likely to cause a rift in your operation than you think. By providing access to quick funds, factoring can smooth out any bumps.
The bustling Orlando market has several companies that are ready to help trucks keep moving. The companies don’t simply cut checks. They understand the specific challenges trucking firms face.
Joe, for example. Joe is a driver for a small fleet based in Orlando. He was constantly trying to collect payments from his clients who were scattered throughout the nation. He stumbled across an Orlando factoring company during a business show. As he was desperate but sceptical, he gave it a try. Joe has now expanded his truck fleet to two and is not worried about payments being late.
This process is simple. Your invoices are submitted to the company that factors your payments. They verify the documents (because it’s not pleasant dealing with questionable paperwork) before advancing you the bulk of the amount – usually 80-90%. After your client settles, you receive the balance less a fee.
We’ll talk about the fees because we don’t like hidden costs that creep up in the dark. Fees are based on factors such as invoice volume or client creditworthiness, but you should expect a range of 1% to 5%. The fee may appear high at first but if you compare it to the value of having a stable cash flow, then this is often worth every penny.
Finding the right Orlando truck factoring firm is not only about finding one that has low rates, but also someone who knows your company’s needs. Consider companies that have experience with financing for transportation. They will be able to provide insights on industry-specific issues, which general lenders may not.
Finding someone to speak your language is also important. It is important that they are approachable when problems arise, because in the trucking industry something will always happen!
One more tip: Before you accept a client, check to see if there are any additional services offered. This could include fuel advances or credit checking.
But don’t overlook technology. In a digital world, why would we still use analogue invoicing? You can choose companies with online portals that allow you to submit your invoices whenever and wherever.
Orlando’s theme parks are well-known, but you shouldn’t have to ride Space Mountain while blindfolded. It’s a great way to ensure that you can keep going forward with no pit stops because of cash shortages.
Don’t worry if you find yourself parked in a rest area, sipping your coffee and wondering what you will do to cover the expenses for next month. You are not alone. You’ve got plenty of choices in Orlando, with truck factoring businesses ready to assist local haulers!
