Factoring - Why is it important for your company's growth?
Factoring represents a method of accelerating your company’s cash flow. More exactly, through these kinds of services, we can transform your unpaid invoices into cash. So, you don’t need to worry about the decrease in your profit, because it won’t be the case.
Trucking factoring means that someone else is taking the responsibility in case of nonpayment. You can access the money from that specific invoice and use it to grow your company. For example, you can take additional work to increase your trucking business’s money. Also, you can solve cash flow problems, if there’s the case.
What are the benefits of factoring?
The amount of lost and delayed payments you can get from factoring services can lead to a lot of advantages. Not only your company but also your drivers can take advantage of different benefits. Also, you can increase your profit much more than you expected in a certain period.
Our professional and experienced team is ready to help you with factoring. So, why should you opt for these services?
- Upfront payment – You won’t need to deal with the consequences of the lag that can appear between taking on a job and getting paid for it. The upfront payment represents a big advantage, especially for the drivers. It wasn’t fair for them to end a job and wait for their well-deserved payment. So, with our help, your drivers receive their money without any delay. Also, this way you can make sure that your employees are satisfied and there won’t appear conflicts.
- A reliable source of income and reduced nonpayment risk – It can be very difficult to grow your company if you never know when you’re getting paid for your services. Even if you’ve finished your work, there is no certain date you’ll get paid and, also, there is no guarantee you’ll be paid. So, with factoring services, your collaborator deals with the risk of nonpayment and assures you of time payments
- Flexible income – Even though you accept a factored order, meaning you get 80%-90% from the payment, you can connect with a more reliable payment. So, you have the assurance that you get the money on time or you get them at all. These kinds of orders are ideal for a company at risk. And, when your business is risk-free, you can take fully paid orders.
Factoring - How does it work?
If you chose factoring services for your trucking company, this is the process you can expect:
- You invoice your client for the finished work
- You give us your unpaid invoice
- We pay you an advance that is agreed-upon
- Your client pays us. Also, if it is the case, it is our responsibility to chase the client for the payment
- Finally, we take our cut and send you the balance
So, factoring is a safe way to grow your company and be sure that you make a constant profit. Contact us and discover by yourself the benefits of our collaboration! We are ready to work with you and help you with your trucking business.
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