Imagine yourself driving along a highway while hauling your goods. You are focused only on the journey ahead. You’re worried about the cash flow, but it isn’t visible. After delivering loads of goods, waiting for the invoices you’ve received to be paid can feel like watching paint drying. Your financial pitstop is Orlando truck factoring company.
How does truck factoring work? It’s like trading in your unpaid invoices to get instant cash. Instead of having to wait 30,60,90 days or more for your customers to pay, you simply hand the invoices to an factoring company to receive immediate payment. This is like having a magic pen that can transform paper into real money.
Why do you need it? The cost of running a business in the trucking industry is high. Maintenance is expensive, fuel costs are high and payroll can be a nightmare. Cash flow problems are harder to deal with than a “jackknife”. A factoring company can help smooth these bumps because it provides quick access to money.
In Orlando, there are a number of players who will help drivers keep going. These companies understand that the trucking industry faces unique challenges.
Joe’s tale is an example. Joe ran a small business out of Orlando. His clients were spread across the US and he was always trying to get paid. A factoring business in Orlando caught his eye at a local trade show. But despite his skepticism, Joe was so desperate that he tried it. Joe no longer worries about his late payments. He has also expanded his fleet of trucks by two.
Process is easy to understand. It’s simple. You send your invoices over to the factoring firm, they check them out (because who wants to deal with bad paperwork? ), then advance the most amount of invoice – typically around 80-90%. The remaining amount is yours once you have received payment from the customer.
Then let’s discuss fees. Nobody likes to be surprised by hidden costs. Fees can vary based upon factors like the volume of invoices and creditworthiness of clients, but they are usually between 1% and 5%. While it might seem steep, the steady cashflow is worth every penny.
While it’s important to choose a truck factoring Orlando company with the lowest rate, you should also look for someone that understands what your business requires. You should look for firms that specialize in financing transportation. These companies will understand the challenges faced by this industry, and general financers won’t.
It’s important to communicate with someone in your own language. The driver should always be available to discuss any issues that may arise. After all, something is bound to happen in the world of trucking.
Also, before you take on a new client, ask if any of their services are available. For example: fuel advance or credit check.
Hey, don’t neglect technology! It’s a digital era, so why is invoicing still in the analog age? Consider companies who offer an online portal where you can easily submit your bills at any time, without having to drown in paperwork.
Orlando might be famous for its theme-parks, but facing financial uncertainty shouldn’t make you feel as though you are riding Space Mountain without a blindfold! With truck factoring, you’ll have peace of mind in knowing that your business will continue to run smoothly without having to make any unnecessary stops.
The next time you are sitting at a coffee stop wondering how to pay for your expenses next month, remember that you don’t have do it alone. There are plenty of truck factoring options available in Orlando.