Invoice Financing For Trucking Businesses

Both fleet owners and independent owner operators understand the important role the trucking business plays in a large economy. Orders get delivered on time for customers. Businesses receive supplies. Yet the trucking business as a whole also suffers from a big strain on cash flow, as money and other resources are used to fill customers requests, while payments are trickling in every 30-120 days. To achieve a better cash flow balance, many trucking companies and independent drivers are turning to invoice financing.

Invoice Financing For The Trucking Business

Once a shipment is delivered for a customer, they usually have an aging window in which to pay for services rendered. Very rarely do customers pay the instant the invoice is presented, but rather more toward the end of the time allotted on the invoice. Instead of waiting for customers to pay, many truckers make arrangements to sell their invoices to finance companies. In turn, the finance companies give cash for those submitted invoices, minus a small administrative processing fee.

Easy To Set Up

Invoice financing agreements are easy to set up and can be arranged within 48 hours. Once implemented, submitted invoices are converted to working capital within 24 hours. Most trucking companies start off by submitting all back dated invoices in large batches to catch up on accounting, and the proceed to submit new invoices as they are generated to keep all customer accounts up to date. Once the invoices are submitted, they become the responsibility of the finance company, which also means tracking down payments from customers falls on their shoulders.

Designed For Growth

Invoice financing is designed to streamline accounting operations to help trucking business owners grow their operations. Instead of tracking payments from multiple customer accounts, all revenue will be coming from the finance company as invoices are submitted. As the customer base grows, revenue grows, but the source will remain the same and money will be made available in the same 24 hour cycles. This will allow your trucking business to accumulate growth capital in a very short period of time, rather than playing the waiting game with incoming payments from customers every month or so.

If you would like to learn more about invoice financing for your trucking business, or any of the other strategies and solutions we have to help you grow your operation successfully, contact CounselPro Lending at 914-481-8300 (local) or 1-888-292-3322 (toll free) and let out team of experts work for you.


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