You probably know how invoice factoring speeds up your cash flow and helps you grow your business. It can be highly beneficial to get paid right away for work you’ve completed rather than wait 30, 60, or even 90 days for your customers to pay. You can pay drivers on time and you can cover your bills.
However, if you factor your freight bill or invoices, could your customers benefit as well? Let’s think about what factoring could mean to them.
When you factor your invoices, you reduce potential friction and increase positive interactions. For instance, you gain the support of a full staff of factoring specialists with accounts receivable and payable processes in place for invoicing, collections, and prompt payment. Whether you are a freight broker who likes having a factoring company pay motor carriers directly or you are an owner-operator with one truck who likes getting paid promptly, your customers benefit from a factoring company’s finely tuned procedures and paper trails.
A good factoring company will have the online resources that you need to stay on top of all transactions, which eases questions and concerns with customers. With all verification documents and paperwork conveniently received, sent, and stored, you and your customers can stay on the same page. When it comes to customer relationships, you can rely on a leading factoring company to smooth out any bumps in the road for you.
Separation of collections and sales
Another area of improved relationships with customers comes from letting someone else take care of your collections chores. It’s awkward when you’re calling on customers to both ask for more business and ask about a late payment or verification problem. When your factoring company is calling on your customers about when they will be sending in their payments and resolving any problems with paperwork or billing, you don’t have to get involved with that side of the transaction.
You can also count on a top-tier factoring company’s collections specialists to stay unfailingly professional and courteous: they want to keep communications open with your customers and to treat them like their own customers. A leading factoring company will be strongly invested in maintaining positive relationship with your customers because its staff wants you to succeed. Your customer retention is a high priority when you partner with a factoring company.
Trust in your future
When your customers know that you are factoring your invoices and getting paid upfront, they know you have the resources to keep good employees on your payroll and keep your trucks in working order, ready to haul whatever is needed. Having the financial stability that factoring provides protects you from getting overwhelmed with bills – and it lets you plan for the future. When your trucking company is factoring, your customers know you will be around for the long haul.