As the year winds down, it’s a good time to reflect on where your business is heading. This has been a challenging year for many, as we navigated around the freight industry’s ups and downs. Yet we kept our companies going, through thick and thin, and we’ve helped keep our economy on the move. Across North America, communities are grateful for our hard-working truckers: they play a critical role in our daily lives.
When you reflect on the past year, think about where you want to be at this time next year. To keep up with operating expenses and plan for expansion, many trucking company owners chose invoice factoring as a convenient, debt-free source of working capital. Factoring companies pay motor carriers and freight brokers upfront for loads that have been delivered, so you don’t have to wait weeks or months to get paid. Let’s see how factoring could change a small fleet owner’s business in the next twelve months:
Imagine that you own two trucks with reefer trailers and are leasing another one. Your most consistent customers are a local packing plant, Iowa Meats, and a large poultry farm, Alden Chickens. Together they owe you $40,000 for loads you and your drivers delivered last month. However, thanks to the long payment terms those customers negotiated, you don’t expect payment to arrive before 60 days.
You have some cash coming in from last month to keep up with insurance, truck payments and payroll, but you’re getting by week-to-week without ever getting ahead. You and your business partner are close to signing on a couple large shippers, but you would need more capacity – and more capital than what’s in your bank account.
The good news is you do have access to the funds for a down payment: they’re just sitting in your stack of unpaid invoices rather than in your pocket. With a quick call to a factoring expert at Interstate Capital, you can gain instant access to that $40,000 waiting for you. The friendly factoring specialists will advance you the bulk of those freight bills upfront, with the rest coming after those two slow-paying customers send their checks.
So, with a fourth truck, or even a fifth truck, company could be significantly benefiting from from . By this time next year, you could be reflecting on the increased profits you have enjoyed by unlocking your accounts receivable. And your drivers could be enjoying a nice holiday bonus!
Any time is a great time to increase your cash flow and plan to grow your company. Call the team at now to make a difference in this year, next year, and for the years to come. Who knows how your business can expand in the next 12 months?