Transportation Factoring Companies

Invoice Factoring and the Transportation Industry: Solving the Cash Flow Challenges of Today's Trucking Companies - Trucking operators understand how critical managing their cash flow is, especially in today's economic climate. With diesel prices soaring, and no apparent end in sight, trucking companies are feeling the squeeze on their cash flow. Additionally, banks historically have been reluctant to finance trucking companies due to the volatility in the industry and the high failure rate. So it begs the question, how can trucking companies get the cash they need to fund operations and pay for fuel, repairs and payroll?

The answer is invoice factoring or accounts receivable financing. Invoice factoring, often called freight bill factoring among trucking operators, is a financial service offered by a financial institution called a factor whereby you sell your outstanding accounts receivable to the factor at a discount. You get your cash up front, less the factor's fee, and the factor gets his money back along with his fee when he collects on the invoice from your customer. Freight bill factoring has been a service used by many trucking operators for decades as a method of financing their trucking operation. Invoice Factoring may be the solution for your cash flow problems as well.