Factoring in the trucking industry allows you to get an immediate advance on your invoice. Exchange the invoice for cash, and you’ll be able to take care of operating expenses without having to take on debt or wait for customers to process your invoice.
Long story short: Working with a freight factoring company like Triumph Business Capital gets you paid within 24 hours of submitting your invoice. Keeping track of accounts receivable collection and cash flow can get complicated quickly, but invoice factoring makes things simple. For a small percentage of the total invoice, you can get paid quickly and get back to moving freight — all without having to take on debt to cover fuel, maintenance, and other expenses.
Some companies can take months to pay their invoices, but you can’t afford to wait. You need funds to make sure you can keep moving freight. Keeping your revenue stream flush becomes a juggling act, and one that’s especially serious for smaller operations that might not have a lot of extra cash on hand.
Triumph provides contract-less factoring, which means that you can factor invoices when it works for you, but aren’t obligated to for every load. Plus, Triumph backs up their services with dedicated client support teams — including credit and collection experts whose job it is to help you avoid debt. That way you can cut down on your operational overhead, make more secure decisions, and continue to succeed.
Factoring is the sale of accounts receivable to a factoring company. In the trucking industry, this means carriers receive payment in advance, not months down the line. It’s not a loan or a business overdraft — the factoring company is paying you the money that you’re already owed, minus a small processing fee. Factoring companies like Triumph will vet the broker’s credit and then advance you a percentage, giving you immediately available funds in the manner of your choosing.
Absolutely. In the early days of factoring, some underhanded companies offered factoring services with astronomical fees, which is why the practice sometimes gets a bad rap. Nowadays, invoice factoring is a standard method of streamlining cash flow across multiple industries. Credit policies for small companies have become more restrictive in recent years, which has many looking for alternative ways to generate secure revenue while avoiding debt. Factoring is an easy way for many businesses to do this. If a factoring company is willing to pay out your invoices, it’s also a sign that you’re working with a reputable broker.
The advantage of factoring is that it frees you up from being dependent on timely customer payments. Triumph pays your invoices within 24 hours, giving you the capital to get back on the road right away. Need supplies for your next load? You have cash available. Need to cover payroll? You have cash available.
It’s a quick and easy way to take care of expenses now and avoid the hassle of waiting for customer payments to come in later.
We’ve done the research and selected Triumph as one of the best factoring companies in the trucking industry. In addition to factoring, Triumph offers financial services to help you grow your business, from insurance options and financing on equipment to fuel discounts and advances. They’re interested in forming long-term partnerships with drivers, brokers and shipping companies to help them get ahead. Since 2004, Triumph has helped thousands of small and mid-sized businesses manage and improve their cash flows and maintain strong relationships with their customers.
Triumph has offered factoring services for more than a decade, with clients ranging from single-truck operators to fleets with hundreds of trucks. Having worked with more than 20,000 brokers and shippers, they know the ins and outs of the industry, as well as special requirements that may come up with certain clients. They’re experts looking to simplify the process: you do your job, get paid, and they take care of the rest.
Triumph is also the exclusive factoring company partnered with DAT load boards. Just look for the green checkmark next to the posted load. DAT load boards also provide current rate averages for 65,000 lanes, and offer routing suggestions to minimize deadhead miles.
When you partner with Triumph, you get more than money. You get a dedicated team that supports your business with invoicing, collections and credit analysis.
Register with Triumph Business Capital and get paid faster today!