You have probably heard about freight factoring and how you can get quick cash through it to keep your business afloat. But apart from this obvious benefit, have you wondered how freight factoring contributes to your business? How does freight factoring help your business grow?
We answer that question for you in this article, and we even show you a freight factoring company that many young trucking businesses have relied upon to boost their growth and development.
Bur first, some ways freight factoring boosts your business is that it helps you to:
1. Manage Cash Flow
Solid cash flow is probably the best thing about freight factoring. You don’t want customers holding up your payments and slowing down your business. It is only with a steady cash flow that you can get new businesses, pay your workers, acquire new equipment, and do so much more. Ultimately, a steady cash flow is what you need to grow your business. And freight factoring provides this.
2. Save Your Time
Customers often have up to 40 days or more to clear their invoices. But do you have that time? During that time, you could have gotten a new business and achieved other more important things for your company.
But an entire freight factoring process only takes a couple of days. That’s as little as 2 days for something that would have otherwise taken more than a month! And that’s what freight factoring does for you. It saves you time to better invest in growing your business.
3. Save Resources
Apart from the time it takes to secure your payment from the customer, you also have to assign some workers to follow up with the customer and ensure that they pay on time. But with freight factoring, you can completely forget about this because the factoring company carries that responsibility from you.
The extra resources saved can be invested into more productive things in the company.
4. Avoid Bad Debt
When payments from customers don’t come in on time, and you have expenses weighing down on your head, you may be tempted to take the easy way out and get a loan. You tell yourself you will repay the loan as soon as your customer pays you. But deep down, you know this is bad debt because you end up paying excessive interest rates.
Thanks to freight factoring, you don’t need a loan. You are basically selling your invoice for quick cash at a slight discount, which, in most cases, is less than bank interest rates.
5. Focus On Growing Your Business
Freight factoring frees up your time, and resources, while also giving you the cold, hard cash you need to invest massively in your business.
Is Freight Factoring For You?
As exciting and beneficial as freight factoring sounds, it isn’t for all companies. For instance, a well-established company with steady cash flow may not need the extra cash flow that freight factoring provides. The company would rather wait for the customer to pay their invoice because the late payment isn’t negatively impacting their business.
But not all companies have this cash base. You’ll know freight factoring is for you if :
- Yours is a small or new company, and you need all the returns from your services to re-invest in your business.
- Your customers don’t pay on time. So, you’re struggling to have enough cash reserves to settle other needs and expenses.
- You want to make quick purchases, such as procuring new equipment or tools, but your money is being held up by your customers.
- You’re wasting valuable time and resources to make collection calls.
The Right Freight Factoring Company For You
There are those freight factoring companies that only care about growing their own businesses. While this isn’t an entirely bad thing, they do it at the expense of companies like yours. They don’t care about helping you grow your company. Most of the freight factoring companies out there belong in this category.
Then there is the category of those freight factoring companies that genuinely care about your business as much as they care about theirs. How do you know? They make it completely effortless to do business with them. They don’t attempt to tie you down with hidden clauses in their contracts or hide hidden charges that eat at your invoice value. HaulPay is a perfect example in this category.
HaulPay smoothes your freight factoring process by completely removing themselves from it. How so? It automates the entire factoring process through its online platform so that you can register, apply, factor, and get paid, all within 24 hours of your first contact with the company.
The company also offers you flexibility and transparency, which puts you in complete control of your factoring account. And the icing on the cake: You can check the credit history of your potential clients on the HaulPlay online platform for free. This helps you know if your potential customers are likely to pay you on time or owe you.
It is also very easy to set up an account with HaulPay, and you can get started here.
Freight factoring is a game-changer for many businesses in the trucking industry. Many companies have been able to grow and develop on the wings of the quick, cold, cash provided for them by their freight factoring company. After factoring, they have enough time, resources, and cash to re-invest into their businesses. And this is how freight factoring can help your business grow.