When you’re in the trucking business, hauling freight, or managing a fleet, you have to pay out of pocket for fuel, maintenance, and payroll. You can recoup your expenses when you get paid. However, it can sometimes take a month (or several months) to get paid for work that you’ve already completed.
This can hurt your cash flow and may impact your ability to take on additional loads.
Trucking factoring, also known as freight factoring or invoice factoring, streamlines the whole process and gets you paid more quickly. If you’re tired of having to wait to get paid, there’s a better way.
What Is Freight Factoring?
TXP Capital provides freight factoring services to trucking companies and service companies. Once you’ve signed up for our service, you submit your invoices to us rather than a shipper or broker. We buy the invoice from you and pay you — usually within a day — and take on the responsibility of sending out invoices and collecting from shippers or brokers.
Companies of all sizes use freight factoring to keep their business healthy. Not only will you get paid more quickly, but you also eliminate having to deal with paperwork or chase payments and collections. With a dedicated team that tracks invoices and collects receivables, TXP Capital frees you up from administrative tasks, so you can spend more time hauling loads and making money.
How Much Does Freight Invoice Factoring Cost?
A freight factoring company will take a percentage of your invoice in exchange for paying you immediately and taking on the burden of collecting. However, the cost of invoice factoring is in line with what you would pay to a credit card company for processing a credit card payment.
If you looked into invoice factoring in the past and thought it was too expensive, you should take a second look. Invoice factoring today is as affordable now as it has ever been.
Avoid Bad Debt
Invoice factoring can also provide you with protection from bad debt. TXP Capital provides analysis on prospective businesses. A quick check can avoid you working with companies that are having trouble paying their bills, so you’re not putting your cash flow at risk.
How Do I Get Started with Trucking Factoring?
Whether you’re a solo operator or run a fleet of trucks, invoice factoring is easy to do.
With TXP Capital, you can get qualified quickly. Since qualifications are based on the creditworthiness of your customers, you don’t have to worry about your current credit situation.
Freight factoring happens in four easy steps:
- Complete a job for your customer
- Sell your invoice to TXP Capital for a small percentage of the invoice amount
- TXP Capital pays you cash immediately
- TXP Capital worries about collecting payments from your shipper or broker.
Want to get paid now for your jobs? Get an instant quote from TXP Capital and find out more about how freight factoring can put cash in your hands more quickly.
