Cash flow is a common problem in the transportation industry. The pain point for most transport businesses arises from the mismatch between the cash payments received from customers and the cash payments they have to make for operating expense, especially fuel and labor.
Let's review how factoring works in the transportation industry. Just like other industries that utilize factoring to finance their business, transportation companies can sell their accounts receivable invoices to a factoring company, and receive an advance as much as 90% of the invoice value.
When your transportation business sells invoices to a factoring company for a fee, you will receive cash on the same or next day-speeding up the cash conversion cycle and enabling management to run the business-instead of worrying about which bills to pay.
Freight, trucking and logistics businesses can take advantage of this cash advance via invoice factoring to support their operating expenses. This alleviates the pressure of dealing with working capital difficulties due to insufficient cash.
How does accounts receivable financing work for transport businesses?
You can also receive a cash advance for your accounts receivable invoices with A/R financing. Trucking and logistics companies can receive cash by leveraging their accounts receivable balances as collateral for a loan.
Likewise, you can leverage your accounts receivable assets as part of a larger collateral structure to obtain an asset-based loan.
Benefits of Factoring with Accord Financial
Accord understands the transportation industry and its unique challenges. We know that small and medium sized businesses are the backbone of the economy and we want to simplify access to capital with flexible financing solutions.
When your transportation business needs factoring, think Accord Financial.
Why Accord Financial?
With over 40 years in business financing, Accord Financial is an industry leader, providing business loans and cash advances to businesses in a broad range of industries.
Here are a few benefits of using their services for factoring:
Accord Financial partners with your business to understand your cash needs and customizes freight factoring solutions that best solve your money challenges
Accord provides cash right when you need it, no delays
Get affordable financing fees and rates with Accord Financial
Fast response to your truck and freight business financing needs. Call us directly to learn more about accounts receivable financing for your business: +1-844-932-9940 (Canada) / +1-844-725-4225 (US).