There are lots of finance options that suit business owners who have a large established businesses. Often these won’t suit your transport businesses.
One finance tool to consider is invoice factoring. Sometimes this is called debtor finance, invoice factoring or even freight note factoring for transport companies or truckers. In can solve a lot of your cashflow problems.
Some people call this debtor finance and some people call it receivables financing or invoice factoring. It is finance that accelerate your cashflow cycle so that you the Truck Driver or transport operator have the cashflow you need.
You have it when you need it, to pay the bills and grow your business. This can be achieved through factoring your debtors.
Turn your Freight Notes into Cash
As Owner Operators and Tow Haulers you often have difficulty raising capital when they need it because you do not have a back-up store of capital or adequate cash reserves.
If they go to a bank, the bank only wants to lend against the value of their house. If they do get a loan and the business outgrows the value of the house again the Bank won’t help.
This is where Factoring or Debtor Finance excels. It turns unpaid freight notes into cashflow NOW. Often within 24 hours and sometimes even of the same day.
Even better as your business grows your line of credit or access to capital grows with you so that the debtor finance line can get larger and larger. It is not restricted by the value of your home or other property.
The credit rating is often not a problem
Another benefit of factoring or invoice factoring is that even if YOU have a poor credit rating is usually does not matter.
This is because you are factoring your freight notes / freight invoices and YOUR credit rating is not the only things that is looked at. The credit of your customer is also looked at as well. If they’re a large and solid company you can effectively leverage off their balance sheet to get YOUR funding. All this through your invoice financing facility.
By opting for invoice factoring or debtor finance you can grow your business in ways you previously had not thought possible.