From taxes and repairs to drivers and fueling, your trucking company often faces the biggest challenge in the trucking industry: cash flow. It is common for trucking company customers to wait 30-60 days to pay their invoice. If your trucking company is passing up business because you are waiting to get paid, you need a freight bill factoring company.

With a freight bill factoring company, your trucking company can get paid very quickly after issuing the freight bill and invoice to your customer. Find out why many transportation companies discover that they can be more profitable when they use a freight bill factoring company.

How Freight Bill Factoring Helps Your Company Profit

When looking at freight bill factoring options, hire an invoice factoring company who understands the challenges of the road and the trucking industry. A company who is experienced in providing service to trucking companies ensures that your freight bill factoring program is tailored to fit your company’s specific needs.

The best freight bill factoring service will be one who partners with T-Check Systems to provide fuel cards. Quality freight bill factoring services also help your drivers and carriers get paid and your trucks fueled and rolling. They enable you to have enough cash on hand to cover insurance, tags, repairs and other expenses. They alleviate your invoice administration burdens so you can focus on dispatching, pulling loads, and growing your business.

How Freight Bill Factoring Works

Freight bill factoring is easy to use and quick to set up. And once it’s set up, it provides you with the working capital you need to meet your obligations. Just deliver the freight load to your customer, send the freight bill to the customer and then submit a copy to your freight bill factoring company. They advance you the funds, which you can use for your expenses. Once the freight bill factoring company gets paid by your customer, the transaction is complete.

How Much Does Freight Bill Factoring Cost?

The cost of factoring your freight bills varies based on several factors. These factors include the creditworthiness of your clients or freight brokers, anticipated monthly freight bill factoring volume (Usually higher volumes are factored at lower rates), and the number of factored customers. The freight bill factoring company may also consider the number of invoices sent to customers, the average invoice amount, and the customer’s average paying time. Based on these criteria, your freight bill factoring company can tell you the percentage that you pay each month.

If you need a committed freight bill factoring company, Bay View Funding is your solution. Bay View Funding specializes in invoice factoring, helping manufacturing, distribution and service companies, including freight transporters, to grow and prosper. Bay View Funding is strongly committed to providing businesses with convenient invoice factoring to solve their cash flow challenges. Visit Bay View Funding at www.bayviewfunding.com to increase your cash flow now.

Heather Preston freight bill factoring - When it comes to freight bill factoring, Bay View Funding has the experience and resources to help your business grow.

As a small business owner, you know that sources of funding can be very limited. This is why many small businesses are turning to invoice factoring as a more viable option for business financing. Whether it is to fuel an expansion, buy new equipment, raise immediate working capital or ease cash flow problems, invoice factoring often becomes the most logical and immediate solution.

However, many businesses that hire invoice factoring companies soon realize that not all invoice factoring agreements are created equal. There are actually two methods of invoice factoring: recourse and non-recourse. Understanding the important distinctions between the two methods will help you select the right financing terms when factoring invoices and accounts receivable.

Recourse Invoice Factoring

When an invoice factoring company advances funds to a business client on their accounts receivable, they expect to receive payment from the client’s customer or account debtor. A recourse factoring agreement means that if your customer neglects to pay the invoice, then you are liable to the invoice factoring company for the balance.

Since the invoice factoring company does not assume the credit risk with recourse factoring, it is often less expensive. For the same reason these arrangements are often easier to find. An invoice factoring company may also demand less control and have fewer requirements pertaining to systems and customers.

A possible disadvantage of recourse invoice factoring is that your company is ultimately in danger of a loss from bad debt. If your customer does not pay the invoice, you must repay the advance along with any fees to the invoice factoring company. An invoice factoring company will generally charge back any delinquent invoices to you after 90 days, depending on the terms of the agreement.

Non-Recourse Invoice Factoring

In a non-recourse arrangement the invoice factoring company has no recourse against your company and cannot force you to make payments if your customers does not. One major advantage of a non-recourse agreement is that once you have sold the accounts receivable, it is no longer your responsibility. It is then the invoice factoring company’s responsibility to collect from your customers. If your customer does not pay the invoice, it should have no impact on your business.

The invoice factoring company will generally check credit on account debtors and handle the collection and bookkeeping functions. They tend to underwrite the creditworthiness of the client’s customers more than the client itself.

However, although you may not have to refund the advance to the invoice factoring company, if your customer does not pay for credit reasons, you may still be liable for any payment disputes involving the product or service itself.

In the current economic climate where loans for small businesses are difficult to obtain, invoice factoring has proven to be the best way to increase cash flow. The primary difference between recourse factoring and non-recourse factoring is the party who is at risk if your customer does not pay the invoice. A professional invoice factoring company will be able to advise you as to which method makes the most sense for your company’s business needs.

If you need a committed invoice factoring company, Bay View Funding is your solution. Bay View Funding specializes in invoice factoring, helping manufacturing, distribution and service companies, including freight transporters, to grow and prosper. Bay View Funding is strongly committed to providing businesses with convenient invoice factoring to solve their cash flow challenges. Visit Bay View Funding at www.bayviewfunding.com to increase your cash flow today.

Heather Preston invoice factoring - Bay View Funding has provided businesses with invoice factoring to solve their cash flow needs since 1985.