How to Get the Most Out of Your Truck Factoring Service?
Did you decide that you’ve had enough of waiting around for customers to pay their invoices? Why not sign up with a trucking factoring company? The benefits to having a consistent cash flow from a factoring company buying your accounts receivable are very real. We have compiled a list of some tips to make sure you’re getting everything you can from your truck factoring service.
Tips for dealing with a trucking factoring company:
1. Make sure you know their policy on factoring your invoices. Do they require you to factor all your invoices, or just a certain number each month? If not, only use your freight factoring company’s services when you need to. There’s no need to pay their fees, even if they are small, for customers who regularly pay within a short time frame. In an ideal world, all your clients would pay on time and you wouldn’t need a truck factoring service at all. So be thankful for those quick-paying clients, and factor only those invoices that make sense. Find out if the truck factoring company insists on billing for all future loads with a client, or if you can use them on a per load basis. If they let you handle billing and collections for future loads and you are able to financially, pick and choose only those loads you need to factor.
2. Utilize the various free services your truck factoring company may provide. Do they offer free credit checks, fuel cards or other perks?
3. Use all the information your freight factoring company provides you with. For example, that list of pre-approved companies that already meet their credit requirements can help you determine whether or not to book a load.
4. Take advantage of the collections service being provided to you and use the extra time you would have spent on accounts receivable to grow your business. Factoring companies take the headache of collections away from you.