Imagine if you had just one day to make your trucking business more successful. Today is that day. So, what will you do? One of the first actions you should take is to learn about how you can factor bills to keep more cash in your pocket.
When you have expenses and vendors to pay, but not enough cash, you may feel trapped. However, you should know that you can factor bills to help you with this problem.
How Can Factoring Bills Help Your Business
Also called transportation factoring, the process of freight bill factoring involves assigning your unpaid freight bills to a third party company and the company gives you fast cash based on the value of the bills. You will receive less money than the customer actually owes but you get your money immediately instead of having to wait.
By factoring your bills, you can get fast business financing right after you complete your run so you can handle daily operations and pay your own bills. This can come in handy, especially if you have slow paying customers. It represents an ideal way to manage cash flow and provide the financial cushion you need to stay on the road.
While factoring bills can help your company, you must choose your factor wisely. Some traditional transport factoring companies require you to agree to let them handle all future freight bill collections owed by the customer whose bill is being factored. This could severely impact your relationship with that customer. Others may give you as little as 60 percent of the amount of the bill.
Where Is the Best Place to Go to Factor Bills?
The scenario is common. You deliver your freight and bill your customer. Then, you struggle to make payroll, pay for fuel, tires and repairs while you wait for your customer to pay. With cash advances or a line of credit product from Financing Solutions (www.financingsolutionsnow.com), you can get money to pay those expenses. You simply use them to factor your bills and pay them back a little at a time.
At Financing Solutions, it doesn’t need to be a long drawn out process like with a traditional factoring company. They offer short term financing options that are fast, reliable and flexible.
Additionally, they have low fees and no hidden costs. Best of all, they specialize in helping small business owners when banks and other lenders won’t.
Tips to Better Manage Your Bills
Research has shown that approximately 25 percent of small businesses experience difficulties collecting money from customers and almost half have current unpaid invoices that are more than 90 days overdue. When you fall into this trap, you will find yourself with a cash flow shortage and unable to keep your business afloat. Here are some tips to help you avoid these pitfalls.
One thing you can do is to reduce your payment terms. With electronic billing now common, you don’t have to give customers extra time in order to account for slow delivery of invoices by the postal service. You may want to consider requiring payment in only 30 or 60 days, instead of up to 90 days.
You can also offer numerous payment options. If you don’t already, consider letting your customers pay by credit card or through Pay Pal.
The best way to manage your bills is to contact Financing Solutions. They will give you the fast business cash you need to spend less time worrying about accounts receivable and more time growing your business.