Having access to business financing is a critical component of the success of a business. Freight factoring, also referred to as Freight Bill Factoring, offers financing for businesses involved in the transportation industry. While different businesses may have varying options for financing their activities or expansion, there are several reasons why you should consider getting business financing through freight factoring. From improving your cash flow, increasing growth, and elevating the company’s position financially, here are some benefits you get once you determine that freight financing is right for your business.
High Cash Advances
Freight factoring helps improve your cash flow by ensuring that you always have money due to cash advances. It, therefore, means that your business will never be in lack of cash to purchase fuel, conduct repairs and pay the drivers on time.
New Carrier Start-Ups
Venturing into the carrier business is not easy and comes at a high cost for most individuals who may not have the initial capital. Factoring helps such individuals get access to the much-needed funds to initiate their carrier operations.
Short-Term Contracts
Short-term contracts allow individuals to plan and pursue different paths aside from the finance company. Long-term contracts do not offer the flexibility that most individuals desire, especially when they feel they no longer want to be a part of the company.
Fuel Advances
There are times in the business when you run out of cash or lack cash at hand. If you had a load that was supposed to be pulled, you might have to lose out on the business since fuelling becomes a challenge. With freight factoring, you get the opportunity to access fuel advances and finance minor expenses that you may accrue when pulling a load.
Easy to Access
If you have sought finances in other financial institutions, you understand that you have to undergo various processes and pre-qualifications before getting the amounts required. With factoring, you can access solutions much easier and faster, depending on your situation and upon determining whether factoring is right for your business. It is also worthy to note that factoring is much faster since most of the companies will approve your application on the same day if you urgently need finances.
Non-Recourse Factoring Plans
Non-recourse factoring helps reduce the opportunity of loss when a client is not able to pay. Even though it covers you, the non-recourse factoring plans are much higher in terms of prices and have increased restrictions.The above are some of the benefits that you stand to get by using freight factoring. If you wish to get the best deals and rates in this financing option, contact us at Capital Funding Source for more information and financial assistance.