If you need immediate funds to support your trucking business but find yourself short on cash, same day loans can be an excellent option. As an alternative to traditional loans, same day loans are an accessible, quick, and easy solution to cashflow problems since they come with a heap of benefits you won’t normally find elsewhere. Here are some of the reasons why same day funding can be especially beneficial to your trucking business.
What are common truck expenses?
Owning a trucking business can be costly and the majority of your expenses go towards fuel, driver pay, truck maintenance, and insurance. It is estimated that for a single truck, businesses may spend up to $30,000 on fuel. Businesses are advised to overestimate how much they will have to spend on maintenance costs since minor adjustments and replacements can rack up larger bills than expected.
Why is same day funding important for truckers?
Even though your business may have fulfilled a customer’s order, your payment can get tied up. It can be difficult to predict when clients will be able to pay for your services, which can impact your cash flow. This can drastically impact your business and put you in an uncomfortable position. With client payments taking 30 to 90 days to come in and insufficient funds on hand to cover your operational expenses, same day funding can be a great solution to cover your immediate cash needs.
How does factoring help?
A great solution to counteract these costs is to consider utilizing a factoring company for same day funding.
The factoring company purchases your unpaid invoices and pays up to 98% of the invoice to you immediately, then collects from your customer. When the invoice is paid, you receive any remaining balance of your invoice, minus their collection fees.
Let’s look at an example. Say you have an outstanding customer invoice of $10,000 and you sell that invoice to a factoring company, agreeing to a 95% advance rate which pays you $9,500 of the invoice upfront. Once the customer pays the factoring company for the invoice in full, you receive the remaining balance of $500 less a small service fee.
This allows you to cover immediate expenses so that you can focus on maintaining and growing your business instead of having to chase down your customers for money.
Top 4 benefits of factoring
Factoring may be the perfect solution for your business needs. Here are four benefits you can expect to reap when utilizing invoice factoring.
Cash flow solution
Factoring can satisfy your financial needs immediately instead of waiting for customers to pay their invoices. Factoring also allows your business to grow opening the door to new opportunities like meeting the demand of new clients or taking on larger projects. The most important thing is that it’s flexible and, tailored to your specific business needs.
Saves you time
Paying dedicated credit control staff or chasing down your customers can be time consuming and stressful. Since the factoring company now collects on the invoices, you can divert your attention to other aspects of your business and allow yourself to focus on your internal operations.
No debt
Apart from other financial solutions like bank loans that charge interest or ask for collateral. There is no debt involved when you sign with a factoring company since it’s a sale of your invoices. If you cannot qualify for a traditional loan or aim to remain debt-free, factoring is the perfect solution for financing.
Easy application
Once you’ve found a factoring company that reflects your business values, the application process itself is simple and can be completed within a matter of minutes. In comparison to bank loans, the factoring process does not have strict reporting requirements, and once approved, you can get access to these funds within less than 24 hours.
Take a chance with a factoring company today
With a simple application process, access to same day funds, and flexible contract terms, invoice factoring can be the cashflow boost that your business needs. Begin your journey with a factoring company today to assist your business endeavors.
FAQ
Yes, it is possible to get an SBA loan in order to start a trucking business.
There are several different ways for funding your trucking company. Some include pulling out loans, making down payments on trucks, and purchasing tools/equipment.
Yes, an investor who has purchased a truck can earn up to $500 to $2,000 per week.
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