Trucking Liability Insurance One of Reliance Partners products specially tailored to meet your needs is the…
What Is Trucking Factoring?
There are so many complex moving parts that must work well for all to go well. Below, we take a look at a few of them and how they can be managed through services like freight insurance and trucking factoring.
Managing Risk and Securing Your Freight Business
Trucking is a risky business on several levels. This is as there are so many variables involved in the process. In one delivery, there are drivers, trucks, goods being hauled, and management and tracking systems that are engaged throughout the entire process. As such, there are various risks involved on a variety of levels. Additionally, traveling long distances increase the risk of accidents, theft, and other occurrences that can negatively impact business and profitability. Therefore, to mitigate against fallouts arising from things going wrong, extensive insurance may prove useful.
Unsurprisingly, there are many different kinds of available insurance packages available to meet the various needs of both individual and company freight service providers. It is important, therefore to assess the needs of your business and the level at which you provide your freight services and allow that assessment to determine your insurance needs.
What is Trucking Factoring?
Another way of securing your freight trucking business is through effective cash flow management is an important part of any business. There are few things as frustrating or as stressful as being unable to run your business on account of invoices owed by clients. This can result in a myriad of operational problems – including your own bills being unpaid. This is why trucking factoring is so important.
Trucking factoring, also known as freight factoring, helps freight companies managing a fleet of trucks effectively manage their business cash flow through cash advances on already delivered goods. In other words, it is an advance on accounts receivables. This advance is repaid when the trucking factoring service provider collects on the unpaid invoice on behalf of the freight service provider.
By having this advance on delivered goods, it helps freight service providers ensure that they will have the cash they need to keep the business going as they await payments for outstanding invoices.
Trucking factoring services are easy to access and take advantage of. Here is some of what trucking freight providers can expect:
1. To make their deliveries as usual
Business freight providers can make their deliveries without fear or worry as they can receive a cash advance on their bill/invoice without having to stress about following up with clients themselves.
2. Submit a copy of their freight bill to the factoring company
Once their delivery is made, freight providers who have an agreement with the factoring company should ensure that they submit a copy of their invoice/bill in exchange for their advance.
3. You receive a cash advance on your unpaid bill
Cash advances for the total amount of unpaid invoice amount allowing freight services providers continue their operations.
4. The factoring company collects on your invoice from your client
Using the unpaid invoice submitted to the factoring company, they will collect the amounts owing on behalf of the freight services providers.