Imagine driving down the freeway, towing a cargo. All your thoughts are on the road. There’s always that worry in the background about cash flow. While you have delivered your loads, the wait for payment on those invoices can be likened to watching paint dry. Consider truck financing companies in Orlando as your financial pit stop. See Orlando truck factoring company to get more info.
Why is factoring important? You can think of truck factoring as a way to exchange your unpaid invoicing for quick cash. Instead of waiting 30,60 or even 90-days for clients to make payment, you give those invoices to the factoring companies and are paid quickly. Like a magic wand which transforms paper into currency.
What is the reason for this purchase? Trucking is not a cheap business. There are many costs associated with running a trucking company. Cash flow hiccups will disrupt your business faster than “jackknife”. This is where factoring comes in. It provides quick funding to smoothen out the bumps.
In Orlando’s bustling marketplace, several players are willing to assist truckers in keeping their wheels moving. These firms are not only interested in cutting cheques; they also want to understand the unique problems faced by trucking business.
Joe’s Story, as an example. Joe was running a little fleet from Orlando but had clients all across the country who would not pay him. In a recent trade show, Joe stumbled on a company that provides factoring services in Orlando. In a desperate state of mind, but still sceptical about the idea, he took a chance. Joe’s fleet is now two more trucks and he no longer has to worry about paying late.
There is no complicated process. You give your invoices into the factoring companies; they will verify them because nobody wants to deal shady documents. After that, you get the major part of the invoice amount — usually between 80-90%. When your customer pays, you will receive the remainder of the invoice amount minus a small charge.
Now let’s get back to fees. No one wants hidden costs sneaking up behind them. Fees will vary depending on the invoice volume as well as client creditworthiness. But you can usually expect to see something in between 1% – 5%. This might appear expensive, but it’s worth the money if your cash flow is stable.
It is important that you choose an Orlando truck financing company who will understand your specific business requirements. Find companies who have expertise in the transportation industry. They’ll be better able to understand your business needs.
You’ll also need to find someone who is fluent in your language. You should feel comfortable approaching them when there are issues, as something in trucking always happens!
Other tip: Check to see if you can get additional services, such as credit checks or fuel advances.
Also, remember the latest technology. Since everything is digital, it’s absurd to continue invoicing the old analog way. Look for online portals, where you are able to send your invoices without having to deal with piles of paper.
Orlando is famous for theme parks, but dealing with financial worries shouldn’t involve riding Space Mountain in the dark! Factoring for trucks offers peace-of-mind, knowing that the fuel is there to continue moving without any pit stops.
Next time you park at a rest stop, drinking coffee while wondering about how you can cover your next-month’s costs, just remember: you don’t have to be alone. Local haulers have many options in Orlando with the truck factoring companies that are available to them.