As a business owner of a growing company, making the right business decisions can be the difference between the survival or end of your trucking company. For new business, in particular, you must have working capital coming in and out to keep you funded, so you’re able to continue running loads. Typically as a trucking company, there are two directions you can go. Let’s discuss the actual difference between Invoice Factoring vs Debt Collecting.
To start, some trucking businesses tie up much of their capital waiting on payments or, worse, trying to collect a debt from the companies they have already serviced. Hiring a debt collection service can cost 30% or more, not guarantee results, and alienate a customer. As a result, selling the debt for a percentage may also be costly and possibly losing a customer since most agencies have very aggressive collection procedures.
Next, an alternative is to Debt Collecting is Freight Invoice Factoring. A factoring company like Single Point Capital works like a partner rather than a bank or collection service. Single Point Capital partners received their funding fast for a low-cost factoring fee, usually the same day. Also, Single Point offers other logistical, back-office support. Additionally, Single Point Capital has years of experience in the shipping and trucking industries with a broad network of resources. Single Point Capital knows the trucking business.
Compare the fees and services rendered using an invoice factoring company to keep cash flow fast and predictable. Establishing a long-term, mutually beneficial partnership can create a positive system for keeping your trucks on the road.
To Wrap Things Up…
Again, making this choice between Invoice Factoring vs Debt Collecting is an important one. It is becoming much more popular today to use a factoring company because they offer many more benefits and services included in the small fee you will pay them. Stop waiting and get paid today!