The 7 Major Benefits of Freight Bill Factoring

Freight bill factoring is a popular financing option for trucking companies, providing them with the funds they need to cover their operational costs while waiting to receive payment from customers. It’s an efficient way to get access to cash quickly, as well as offering numerous other benefits that make it one of the most attractive options for businesses in the transportation industry.

1. Immediate Boost to Cash Flow

One of the primary benefits of freight bill factoring is that it provides an immediate influx of cash. This is a great way to eliminate staggered payment periods of 30, 60, or 90 days that can cause gaps in revenue. There’s no need to wait for customers to pay, or worry about economic slowdowns that can interfere with payment cycles. Additionally, you can avoid the high interest rates associated with traditional loans by taking advantage of a simple, straightforward financing solution.

2. Cover Expenses

When revenue is tied up in unpaid receivables, the gaps in revenue can prevent trucking companies from covering overhead, paying for fuel, making payroll, and more. The accelerated cash flow provided by Single Point Capital’s freight bill factoring services allows carriers to cover their expenses without resorting to loans or racking up creditors.

3. Build Capital for Growth

Freight bill factoring allows existing trucking companies, as well as owner-operators that want to launch their own businesses, to build up capital reserves for growth. Because Single Point Capital makes funds available within a single day, trucking companies can cover their expenses and divert revenue to capital reserves, allowing them to build up the funds necessary for growth opportunities.

4. Better Than Traditional Loans

When there are gaps in cash flow, trucking companies and owner-operators may be tempted to take out short-term loans to smooth out uneven revenue cycles. However, as lenders raise their credit and collateral requirements, loan approvals have been decreasing. Additionally, most carriers and owner-operators do not want to take on extra debt or lower their credit ratings. Freight bill factoring is not a loan. Credit ratings are preserved, and no debt is placed on the balance sheet.

5. Flexibility

Another advantage of freight bill factoring is its flexibility. You’ll have access to funds when you need them while maintaining full control over your accounts receivable without having to rely on someone else’s timeline or terms. In addition, there are typically no hidden fees or long-term contracts involved in the process, giving you unparalleled freedom in managing your cash flow.

 6. No Upper Limits

Traditional lending channels have limits on the amount of capital they can provide to borrowers. If trucking companies are focused on growth, lending limits can slow down momentum and keep them from reaching their potential. Freight bill factoring from Single Point Capital has no upper limits to the volume of invoices we will accept, so instead of waiting 30, 60, or even 90 days for customers to make payments, we can turn those receivables into cash and make those funds available within a single day.

7. Easy Implementation

Finally, freight bill factoring is a straightforward form of financing that’s easy to understand and implement. Unlike some more complex forms of financing, there are no complicated rules or conditions to consider – simply submit your invoices and you’ll receive the funds quickly without worry or hassle. This makes it an ideal option for businesses that need quick access to cash without any long-term commitments or complications.

For trucking companies looking for reliable financing solutions, freight bill factoring is an excellent choice. Not only does it offer immediate access to cash, but it also provides flexibility and ease of use that make it one of the most attractive options on the market today. If you’re interested in learning more about this financing option, reach out to the team at Single Point Capital today. Our comprehensive freight bill factoring services feature no start-up or hidden fees, no monthly purchase volume minimums, and dedicated account representatives who will answer your questions and help you reach your goals. Additionally, our Single Point Mobile App allows you to run credit checks on customers and submit invoices right from your smartphone, so you or your drivers can factor their invoices while they are on the road. Contact Single Point Capital and start factoring your invoices today.