Imagine you’re driving down Broadway in Nashville. Not because of the honky tonks, but because your truck has just delivered an enormous load of goods. You’ve got your next gig lined up but what about cash flow? Cash flow is a problem. Nashville truck factoring can help.
Trucking isn’t only about moving cargo from A to B. The juggling act involves managing fuel costs, expenses and those annoying invoices that take forever to be paid. Enter truck factoring, a lifeline to many small fleets and owner-operators in Music City.
What is truck factoring exactly? Imagine getting a paycheck advance before payday. You can sell your invoices at a discounted rate to a factoring firm instead of waiting 30,60,90 days for customers to pay. The factoring company will pay you immediately – typically within 24 hours. They also handle the collection.
Let’s now chew on the details of why this is a game changer for Nashville’s trucking industry.
First of all, you won’t have to wait around for your payments like a bump in a log. Fuel costs, maintenance and payroll can be covered without a lot of effort. Cash flow is predictable and steady, almost like eating cake and having it too.
What about another perk? You don’t need stellar credit to qualify. Factoring companies are more concerned about the ability of your customers to pay, than with your own. If you have reliable clients but you’ve had some financial difficulties, you can still play.
It’s not just sunshine and rainbows. Factoring comes with a price – usually around 1% to 5 percent of the invoice amount per month, until your client pays it off. Many find that the cost is worth it to have peace of mind and stability in their business.
Factoring companies don’t all have the same standards. Some factoring companies offer recourse while others are non-recourse. If your client does not pay under recourse, guess what? You are on the hook. Non-recourse removes the risk from your shoulders, but comes with higher fees.
I’d like to share with you an anecdote about my friend Jake, who owns his own fleet here in Nashville.
He said, “Man,” over coffee at Loveless Cafe one morning (best biscuits in the world), “I drowned in unpaid invoices until I found this local factoring outfit.” He smiled wider than Lower Broadway. They gave me money faster than greased lightening! Saved my bacon big time.”
Jake’s story, however, is not unique. Countless other drivers across the city have similar feelings every day as they keep their rigs running smoothly. This is largely thanks to these services that bridge gaps between payments & deliveries seamlessly!
The added benefit is that you can spend less time chasing late payers or fussing over paperwork and instead concentrate on what’s important: driving, delivering, making money!
Let’s be honest, time is money. Especially in the fast-paced world of transportation logistics. Every minute counts towards bottom line profitability. Overall longevity and success are dependent on timely execution tasks.