Are you having problems with cash flow?
The slow payment is one of the major hindrances in expanding a company, more so for the trucking business. Account receivables could start to pile up, and before you can foresee it, you could be releasing more funds than receiving money.
Did you know that load factoring companies can help you bridge invoice payment gaps with upfront payments of up to 90% of the original invoice?
You get paid quicker, allowing you to free yourself from the stress of managing your receivables. It ultimately helps you grow your business without stressing over the cash flow. You could hire more workers, buy more trucks, and get paid as soon as you deliver the goods.
Here are four ways that load factoring companies can help you manage payments to services easier and faster:
Four Ways To Have Full Control Over Your Payments
Here are four ways you can start regaining full control over your business’s cash flow:
1. Never Wait for Too Long To Invoice Customers
While receiving payments weeks or a month later is a common practice in the trucking business, you don’t have to get stuck in this norm. Load factoring companies can take the load off of you by paying you instead.
These companies will collect the bill for you, bearing the load of having to wait for your customers’ payment. In the meantime, you’ll receive the payment from them as soon as you’re done rendering your services.
2. Use the Best Payment Terms
You can set your payment terms earlier before starting a business with a client. It helps you establish the payment schedule you want before providing your services.
Most new clients will agree to this setup since they have to oblige to your rules to avail of your services. You can set payments to be as early as 5 or 10 days after delivery.
However, this is hard to achieve. Most of your competitors, who have bigger funds can wait for the payments out longer.
Try to communicate with your customers early. If they find your services worth the net 10 payment terms you offer, you’ll receive payments faster. But in case you’re not willing to take the risks, try to partner with a factoring service for trucking. It’s a win-win situation for both you and your customers.
3. Delegation and Automation
Sending invoices to your customers is not a set-and-forget approach. You need to be aware of which customers are past their payment due date and remind them about it. You need to continue to follow up regularly until you get a response.
This can be an easy task if you only have a handful of clients. However, it can get overwhelming if you have a lot of clients.
You can delegate these tasks or automate the process. Apps have reminder functions that can send you a notification about your customers’ payments. However, even these notifications can be burdensome if you’re receiving too many of them.
Companies that offer invoice factoring services can take most of the load off of you. They’ll do all of the monitoring and collecting. You’ll receive your payment even before your customer pays up. The benefits you’ll receive with their freight factoring services can more than offset their fees.
4. Reward and Punishment
While a customer can agree with your payment terms, that doesn’t guarantee that they can pay. Remember that they’re also running a business. They might suddenly experience some internal issues causing them to miss out on their payments.
To protect your business from such incidents, you must set up a late payment rule beforehand.
On the other hand, you could also encourage them to pay on time by providing value-added services on their next service request. Huge discounts can be a great incentive to motivate them to pre-pay.
You can, however, spare yourself from these complexities. If you partner with the best invoice factoring companies, you won’t have to shell out additional expenses to fund your discount offers since you will always get paid on time.
Grow Your Business Faster with Load Factoring Companies
Don’t hold your company back from growing. Freight factoring companies can help you get the ball rolling in no time. You can receive payments faster and allocate more funds for your business expansion – for your peace of mind.