Boost Your Hauling Business in Philly with Effective Truck Factoring
June 11, 2024
A trucking business is more than simply hitting the highway and delivering cargo. It is important to maintain a healthy financial situation. The Philadelphia truck factoring company can help those in need of quick cash.
Imagine that you have just delivered your load across state boundaries. Now that the job is done, you wait 30, 60, and even 90 days for payment. The bills continue to pile up like snow during a nor’easter. Your financial superhero, truck factoring, is at your service.
What is truck factoring all about? It’s simple but brilliant. You can sell your unpaid bills to a company that factors at a reduced rate. They provide you with immediate cash. No more waiting while your account sits untouched.
Imagine Joe is an independent trucker, from South Philly. He had clients that loved his service, but were slow payers. Joe found himself in financial trouble more than once. One day he discovered truck factoring. Joe now has money coming in steadily, and his level of stress is lower than before.
Its simplicity and rapidity are what makes truck factoring so attractive. No need for mountains of paperwork, or to jump through hoops as traditional loans would require. Also, your credit rating? Here, it’s not so big a deal! Factoring businesses care more for your customers ability to pay invoices, than you.
Let’s not kid ourselves – all factoring companies do not operate the same. Some factoring companies will try to nickel and dimed you with hidden costs or lock you into contracts that feel like shackles.
Susan from North Philly is one of those who has learned the hard way. She signed up to the first website she found online, without reading all the fine print. She signed up with the first company she found online without reading the fine print (who does?).
What can you possibly do to prevent Susan’s fate from happening? Do your research before you sign on the dotted line! Search for transparency, clear terms and no hidden charges.
And don’t forget flexibility! Someone who is flexible and willing to adapt to your specific needs will be more successful than someone trying to force you into their cookie cutter mold.
Let’s talk about numbers. Factor rates usually range from 1%-5% per month depending upon various factors. The rates are much better than high-interest loans and maxing out your credit card!
Factoring companies can also offer additional services such as fuel advances or collections management. This can come in handy when times are tough.
Tom from West Philly was another example. During lean periods, when fuel costs unexpectedly soared (thanks world economy), he took advantage of the extra services. Tom didn’t miss any deliveries because his factor handled the fuel advance and collected efficiently.
One last thing, people: you need to be trustworthy. The fact that someone has the lowest rates does not mean they will be a reliable partner, ready to stand by their words when things get tough (and those chips can fall sometimes).
Instead of relying on online reviews, which are sometimes misleading due to the sheer amount of fakes floating around in cyberspace these days unfortunately, it’s best to seek recommendations from your fellow truckers.
Be safe, choose wisely and enjoy your hauling!
Even though truck factoring doesn’t solve all your problems in a day, it can help keep the wheels turning especially for an industry as unpredictable as ours. The next time you find yourself in need of cash, it’s worth a try. You could be surprised with the results.