Factoring 101: When is Factoring Right for You?
by Apex Capital | June 27, 2013
There are many benefits to factoring your freight bills. How do you know when factoring is right for you? Apex Capital explains when factoring your freight bills can help your trucking company succeed.
You need cash flow
Giving you access to cash faster is the primary purpose of factoring. It can be difficult to wait 30, 60 or 90 days for an invoice to pay out, especially if you need to buy fuel, pay drivers and keep your company running. You may even have to turn down higher paying loads because you can’t wait the longer time periods to get paid. When you factor freight invoices with Apex, you can get paid in as little as a few hours!
You are a new company or can not qualify for a traditional bank loan
If you are a small trucking company or relatively new to the industry, you may not qualify for a traditional loan because of your credit history. For Apex, your credit matters, but it is not the most crucial part of becoming our client. Because we collect directly from the brokers and shippers you do business with, your clients’ credit is far more important to us. That means we can take on the risk of giving you cash up front, even if you have less-than-stellar credit.
You have large freight invoices
Apex charges a small fee to advance you money quickly to help you cover the costs of hauling freight. In return, we offer you great services, such as exceptional customer service, 24/7 access to our exclusive Account Management Portal (AMP), free credit checks, fuel discounts, and much more.
You need collections and credit services
If you’re starting out, you may not have a large back office team. That means when your clients pay late – or don’t pay at all – it’s expensive and time consuming for you to do all of the collections work. When you factor with Apex, we follow up on your invoices, saving you time and money. Even better, we can provide you with important credit information on people you may want to work with, which could prevent collection nightmares from ever happening.
Your company is not big enough to access fuel discounts or other deals
When you own a small trucking company, it’s hard to negotiate big fuel discounts with the major truck stops. If you’re an Apex client, we do that for you. Apex offers all sorts of savings, including fuel, tires and truck maintenance at the truck stops you visit most.
Get in touch with Apex Capital today to see how our factoring and fuel programs can help your trucking business save money, work smarter, and grow. Call 1-855-369-2739.