Why are You Waiting to Get Paid?
by Hannah Marcom | January 3, 2020
Why are You Waiting to Get Paid?
Welcome to 2020! It’s a new year, a new decade, and there are tons of new opportunities waiting for you and your trucking company. But if you’re planning on continuing to wait the 30, 60, or even 90 days to get your freight bills paid, we can’t help but wonder why? Taking risks is necessary in business but getting paid shouldn’t be one of them.
Why is Balanced Cash Flow Important?
When you’re waiting to get your invoices paid, it creates an imbalance for your trucking company’s cash flow. Your truck drivers need to get paid and your truck still needs fuel. So, if you aren’t getting paid fast where is that money coming from? Credit cards? Cash reserves? That will only work for so long.
Why? Because you’re also assuming everything will go according to plan. If your contract states a net 30 payment agreement, then you might think you’re good to go and will get paid 30 days from now. But what if there is an issue with the load? For example, if the invoice is missing important paperwork or a shipper puts a claim on the load. What if your customer is also struggling to get paid? Brokers sometimes can’t get payment from the shipper or they file for bankruptcy. That means you’ll be waiting even longer to get paid, if you get paid at all. Unfortunately, we see these things happen. We’ve been factoring freight bills for nearly 25 years and we’ve it seen all.
If you’re waiting to get paid you can end up spending more money to run your business than you earn, especially if there is a conflict with an invoice. If you’re an owner-operator, a small trucking company, or even a new trucking company it can be hard to dedicate the time needed to resolve them.
Let Apex Expect the Unexpected
The good news is that the risks of nonpayment are easily mitigated if you factor your freight bills. Here at Apex, handling payment issues for our clients is part of our job. Sure, we can get you cash the same day you deliver a load, but we’ll also audit your paperwork to check for possible issues before it’s sent to your customer for payment. That way we can work with you to correct them while it’s still top of mind. This saves you a lot of time and headaches later on!
Benefits of Apex Factoring
We collect on your invoices, keep an eye on how your customers are paying, and analyze their credibility. We share that data with you through free and unlimited access to credit checks, making it easy for you to decide the customers you want to work with.
It’s important to us to take these precautions because we want to protect your business and your livelihood – keeping them both strong is our ultimate goal. Even though we work hard to decrease your chances of nonpayment, it can still happen. That’s where recourse and non-recourse factoring options can help. With non-recourse factoring if your customer doesn’t pay for credit reasons, like bankruptcy or closures, your factoring company will cover those costs.
Getting paid faster for your invoices allows you to take on more loads and keep your trucks running which makes recovering from losses easier. Think of freight factoring as loss prevention protection you need to run your trucking company successfully.