Invoice Factoring for Trucking and Transportation

Small and start-up trucking companies often need cash to keep the wheels turning well before receiving payment from clients. Fuel bills and driver salaries need to be paid, and with limited access to credit terms, cash flow can quickly become tight.

Invoice Factoring is purpose-fit for this kind of business scenario. Instead of waiting 30 to 90 days to receive payment, Invoicing Factoring fast tracks receipt of payment on services provided, ensuring that cash for operations and growth is available when it’s needed.

Five reasons Invoice Factoring may be right for your trucking business:

Start-up businesses qualify: It takes a while to get all the paperwork and business history required to qualify for a bank loan. Because Invoice Factoring is based on invoices, red tape isn’t an issue and funding is fast – within 24 hours of approval.

Cash flow is restricting business: Costs such as payroll, fuel and maintenance can leave a big hole in cash flow while waiting for payment. Limited cash flow not only makes keeping on top of regular bills hard, it also risks missing opportunities for growth – new contracts and clients. Invoice Factoring takes care of your cash flow and managed well, helps secure financial strength to expand your trucking operations.

No real estate security required: A lot of businesses prefer not to secure business finance with personal real estate. Because Invoice Factoring is secured by the invoice(s), no real estate security is required.

No more debt: Because Invoice Factoring is not a loan, it does not create additional debt on your business bottom line. It is a transactional, short-term financial tool designed to support cash flow and strengthen your financial positon.

Flexible and fuss-free: Some companies regularly factor invoices and integrate the service into their business model. Others prefer to use it on a one-off or ad-hoc basis. No locked-in contracts means you can choose when to use Invoice Factoring and how it best suits your business needs.

How it works

  1. The business invoices their client
  2. The business receives up to 80% of the invoice value immediately rather than waiting up to 90 days for their client to pay. This can be completed on a full turnover or an invoice by invoice basis
  3. The remaining 20% less a fee is returned to the business when their client pays the invoice.

Thanks to Ian Leslie – Director of FIFO Capital. Operating nationally, FIFO Capital is a leading provider of single invoice finance solutions.

Contact Start Fresh Finance if you are interested in further information 0468 371 449 or jan@startfreshfinance.com.au