Are you tired of taking time off the road just to chase payments from brokers or shippers? Or is your growth being stalled by long payment cycles? If you’re struggling with the same problems, partnering with a factoring company in Atlanta might be the solution you’re looking for.
Unlike traditional bank loans that incur hefty interest, factoring is a form of cash advance against your pending freight invoices. When you sell those invoices to factors like us, you’ll receive your working capital fast.
For this post, we’ll discuss how factoring companies in Atlanta, GA, like Factoring Express, can help maximize your profits. Keep reading to see why this might be what your fleet needs!
Financial challenges trucking companies face
Owner-operators and fleet managers know very well the financial challenges of keeping their wheels turning. Some end up opening multiple loans just to get by with their operations and to overcome these hurdles:
Long payment cycles
The trucking industry is an ever-growing sector, but there’s no denying that it still struggles with late payments. Some shippers and brokers take 30, 60, or even up to 90 days to settle their invoices, something that many truckers don’t have the luxury of waiting for.
In this case, truckers like you may find it difficult to cover basic costs, including fuel, maintenance, salaries, and rent. But with a factoring company in Atlanta, this doesn’t have to be the case.
Increasing fuel costs
Fuel is one of the biggest expenses in running a trucking business, and it gets even more challenging to manage as the market prices soar. When this happens, truckers will be forced to pass on the increased fuel costs to their customers, which could affect their relationship with long-time shippers.
Rising maintenance costs
Due to inflation and parts shortages, trucking companies also have to deal with the increase in their maintenance expenses. On top of the fuel costs and late payments, many are forced to cut back on their maintenance, which can compromise their road safety in the long run.
According to the American Transportation Research Institute, repair and maintenance costs has increased by up to 12% than previous years. They associate it with the rising labor rates among technicians and the lingering parts shortages in the market.
How Atlanta factoring companies can help your trucking business
As with any business, running a trucking company has its set of financial challenges. However, the upside is that an Atlanta factoring company like Factoring Express can offer a financial cushion to lighten the blow. Here’s how we can help:
1. Turn invoices into cash fast
Instead of waiting for weeks to receive payments, you can sell your invoices to us for quick funding. We can advance up to 97% of the invoice amount in as little as 24 to 48 hours. This way, you can get your much-needed working capital to cover the fuel costs and other expenses of your next deliveries.
With the help of factoring companies in Atlanta like ours, you’ll have a more predictable cash flow. This way, you can also plan your expansion, like purchasing a new truck or opening more routes to maximize your profits.
The best part is that you don’t have to pay any interest rates. We’ll only charge you a small factoring fee in exchange for the quick funding and collections of your pending accounts receivable.
2. Get fuel advances to cover delivery
Invoice factoring companies in Atlanta, GA, not only fund outstanding invoices, but we also provide fuel advances to keep your fleet on the road. For this, we can advance a small portion of your upcoming invoice so you’ll have enough funds for fuel.
Once you’ve completed the delivery, you can pay us back or factor the invoice as well, minus the fuel advance and a small fee. Many of our clients in the trucking industry have benefited from this kind of funding, especially for long-haul loads that demand a huge amount of fuel.
If you want to learn more about fuel advances, feel free to reach out to our factoring trucking company in Atlanta for more details.
3. Enjoy fuel discounts
Aside from fuel advances, factoring companies in Atlanta, Georgia, can also offer your fleet exclusive fuel discounts. This way, you can maximize your profit and save on your overall fuel costs, especially for long-haul drives.
For example, here at Factoring Express, we offer fuel cards where truckers can enjoy fuel discounts of up 35 cents per gallon from thousands of truck stops nationwide. Aside from that, our fuel cards also help them save up to 25% on specific fleet maintenance products.
Overall, our fuel cards are available to all independent drivers, owner-operators, and trucking entrepreneurs who want to enjoy savings. And if you want to bring the same perks to your fleet, you can contact our factoring for trucking company in Atlanta to apply now!
4. Preserve your borrowing capacity
Another great thing about Atlanta business factoring companies is they can help you preserve your credit line. This way, you can keep your borrowing capacity intact and available for business opportunities like acquiring a new truck or opening a new office.
Aside from that, you can save your trucking business from getting into another bad debt. Instead of opening loan after loan to cover your operational expenses, you can factor in your invoices for instant funds.
5. Reduce the burden of collections
When you partner with the best factoring company Atlanta has to offer, you no longer have to chase after shippers or brokers to collect payments. Once you sell your invoices to us, you also pass the burden of collections to our team.
This means you can focus on finding and delivering more loads while we do the collections on your behalf. And once your client pays, we will send you the remaining balance – as easy as that!
Factoring is also a good way to free up your staff’s schedule so they can work on other important aspects of your trucking business. Instead of dealing with the admin tasks involved in collections, you can channel your resources into finding better loads, optimizing your route, and managing your drivers.
How to choose from factoring companies in Atlanta, GA
Your choice of factoring company will make a huge difference in your fleet’s cash flow. To ensure that you’re partnering with the right factor, you should consider the following aspects first:
1. Specialization in the trucking industry
You’d want to hire a factoring company with extensive experience funding freight invoices. This shows that the factor knows the compliance requirements of your business and that they have enough funding capital for your invoices.
Aside from that, factoring companies for trucking like Factoring Express also offer additional services like fuel cards, fuel advances, and dispatch services, among others. This will help you streamline your operations since you only need one partner for multiple aspects of your business.
2. Years of experience
An experienced factoring company not only provides reliable funding, but also a good reputation that will reflect your own trucking business.
Here at Factoring Express, we’ve been funding freight invoices since 2017. Not only that, we used to run a mid-sized trucking company and a freight brokerage before we started our factoring service. We were also a long-time factoring client, so we know firsthand how to run a trucking business and the financial challenges that come with it.
3. Factoring fees
You should also check how the factoring company will charge you for your service. For example, here at Factoring Express, you can get a rate as low as 1.99% – one of the most affordable in the industry.
Overall, your factoring fee will depend on the risk associated with your invoice, the amount we’re factoring, and the type of funding you need. If you want to know your exact factoring rate, contact us today, and we will give you a quick estimate.
4. Factoring agreement terms
Make sure you read the fine print before signing the deal! When it comes to factoring, you have to check their termination clause to see if they impose fees or if they are locking you into a long-term contract you’re not ready to commit to.
Also, you should check whether your factoring contract falls under recourse or non-recourse. With recourse factoring, you’re liable to pay back the advanced amount in case your client fails to pay the invoice. Meanwhile, non-recourse factoring will free you from certain liabilities in the event that the factor fails to collect the amount.
Why partner with Factoring Express?
If you’re looking for Atlanta factoring companies you can trust, you can reach out to Factoring Express today! We specialize in funding freight invoices so that you can receive your capital as fast as 24 hours.
We don’t impose long-term contracts or monthly minimums – you can use our invoice factoring service as you like. You can choose the invoice you want to fund, or you can cancel it anytime without termination fees.
If this sounds good to you, contact us today to start your 1-week free trial!
