A steady cash flow is what greases the wheels of every trucking business. Whether you’re a fleet manager or an owner-operator, you definitely know the struggle of covering operational expenses, all while chasing late payments from shippers. But instead of putting your business’ stability at the mercy of your clients, you should consider partnering with Dallas factoring companies as an alternative.
For this post, we’ll discuss how freight factoring works and how factoring companies in Dallas, Texas, can be the partner you’re looking for. Keep reading to see how their financial solution can help keep your trucks on the road!
What do factoring companies in Dallas mean for truckers?
Factoring companies in Dallas, TX, like Factoring Express, function similarly to any other factors for various industries. They offer to purchase your pending accounts receivable, so you’ll get an advanced payment of up to 97% of the invoice amount. In turn, they charge you a factoring fee, either a small percentage of your invoice value or a flat rate, depending on your agreement.
Upon purchasing your freight invoice, the factoring company in Dallas will then proceed to collect it from your brokers or shippers. And once they have settled the invoice, you’ll receive the remaining balance – all without chasing for payments on your own.
Overall, for the trucking industry, notoriously known for its long payment cycles that can stretch up to 90 days, this financial solution is undoubtedly a big help. Also, it’s not only exclusive for truckers but also for other industries like healthcare, staffing, contracting, and more, which we also offer here at Factoring Express.
Why partnering with a factoring company in Dallas is a smart move.
If you’ve been dealing with delayed payments as much as many truckers do, a Dallas factoring company like ours can help. Here’s why it can be the next best decision you can make for your fleet:
1. Get paid instantly instead of waiting for weeks
With the help of factoring companies Dallas has to offer, you no longer have to wait for weeks or months just to get paid. You can instantly receive the amount tied to your invoice once you sell it to us for a small fee. This way, you’ll have enough cash to pay for fuel, driver salaries, maintenance, and other overhead expenses that keep your wheels turning.
For example, here at Factoring Express, we can fund your invoice in as little as 24 hours after your account approval. Also, we offer same-day account approval, which means you can start selling your invoices within 48 hours – faster than any shipper could ever pay.
2. No need to chase clients to collect payments
Once you sell your outstanding invoices to us, our factoring trucking company in Dallas will take over the collection process. We will be making follow ups to your shippers and ensure that the pending invoice will get paid to prevent any recourse terms.
While we do this, you can keep on delivering loads and making more profits for your trucking business. You no longer have to take days off just to chase after slow-paying clients or sit in your office muddling through a sea of paperwork.
Once we’ve collected your invoice, we’ll notify you and send you the remaining balance right away. Overall, we make funding easy and convenient for truckers, so a steady cash flow is one last thing they will worry about.
3. Avoid bad debts and preserve your credit lines
Many truckers often end up opening another loan because clients take forever to pay. Instead of doing this just to cover your business expenses, you can sell your aging ARs to Dallas factoring companies like us for instant funding. This way, you’ll have less of a need to get another loan and pay hefty interest rates over time.
By doing this, you can preserve your credit lines and keep them available for bigger business opportunities in the future. For example, you can get a loan to purchase new trucks instead of doing so just to get by with your daily expenses.
4. Focus on getting more clients and loads
Chasing after clients and making countless follow-ups can be time-consuming. Before you know it, you’ve already missed out on high-paying loads, which only takes more toll on your trucking business’ revenue.
This is exactly what freight factoring companies in Dallas like us help prevent. Since we will be taking over the collections, you can stay on the road and keep delivering hauls while our team handles the follow ups. By doing this, your invoice gets paid and you also keep earning more – doubling your freight business’ efficiency.
5. Open more routes with enough working capital
Thanks to the steady cash flow a factoring company in Dallas, TX, can bring, you’ll have a more predictable revenue. This means you can easily plan expansion, including opening new routes, adding new trucks, and hiring new drivers – all without going into crippling debt.
A factoring company will give you instant funding for all your pending invoices, so you won’t have to stall your business growth. And as a bonus, you can also give your clients or shippers more flexible payment terms.
How to find the best Dallas factoring company
As much as factoring companies can give you all the benefits we discussed above, finding the right one to partner with will make all the difference. Here are some of the key points you should consider before signing the fine print:
1. Specialization in the transportation sector
First, make sure that the factoring company has extensive experience in providing funding for trucking businesses like yours. This way, you’ll have a financial partner who understands the needs of your business and the compliance requirements it also comes with.
For example, here at Factoring Express, we have years of experience funding freight invoices nationwide. We’re also former trucking business owners, so we know exactly how delayed payments can impact your revenue.
2. Huge funding capital
You’d want to partner with a factoring company that can keep up with the growing funding needs of your business. Here at Factoring Express, we have a funding capital of up to $100 million and we’re ready to purchase high-value invoices with cold cash.
So, whether you’re an owner-operator with one truck or someone managing a growing fleet, our flexible financing could be the perfect match for your business.
3. Flexible factoring terms
We always believe that funding should be convenient and flexible for all truckers to access. This means that when you’re looking for a factoring company to hire in Dallas, make sure you check their terms before signing the contract.
First of all, choose one that doesn’t impose long-term contracts. This way, your business won’t be tied to potentially unprofitable terms for years. As a rule of thumb, a factor with a renewable contract of six months or below would be a great option.
Aside from that, always read what the factoring agreement says. You should check the termination clause, corresponding fees, recourse terms, and so on, to ensure that everything is well within your business interests.
4. Transparent pricing
Another thing you should consider is the pricing model of the factoring company you’re partnering with. Most factors charge a variable fee (percentage fee) or a flat rate – both of which are great, depending on your needs.
Aside from the fees, you should also watch out for hidden fees as well as hefty termination fees that could be hidden on the contract. Make sure all fees are outlined on the agreement and don’t hesitate to discuss your questions with your chosen factoring company.
5. Additional services
Aside from instant funding, factoring companies like us also offer a wide range of services for trucking businesses. For example, we also provide accounting, dispatch services, fuel advances, and fuel cards on top of our flexible invoice factoring.
This way, you can boost your operations without having to call multiple contractors at a time. Aside from that, we’ll help free up your staff’s time so they can focus on other important aspects of your business instead of dealing with repetitive admin tasks all the time.
Ready to boost your trucking business’ cash flow? Partner with Factoring Express today!
If you’re looking for a factoring for trucking company in Dallas you can trust, Factoring Express is just one call away. We can turn your invoices into cash fast with no minimums or long-term contracts involved. You can choose which invoice you want to factor, and when – it’s totally up to you!
If you’re still testing the waters, we provide a 1-week free trial for all our first-time clients in or out of Dallas, TX. We’re confident of our factoring solutions and we want you to see the difference for no additional cost in the first week.
If you want to learn more about our factoring solutions and other services, feel free to reach out to us at Factoring Express! Let’s talk about how we can improve your cash flow and expand your fleet!
