Factoring In The Trucking Industry: Ensuring Robust Performance
Do you like to fill those elaborate bank forms while applying for a loan
? Well, now you dont need to. With the advent of factoring services obtaining financing is now very easy! These services provide you easy access to cash without even stepping into a bank. Factoring services meets the demands of the trucking industry and ensures that the wheels keep on rolling.
Financially speaking, factoring is the process which involves selling your account receivables at a discount to a factoring company. The factoring companies generally advance up to 90% of the invoice value in cash. Simply put, it is a terrific opportunity to unlock the cash trapped in the account receivables of your company. The factoring company will just deduct a small fee and return the difference to you as soon as it collects your accounts receivable.
Another fascinating opportunity offered by a factoring company is a chance to outsource your credit and collection process to the factoring company. So while you reap the benefits of the extra cash, the factoring company will collect the amount due on your behalf. It is simply a magnificent idea as it helps you gauge the credit history of your clients and ensures timely payments. One of the most popular methods of factoring is recourse factoring which is very beneficial if your clients have a good credit history but are slow to pay.
Factoring services have become more important to the trucking industry which is facing a very tough time in todays economy. The Canadian dollar is strengthening by the day while fuel prices and wages continue to rise. The recession has further complicated the matter by increasing the cost of borrowing. What the trucking industry requires right now is a tailor made approach which can provide a suitable financing solution for all its needs.
Factoring services offer a customized solution for the trucking industry. It provides an easy source of cash which allows trucking companies to meet everyday challenges. Factoring companies also provide various value added services like fuel cards which helps the trucking companies to obtain fuel and other important merchandise at various locations across North America.
Accutrac Capital Solutions offers factoring services in the trucking industry. Visit our website at accutraccapital for more information.