Those in the trucking industry are all too familiar with the common challenge of receiving quick payment. Carriers can run into many roadblocks after hauling a load and submitting an invoice for payment. These roadblocks can lead to slow or unresolved payments and wasted time trying to collect on your hard work. Fortunately, factoring providers are here to help you overcome the challenge of getting paid on time.
Utilizing factoring services can take a load off your shoulders, allowing you to direct your attention to personnel, booking loads and growing your business. Most factoring providers have specialized teams to maintain minimal outstanding payments, organize billing, and review a debtor’s credit. This article will give you a brief description of those services and discuss how they can help enhance your business.
Days sales outstanding (DSO) refers to the number of days from the time a debtor is billed for an invoice to the time it is paid. Factoring providers eliminate the DSO for carriers providing cash up front to pay for important expenses like fuel, driver pay and maintenance. Factoring providers will then work diligently to ensure that your DSO stays low so that carriers maintain positive relationships with their customers and keeps your cashflow healthy for the long-term. This also allows you to grow your business by adding drivers, purchasing new equipment, purchasing tires and other operating costs. Factoring providers can monitor your DSO and manage your billing to eliminate any hiccups that may arise.
It can be difficult to manage all of the paperwork involved in transportation. Unfortunately, paperwork that isn’t complete, legible or accurate can interfere with a strong DSO. Luckily, factoring teams usually have analysts and technology to make it easier. Some factoring providers offer online invoice submissions that allow drivers to submit bills of lading (BOL) from the road. They are then matched in the system with the invoice and rate confirmation. When researching factoring providers, also look to see if they offer a mobile app. Utilizing a mobile app will lead to faster processing times and minimize the risk of missing paperwork or illegible copies. Factoring providers have the ability to decrease the chance of missing or illegible paperwork, and you receive faster payment as a result.
When utilizing a factoring provider, you may receive a dedicated credit team to review companies you would like to haul for. These professionals review credit data to ensure that your invoices will be paid on time from a reputable company. The debtor’s billing requirements are established up front to ensure the invoices you send in will be accepted. Some factoring providers have client resolution teams to assist with any issues that may arise after an invoice has been submitted.
Receiving quick payment isn’t a challenge when you have a factoring team to back you up. Factoring providers can do the leg work to ensure that invoices are paid quickly and your business can grow. Don’t let delayed payments and irregular cash flow hinder your progress.
The England Carrier Services (ECS) division offers a variety of services for carriers ranging from maintenance to support. As ECS members, carriers have access to nationwide discounts on fuel and tires from dedicated team members who are committed to finding the best price. ECS also provides factoring services with benefits such as same-day funding to a bank account or fuel card. These options allow carriers the freedom to focus on growing their business while saving time and money.