When freight brokers face that gap between getting a load delivered and getting paid for it, paying their motor carriers on time can get tricky. That’s where invoice factoring comes in. It’s a tried-and-true method for brokers to bridge that 30- to 60-day gap before payment without incurring debt. Factoring also brings other benefits for logistics companies.
Let’s look at how factoring worked for Mountain View Brokers, a five-year-old brokerage founded by Bill, a transportation industry veteran, and his wife, Ellen, a savvy business woman with an entrepreneurial drive. Bill’s years of working for other brokers showed him the value of partnering with a factoring company to maintain a dependable cash flow. One of their first decisions was to call Interstate Capital.
Over the years, Mountain View Brokers has gone through many changes common to today’s brokers, including weathering up-and-down trucking industry cycles, losing a customer’s business when that company transitioned to using an in-house brokerage, and working to renew contracts after long-time decision makers were replaced during corporate acquisitions and consolidation.
Yet, two parts of their business haven’t changed: their vision for the kind of company they want to run and their factoring company. Through hard work and sticking to their vision, Ellen and Bill have seen steady growth. They’ve also seen how Interstate Capital helps them work toward meeting two key goals:
- Strong relationships with motor carriers
The couple cares about the owner-operators and fleet owners they work with and wants them to succeed. Ellen and Bill work hard to build good working relationships with motor carriers and many have been hauling for Mountain View since the brokerage opened. Helping these relationships is the fact that from its first day, Mountain View has consistently paid carriers promptly, thanks to Interstate Capital’s advances upon loading and delivery.
- Strong relationships with customers
Like so many brokers, Mountain View can struggle with customers who don’t pay on time. These can be great customers and highly valued, but slow payments can create challenges. Ellen and Bill like having Interstate Capital’s professional and courteous collections team contact shippers about their payments, rather than them. As many business owners know, it can be difficult to ask for more business and ask for payment at the same time. This separation between collections and sales helps Mountain View’s customer relationships.
Mountain View Brokers is a shining example of a small family-owned business that has succeeded in today’s highly competitive environment. By factoring to pay carriers promptly and turning over collections chores to their factoring company, Ellen and Bill continue to enjoy good relationships with both carriers and customers.
When you’re ready to see how invoice factoring can work for your freight brokerage, contact the friendly transportation industry specialists at Interstate Capital, a leader in the factoring industry since 1993. Click here to learn more about out how Interstate Capital can help you work toward your own business goals.