Factoring accounts receivable is the ideal solution for motor carriers who want to get more working capital for their businesses. While many different industries use factoring, this funding solution is particularly well-suited to the transportation industry for a number of reasons:
- You wait longer to get paid. Brokers and shippers often pay in 30 to 60-day cycles, which means you’re out of pocket for services that you’ve already delivered.
- You’ve got ongoing monthly expenses: Your trucks are on the road and you need to pay for fuel, truck maintenance, salaries and other monthly expenses.
- Unexpected emergencies tend to be expensive: If a vehicle breaks down, you are facing a major expense.
- The need for a positive cash flow: As a motor carrier with fixed expenses, you need to ensure that your business has a positive cash flow all year round.
Factoring is commonplace in the transportation industry, but many motor carriers don’t consider this as an option for them until it is too late. When you partner with Interstate Capital, you receive up to 50% of your payment as soon as you load your truck – and the rest as soon as your delivery is complete.