Last year when they tightened credit rules it caught many transportation businesses off-guard. In general, many truck owners had quickly gotten used to low rates on lines of credit, equity loans, teaser rates and easy plastic, so the credit-crunch reality was a dash of cold water. Changing your credit life to cash may be easier than you think and can start today.
Digging yourself out of a financial hole won’t happen overnight but here’s how to start the journey: try factoring freight invoices for a year and see how much your business improves right along with your credit rating.
Factoring creates no debt and does not require monthly payments. It is not a loan so it does not show up on a credit report or impact your bottom line. Factoring is the solution that buys your invoice for a discount as low as 1% and advances the funds within 24 hours.
The benefits appear immediately. Instant working capital allows you to keep current with existing payments so you can chip away at the mountain of debt. More importantly, becoming cash positive allows you to extend credit terms to more customers as well as negotiate for discounts for cash or quick payment. Best of all you can completely avoid borrowing money for unexpected expenses because you have instant access to your receivables instead of waiting 30-60 days.
Breaking the credit habit starts with a good cash flow. Next, manage it easily with Freight Capital’s Flash card that will give you immediate access to your cash from submitted invoices, so you can pay fuel expenses easily or transfer funds to checking accounts for payroll. You can even create your own Express Codes.
Still unsure of making such a change? Freight Capital has a 90-day RISK FREE trial where you can see if factoring invoices works for your company. Even if you factor only ONE slow-paying customer, you will get ALL the benefits of cash-not-credit way of life. Freight Capital makes it easy to change your life - - for the better.
