Is Poor Cash Flow Stopping your Trucking Company?

The economy appears to be picking up. And with it, we can expect that the transportation industry will see a corresponding increase in activity. Transportation is one of the backbones of the economy (fortunately, our economy has a few backbones :-).

However, business financing conditions are still very tough. Although more bank loans are being made now, qualifying for conventional bank financing still remains challenging. Few small or mid sized transportation companies actually qualify for business loans due to limited collateral assets or loan availability.

One alternative for transportation companies that have cash flow problems is factoring freight bills. This solution solves a common problem for transportation companies - cash flow problems due to slow paying customers. Freight factoring solves this problem by providing an advance against slow paying freight bills. This provides the trucking company or freight broker with the needed cash to meet obligations while waiting to get paid.