Heavy Duty Trucking, March 2020
3 PHOTO GETTYIMAGES COM SELENSERGEN THINGS TO KNOW FOR BETTER FREIGHT FACTORING Ask questions understand the terms of the contract and know the services a factor offers before signing on the dotted line For the smallest companies where the owner is driving a truck the truck of the cab is their office and when that cab is rolling theyre making money When it stops they are not explains Jennifer Lickteig president of TBS Factoring Service Many small trucking companies turn to freight factoring to improve cash flow and keep trucks moving Freight factoring eliminates the lag between load delivery and client payments which without factoring could take 30 to 90 days Trucking companies sell their accounts receivables and pay a small fee to a factor which pays most of the invoice up front then completes payment after collecting the debt Every factor operates differently and their services and contracts vary This opens the door for trouble But trucking companies can choose wisely by considering By Ronnie Wendt Contributing Editor ash flow is the lifeblood of any business Over 82 of small businesses fail without it Trucking firms are particularly at risk with small business owners C making up most of the multi billion transport industry As operating expenses rise its essential to keep cash rolling in HDT MARCH 2020 56 WWW TRUCKINGINFO COM
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