Operating a trucking operation in Philadelphia can be likened to driving through a maze-like financial obstacle course. It’s hard to keep your business moving forward when you feel that cash flow is stuck in neutral. The Philadelphia truck factoring company is the game-changer you need to keep your company moving forward.
Imagine that you just completed the long journey from Philly up to Chicago. It’s over, but it’s going to take 30, 60, even 90 days until you get paid. Fuel, maintenance, and driver’s salaries aren’t waiting. It is enough to make anyone’s hair stand on end.
Enter truck financing. Invoices can be sold to a company that factors invoices. They pay you immediately, so there’s no need to wait.
Let’s discuss turkey. Imagine yourself as Joe the Trucker and $50,000 worth of invoices are pending. A factoring business buys your invoices at a discount, such as 90% upfront. That means you get $45,000 in your bank account right away. When the client pays the invoice, the factoring company takes a cut (usually 2-5%) and sends the remaining balance to you.
What about your credit score? I can hear you asking. You’re in luck! Factoring businesses focus on your client’s creditworthiness, not yours. You’re still eligible even if your finances have been rocky.
This may seem too good-to-be true. Yes, it’s not free. Only your mother in law can give you advice! Consider this: Would you prefer to pay a fee and get immediate cash than risk missing an opportunity due to a lack in funds?
There’s more: truck factoring doesn’t only work for big rigs, but also for smaller businesses and local deliveries. This financial tool is a great way to smooth cash flow issues, regardless of whether you’re transporting Liberty Bells or Cheesesteaks.
Let’s get to the meat of choosing the right company for factoring. Some factors offer better rates and others have more flexible terms. Others provide fuel advances, equipment financing, or other services.
Sam is a South Philly-based fleet owner who was drowning in invoices unpaid last winter after his trucks needed repairs urgently following a severe snowstorm. In partnership with a reputable company that provided same-day loans plus repairs at competitive interest rates, voila! His trucks were on track before he said “Rocky Balboa.”
You don’t have to take my word, but do your homework. Consider reading reviews on the internet or talking to fellow truckers while you’re drinking coffee. Many businesses have experienced a turnaround thanks to smart factoring choices.
The options are endless! Recourse vs. non-recourse factors? Spot-based vs. Contract-based? You can choose between the different toppings available at Pat’s Kings of Steaks. Each one has its advantages, depending on what you prefer!
You can enjoy a smoother journey to success with partners and the right tools.
You’ll now know the reason why truck factoring is so popular in Philadelphia. It keeps engines revving smoothly even amid the bustle, hustle and bustle that makes up this vibrant metropolis.
Then buckle up, and have a great time!