One of the biggest challenges of running a transportation company is managing cash flow. Your drivers need to be paid regularly and you have ongoing fuel and repair expenses. However, your customers may only pay their bills on a 30, 60, or 90-day schedule.
If you’re the owner of a small or growing transportation firm, then you also know it can be hard to find financing. Summit Financial Resources offers flexible programs that can increase your working capital by leveraging your accounts receivable assets.
The Benefits of Freight Factoring
If your freight bills take up to 60 days to pay and you need funds sooner, we can help. Our freight factoring program finances your outstanding invoices and provides you with the critical cash flow you need to cover expenses, take on more loads, and keep your trucks on the road.
We help small freight and trucking companies that:
- Need cash flow to fund payroll and operating expenses
- Need capital to fund rapid growth
- Are unable to obtain traditional bank financing or have reached a borrowing ceiling with their bank
- Are established and need a working capital alternative
How Freight Factoring Works
Summit Financial Resources has the tools and experience to look at your delivered freight bills as the assets they are and utilize those assets as collateral. Here’s how our freight factoring program works:
- You deliver the freight load, and it is accepted and verified.
- Once you send the freight bill to the customer, we advance you the funds so you get immediate working capital.
- The transaction closes when your customer pays the invoice on their usual schedule.
Fast Approvals and Same-Day Funding
It’s important to ensure that your firm is the carrier of record on bills of lading. Signing off on bills of lading and ensuring their accuracy is the “golden rule” when it comes to verifying which carrier hauled the freight load and proving that it was delivered and received. This is critical in the event that a dispute arises about who gets paid for the work.
As the trucking industry embraces technology, the growing use of digital or electronic bills of lading is speeding up the process by making it easier for companies and their drivers to provide lenders with the necessary documentation. Summit Financial Resources is able to offer quick approvals and same-day funding, and we can send money directly to your vendors. Our program also works with fuel cards, which gives you and your drivers the flexibility to pay for and keep track of fuel and maintenance expenses.
The most efficient way to run your transportation business is to have a financial partner you can rely on to help you grow. Summit Financial Resources understands the challenges small carriers have to deal with and provides the working capital you need to cover your day-to-day operating costs and deliver the best possible service to your customers.
Working Capital Financing is a few clicks away.
Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.