Financing Receivables For Fleet Owners

For fleet owners in the freight shipping industry, logistics and planning play tremendous roles. From planning the most efficient and economical routes to ensuring drivers have enough gas to and from destinations, it can seem like running a small army, at times. However, with staggered – and sometimes late – payments from customers, fleet owners regularly experience a strain on cash flow, causing operations to grind to a halt. In these cases, trucking companies turn to financing receivables to get things running smoothly again.

Eliminated Delayed Payments By Financing Receivables

Most bills of lading have payment windows of 30 days or longer. This creates staggered payments which causes gaps in the cash flow. By financing receivables through factoring services, the lag in payments disappears. Open invoices are submitted, and then turned around within 24 hours to provide cash to fleet owners. By financing receivables, fleet owners can eliminate their backlog of open invoices, or simply submit invoices as they are generated.

Chasing Down Customers Becomes A Thing Of The Past

Instead of wasting resources trying to track down customers via phone, email, letters, or resorting to collection services – which can actually prolong payments – fleet owners are financing receivables and removing the need for those steps. By financing receivables, the factoring company takes on the responsibility of getting payments, after fleet owners have been paid. The added benefit of financing receivables is that fleet owners can streamline their accounting process because revenue is supplied by a centralized source.

This Is Not A Loan

Financing receivables is not the same as taking out a loan. The entire process is considered a sale of receivables, so there is no debt placed on the balance sheets. Additionally, fleet owners get to preserve their credit ratings, so they have the freedom to seek out financing for larger facilities, getting new equipment and vehicles, or anything else to grow their trucking companies. By financing receivables, fleet owners never have to worry about gaps in cash flow, and can accumulate growth capital quickly.

The Best Solution For Fleet Owners

If you own a shipping fleet, or even if you are an independent owner/operator, Vantage Commercial Capital can help you maintain the cash flow you need to maintain and grow operations. Contact our offices today for a no-obligation consultation, and learn more about our programs for financing receivables.