True or False?
Larger trucking companies increasingly opt for factoring services to decrease overhead costs and improve cash flow.
TRUE!
Larger trucking companies are indeed opting for factoring services as a way to decrease their overhead costs and improve cash flow.
At Great Plains, we understand that larger companies are increasingly turning to factoring services to reduce overhead cost and enhance cash flow. Here's how we at Great Plains make this possible:
- Invoice Purchase: When a trucking company completes a delivery, it generates an invoice for the service. Instead of waiting for the customer to pay, you sell this invoice to us at Great Plains.
- Immediate Payment: We pay you a large percentage of the invoice value upfront, often on the same day or within a few business days. This immediate payment helps maintain your cash flow.
- Credit Checks: We conduct credit checks on your customers to assess their creditworthiness and ensure that the invoices will be paid.
- Billing and Collections: We take over the responsibility of billing your customers and collecting the payment for the invoice. This includes following up on unpaid invoices and managing the collection process.
- Reporting Systems: We provide reporting systems to assist you with financial management, giving you insights into your financial status and helping you make informed business decisions.
- Customer Payments: Once your customer pays the invoice, we release any remaining balance to you, minus a fee for our factoring services.
By outsourcing these tasks to Great Plains, your trucking businesses can focus on their core operations, like hauling loads and expanding their services, without being bogged down by the financial and administrative overhead.