Nothing can cripple a small business faster than unpaid client invoices. In fact, a 2019 report put the total amount owed in unpaid invoices across all small businesses in the United States at about $825 billion. Needless to say, accounts receivable is the chief cash-flow concern of small trucking businesses. Anyone planning on starting a trucking business needs to have a plan in place for dealing with invoicing. If you are starting a trucking business, you can avoid the cash flow nightmare of unpaid invoices. Merely invest in invoicing software designed specifically for trucking businesses. Our trucking management software is made for truckers, by truckers. When it comes to tracking your trucking business invoices and payments, it is a tool you need.
Understanding the Importance of Invoice Factoring in Your Trucking Business
Invoice factoring is very common within many industries. During the process, a company sells either part or full control of their accounts receivable to a factoring company at a discounted price. That can be useful if a company often has difficulty receiving their payments after sending out invoices.
Customers pay the factoring company directly, and the company then chases the invoice payment if needed. Afterward, the factoring company pays the business owner the remaining amount for the invoice, with their fees deducted after being paid in full.
In the trucking business, invoice factoring is also known as freight factoring, transportation factoring, or freight bill factoring. The process works the same with the carrier, delivering a load that sells their invoice to a freight factoring company. This process can be extremely beneficial to trucking companies because it helps them avoid taking out a bank loan to pay for fuel and other expenses.
A freight invoice factoring company can help your trucking company whenever you need cash to keep up with demand. These services can help put much-needed money back into your pocket when you need it most. Instead of waiting on a long invoice cycle, you can be sure you and your drivers have the funds needed to keep your trucks rolling and loads delivered.
Organization is Key for Starting a Trucking Business
The key to avoiding invoicing nightmares in the trucking industry is to stay organized. If you have the following:
- a trucking business plan in place
- trucking management software (TMS)
- truck maintenance plan
you’ll have the best organization for starting a trucking business.
With the TMS invoicing module, you can know exactly who owes you money. That will keep your business running smoothly.
This prevents potentially devastating cash flow problems. When the unpaid invoices start piling up and the cash flow hits a snag, things start to get tricky.
According to a U.S. Bank study, 82% of businesses fail because of problems with cash flow. If you aren’t getting paid, neither are your drivers. Then, it won’t be long before you have a more problems on your hands.
Managing Your Cash Flow
As you already know, managing your cash flow is essential to the long-term success of your trucking business. One of the main enemies of good cash flow is clients who don’t pay on time. To keep your trucking business in the black and ensure your cash flow is predictable and reliable, you want good-paying clients. Clients who provide you with steady work and pay you fair prices without delays.
Having all of your load and invoice tracking in one place with our software makes it easy to follow up on unpaid invoices and monitor which customers consistently pay on time and which ones don’t.
Tracking Invoices and Payments
When you are starting a trucking business, regardless of the size, one of the easiest ways to track invoices and guarantee on-time payments from clients is to invest in an automated invoicing and collection system.
With software designed specifically for trucking businesses, you can track every aspect of every load, from dispatch to invoice payment. Tracking your invoices and payments means you can improve the accuracy of your invoices, identify dispatches that aren’t invoiced and resolve any potential issues the moment they arise.
When you are starting your trucking business, having this information at your fingertips when you need it can eliminate 99% of the headaches associated with invoicing in the trucking industry.
Benefits of Trucking Management Software for Your Trucking Business
At TruckingOffice, we understand how much of a nightmare invoicing can be for small trucking businesses. That is why we developed trucking management software specifically geared towards owner-operators and small fleet managers.
Our TruckingOffice software includes a convenient invoice generation feature. It automatically bills your clients so you receive payments in full and on time. You can keep tabs on invoices that are coming due and alerts you if any invoices are overdue. With TruckingOffice TMS, you can avoid cash flow crunches that can cripple your trucking business.
At TruckingOffice we work to make your life easier and to get you paid faster. Our free trial can help you right away. Discover today how we can help you.