When asked how they were able to achieve record-setting profits in their second quarter of 2018, Titanium Transportation Group’s chief executive officer didn’t have any trouble giving an answer. While rate increases and volume growth were both major factors, CEO Ted Daniel explained, Titanium’s acquisition of Xpress Group had managed to garner the business an additional $4 million dollars in revenue. Daniel has described mergers and acquisitions as an integral part of Titanium’s identity and expects more of the same in their future.
“These are fairly strong economic times in the trucking industry,” says Daniel.
Both Daniel and Titanium are right to be optimistic, and many industry experts are forecasting that conditions will remain strong for the next year or more. But not everyone will be able to replicate Titanium’s success. Mergers and acquisitions, like any type of business growth, requires capital — without steady, readily available cash flow, businesses may find themselves left behind while their competitors pull into the fast lane. So how are startups, smaller companies, or companies who find themselves in the middle of a lean year supposed to keep up? For many, the answer lies in freight bill factoring — an increasingly popular alternative to bank loans.
Oftentimes, an enormous amount of money can be tied up in unpaid customer invoices. Though the money is coming, it can’t be spent right away, which is too often when you need it most. When opportunities for growth come up, the ability to jump on them depends on having your money freely available to be allocated.
The process is straightforward. Once approved, you’ll receive an advance on the value of the invoice — sometimes as high as 97% (less the factoring fee which is nominal). The remaining 3% is held in reserve, and once the factor collects from your customer, that amount is remitted to you.
As freight bill factoring has become a tool that more and more carriers are making use of, the market is increasingly offering competitive options for any and all sizes of the carrier. Accutrac Capital, for instance, a freight bill factoring company with offices across North America, has multiple rate packages that can appeal to everyone: for smaller carriers, they have “Flat Fee Factoring,” a simple option with a straightforward, one-time cost, and rates that go as low as 1.59% for up to 90 days. For larger carriers, they offer a “Factoring Line of Credit,” which comes with rates of 0.022% per day. The line of credit is flexible and is designed to give clients the best value and control. And if your customers tend to pay their invoices more quickly, “Flex Rate Factoring” is only 0.49% for up to 10 days.
With freight bill factoring in your toolbox, you no longer have to stress about outstanding invoices, and you can use your hard-earned capital to grow your business in the ways you choose. Now more than ever, freight bill factoring is an accessible, sensible choice for carriers of any size. As experts continue to predict positive conditions for the industry’s future, leverage your unpaid invoices and make sure that you’re ready to floor the gas pedal on your own business.