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Invoice Factoring for Trucking Companies

Invoice Factoring Helped a Trucking Company Meet the Challenges that Come with Growth

How Invoice Factoring Provided a Trucking Company the Cash it Needed

The Challenge:

Tony, the owner of an Arizona based trucking firm with a fleet of 180 trucks, had won several new, lucrative contracts. With the new business, he needed to add more drivers to the payroll, and trucks to his fleet. This new success brought more demands: Tony needed cash for his business. He required sufficient cash flow for the daily costs associated with operating more trucks, and to make sure he met the additional payroll. Although he had a line of credit and a good working relationship with his bank, the bank was simply unable to accommodate his request for a larger credit line.

invoice factoring, freight factoring for trucking companies

The Solution:

Tony contacted Scale Funding, set up his new account, and was funded for the first time within 3 days. Scale Funding provided an invoice factoring line to the fleet. This line gave Tony the immediate cash he needed to service the new contracts and continue expanding. Specifically, the money allowed him to stay current on fuel bills, keep all the trucks maintained, meet payroll, and still have operating cash available. This new relationship with Scale Funding improved his standing with the bank: the new invoice factoring line enabled Tony to pay off the line of credit while keeping his deposit and payroll accounts with the bank.

The Result:

Today, Tony’s fleet continues to grow as a result of his factoring line. He is able to pursue new bids and contracts, because of his cash availability. Cash flow is managed through the invoice factoring line. Tony funds on a regular schedule and this allows him to schedule his payable’s and meet his obligations. With credit analysis and risk management from Scale Funding, Tony identified his best-paying customers, with the strongest credit. He established a preferred customer program and has focused his work towards serving these customers. By strengthening the relationships with these customers, Tony has built a stronger company for himself.