As just about anyone involved in trucking can tell you, changing a commercial truck tire is nothing like changing the tires on a Honda Civic. It requires specialized tools, an abundance of space, and a lot of time — not to mention some serious elbow grease. It’s rarely the kind of thing you can do on your own, but it’s definitely not the kind of thing that you can ignore. 

When it comes to understanding the importance of capital, it can be helpful to think about the importance of changing a blown tire. Let’s put it this way: you’re driving on the interstate and one of your tires goes flat. Maybe calling in a repairman is going to cost more than you’d wanted to pay. It’s an unexpected expense that you’re not prepared for. But do you just park your rig at the side of the road and wait until you have enough money to comfortably call for a fix? Of course not. You need to get it repaired, and fast. 

Without that tire, you can’t keep hauling—and if you’re not hauling, you’re not bringing any money in. That’s where the importance of capital comes in: with access to working capital, you can absorb unexpected expenses or bills and keep on rolling with the punches in order to make more money in the long run. With access to funding when you need it, a flat tire is just a minor inconvenience, rather than the kind of thing that can really derail your business. 

With that in mind, it should come as no surprise that a growing number of hauling outfits are looking for an experienced freight factoring company to turn their outstanding invoices into upfront capital to keep their businesses growing. Freight factoring is a simple process: as a trucking business, you can sell any unpaid invoices to a third party — known as a “factor” — and receive up to 97% of the value of those invoices in the form of a cash advance. The factor will keep the remaining percentage as a reserve, and will collect on the invoices on your behalf.  Factors charge a minimal fee for this service — the best trucking factoring company you’re likely to find should have the most competitive rates in the industry. Factoring requires pre-qualification but the benefits are enormous: instead of waiting anywhere from one to three months for invoices to be settled, you have immediate access to cash flow that you can put right back into your business. 

Trucking is a highly competitive industry, and growth is a major key to success. Finding the right freight factoring company can be your ticket to exponential expansion: instead of spending time waiting for your customers to settle their bills before you make the purchases and decisions that will benefit your company’s future, take the initiative and help your business achieve its full potential. 

You wouldn’t leave a tire unchanged on one of your trucks — it would only have a negative impact on your bottom line in the long run. By the same token, you should never let your business stagnate by refusing to take advantage of your unpaid bills. Don’t let opportunities pass you by: get your cash flowing and your business growing today.