How Fintech Solved the Cash Flow Problem for Freight Transportation Companies
Cash flow. If you own your own freight transportation company, those two words may put fear in your heart.
After all, you probably understand better than anyone how critical cash flow is to your business. Perhaps you’ve even stayed up all night wondering how you’re going to afford that next tank of gas to get your deliveries made on time. Well, through technological advances in invoice factoring, fintech has essentially solved the cash flow problem for small and medium size businesses. Fintech companies specializing in the transportation industry have further customized the technology to develop freight factoring. Designed specifically for freight transportation companies freight factoring delivers more money, faster, and with more capital management control to freight brokers and carriers.
Instant Access to Funds
The biggest advancement in invoice factoring is that you have instant access to the funds locked up in your invoice receivables almost immediately after you submit them to your fintech provider. You provide the digital invoice and supporting documentation through a secure portal and the fintech company quickly verifies delivery before transferring up to 100% of your invoice total (minus fees) to your online bank account.
You can now do what you need to do with that money, whether it’s fill up your trucks’ tanks, pay your employees, or purchase new equipment for your expanding company. You don’t have to wait for your customers to pay the invoices. When they do, they just pay the fintech company instead of you. Essentially, your fintech provider fills cash flow gaps by advancing funds to you each time you submit an invoice, with only the invoice amount as collateral.
Mobile Access for On-the-Go Operators
If you’re like most freight transportation company owners, you don’t spend much time in an office. You’re out and about taking care of business. Even if you’re not actually transporting freight, you’re probably meeting with customers and potential customers, signing contracts, and managing your drivers and other employees. You don’t have time to return to the office to check up on your factored invoices.
Technology has made it possible for you to manage the entire invoice factoring process right from your mobile device, at any time of the day or night. You’re able to transfer funds, check your balance, track your factored invoices, and more whenever you have the time to do it. You can even add funds to your employees’ commercial Visa cards to make sure they can do their jobs without disruption.
Client Dashboard and Portal
Thanks to real-time updates, you won’t ever be in the dark about your finances. With a secure client dashboard and portal, you can manage all your invoice factoring funds in one simple place. And, again, because it’s all online, you don’t have to abide by banker’s hours to keep up on your finances or use the reporting features to make important business decisions based on real-time data.
And because you probably didn’t get into the freight transportation business to spend all your time on the computer, fintech has made these services extremely user-friendly. You can access your information at the click of a button and perform numerous financial and reporting tasks quickly and easily, all from a single dashboard.
Fintech has changed the invoice factoring process to make it a seamless and smooth experience for freight transportation companies. If you’re looking to grow your business and need access to cash flow you can count on, invoice factoring may be the solution you need.