Truck Factoring UK Haulage Finance
If you’re a transport company, chances are in the current economic climate you are facing many pressures on your business. Rising fuel costs, difficulties attracting and retaining drivers to name but a few. Don’t let cashflow concerns be an issue for you.
Truck Factoring Facility to improve cashflow
Most transport and haulage companies face a similar common problem – slow payment of invoices. Even though your customers are slow paying the money they owe you, you still have financial commitments that you have to make – finance repayments, licence fees and one of the most significant and important overheads, staff wages!
Without sufficient available cash, these important expenses cannot be met, risking continuity of operations etc.
Truck Factoring as a way of improving cashflow
By using an invoice finance facility, or Truck Factoring for the transport sector, it enables the cash tied up in your unpaid invoices to be released without waiting for them to be paid by the customer.
Typically, once you have set up your invoice finance facility with the funder, upon submission of invoices cash can be released within 24 / 48 hours.
What are the requirements for a Truck Factoring facility?
The requirements are quite straightforward:
- Sell services business to business
- General trade terms
- Can provide proof of delivery / service
Which Truck Factoring Company do you use?
As independent finance brokers, we have connections within most of the UK factoring companies that will offer factoring facilities to the haulage / transport sector. We know those companies who work well with truck companies and those whose product offering suits the transport sector well.
Truck Factoring cost calculator
The costs of an invoice factoring facility will depend on a few different factors including, average number of clients, number of invoices, value of invoices, turnover of business and credit risk. For a detailed look at the cost of factoring invoices.
Does Truck Factoring come with credit insurance?
No, not automatically.
Some funders will offer credit protection as an add-on service.
Does the Factoring company handle my collections?
Under the terms of a general factoring facility, the funder will generally collect the outstanding funds from your customers when they become due however there are facilities available where you can continue the relationship with your customers and collect the invoices due.
Freight Forwarder Factoring – can you arrange this?
Yes, we have lenders in place who will operate a factoring facility for freight forwarding companies.
Truck Factoring with bad credit – is it possible?
There are lenders who will consider still offering a facility even when there is a small amount of bad credit information in place. As always we ask you to be upfront at the start, and then we can do our best to help you.
I need finance to buy a new truck, can you help me with that too?
Yes by all means, with over 40 UK lenders on our panel, we have lots of ways we can help transport companies, so please get in touch to find out more.