It may be the hottest days of the summer, but there are many companies who are already receiving the Christmas merchandise that they will need to make sure that they are ready for the busiest shopping seasons of the year. When these companies have to make their purchases so many months in advance, however, they often find themselves stretching their budgets to pay for items that will not be sold for nearly a half of a year. These businesses, of course, rely on the sales of current summer items to help pay for this money that they owe on the Christmas merchandise.

And while many of us may be aware of the advanced ordering that retail stores need to do, we may not know that there are trucking companies across the country that are also paying expenses like drivers’ salaries, weeks, sometimes months, be fore they will receive the money that is owed to them by their own customers. In these cases, freight factoring services offer a solution. In fact, the latest research indicates that Factoring companies can help small businesses bridge invoice payment gaps with upfront payments for as much as 90% of the original invoice.

Freight Invoice Factoring Services Help Many Businesses Bridge Difficult Financial Challenges

Sometimes known as advance business capital factoring, these freight factoring services allow companies of all size to pay for salaries of drivers, purchase of new trucks, and maintenance of older vehicles, while they wait for the payments that are owed to them by customers who may only make their payments once a month.

Consider these facts and figures about the different kinds of factoring services that are used by a number of transportation companies:

• As many as 12 million trucks, locomotives, rail cars, and vessels move goods over the world’s transportation network.
• With nearly 28 million small businesses in the U.S., there are a number that need financial assistance in making sure that they are able to make all of their payments on time.
• Bankruptcies in America increased to 25,227 companies in the second quarter of the year 2016, a number that had decreased from 24,797 companies in the first quarter of that same year.
• The biggest advantage to invoice factoring is that it is a type of accounts receivable financing that converts outstanding invoices due within 90 days into immediate cash for a small business.
• Approximately 5.9 million commercial motor vehicle drivers operate in the U.S., according to the Federal Motor Carrier Safety Administration. Everyone of these drivers depend on a regular paycheck.

Freight factoring services allow many companies to meet their current financial needs while they was for the bills that are owed them. Finding the right factoring service provider is an important decision for many sizes of businesses.