Invoice Finance for Transport Companies (Freight Invoice Financing)

OptiPay gives trucking companies the money they need to pay critical expenses and to grow their fleet. Continue reading to find out more.

Most Australian trucking companies are started by drivers who invest their own money to buy a truck and launch and operate the company.

While many drivers have a great deal of industry experience, they don’t necessarily have a lot of capital to support the business in the early days.

Often, this stops them from reaching their full potential and makes them susceptible to cash flow problems.

Slow payments and cash flow

Most freight carriers prefer to work with shippers and commercial clients that offer quick payment.
Receiving payment soon after delivering a load allows the carrier to recover its costs and pay expenses.

The problem is that many customers don’t offer quick pays and, instead, demand payment terms.

This requirement puts your trucking company in a precarious position because you must wait 30 to 60 days to get your invoice paid.

Not many growing companies can afford to wait that long for a payment since they have a number of expenses to pay.

At best, you risk cash flow problems.

At worst, you could run out of funds and be unable to pay for drivers, repairs, or fuel. And this is before you as the business owner draw any income.

OptiPay gives trucking companies the money they need to pay critical expenses and to grow their fleet.The solution – finance freight bills

One way to improve your cash flow and to gain a more solid financial position is to use invoice financing – a business financing solution that has been gaining traction in the transport industry.

Financing your freight bills:

  • Addresses the problem of slow-paying shippers by advancing funds for your invoices
  • Gives your trucking company the money it needs to pay critical expenses and to grow

Invoice funding will allow you to access 80% of the invoice value once as soon as once the load is delivered and verified by the debtor.

The remaining 20%, less the fee, is rebated once the client pays in full.

Advantages of freight invoice financing

A key advantage of invoice finance is that it can be used on a revolving basis, providing a source of constant cash flow for your business.

This advantage provides an immediate improvement to your working capital, allowing you to operate your business without worrying about slow payments.

Also, the financing line can grow with your company.

Also, unlike most bank financing programs, freight financing does not have difficult collateral requirements such as putting your family home on the line.

Lastly, there is no requirement to be locked in to a contract requiring you to fund every invoice, every month to every debtor.

There are less service fees with invoice financing, and unlike factoring, there are no long-term contracts.

Qualification criteria

Compared to traditional finance options, qualifying for invoice finance is easy.

The most important requirement to qualify for OptiPay is to have reliable customers because OptiPay uses their creditworthiness as collateral.

Your trucking company should meet the following criteria:

  • It must have its documentation up to date
  • It must invoice only for delivered loads
  • Its invoices/freight bills must be free of liens
  • It must not have corporate legal or tax problems

Get a quote

OptiPay is a leading cash flow finance company and can provide you with high advances and low rates. Fill out our quick application form for an instant quote.

Here’s why Our Clients choose OptiPay

This is Paul, he is one of the directors of UVS, a labour-hire provider to the construction industry. Here’s what he has to say about how OptiPay was able to help his business grow and succeed. Contact an OptiPay expert today to see how we can help you.

Play Video

We’ve Funded Over a Billion Dollars to Australian Businesses

Discover why so many Australian businesses are choosing OptiPay.
Our Customers Have Rated Us “Great”
5/5

OptiPay Platform Integrations

OptiPay’s accounting interface is quick to setup and integrates seamlessly with your accounting software to help to manage your money and pay suppliers.
OptiPay Cash Flow Finder