Financing for Last Mile Delivery Companies
Invoice Factoring for Delivery Companies
- Financing for Last Mile Delivery Companies
- Invoice Factoring for Delivery Companies
- Invoice Factoring Solutions for Curbside, Threshold, and White Glove Deliveries
- What is last-mile delivery factoring?
- What types of delivery service companies use factor financing?
- How does invoice factoring for modern transportation companies work?
- Is factoring worth it for last mile logistics companies?
- Last Mile Delivery Funding Example
- The Best Non-Recourse Factoring Company
- Ready for the owner-employees of Bankers Factoring to help you grow your company with our award-winning invoice funding, including bad debt protection? Use our fast online factoring application or call the toll-free number 866-598-4295
Invoice Factoring Solutions for Curbside, Threshold, and White Glove Deliveries
Invoice Factoring for Delivery Service Companies Summary
Freight factoring services for modern transportation companies such as last-mile delivery providers, couriers, and transporters are possible with the best trucking factor. Delivery service companies require mainstream financing for alcohol, restaurant, and hospitality courier operations. Factoring companies help bridge cash flow gaps for transportation companies with creditworthy customer invoices. Accordingly, the fast-funding process helps cover payroll expenses, vehicle overhead, and business costs.
Complete an online funding application if your freight business extends customers’ credit, causing delays in your cash flow. Niche transportation companies need freight factoring solutions to grow sales.
What is last-mile delivery factoring?
Invoice factoring services provide working capital to businesses with cash flow sitting in open accounts receivable (A/R). Factoring invoices is the sales of your receivables to a factoring company. Accordingly, selling invoices helps businesses bypass extended credit terms and long waits for customer payment.
For example, last-mile delivery companies complete routes daily but wait for 30, 60, or 90 days for commercial customers to pay. The purchase and sale of invoices put cash flow in businesses without debt or equity financing.
Keep reading the full article, What is Freight Factoring in Trucking?
What types of delivery service companies use factor financing?
Local delivery courier services that conduct business with the government or business entities can obtain financing through factoring. Last-mile delivery financing helps provide all companies with mainstream funding. Niche service providers and startups need help to secure funding sources.
Depending on state and local regulations, your business has more opportunities to transport different products. For example, Wine and Spirit factoring for local service providers can enable your business to supply logistical support to multi-unit locations.
Last Mile Delivery Types Include:
- Restaurant Depot Delivery
- Alcohol Delivery
- Hospitality Couriers
- Trucking and Hauling Factoring
- Local and regional transportation
- Consumer Delivery Services
- Last-mile delivery for e-commerce companies (for example, Amazon)
How does invoice factoring for modern transportation companies work?
Transportation delivery companies can obtain working capital by selling receivables to cover payroll funding, fuel costs, and general business expenses. Modern technology has made integrating factoring services into your last-mile operations easy. For example, most trucking companies, couriers, or drivers scan deliveries in real time, which helps factoring companies verify completed services.
Factoring is easy if your company moves long hauls, local service deliveries, or bulk materials. Your transportation company can receive funding in 3 to 5 days. Here is how:
- Complete an online funding application with a copy of your delivered invoices
- Bankers Factoring, a factoring company, verifies your invoices and provides cash funding within 3 to 5 days.
- Bankers Factoring advances 80 to 93% of your total receivable value on the same day as your account setup.
- Delivery service company receives the final cash disbursement once their invoices are paid in full less a discount called the factoring rate.
Is factoring worth it for last mile logistics companies?
Freight factoring is an invoice factoring service that helps last-mile delivery businesses obtain capital funding. Accordingly, factoring is a fast process that ensures you are paid within five days of submitting your invoices for completed runs. No matter the customer payment terms, trucking factoring is worth it for logistics companies that need cash flow solutions.
Benefits of factor financing for last-mile delivery companies:
- Fast funding process of 3 to 5 days after your application
- Cover staffing and payroll funding expenses
- Provides cash to cover vehicle costs
- Provides capital for startups
- Covers gas, insurance, and maintenance bills
- Bad debt protection – coverage from uncollected receivables
Last Mile Delivery Funding Example
Your transportation company has a variety of invoices from Wine, Spirits, and Alcohol delivery, plus restaurant and hospitality supply deliveries. Your business sells $100,000 of open invoices to Bankers Factoring.
In exchange for purchasing your receivables, the factoring company agrees to an 85% cash advance with a 2% discount rate per 30 days. Thus, your transportation business receives $85,000 on the same day as your account set up. Once your invoices are paid within the 30-day terms, you accept the remaining $13,000 balance. In this example, the factoring company collected $2,000 in discount rates.
The Best Non-Recourse Factoring Company
Non-recourse factoring with the best company provides transportation delivery companies with bad debt protection. Bankers Factoring includes coverage for your last mile company when selling invoices to protect your cash flow lines. If your customers declare bankruptcy or become insolvent and cannot pay bills, we take on the bad debt risk. The decision for companies to use factoring services is easy.
- Up to 93% cash advances on the same day as account setup
- Non-recourse factoring services include bad debt coverage
- Qualification based on the credit quality of your customer invoices
- Access up to $4,000,000 per month in factoring services
- Overcome slow-paying customers
- Expand your business with untied-up funds