Spanish 
English 
Independent truckers face a variety of financial challenges when trying to build or strengthen credit, including the fact that many lenders often view independent operators as a higher risk. Building credit is crucial for everyone, especially independent truckers looking to expand their businesses and apply for loans. Factoring can be a great way for truckers to stabilize cash flow and build a reliable financial footprint that supports credit. We’re going to look into how TBS Factoring can help you build credit as an independent trucker and explain how you can get a more stable financial situation that will benefit your business long term.
Credit Building for Independent Truckers
Lenders are often looking at a variety of different areas when they are determining your eligibility as an independent trucker. Typically, lenders will evaluate your payment history, income stability, business credit versus personal credit, and debt-to-income ratios to determine your eligibility. The trucking industry faces many challenges, including inconsistent loads, long payment cycles, and high operating expenses. These challenges can make it difficult for independent truckers to build credit, especially given that maintaining a predictable cash flow is essential to building creditworthiness.
How Factoring Influences Credit
Factoring de carga is the process of selling invoices to a factoring company, such as TBS Factoring, and receiving immediate cash. This cuts out the 30 to 60 day waiting period that independent truckers have to wait to get paid for their loads. The main way that factoring can help with building credit is by providing a stable and consistent income for your business by buying the invoices to give you the income immediately in return. Not only this, but having a strong factoring history indirectly affects your credit health,, and it can be beneficial when lenders are reviewing your history.
The Value of Factoring History
There is a hidden value of factoring history that many independent truckers and trucking companies don’t know about or understand, but it can be beneficial when applying to lenders. Here’s a deeper look into the how factoring history supports you as an independent trucker:
Encourages Predictable Cash Flow
Predictable cash flow with consistent factoring activity shows that there is a reliable income stream and it shows a responsible history of income coming into your business. Having a stable income not only looks good for lenders, but it also helps truckers stay current on fuel cards, truck payments, insurance, and other financial obligations that will help to influence credit.
Supports On-Time Payments
As we briefly touched on, the immediate cash flow will help to avoid any late payments, overdrafts, or cash shortages. At TBS Factoring, we offer supportive tools like fuel advances and same-day funding that will help maintain your financial discipline and allow you to stay on top of the financial responsibility you have as an independent trucker.
Avoids High-Interest Credit Options
When working with a factoring company, you no longer have to depend on high-interest credit options that offer quick loans, merchant cash advances, or high-interest credit cards. We offer financial options that build responsible financial habits that will lead to stronger credit history and profiles.
Document a Financial Track Record
Factoring statements, payment history, and load volume records show consistent proof of business operations for those who are looking into your history such as lenders or financing companies. They often will look at your history to determine how reliable your business is with payments, income, and statements.
How TBS Factoring Can help You Build Credit
We offer many different services at TBS Factoring that will help to build credit for independent truckers to support responsible credit and financial history.
Predictable, Same Day Funding
We offer same-day funding that you can count on without industry-leading processing time for invoices. When we purchase invoices from truckers, the payment for them is sent on the same day, avoiding any wait time and keeping you financially secure. This fast and predictable funding option is crucial to keep your finances in check and showcase predictable income history. Ultimately, this also helps lenders to see consistent factoring and income activity as a reduced financial risk.
Financial Tools for Credit Health
We offer financial tools including fuel advance programs, fuel cards, and business management tools that help organize payment history. These tools ultimately help to build responsible credit and financial history with a track record of proof.
Admin Support on Back End
Billing, collections, and paperwork are all done by TBS Factoring if you work with us, which frees the driver from focusing on admin work. In return, this can lead to more profitable operations due to the driver not having to focus on admin and being able to focus on driving operations instead.
Best Practices for Factoring
If you are an independent truckler looking to work with a factoring company like TBS, there are a few best practices that you should consider doing in order to build credit. These best practices will help you maintain good financial responsibility and build your credit up:
- Use factoring consistently to maintain cash-flow records
- Review factoring reports and be sure to use them during financial applications
- Separate your personal and business finances
- Use factoring income to pay recurring bills on time to showcase responsible financial habits
Use Factoring as a Credit-Building Tool
Factoring is much more than just a funding solution, but it’s also a set up for financial stability and responsibility. It’s essential to partner with a reliable factoring company such as TBS Factoring that understands trucking operations and credit-building strategies to get the most out of the features offered. We are here to support your trucking business and financial usability, while giving you a variety of tools to help make your life easier as an independent trucker. If you are an independent trucker looking to build responsible credit habits with a record, póngase en contacto con a factoring company like TBS Factoring to start your journey to a broad financial management plan that will set up the future of your business.
