Invoice Finance for
Transport Companies (Freight Invoice Financing)

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TIM Finance 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.

TIM Finance 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 TIM Finance is to have reliable customers because TIM Finance 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

TIM Finance 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.

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TIM Finance offers several different funding solutions (Services), one or more of which has a no-fee, no interest and no long lock in contract period, called the Fully Flexible funding option. Conditions, fees and charges apply to some of the Services provided, which may change or we may introduce new ones in the future. Full details for all funding options (Services) including any fees and charges which may apply, is available on request. Lending criteria apply to approval of credit products. This information does not take your personal objectives, circumstances or needs into account. Consider it’s appropriateness to these factors before acting on it. Read the funding agreements provided, for your selected product/service, including all the Terms and Conditions contained in agreements provided, before proceeding. *T&Cs: Minimum 12 month invoice funding contract with TIM Finance. Direct clients only, offer doesn’t apply to broker introduced clients. All standard credit terms and conditions apply including credit assessment. Not applicable to existing clients.