Factoring company 1st Commercial Credit is integrating a receivables financing solution into its platform for trucking companies.
In a press release Wednesday (April 3), 1st Commercial Credit said it is rolling out the newest version of its MyBizPad software, which adds an accounts receivable factoring module into its Trucking Invoicing system to allow truckers to submit invoices to appropriate parties for faster access to capital. The upgrades combine a range of financial management solutions for trucking users, including balance sheets, accounts receivable and payable aging, and accounting reports.
The solution also includes a Mobile Imaging Module, providing truck drivers with a way to upload a bill of lading or other documents related to a load direct from their mobile device for processing.
MyBizPad streamlines the factoring process by allowing truckers to upload invoices and other relevant information straight to their client's factoring company. The solution combines trucker-uploaded images and documents with invoice generation for streamlined financing, and automatically separates client accounts without a factoring program, the company said.
The trucking industry is one of the most popular targets for the receivables finance space, and cash flow management solutions in general. Last year FreightRover announced $500 million in new financing to propel growth of its solution that accelerates payments to trucking companies. The firm's factoring solution links truckers with a mobile app so they can access financing more quickly, rather than wait to get paid from their customers.
"It's a very challenging place for the little guys to access capital," said Carlos Mendez, principal of Crayhill Capital Management, which provided the funding, in an interview with The Wall Street Journal at the time.
Recent research from The Hackett Group found that large companies are taking longer to pay their vendors, with the largest 1,000 U.S. corporates averaging 56.7 day payment terms with suppliers in 2017, an increase from 2016. Reports note that the trucking industry is dominated by smaller players that often struggle to accelerate payment terms from large clients.