Getting paid in the transportation industry is no easy task. Freight invoices are disputed left and right, whether the client is disputing rates, fuel surcharges or accessorial fees. It seems like there is tons of information for your client on how to dispute a freight invoice, but not enough for the transportation industry on how to get paid on those invoices faster.
Often, the transportation industry turns to freight invoice factoring companies to get paid. There’s another less costly and easier way to ensure you’re getting paid.
Transportation companies are spending between $2 and $5 to deliver a single paper invoice. Add that all up and it accounts for about 3 percent of the total invoice payment. That is a lot of wasted money when there are many other costs you need to worry about. Using an accounts receivable software eliminates the need for paper invoicing. All invoices can be sent via email to the customer. It has been proven that electronic invoicing can save between 50 and 80 percent for transportation companies.
For the transportation industry, getting paid feels like a waiting game. Most customers will pay in the 15-30 day range, but the other 12 percent are waiting more than 45 days to pay on their invoices. Accounts receivable software automates communication between you and your customer, reminding them to pay. Software also makes it easier for your customers to pay by offering a pay portal for credit cards. Flagged customers who are behind on their payment remind you to give them that extra push.
Not only are invoices often disputed in the transportation industry, but once disputed you’re likely not to collect the full amount expected. Automated accounts receivable software documents the invoice every step of the way. When approached about delivery or bill of lading, you can present the customer with all the data that has been saved to the program.
When it seems like the to-do list is never ending, adding the headache of unpaid invoices only wastes time and energy. Adding an accounts receivable software to your transportation company will reduce those disputes and save you up to 80 percent just by sending invoices electronically.