• Product Freight Factoring
  • Location Ontario, Canada
  • Industry Transportation - Trucking
NOW WE HAVE ACCESS TO THE FUNDS WE NEED ON A WEEKLY BASIS AND THEY ARE READY TO RESPOND WHENEVER I NEED ASSISTANCE. SUKHJINDER SINGH SIDHU DIRECTOR OF SBS EXPEDITED SERVICES LTD.

THE CHALLENGE

SBS Expedited Services is a new business with 10 trucks including cross-border, less than load (LTL), refrigeration, and coast-to-coast in Canada. With 11 years in transportation before starting on this latest venture, Sukhjinder Singh Sidhu knew well the challenges this start-up trucking firm would be facing including a lack of cash flow, waiting for customer payments and the expenses involved with starting a new business. “When you start a new business, there are a lot of challenges,” stated Sukhjinder. “We have over 20 drivers and employees and they need to be paid on time. When money is circulating from paid jobs to our drivers, it’s fine. But these days, customers can take a long time to pay and with a new business, we need the money that should be coming to us as soon as possible.

THE SOLUTION

Sukhjinder considered Invoice Factoring as an option to ensure that he could pay his drivers when promised to keep the fleet moving efficiently. Invoice Factoring involves an alternative funding provider like Bibby Financial Services (BFS) releasing working capital from outstanding invoices by assuming the collections burden thus enabling trucking companies to maintain steady working capital.

As an industry veteran, Sukhjinder had worked with Factoring providers in the past but was not impressed with the level of service he received. He decided to try BFS based on the recommendation of another trucking company and was not disappointed.

BFS took care of everything in terms of set-up,” Sukhjinder explained. “Now we have access to the funds we need on a weekly basis and they are ready to respond whenever I require assistance. The first couple of months starting this business was hard, but now with factoring, it’s getting better by-the-day.

THE RESULT

With the support of BFS’s Invoice Factoring solution SBS Expedited Services is confident enough in the strength of their business that they plan to double their fleet to 20-25 trucks within the coming year. The trucking company can ramp up quickly with the help the financial offerings provided by Bibby Financial Services. BFS assisted in expediting the setup of funding for drivers, which was extremely useful considering the current backlog of insurance approvals due to the booming nature of the trucking industry in Canada.

Insurance is the hardest thing in this field,” Sukhjinder acknowledged. “When we first started, we had our drivers validated with insurance and ready to go, but it still took a month for the insurance companies to get through their backlog and process our drivers. The BFS team took the sting out of this by making sure the moment they got their insurance certificates, our drivers were funded and ready to be on the road the next day. That’s the kind of service your literally cannot put a price on, or at least you shouldn’t.