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Our Best Factoring Companies
Your Trucking Company
The Cash You Want
Invoice Factoring is beneficial for numerous reasons. It permits a truck firm to raise money without getting brand-new financial obligation. While debt is often needed, a lot of trucking firms would prefer to raise cash without borrowing money. Debt is high-risk, and when it cannot be repaid, possessions can be repossessed. If the financial obligation is big enough, it may even force a freight brokerage out of business.
How To Burn Off Receivables, Hour-by-Hour - Pick
A Freight�Invoice Factoring Company Instead Of A Traditional Bank Financing
How to Enhance Money Flow Without Borrowing -Cash Money flow is among the primary reasons companies fail.
At one time or another, every business, even successful ones, have actually experienced bad money flow.
Cash flow does not have to be an issue any more. Do not be fooled -- banks are not the only places you can get funding. Other options are offered and you do not have to borrow money. Exactly what is trucking factoring ? One option is called best factoring companies. Trucking Factoring is the process of selling invoices to a financier rather than waiting to gather the money from the
client. Oh, the Irony- Trucking factoring has an ironic distinction:
It is the monetary
foundation of numerous of America's most successful businesses. Why is this paradoxical ? Since receivable loan funding is not taught in business colleges, is rarely mentioned in company strategies and is fairly unknown to the majority of most of American business people.
Yet it is a financial process that releases up billions of dollars every year, enabling countless companies to grow and prosper. Receivable Loan Financing has been around for thousands of years. Truck Factoring Businesses are investors who pay cash for the right to get the future payments on your invoices. An overdue receivable or invoice has value. It is a financial obligation your client has to pay in the near future. Factoring Principals--Although factoring
deals exclusively with business-to-business transactions, a big portion of the retail business utilizes a factoring principal. MasterCard, Visa, and American Express all utilize a type of factoring in their retail deals. Using the purest definition of the word, these big consumer finance companies are truly simply big Commercial Factoring Businesses of customer paper. Think about it: You make a purchase at Sears and charge
it to your MasterCard. The shop makes money practically instantly, although you do not make payment up until you are ready.
For this service, the credit card business charges Sears a charge (typical common normal charges range from two to 4 percent of the sale). The Benefits Staffing Factoring can offer many benefits to cash-hungry business. Rather than wait 30, 60, 90 days or longer for payment on an item that has actually currently been delivered, a company can factor
(sell) its receivables for cash at a little price cut
off the dollar value of
the invoice. Payroll, advertising efforts, and working capital are just a few of the company needs that can be met with instant money.
Best Factoring Companies provides the ways for a producer to renew inventory and make even more items to sell: There is no longer a need to await for earlier sales to be paid. Receivable Loan Financing is not simply a cash management tool for producers: Practically any kind company can take advantage of Receivable Loan Funding. Typically, a company that extends credit
will have 10 to 20 percent
of its yearly sales tied up in invoices at any given time. Think for a moment about exactly how much is tied up in 60 days' worth of invoices: You can not pay the power expense or this week s payroll with a client s invoice, however you can sell that invoice for the money to meet those obligations. Using trucking factoring companies is a quick and easy procedure. The factoring company buys the invoice at a discount, usually a few percentage
points less than the stated value of the invoice.
Please call our freight factoring specialists at 1 - 888-239-9162
or E-mail Us
The United states Transportation Organization
specifies that there around
205,000 work with truck
300,000 private providers trucking
companies accredited to
operate in the U.S. that transferred,
according to their newest data of millions
products, supplies and
basic products .
There are several typical
teams on our nation
roadways transferring these
crucial items to our
shops, manufacturing facilities and harbors.
Plusfreight invoice factoring
numerous of them and offer their
accounts receivablesfinancing facilities
including the following states.
Alaska, Arizona, Arkansas,
California, Colorado, Connecticut, Delaware,Florida,
Georgia, Hawaii, Idaho State,Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,
Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina,
South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia,
Wisconsin, and Wyoming
Click below to find Trucking Companies in the United States:
Trucking Companies serving to/from points within the United States, categorized by services offered. United States Trucking Companies will be listed under all categories in which they provide specified Trucking Services. To find companies offering specific Trucking Services in the United States, click on the list of services below.
Click below to find Trucking Companies in the United States:
Trucking Companies serving to/from points within the United States, categorized by services offered. United States Trucking Companies will be listed under all categories in which they provide specified Trucking Services. To find companies offering specific Trucking Services in the United States, click on the list of services below.
Life of a Truck driver, like many other professionals can be very challenging, rewarding, and frustrating at the same time. �The Truckers Place.com� is an information site for many of the Truckers needs. It is designed to encompass the needs of the Trucker, both on the Road and at Home.
Searching for the right trucking companies to move your freight can be tough, with the large amount of local, regional, and national truck carriers out there. FreightCenter helps make freight shipping simple, finding you the safest, reliable trucking companies every time you ship. Our trucking companies are licensed and insured to carry freight safely and efficiently across the country, no matter the size or type of freight you need to ship.Plus, with the high volume of freight we move, we will work to get you the best freight rates possible. Simply enter in a few details below and you�ll see instant freight rates from all the top trucking companies in one easy screen
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The largest trucking companies in the U.S. set a revenue record in 2013, but revenuegrowth slowed for the second year in a row.
The combined revenue of the 50 largest motor carriers rose to $106.6 billion last year, according to The JOC Top 50 Trucking Companies list, based on data prepared by SJ Consulting Group in Pittsburgh.
Wilson Truck and Haul has been in business since the mid 1980s. For more than twenty years they've been delivering goods for most major industries in the nation, with business booming as they traversed the country, in all kinds of weather, for all kinds of clients. During the heady times from 2002 to 2007, Wilson was a top rated accounts receivable mastermind of the trucking industry. Few customers were ever late on bills and those clients who were, were sure to turn in their late payments within a reasonable amount of time. Times were great for everyone, and the cash was flowing.It was just one year later, in 2008, when the economy in the United States took a sharp decline, and both large and small businesses started to notice the squeeze on their pocketbooks: everyone had suddenly gone silent. Business slowed down. And worse yet, Wilson had noticed during the early part of 2008 that though the bulk of their clients were always on time with payments, the few late-bloomers there were, had seemingly started to spread this illness. And as spring turmed to summer and summer into the early days of fall, Charles Edwards, CEO of Wilson felt a chill go down his spine whenever he would look at the weekly A/R reports. The number of clients who were late in their payments was continuing to grow.He had gone to his administrators and asked them what the problem had been. Were they doing things different, or wrong, when it came to collecting overdue accounts? By his bookkeepers records, this wasn't the case. Perhaps he was losing his customers to his competitor, who seemed to offer very low prices with no guarantee of quality or performance, and these clients who were in debt to his company had possibly disappeared leaving him stranded. Perhaps they were unable to pay their debt to him, but were able to meet the costs of a lesser service. So he did the necessary research and, after discussions with friends in the same field, he realised that no, his customers hadn't gone anywhere else. The had just gone!.This current state-of-affairs was causing Charles Edwards to have some very restless nights. He had employees to pay, goods to ship, trucks to maintain and overhead that was almost unbearable when compared against the lack of funds that were coming in. At night he would speak to his wife Susan and shake his head in frustration.
""Lin, I have a really bad feeling,"" he'd sadly say to his wife.""Well, what do you think it is?"" she would say.Charles would stare off into the distance, and then slowly close his eyes. He could see the fleet of trucks he had purchased over the years. He could see them on the road, delivering good to all his loyal customers. But then a haze would cover his trucks and his vast fleet would vanish to leave just a few. What could cause this ultimate death spiral of business?""I think I know what it could be,"" Charles said. ""For way too long I've been relying solely on profits received from invoices. I've let too many of our customers go too long without paying on their bills."" All Susan could do was hold his hand and look at him tenderly. 'We know it's a difficult economy at the moment - perhaps it will take a while for people to get on top of their bills'.""Susan was trying so hard to support her husband in these worrying times, while Charles was weighed down with the worry of how he was going to handle this situation he found himself in.The next day Charles strolled into his office and was determined to sit down and make every phone call to every client who had owed Wilson money. Now, it wasn't the most efficient way to spend a day as a chief executive, what he really needed to be doing was to be overseeing all of the other intricacies of shipment and delivery and reaching out to prospective clients or retraining his sales team to do the same. But, he felt like he was doing something proactive to help his business, even though he had staff on salary to do just that thing. A waste of time - a waste of money - he had the best intentions, but all the while Charles was realising just how much trouble he was in.After a half day of contacting debtors in vain - they dodged his calls or promised to call back at worst or made minimal interest-only payments at best - he was about to throw in the towel when his secretary Yolandaerley knocked at his door.
""Can I have a word with you Charles?"" she asked standing in the doorway.
""Sure thing Yolanda, come on in."" Charles leaned back in his chair and looked expectantly at Yolandaerely.""Well, I did a little searching this afternoon and tried to figure out a way out of this mess Charles."" She opened up a folder she had been carrying and pulled out a small wad of papers, placing them on the desk in front of him.""Have you ever heard of factoring?"" she asked.""It does sound vaguely familiar. What is factoring""? he asked.She began, ""Well, it's really very simple. Basically, factoring invoices means that we would get paid immediately for the loads we haul.""""Immediately?"" Charles interrupted.""Yes, immediately,"" she continued, ""In a nutshell, it's pretty easy. We can have an expert account manager review our numbers and help us complete a company profile. That profile will also include investigating our accounts receivable aging reports, our existing customer credit limits and so on. In addition, factoring will assist in determining our customers' creditworthiness, independent from their credit relationship with our company. It�s a broad view.��Charles replied cautiously ""I see - and what happens then?��Following the completion of their review and once we've been approved for a contract with the factoring company, then we sit down to negotiate conditions and terms. There�s a lot of flexibility depending on the business volume and credit histories. The company will advise us the cost to purchase factoring for our company's accounts receivable. The funding commences once we�ve arrived at an agreement.�Charles leaned forward and reviewed the paperwork closely.""It sounds too good to be true, Yolanda,"" he said.""Yes, I know; that's exactly what I thought at the beginning. But really, they have guaranteed us experts that do all the legwork, which would free us up here to focus on our clients in good standing and marketing, all that good stuff. And they're flexible Charles,"" she underlined a paragraph on the paper before him.""Just how flexible?"" asked Charles.""It seems that they personalize their factoring charges so that the amount they're prepared to work with is commensurate with our client's debt and our needs. It only takes 2 to 4 days for this to be figured out. """"It does all sound pretty good, remembering that we're all tapped out now with loans from the bank last year to repair vehicles, and we all know just how tight money is. It's imperative that we keep the business rolling as usual, and every day we go unpaid we're getting closer and closer to dealing with some serious issues in both the short term and the long term,"" said Charles.He took a deep breath and looked at his secretary with something she recognized as hope.""Precisely�. This could very well be the answer to resolving the problems we're having with these clients who still owe us money.""Charles thought about this and agreed with Yolandaerley. The customers who were in debt to Wilson Truck & Haul were professional resources of the company, but they were also long-standing friends. Just because they were experiencing difficulties paying their own bills now, Charles was very concerned about losing these relationships. He was well aware that the economy was in a bad way and that it might be quite a while before things started picking up. That unknown amount of time could create a disaster situation for both of them if he wasn't careful in how these debtors were handled. He didn't want to lose business but he also didn't want to lose any more money.""Well, let me think about this tonight Yolanda, thank you."" Yolanda stood up and left Charles's office, with the nice feeling of knowing that she may just have solved a very serious problem.Charles sat behind his desk and looked over the details Yolanda had not mentioned in their meeting. What other issues could freight factoring help Wilson with? With his pencil gliding down the sheet he noticed that the factoring company could help fray the cost of fuel with fuel discount cards and fuel advances. Charles was surprised: it said that his company could get up to fifty percent cash advances on load pickups. Charles was a typical business man: he despised binding contracts that didn't allow room to breathe, so he was pleasantly surprised to see that the factoring company didn't require a long term contract, that there was no minimum volume required, and that there were no sign-up fees.""Well, I'll have to tell Ryan about this,"" Charles muttered to himself.Charles's son-in-law, Ryan, loved the idea behind Wilson and highly respected his father-in-law for having such great business sense, that two years ago he got his capital together and started his own transportation company. At that time Charles knew the struggles Ryan would face, but he still encouraged him to follow his dream. With the economy the way it was, if an established company such as Wilson was struggling then the little guys, like Ryan, were going to be in even more trouble. But, maybe the answer for both of them was in freight factoring, and Charles was going to find out very soon.A few short months later, after completing the application process, having the legal experts review his credit history, accounts receivable, and statements, finally Charles was beginning to find his way out of the hole his debtors had created for him.They took on reasonable factoring purchase contracts and stopped spending their precious man hours scrambling to collect debt. They took that time and refocused effort to offering competitive prices in new territories. Charles looked back on the dismal months of life before freight factoring and almost shuddered at the thought. If Charles hadn't discovered freight factoring at just the right time, his business may not be operating today.
More Trucking Factoring Companies Story Articles
Factoring in the Future of a Trucking Business: A Story The phone was ringing on his desk, and Lee Freeman just sat there letting it ring. He let his morning coffee cool and left his cigarette to ash itself in the tray, because he is trying to make the biggest decision ever for his trucking company. Freeman Trucking Company had reached a turning point and he now had to make a decision as to whether he should sign up with a factoring company, and indeed if this would be a good or regrettable decision for his business.
Lee�s father had started as an owner-operator and had grown Freeman Trucking Company into a fifteen trailer fleet over forty years. Yes, they had survived some very difficult times when it appeared like they might go under, and even Lee's mother had jumped into the cab at times to make hauls. His father had worked long enough to see the price of hires drop dramatically during the recession and to see the explosion of fuel prices afterwards. But now things were different: the company was in Lee's hands and he needed to ensure that this business would be left in great shape for his sons.
To move Freeman Trucking Company ahead into the future, he needed a steady cash flow but there was just not enough money to go around. His employees needed to be paid. They had families and household bills too. Some of the refrigerated trailers were in need of repairs and he felt to stay competitive it was also a good idea to invest in specialized haulers to be ready for the constant requests he was getting for loads of new energy and agriculture equipment. Every time he had to turn down a request, Freeman Trucking looked weak in a very strong market.
His father would have told him to wait and to take his time adding on new technology. Lee allowed himself a good hard chuckle. He remembered when his father was totally against installing GPS units in the cabs. He would say, �Why do you need the voice of some woman to tell you to get off at an exit that has been the same exit that has been there for years?� Also his father had the habit of teasing all the drivers he caught switching into automatic even though driving in automatic was much more efficient though not manly in his father�s eyes. His father days were long gone and technology was actually an important improvement for the business such as having Qualcomm to cut down on fruitless time communicating on the phone for bills of lading.
Lee knew he was right in his forward thinking. How would he take Freeman Trucking to the next level? More importantly, how could he afford it? Business funding was tied up in fuel bills and the mortgage for the garage and office. He just finished paying off the small bank loan for installing satellite radio in the trucks for the guys.
He wondered about factoring - was this the answer for him? There was a lot he didn�t understand about the process. It sounded a lot like ninth grade algebra which just didn�t feel like it belonged as part of the trucking business. A factoring company actually purchases your invoices and takes control of your accounts receivable, payment being a certain percentage of the amount invoiced. In return, the factoring company pays the trucking business straight away, providing immediate cash flow for the business to pay staff, purchase fuel, and do any repairs or maintenance. Without the assistance of factoring, you have to wait for customers to send you the payment which is often 30 days late. In those 30 days, a trucking company can�t pay its bills and employees in invoices.
Now it was time for Lee to do his homework. Lee had heard that there were companies that charged for same day money transfers and would only advance a percentage of the money owed to your company while holding the rest in a private account if they didn�t get their bill payment within 60 or so days. Plus it was worse still if the customer didn�t pay up at all because then the factoring company would take it right out of the money supposed to be coming to you! Through the grapevine, he�d also heard about how some companies suddenly slipped you onto a sliding scale of percentages even if you had already signed a lengthy contract for maybe 3% or 7% so there you are with 10% coming as a cost to you out of the freight bill. His colleague, Ronnie, who owned a trucking company in Missouri, was nearly destroyed by a factoring company who charged him the full freight bill on top of the fees for factoring. Well, what was the point of going to a factoring company if there was shady business like that going on?
However, it all turned out to be very simple. All the factoring companies he researched were open about their business practices and very friendly on the phone when he called. Customer service appeared to understand their company and explained in clear, concise English exactly how it all worked. He didn�t mind signing an exclusive contract. In fact, he was quite pleased with the idea of a long-term contract because he knew this was a one-off and he wouldn't have to keep going back and forth to different companies. Nobody charged him for credit checks and they offered him a fuel advance on the pick-up of the load. In fact there were a few companies who offered him a non-recourse factoring program, and this was exactly what he had been hoping for. Also he was happy to hear how much he was offered in terms of percentages on the freight bills. It sounded like a great scheme to him.
For Lee it was quite a relief to be dealing with the factoring company. They were more personable than those loan managers at the bank. It seemed as though those bank people spoke another language, but these factoring guys knew the trucking business and spoke to him like a client, not like a beggar for a handout. The factoring companies were not interested in his credit nor the financial problems his father had experienced in the past. All the factoring company was interest in was the credit of his customers and on their reliability: this worked great for Lee because he and his father had created a very strong and loyal list of clientele over the years. So he knew they would understand when the factoring company contacted them for the invoices. His clients wouldn't have any problems, nor would they think poorly of Freeman Trucking, because the factoring companies handle themselves in such a polite and professional manner, similar to the way his father had managed the business in the past.
Feeling happier now, Lee stepped out of his office to advise his secretary to expect to receive the contract very shortly from the factoring company. He felt exhilarated by the new possibilities that would make the future of the company fun again and put the stress of the difficult times behind him. He suddenly realized that, with this new cash flow, he could actually expand Freeman Trucking Company and who knows, move into Canada, which had always been his dream. He was a happy man again knowing that he had just made a decision which would guarantee the success of his business and his sons wouldn't be inheriting a financial mess.
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Trucking Factoring Articles
�So It is not a loan?� asked Christian Dixon, reclining back into his chair and crossing his legs. The woman who sat across the desk smiled and shook her head.�Not quite,� she said.Christian was the owner of a small trucking company which had fallen on some hard times recently. Certainly the trucking business can be an extremely profitable venture, and for many years it had been that way for Bryan. His company was called Mitchell Trucking, named after both of his grandfathers, Tom and Alexander. Both of these men had been very hardworking and had set a great example for Bryan.Six months ago disaster struck Bryan's business when two out of his fleet of fifteen trucks were taken off the road.
One was involved in a very costly accident, and the other simply rolled over, and headed to the trucking graveyard. Christian depended on his full fleet, and missing two trucks was devastating . Furthermore, buying a whole new truck and fixing the other simply took more cash than Christian had on hand.Paying of bills in the trucking industry is always a major cause for concern for businesses.
Waiting a month or longer for bills to be paid was quite normal. This system works okay as long as no problems arise, but if they do, then things can get quite sticky.Christian wasn�t a bad owner, and he hadn�t messed up. Things had happened that he couldn't have predicted, and he had to figure out a way to keep his business from hurting, or even going under.And that's why he found himself across the desk from this woman. Christian knew she was employed by a Factoring company and that her name was Rosa. He had accidentally come across her company one night when he was working late, searching the internet to see if there was some solution to his financial dilemma.Rosa explained. �It�s not a loan, we purchase your accounts receivable. We aren�t giving you money to be paid back later, we�re buying something from you, and you can buy it back when you can. This is a win-win situation: we're protected from a total loss, and you're protected from the ridiculous fees and charges you'd have to pay if you borrowed from a bank.Christian nodded. It sounded perfect - perhaps too good?.Rosa laughed. �I'm not sure that you believe me,� she said.�No, I do, I just think it sounds a bit too good to be true. I thought I was going to lose my company.�Rosa nodded. �Yes, we get a lot of that. Listen, I�d hate to see you lose your company. We know how hard you work, and that you've invested everything in your business. We all need help sometimes. That�s what we�re here for.��In any case, thank you for coming to see me.��No problem - I'm just down the road. We normally do it all online but I was happy to come and visit you today,� Rosa said with a smile. �Let's work out a solution to your problem.�And right there and then they created a business profile. Christian filled the form out, with Rosa available to help him if he needed it. The completed profile gave Rosa and her company all the information they needed on Bryan's business, and with this information they would determine if this business would in fact be suitable for Factoring. Unfortunately, not all companies are. Some were beyond factoring special brand of help, and sometimes things weren�t even dire enough for it. As Christian completed his form, Rosa listened to his story and she felt quite sure he would be the ideal candidate for Factoring.When the form was done Rosa took it and slid it into her briefcase. Standing up, she reached over the desk and shook Bryan's hand. He stood before they shook as well, and then smiled. Christian walked Rosa to the door where they said 'Goodbye', then he went back into his office.All his staff members were there, all seven who worked in his office. Sitting behind his desk once more he could hear the familiar sounds of his office workers going about their daily business.He shut his eyes. He felt so drained: he had been flailing helplessly for so long, he just knew his business was going to collapse and probably take him with it. But now, after speaking to Rosa and learning all about Factoring, he felt such a huge relief, like someone had just lifted a huge weight off his shoulders. He relaxed into his chair, running his hand through his thick black hair with its telling streaks of grey.The long nights, where he couldn�t sleep. The terrifying panic attacks that occurred regardless of where he was. Already he could feel all the stress start to drain away. He wasn�t out of the woods yet, there was still a lot of work to be done, but he could feel it. He was there, he was on the right path, and he was working to make things right.His mind wandered back to the very beginning, when he first started his business. At twenty-two and straight out of school he had opened a restaurant. It had been successful. Offering home cooking in his own hometown, his business had really prospered.But he had gotten bored. His passion didn�t lie with the food industry. He thought about it for a long time, then decided it was time to sell his restaurant. He took six months off, and during that time he decided to create Mitchell Trucking. So he did it. For the second time in his short life he created a company from the ground up. The business had been an instant success.And then the trucks went down, and his success looked to be in flux. He was about to turn fifty. He was concerned that he just didn't have the energy left to try and save the business. But he couldn�t give up. Just the thought of shutting down, cutting his losses, laying off his workers - the whole thing made him physically sick some nights. He didn't want to quit - both for himself and for his staff members.And now, because of factoring, he was sure he wouldn�t have to. Bryan's eyes opened, he sat forward in his chair and turned on his computer. He had lots to do. He could be thankful later, for now, it was time to work.
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The reason why Trucking Companies Make use of Factoring Companies.
As the operator of your own firm, you may be more than conscious already of the hardship in making certain that capital matters do not become a predicament down the line. Anyway, the most terrible thing that can quite possibly come about for your firm is to find yourself swept up in a long and troublesome circumstance that leaves you forever searching for the money you necessitate on an continuous basis.
For virtually any establishment in this position, the dilemma can come for waiting for work to clear up and actually be repaid into your bank account. Statements, checks, and the like could take a long time to actually to be taken care of which can leave you with momentary cash flow issues. The good news is, there are opportunities out there for establishments to check out-- and just one of these is factoring agencies.
Factoring providers will, in exchange for your invoices, grant you with the money immediately so that you don't have to worry about the delaying period that could make paying out the expenses and obtaining materialsmore difficult. With this form of system, invoice factoring can end up being tremendously valuable for numerous businesses who have to get out of a cash pitfall which they have gotten themselves in.
For the reason that, depending on the volume of the job, it can take up to 60 days for several business enterprises to get compensated then it's essential to blanket your own back and not leave yourself resources short to pay off the expenses. After all, how many firms have two months profits just lying there to pay for all their spendings till they make money?
This is specifically correct of truck firms. They have the tendency to manage tons of accounts which means a significant volume of collection time concerns business owner themselves. Attempting to get paid in time can become an unbelievable trouble and this is the reason why you work with trucking factoring agencies who are thrilled to help out truckers mainly.
As all of us know, trucking is an extremely massive industry with a lot of agencies out there employing hundreds of operators. Regretfully, plenty of these drivers end up in finances predicaments since they are still awaiting work from six weeks in the past to actually pay them. When this is the condition for a trucking organization, resorting to factoring companies for aid may be the most ideal choice left.
This indicates that a truck organization can provide the paychecks of the staff, keep all the vehicles topped off with fuel and continue to go up, progress and expand without constantly waiting for the cash which is taking too prolonged to come in. Trucking Establishments functioning without a factoring program established are leaving themselves at substantial risk, as competitors cash out rapidly and carry on to expand.
There's absolutely very little to be stressed about when it comes to employing a Factoring agency-- they commonly are not like a bank or any individual who is going to leave you with a substantial mass of liability to repay. You give them legitimate invoices from work you have already accomplished , you are merely accelerating the repayment process.
In the United States, where truck establishments survive, factoring establishments are not considered taking on loan in any capacity. This private agreement then lets both parties to make money and experience a good future-- it provides the factoring business a warranted asset of money to put into the list and it provides the trucking business the required cash that they worked hard to generate.
The trucking firm gives their invoices to the factoring agency. The trucking factoring business then collect the installment payments from the trucking company's customers. Factoring has been in existence for hundreds of years and has been utilized for many years by a lot of varying sectors-- but none exceeding so than truckers. While you may lose out on a small part of the money, something like 1-3 % depending on who you team up with, it signifies that you are obtaining the resources today and can actually begin putting the money to function.
Anyway, an IOU or an invoice is not going to pay for overheads, is it? For trucking enterprises when the money can be fantastic one day and gone the next, it's up to the vehicle drivers to work smartly and to guarantee they are leaving themselves with a substantial measure of time and finance to get through the week up until they are paid once again.
So the next instance your trucking business is having some short-term cash flow troubles and you are putting in a lot of time chasing sluggish paying clienteles, why not start off considering using a factoring companies as a manner to get your cash and give yourself a more worry-free future in the eyes of your trucking staff and your bank difference?
Finance through a bank loan is the normal, or traditional, way of financing your business. While these loans are handy they are not available to every business. For example, a fairly newly established business simply may not have the assets to readily get a loan from a bank, even if they do, the standard collateral for a business loan is the business itself, which means that if you cannot make your loan payment, you risk losing your entire business. Plus, the amount you apply for through the bank is the actual amount that you are going to receive. Once the loan is paid off, you can then apply for another loan if the need arises.
What Are Trucking Factoring Companies?
Trucking Factoring companies do not give loans, and the money you get from the Trucking Factoring company does not put you in debt. Rather the financing you receive from a Trucking Factoring company is based on money your business has already earned, but have not yet received. Trucking Factoring companies actually purchase your accounts receivable or at least part of them for a percentage of their total worth, Normally around 80%-95%. The amount of money you can receive is based on the amount of money you have earned and the accounts receivable you are willing to �sell.� Once a Trucking Factoring account has been created for you, it will continue for as long as you need it, with the money available continuing to grow as your business grows, and providing cash as you require it.
Benefits of a Trucking Factoring Company Vs. A Bank Loan
While not every business can take advantage of Trucking Factoring account financing (you have to have a business that has account receivables) for those that can use this type of financing there are several distinct benefits.
1. There is no debt. Since the Trucking Factoring company actually buys your accounts receivable you don't actually incur debt like you do with a bank loan. This has many benefits including the fact, that this type of financing won't affect either your business credit rating or your personal credit rating. Should the unforeseeable happen and your business fails, you won't have to worry about anyone coming after your personal as well as your business assets to pay off a loan. With a bank loan, the debt goes onto your credit report, and even one late payment can adversely affect your businesses credit, and even the ability to get insurance and may even reflect upon your personal credit rating.
2. No Collateral Required. Another great benefit of using the services of a Trucking Factoring company instead of a bank loan is that there is no collateral required for the Trucking Factoring company, because the Trucking Factoring company is 'buying' your accounts receivables. Plus, the state of your credit rating is not an issue; however the Trucking Factoring company will run a credit check on your clients whose accounts receivable are being offered for financing. This makes it easier for fledgling businesses to get the financing they need through a Trucking Factoring company (as long as their accounts receivables are in good order) then from a bank, who may not feel that you have been in business long enough to be worth the risk of issuing you a loan.
3. Receive Your Money Faster. With a Trucking Factoring company you can actually get the money you need faster. Once the Trucking Factoring company assures itself that the customers in your accounts receivable are likely to pay their debt, the money is usually in the account within 24 hours. Borrowing from a bank begins with vast amounts of paperwork, the loan must be underwritten, and this can take ages before you're notified if the loan has been approved.
4.Interest is Paid Up Front. With a bank loan interest continues to build, and this has to be paid the whole time you have a business loan; however with a Trucking Factoring company there is no interest - they take it right off the top by deducting it from the total amount of receivable accounts. So you don't have to worry about monthly loan repayments, and you don't have to worry about the amount of interest payable, because all the money in the account is yours to spend.
As you can see, there are several benefits that makes considering financing through a Trucking Factoring company over a traditional bank worthwhile. However, there are also a couple of other benefits that a factory company can offer your business is far beyond the scope of the bank. The main benefit is that once you've sold your accounts receivable to the Trucking Factoring company, you are free from having to collect money owed by your customers. Since these accounts belong to the Trucking Factoring company, this is now their job. Trucking Factoring companies are very good at collecting these debts, saving you the time and effort that you need to devote to your growing company.
Another bonus is that, because the Trucking Factoring company has evaluated the quality of your customers' credit before buying the accounts receivable, you learn valuable information regarding your customers, like which ones are likely to pay, and which ones are less likely to pay.A Trucking Factoring company is not the only method of gaining access to finance for the running and growing of your business, however it does offer a financing option well worth considering.