How To Make a Good Profits -
Our Medical Factoring Companies
Your Truck Company
The Money You Want
Small truck companies, particularly those who have actually not been around for really long, will frequently find it tough to secure a loan. Banks are frequently reluctant to provide cash to companies that don't have a lot of income and possessions. They also desire evidence of the viability of a company and thus require that most operations, specifically little ones, been around for a specific quantity of time before they want to turn over any cash. Due to the fact that of this, a medium-size company frequently has a couple of money generating options when needs emerge. One choice available, but frequently neglected, is receivable Financing. This is an excellent method for a small business to obtain money.
You Can Laugh at Money Worries - if You Follow This Simple Plan - Choose
A Freight�Brokerage Factoring Company Instead Of A Traditional Bank Financing
Exactly how to Enhance Cash Flow Without Loaning -Cash Money flow is among the main reasons businesses fail.
At one time or another, every company, even effective ones, have actually experienced poor cash flow.
Cash flow does not have to be a problem any ever more. Do not be deceived -- banks are not the only places you can get financing. Other options are available and you do not have to borrow money. Exactly what is truck factoring ? One option is called medical factoring companies. Truck Factoring is the process of offering accounts receivable to a financier instead of waiting to gather the money from the
customer. Oh, the Irony- Truck factoring has a paradoxical distinction:
It is the monetary
foundation of many of America's most effective companies. Why is this paradoxical ? Since receivable loan funding is not taught in business colleges, is seldom discussed in company strategies and is relatively unidentified to the majority of most of American company individuals.
Yet it is a monetary process that releases up billions of dollars every year, enabling thousands of companies to grow and succeed. Accounts Receivable Factoring has been around for thousands of years. Commercial Factoring Businesses are investors who pay cash for the right to receive the future payments on your invoices. An unpaid receivable or invoice has value. It is a financial obligation your customer has actually agreed pay in the near future. Factoring Principals--Although factoring
deals solely with business-to-business deals, a large portion of the retail business uses a factoring principal. MasterCard, Visa, and American Express all utilize a type of factoring in their retail transactions. Utilizing the purest meaning of the word, these big customer finance companies are truly simply big Factoring Companies of customer paper. Think about it: You purchase at Sears and charge
it to your MasterCard. The shop gets paid practically immediately, although you do not make payment until you are prepared.
For this service, the charge card business charges Sears a charge (typical common normal fees vary from two to four percent of the sale). The Advantages Trucking Factoring can offer numerous benefits to cash-hungry business. Instead of waiting 30, 60, 90 days or longer for payment on a product that has already been provided, a company can factor
(sell) its receivables for money at a little price cut
off the amount of
the invoice. Payroll, marketing efforts, and working capital are simply a few of the business requirements that can be satisfied with instant money.
Medical Factoring Companies provides the ways for a manufacturer to replenish stock and make even more items to offer: There is no longer a need to wait for earlier sales to be paid. FACTORING is not just a money management tool for manufacturers: Almost any type company can benefit from Commercial Factoring. Generally, a company that extends credit
will have 10 to 20 percent
of its yearly sales bound in accounts receivable at any given time. Think for a minute about exactly how much is bound in 60 days' worth of invoices: You can not pay the power bill or today s payroll with a client s invoice, but you can sell that invoice for the money to meet those responsibilities. Using trucking factoring companies is a quick and simple procedure. The factoring company buys the invoice at a discount, typically a few portion
points less than the face value of the invoice.
Please call our freight bill factoring specialists at 1 - 888-239-9162
or E-mail Us
The United states Trucking Association
specifies that there are about
205,000 truck drivers with transportation
300,000 personal providers trucking
firms certified to
operate in the United States that transferred,
according to their newest searchings for billions of
items, supplies and
fundamental materials .
There are a number of common
groups on our nation
roadways transporting these
vital items to our
stores, manufacturing facilities and harbors.
Alsofreight invoice factoring
countless of them and offer their
receivables financing 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
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
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.
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Locate truck driving jobs by city, state, position andbenefits offered. Search current driving jobs and fill out the EZ truck driver application customized for cdl trucking jobs
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If you're like most drivers, you're looking for a better company in trucking that might be offering the best jobs in terms of pay, freight, and hometime ' not to mention benefits or a sign on bonus. We've got all of our clients listed based on the states where they're hiring, so you can quickly find the best job in your home state. You'll see the very best nationwide trucking companies that have positions available.
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Kelly Truck & Haul have been operating their 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, Kelly 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 to a crawl
. And worse yet, Kelly 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, Steve Wells, CEO of Kelly felt a chill go down his spine whenever he would look at the weekly A/R reports. The numbers of clients who owed him back debt were growing.He had already been to the administrators to ask what the actual problem was. Were they doing things different, or wrong, when it came to collecting overdue accounts? By his bookkeepers records, this wasn't the case. He thought perhaps that he was losing clients to a competitor who offered rock-bottom prices with little to no guarantee of quality performance, and that the folks who owed Kelly money had jumped ship and decided to leave him holding the bag.
. They couldn't afford to pay him their debt, but they could afford a lesser service, maybe. But after doing the cursory research for this and talking to friends in the field, he found that alas, no, customers of Kelly hadn't gone elsewhere. They had just gone home.To Steve Wells the situation looked desperate. There were goods to ship, employees to pay, trucks to repair and maintain, and continuous overheads that were very extensive when compared to the funds (or lack of) that were incoming. After work he would confide in his wife, Denise, and neither were unable to stop the constant worry over the lack of funds.""I have a bad feeling, Lin,"" he'd sadly say to his wife.""What could you do differently?"" she would ask.Steve would stare off for a moment and then close 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 on earth was happening to create the death of his business?""I know what it is,"" said Steve. ""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 Denise 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'.""Steve knew his wife meant well, but he knew that he was responsible for too many people to sit idly by, waiting for the sun to peak over the clouds.The next day Steve strolled into his office and was determined to sit down and make every phone call to every client who had owed Kelly 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. Even though he was doing something to help his company, he knew he had folks on salary to do just this thing. A waste of time - a waste of money - he had the best intentions, but all the while Steve 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 Elizabetherley knocked at his door.
""Steve, can I have a word?"" she queried, standing in the doorway.
""Sure thing Elizabeth, come on in."" Steve relaxed back into his chair and looked up at Elizabetherley.""Well, I did a little searching this afternoon and tried to figure out a way out of this mess Steve."" She pulled a small stack of papers from a folder and set them on the desk before him.""Have you ever heard of factoring?"" she asked.""It sounds vaguely familiar. What is it?"" he said.""Well,"" she began, ""It�s actually quite simple really.
Basically, factoring invoices means that we would get paid immediately for the loads we haul.""Steve interrupted ""Immediately?"".""Immediately, yes"" she added, ""In a nutshell, it's pretty easy. We start by having a professional account manager review our figures and help us set up a company profile. Included in the profile would be the investigation of our accounts receivable aging reports, our current customers' credit limits etc.. Additionally, the factoring will help to determine the creditworthiness of our customers independent of their credit history with our business. It provides a very broad view.��Steve replied cautiously ""I see - and what happens then?��Well, after their review, and we�re approved for a factoring contract, we can negotiate terms and conditions. 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.�Steve was still a little concerned. He leaned forward in his chair and studied the paperwork very closely.""I don't know, Elizabeth - it just sounds too good to be true"", Steve said quietly.""Now, now, I know, I thought the same thing. 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. They appear to be very flexible, Steve,"" she underlined a paragraph on the paper before him.""How flexible?"" he asked.""They personalize the factoring rates so that the amount they are willing to take on is commensurate with our needs and our client�s debt. Apparently they can figure this all out in two to four days.
""""That sounds pretty good, seeing as we tapped ourselves out with bank loans last year to repair the fleet and money sure is tight. 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,"" Steve said.He took a deep breath and looked at his secretary with something she recognized as hope.""Precisely�. This could be the answer to our prayers: it will solve many problems we're facing due to these unpaid debts.""Steve thought about this and agreed with Elizabetherley. The clients who owed them money were long standing friends and professional resources of Kelly. They didn't want to throw away these relationships because they were having trouble paying their bills now. Steve knew that the economy had taken a hit and he knew that it would probably be a long time before things started to look up again. 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. Of course he didn't want to lose any more money, but he didn't want to lose business either.""Let me go over this tonight Elizabeth, and thankyou."" Elizabeth nodded, stood up and left the office feeling that she had helped her employer keep on his shirt and hers too.Steve sat behind his desk and looked over the details Elizabeth had not mentioned in their meeting. What other issues could freight factoring help Kelly with? Running his pencil down the sheet, he noted that the freight factoring company could assist with fuel costs, fuel advances, and fuel discount cards. In fact, Kelly could receive up to fifty-percent cash advances upon load pick-ups. As a man who hated binding contracts with no room to breathe, he was pleased to see that this factoring company would not make him sign a long term contract, would not make him pay any sign up fees and there was no minimum volume required.""I must tell Isaac the good news,"" Steve muttered to himself.His son-in-law Isaac had liked the idea of Kelly so much and revered his father in law for having such business acumen that only two years before, he had gathered the venture capital to begin his own transportation service company. Steve knew then what struggles Isaac would face but he encouraged him nonetheless. With the economy the way it was, if an established company such as Kelly was struggling then the little guys, like Isaac, were going to be in even more trouble. Perhaps the antidote to these problems was in freight factoring, and they were about to find out.Some months later, having successfully gone through the entire process of the application, having experts study his credit history and statements and review his accounts receivable, Steve found that he was starting his journey out of the despair which had been created for him by his delinquent account holders.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. Steve recalled those dismal months when he wasn't aware of freight factoring, and he shuddered at those memories. If Steve hadn't discovered freight factoring at just the right time, his business may not be operating today.
More Trucking Factoring Companies Story Articles
The Future of a Trucking Company, and Factoring Leroy Shaw let the phone ring on his desk. His morning coffee cooled and his cigarette smoked away in the tray: Leroy is thinking, and pondering the biggest decision he's ever had to make for his trucking business. Shaw Trucking Company was at a turning point of growth and Leroy had to decide if signing with a factoring company was the right way forward.
Leroy�s father had started as an owner-operator and had grown Shaw 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 Leroy'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 Leroy's hands and he needed to ensure that this business would be left in great shape for his sons.
To move Shaw Trucking Company ahead into the future, he needed a steady cash flow but there was just not enough money to go around. He had employees to pay. They all have families and the usual household bills. 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, Shaw Trucking looked weak in a very strong market.
He knew what his father would have said - 'wait, take your time before adding new technology'. Leroy allowed himself a good hard chuckle. He remembered when his father was totally against installing GPS units in the cabs. His Dad would say ""Why on earth do you need some stranger telling you to get off the exit that everyone knows 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.
Leroy knew he was right in his forward thinking. How would he take Shaw 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 this assistance, you're placed in the position of waiting for payment from your customers, and this can often be thirty days, or more. During those thirty days the trucking company can't pay its employees and bills with invoices.
Leroy had to really consider what his next step was going to be. He had heard of companies charging for same day money transfers, advancing a percentage of the money owed to your business, while the rest is held in a private account if the bill wasn't paid within sixty or more days. Worse still, if the customer defaulted on payment, the factoring company takes it out of the money supposedly 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 friend Ronnie who had a trucking business in Missouri, was run nearly into the ground by a factoring company that charged him the full freight bill on top of the factoring fees. 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. When he called the factoring companies he discovered they were very open about their business practices, and very friendly and helpful. Their customer service actually knew things about their company and spoke in nice clear English so he could understand what was being explained. He was quite happy to sign 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. He was more than happy with the figures he was offered in percentage terms on the freight bills. It was good money.
It was really refreshing dealing with the factoring people. They were more personable than those loan managers at the bank. He was relieved to note that the factoring companies understood the trucking business and discussed business with him like a respected client, not like someone looking 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 Leroy 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 Shaw 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, Leroy 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 Shaw 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, this is not a loan?� Greg Coleman asked as he leaned back in his chair, crossing his legs. The woman sitting across the desk from Greg smiled at him, shaking her head.�Not quite,� she stated.Greg 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 Vincent. He named his business Flores Trucking, named after Francis and Gabriel, his two grandfathers. Both of these men had been very hardworking and had set a great example for Vincent.Six months ago disaster struck Vincent's business when two out of his fleet of fifteen trucks were taken off the road.
One was a roll-over and ended up in the trucking graveyard: the other was involved in a serious and costly accident. Greg depended on his full fleet, and missing two trucks was devastating . In addition, he just didn't have the available cash to buy a new truck, plus repair the other one.A big problem a lot of trucking companies came across was how bills were paid in the industry. You could go a month or more before bills were completely paid off. In the long run, this wasn�t an issue, but if problems arose, you could find yourself in trouble.Greg wasn�t a bad owner, and he hadn�t messed up. Certain events had occurred that he couldn't possibly have predicted, and now he had to find a way to protect his business and prevent it from ultimate devastation.That�s where the woman across the desk came in. Greg knew she was employed by a Factoring company and that her name was Jill. Greg had come across her company as he sat in his office late one night, pouring over the internet for some solution to his problem long after his employees had gone home.She sat there now, and explained. �it is really not a loan at all: we actually buy 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. That way we�re protected from a complete loss, but you�re protected from the outrageous fees you would find in a loan from the bank.Greg nodded. It sounded perfect - perhaps too good?.Jill laughed. �You look like you don�t 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.�Jill nodded. �We get that a lot. Listen, I�d hate to see you lose your company. You work hard, you�ve put everything you can into it. Sometimes you need help. That�s what we�re here for.��Well, I'm very grateful that you came to see me today.��It�s right down the road, usually we do it all online, but I didn�t mind swinging on by today,� said Jill with a smile. �Let�s see what we can do to help you.�And right there and then they created a business profile. Greg completed the form, with Jill offering advice as needed.
The profile filled Jill and her company in on Vincent�s company, and would help them determine if he was suitable for factoring. In truth, not all companies were. Some businesses are beyond the help of a Factoring company, while other businesses weren't in enough financial stress to warrant it. As Greg completed his form, Jill listened to his story and she felt quite sure he would be the ideal candidate for Factoring.Jill took the completed form and placed it in her briefcase. Standing up, she reached over the desk and shook Vincent's hand. He also stood up, and they smiled at each other. Greg walked Jill to the door where they said 'Goodbye', then he went back into his office.His employees were there, seven who worked in the office, and as he sat behind his desk once more he heard the familiar clack of fingers on keyboards, the electronic whine of the copy machine.He leaned back and closed 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 Jill and learning all about Factoring, he felt such a huge relief, like someone had just lifted a huge weight off his shoulders. He sat back in his chair and ran a hand through his graying but still thick black hair.The long nights, where he couldn�t sleep. The terrifying panic attacks that occurred regardless of where he was. He could feel it all fading 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 still here; he knew this was the right path for him, and he felt proud that he had taken the appropriate steps to sort out his problems.Greg couldn�t help but think back to when he had first started the business. At twenty-two and straight out of school he had opened a restaurant. It had been really successful. Home cooking in his hometown, and he had done very well.But it wasn't what he really wanted to do. 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 half a year off, and in that time he thought to start Flores Trucking. And that's exactly what he did. Once again he built 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 nearing fifty. He didn�t think he had it in him, to save this company. 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 know how to say quit.And now it seemed as though he wouldn't have to - all because of Factoring. Vincent's eyes opened, he sat forward in his chair and turned on his computer. He had lots to do. There would be plenty of time later to be thankful, but for now it was time to get back to work.
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Why Trucking Companies Use Factoring Firms.
As the owner of your own establishment, you may likely be much more than wary already of the challenge in making certain that cash flow issues do not become a predicament down the line. Anyway, the toughest thing that can possibly happen for your company is to find yourself involved in a long and problematic circumstance that leaves you forever trying to find the funds you necessitate on an on-going basis.
For any sort of company in this situation, the challenge can come for waiting for work to lapse and actually be repaid into your bank account. Statements, checks, and the like can take some time to actually to be taken care of which can certainly leave you with momentary capital difficulties. Thank goodness, there are opportunities out there for businesses to investigate-- and just one of these is factoring agencies.
Factoring companies will, in exchange for your accounts, give you with the funds asap in order that you don't need to stress over the lingering phase that could make paying the expenses and acquiring materialsmore tough. With this sort of system, invoice factoring can come to be exceptionally practical for several enterprises who have to get out of a cash ploy which they have discovered themselves in.
Since, relying on the size of the project, it can take up to 60 days for several business enterprises to get paid then it's critical to cover your own back and certainly not leave yourself resources short to settle the expenses. After all, how many businesses have two months profits just lying there to handle all their spendings till they get paid?
This is most notably correct of truck enterprises. They often tend to manage tons of accounts which means a significant volume of collection period entails company owner themselves. Trying to get compensated in time can become an incredible hassle and this is precisely why you use trucking factoring organizations who are happy to help out truckers mainly.
As we all determine, trucking is an astonishingly enormous industry with a lot of companies out there employing hundreds of operators. However, quite a few of these drivers land up in money problems given that they are still anticipating work from six weeks earlier to actually pay them. When this is the condition for a trucking organization, resorting to factoring agencies for aid could be the most effective option left.
This signifies that a truck organization can compensate the wages of the staff, keep all the cars loaded with fuel and continue to escalate, develop and expand without continually waiting for the finances which is taking too lengthy to come in. Trucking Business enterprises functioning without a factoring program used are leaving themselves at significant hazard, as rivals cash out promptly and continue to develop.
There's honestly not much to be troubled about when it comes to working with a Factoring firm-- they commonly are not like a bank or any individual who is going to leave you with a massive mound of financial debt to pay back. You give them legitimate invoices from job you have already finished , you are only just expediting the repayment process.
In the United States, where truck firms develop, factoring providers are not considered taking on loan in any capacity. This private agreement then allows both parties to profit and take pleasure in a worry-free future-- it provides the factoring business a secured asset of income to add to the list and it supplies the trucking business the needed finances that they sweated to earn.
The trucking company bestows their accounts to the factoring company. The trucking factoring business then receive the payment amounts from the trucking company's customers. Factoring has beenaround for hundreds of years and has been used for several years by a lot of diverse business-- but none exceeding so than truckers. While you may well miss out on a small part of the money, something like 1-3 % depending upon who you work with, it implies that you are obtaining the resources today and can actually start setting the cash to operate.
Anyway, an IOU or an invoice is not actually going to fund overheads, is it? For trucking agencies when the funds can be excellent 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 quantity of time and money to get through the week until they are paid for again.
So the next time your trucking business is bearing some temporary capital dilemmas and you are devoting a lot of time chasing inactive paying clients, why not begin thinking about using a factoring companies as a method to get your money and give yourself a more comfortable future in the eyes of your trucking staff and your bank dividend?
Traditional Bank Loans
Finance through a bank loan is the normal, or traditional, way of financing your business. These loans can be a life-saver, but they're not always 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. Of course, once that loan has been re-paid, you can always re-apply for another loan.
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. The Trucking Factoring company purchases your accounts receivable, or part of them, for a certain percentage of their value - this is normally about 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 you have set up Trucking Factoring account it continues as long as you wish it too and the amount of money available to you even can grow as your business grows, giving you the ready cash you need to meet your own obligations.
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. You don't incur debt as you do with a bank loan because the Trucking Factoring company actually purchases your accounts receivable. One of the main benefits of this kind of financing is that your business credit rating and your personal credit rating won't be affected. 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. The debt goes onto your credit report with a bank loan, with only one missed payment adversely affecting your business credit: it would also affect your ability to secure insurance, and may reflect on your personal credit rating as well.
2. There's no collateral required. Another benefit of using a Trucking Factoring company instead of a traditional loan is that you aren't required to provide collateral to the Trucking Factoring company in order to secure financing, because the company �buys� the accounts receivables; not loans you money based on them. In addition, while the Trucking Factoring company does run a credit check on your customers whose accounts receivables are offered for financing, the state of your credit is not an issue. 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. With a bank, there are vast amounts of paperwork, then the loan has to be underwritten, which can take months before you actually see the loan if it is approved.
4.You receive interest up-front. Unlike a bank loan that continues to build interest that you have to pay the entire time you have your business loan with a Trucking Factoring company, you don't have to continue to pay interest as they take it right off the top, deducting it from the total amount of accounts receivable. 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. In addition, there are other benefits that a Trucking Factoring company can offer you, outside the scope of a 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. The Trucking Factoring company takes over that chore, since it is now their money to collect. 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.
In addition, since the Trucking Factoring company evaluates the credit quality of your customers prior to purchasing the accounts receivable you gain valuable information into which customers are likely to pay and which ones are not so likely to pay.While a Trucking Factoring company is not the only way for your business to obtain the money it needs to keep growing, it does offer a type of financing well worth considering.