How To Get Financing Without a Lawyer for Under One Dollar -
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The Cash Your Company Needs
Factoring invoices is beneficial for numerous reasons. It permits a trucking company to raise cash without acquiring brand-new debt. While financial obligation is sometimes required, the majority of trucking companies would like to raise money without obtaining cash. Financial obligation is dangerous, and when it can not be paid back, possessions can be repossessed. If the debt is large enough, it might even require a trucking firms out of business.
Do Your Receivables Turn as Quickly as You Would Like - Select
A Trucking�Factoring Company Instead Of A Typical Bank Financing
How to Increase Money Flow Without Loaning -Cash Money flow is among the primary reasons companies fail.
At one time or another, every company, even successful ones, have actually experienced bad cash flow.
Money flow does not have to be an issue any more. Do not be fooled -- banks are not the only places you can get financing. Other options are offered and you do not have to borrow money. Exactly what is trucking factoring ? One option is called factoring services. Trucking Factoring is the process of selling accounts receivable to an investor rather than waiting to collect the money from the
customer. Oh, the Irony- Truck factoring has a paradoxical distinction:
It is the monetary
backbone of numerous of America's most successful companies. Why is this paradoxical ? Since trucking factoring is not taught in business colleges, is rarely discussed in business plans and is relatively unknown to the majority of most of American company people.
Yet it is a financial procedure that frees billions of dollars every year, enabling thousands of businesses to grow and succeed. FACTORING has been around for countless years. Receivable Loan Financing 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 actually to pay in the near future. Factoring Principals--Although factoring
offers solely with business-to-business deals, a big percentage of the retail business utilizes a factoring principal. MasterCard, Visa, and American Express all utilize a form of factoring in their retail transactions. Utilizing the purest definition of the word, these large customer finance business are really just big Factoring Businesses of customer paper. Consider it: You purchase at Sears and charge
it to your MasterCard. The shop gets paid practically immediately, even though you do not pay up until you are prepared.
For this service, the charge card company charges Sears a fee (typical common normal fees vary from 2 to four percent of the sale). The Advantages Truck Factoring can provide numerous advantages to cash-hungry companies. Rather than wait 30, 60, 90 days or longer for payment on a product that has currently been provided, a business can factor
(sell) its receivables for cash at a small discount
off the amount of
the invoice. Payroll, advertising efforts, and working capital are just a few of the company requirements that can be satisfied with instant money.
Factoring Services offers the means for a manufacturer to replenish inventory and make even more items to sell: There is no longer a need to wait for earlier sales to be paid. FACTORING is not simply a money management tool for producers: Practically any kind business 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 accounts receivable 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 bill or this week s payroll with a client s invoice, however you can offer that invoice for the cash to meet those responsibilities. Using trucking factoring companies is a fast and simple process. The factoring company buys the invoice at a discount, typically a few percentage
points less than the stated value of the invoice.
Please call our freight bill factoring experts at 1 - 888-239-9162
or E-mail Us
The U.s. Transportation Organization
mentions that there around
205,000 employees with freight trucking
300,000 personal providers trucking
firms certified to
operate in the United States that transported,
according to their newest listings of millions of
products, supplies and
standard materials .
There are numerous typical
groups on our country
roads transporting these
crucial items to our
shops, manufacturing facilities and shipping ports.
countless of them and offer their
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.
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.
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.
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.
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.
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
Graham Truck and Haul has been in business since the mid 1980s. They've delivered goods for nearly every major industry in the nation and for 20 plus years, business was booming as they've traversed the country in all weather for all clients. During the heady times from 2002 to 2007, Graham 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. The money was flowing, and times were great.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
. Worse still, it was noticed by Graham in early 2008 that even though most of their loyal customers were on time with their payments, there were a few late bloomers who were starting to spread the disease. Spring changed to summer, summer changed to fall, and the CEO of Graham, Luis Curtis, was beginning to feel very uncomfortable indeed whenever he looked at their weekly Accounts Receivable reports. The numbers of clients who owed him back debt were growing.He had gone to his administrators and asked them what the problem had been. Were they doing something wrong or different when it came to reaching out to delinquent accounts? When checking his bookkeeper's records this was definitely not 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. They had just gone home.This current state-of-affairs was causing Luis Curtis 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. After work he would confide in his wife, Rita, and neither were unable to stop the constant worry over the lack of funds.""Lin, I have a really bad feeling,"" he'd sadly say to his wife.""Well, what do you think it is?"" she would ask.Luis would stare off for a moment and then close eyes. In his mind he could clearly see the fleet of trucks purchased over the many years. He could see them traveling, bringing goods to all of his clients. But somewhere, a haze would form over his fleet and the vast number of vehicles would disappear to but a few. What could cause this ultimate death spiral of business?""I think I know what it could be,"" said Luis. ""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 Rita 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'.""Rita was trying so hard to support her husband in these worrying times, while Luis was weighed down with the worry of how he was going to handle this situation he found himself in.The next day Luis strolled into his office and was determined to sit down and make every phone call to every client who had owed Graham 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 Luis 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 Connieerley knocked at his door.
""Luis, can I have a word?"" she asked standing in the doorway.
""Of course Connie, please come in."" Luis leaned back in his chair and looked expectantly at Connieerely.""Well, I did a little searching this afternoon and tried to figure out a way out of this mess Luis."" 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?"" Connieerley asked.""It sounds vaguely familiar. What is factoring""? he asked.""Well,"" she began, ""It�s actually quite simple really.
So basically, factoring invoices would enable us to get paid on the nose for loads that we haul.""""Immediately?"" Luis interrupted.""Yes, immediately,"" she continued, ""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. 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 provides a very broad view.��Luis 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. This company tells us what the cost will be to purchase factoring for our accounts receivable. We come to an agreement and the funding starts pouring out.�Luis was still a little concerned. He leaned forward in his chair and studied the paperwork very closely.""I don't know, Connie - it just sounds too good to be true"", Luis said quietly.""Yes, I know; that's exactly what I thought at the beginning. But think about it, Luis: they've guaranteed that experts will do all the paperwork, and that will free us up to do what we should be doing - focusing on our customers in good standing, and that kind of stuff. And they're flexible Luis,"" she drew a circle around a paragraph on the document before him.""How flexible?"" he asked.""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. 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. We need to keep business rolling as normal and every day we�re going unpaid, we�re closer to facing some serious problems in both the short and long term,"" Luis said.He took a deep breath and looked at his secretary with something she recognized as hope.""Exactly�. This could be the answer to our prayers: it will solve many problems we're facing due to these unpaid debts.""Luis took a moment to think about this solution, and agreed with his secretary. The clients who owed them money were long standing friends and professional resources of Graham. Just because they were experiencing difficulties paying their own bills now, Luis was very concerned about losing these relationships. Luis 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. If he didn't handle these debtors in the right way, that unknown amount of time could spell disaster for all of them. Of course he didn't want to lose any more money, but he didn't want to lose business either.""Well, let me think about this tonight Connie, thank you."" Connie nodded, satisfied with her work, and she left the office feeling quite content in the knowledge that she had helped Luis keep the shirt on his back, and possibly hers too.Luis stayed at his desk for a long time, looking over the details they hadn't discussed during their meeting. What other issues could freight factoring help Graham 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. Luis was surprised: it said that his company could get up to fifty percent cash advances on load pickups. Luis 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 Jeff about this,"" muttered Luis to himself.Luis's son-in-law, Jeff, loved the idea behind Graham 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 Luis knew the struggles Jeff would face, but he still encouraged him to follow his dream. With the faltering economy, if a big fish like Graham was hurting, a little guy like Jeff was about to catch his death. But, an antidote may have been found in freight factoring and Luis was soon to find out.A few months later after going through the entire application process and having the experts review his accounts receivable, credit history and statements, Luis found himself beginning to dig his way out of the hole his delinquent account holders 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. Luis looked back on the dismal months of life before freight factoring and almost shuddered at the thought. Had he missed the boat on this one, he probably wouldn't be in business today.
More Trucking Factoring Companies Story Articles
The Future of a Trucking Company, and Factoring Donald Harris let the phone ring on his desk. His morning coffee cooled and his cigarette smoked away in the tray: Donald is thinking, and pondering the biggest decision he's ever had to make for his trucking business. Harris Trucking Company was at a turning point of growth and Donald had to decide if signing with a factoring company was the right way forward.
More than forty years ago Donald's father had started this business working as an owner-operator and eventually growing Harris Trucking Company into a fifteen trailer fleet. Yes, they had survived some very difficult times when it appeared like they might go under, and even Donald'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. Now the company was solely in Donald�s hands and he wanted to live to see it in better shape for his sons.
There just never seemed to be enough money to go around, and certainly no spare cash, but to move his company successfully into the future he needed a steady and reliable cash flow. He had employees to pay. They all have families and the usual household bills. A few of the refrigerated trailers really needed some maintenance, and in order to stay competitive he really wanted to invest in specialized haulers to meet the increasing requests for loads of agricultural and energy equipment. He knew that turning down these requests made Harris Trucking look inefficient and weak in what was currently a strong market.
His father would have told him to wait and to take his time adding on new technology. Donald chuckled, thinking about his father. 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?� He smiled to himself as he remembered his father poking fun at the other drivers who switched to automatic, even though automatic was quite obviously more efficient (though less manly). 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.
Donald believed a successful man is always thinking of his next step. How would he take Harris 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. Factoring companies buy your invoices and manage your accounts receivable for a certain percentage of the invoiced amount. The factoring company gives the trucking business its payment right away which allows the business to have continuous cash flow so it can pay employees, buy fuel, and make repairs for upcoming hauls. 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.
Donald had to really consider what his next step was going to be. Donald 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. Worse still, if the customer defaulted on payment, the factoring company takes it out of the money supposedly coming to you! He'd even heard about some companies putting you onto a sliding percentage scale regardless of any previously signed contracts for possibly 3% or 7%, and there you are now with 10% coming as a charge 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?
But it turned out to be quite easy. When he called the factoring companies he discovered they were very open about their business practices, and very friendly and helpful. 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. He liked the idea of a long term commitment so he knew he wouldn�t have to bother going back and forth to different companies and wasting time filing more forms. He was not charged for a credit check, and in addition he was offered a fuel advance on the pick-up of a load. Many companies offered a non-recourse factoring program that suited him just fine. Also he was happy to hear how much he was offered in terms of percentages on the freight bills. It was good money.
For Donald it was quite a relief to be dealing with the factoring company. They were extremely helpful and more personable than the bank staff. 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 didn�t worry over his credit and the debt troubles his father had had in the past of the company. All the factoring company was interest in was the credit of his customers and on their reliability: this worked great for Donald because he and his father had created a very strong and loyal list of clientele over the years. He knew immediately that there would not be any problems when they were contacted by the factoring company regarding their invoices. His clients wouldn�t think poorly of Harris Trucking and the factoring companies appeared capable of handling the accounts receivable in the same polite manner that his father had used over the years.
Feeling happier now, Donald stepped out of his office to advise his secretary to expect to receive the contract very shortly from the factoring company. There was a new bounce is his step now: he knew instinctively that this new step would raise the future of his company to a new and higher level, and that all the stress from the past could now be put behind him. He suddenly realized that, with this new cash flow, he could actually expand Harris Trucking Company and who knows, move into Canada, which had always been his dream. His heart felt full knowing his sons wouldn�t have to worry about money because of the right decisions he had made for their trucking business.
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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.
More Trucking Factoring Company Story Articles
Why Truck Firms Make use of Factoring Companies.
As the manager of your own business enterprise, you may perhaps be much more than mindful already of the challenge in making sure that cash flow issues do not become a problem down the line. Anyway, the worst thing that can quite possibly come about for your company is to find yourself embroiled in a long and challenging predicament that leaves you forever looking for the money you necessitate on an continuing manner.
For any firm in this circumstance, the dilemma can come for waiting for work to lapse and actually be paid out into your bank account. Invoices, checks, and the like can take a long time to actually to be taken care of which can certainly leave you with temporary capital issues. Luckily, there are alternatives out there for firms to consider-- and one of these is factoring companies.
Factoring companies will, in trade for your bill of sales, give you with the cash now in order that you don't have to fret about the waiting duration which could make paying the bills and getting materialsmore challenging. With this sort of system, invoice factoring can become remarkably practical for various establishments who need to get out of a money lure which they have gotten themselves in.
For the reason that, depending on the scale of the task, it can take up to 60 days for many businesses to get paid then it's significant to take care of your own back and definitely not leave yourself money short to pay the costs. After all, how many businesses have two months profits just occupying there to pay for all their overheads until they get paid?
This is specifically true of trucking establishments. They often tend to deal with good deals of accounts which means a serious amount of collection period entails company owner themselves. Striving to get paid in time can end up being an incredible difficulty and this is the key reasons why you employ trucking factoring companies who are pleased to help out truckers particularly.
As we all know, trucking is an amazingly large field with lots of organizations out there employing hundreds of vehicle drivers. However, many of these drivers land up in cash troubles since they are still waiting for work from six weeks previously to actually pay them. When this is the situation for a trucking agency, depending on factoring firms for assistance may be the most ideal alternative left.
This means that a trucking organization can pay out the salaries of the people, keep all the cars refilled with fuel and continue to surmount, evolve and expand without constantly waiting for the funds which is taking too long to come in. Trucking Establishments functioning without a factoring system established are leaving themselves at critical risk, as contenders cash out promptly and continue to expand.
There's absolutely nothing at all to be troubled about when it comes to utilizing a Factoring agency-- they usually are not like a financial institution or any individual who is going to leave you with a massive stockpile of financial debt to repay. You give them legitimate invoices from job you have already completed , you are only speeding up the repayment process.
In the United States, where trucking establishments survive, factoring providers are not considered getting a loan in any capacity. This private agreement then allows both groups to make money and indulge in a worry-free future-- it gives the factoring firm a guaranteed asset of earnings to put into the list and it offers the trucking firm the needed finances that they sweated to gain.
The trucking company bestows their accounts to the factoring firm. The trucking factoring company then receive the payment amounts from the trucking company's clients. Factoring has been in existence for hundreds of years and has been utilized for decades by several varying markets-- but none exceeding so than truckers. While you may miss out on a small part of the money, something like 1-3 % depending upon who you work with, it means that you are getting the cash today and can actually start setting the cash to work.
Anyway, an IOU or an invoice is absolutely not going to finance bills, is it? For trucking firms when the money can be excellent one day and gone the next, it's up to the vehicle drivers to work prudently and to ensure they are leaving themselves with a significant amount of time and money to get through the week till they are paid again.
So the next instance your trucking enterprise is enduring some momentary capital issues and you are spending an excessive amount of time chasing slowly paying clienteles, why not start off looking at making use of a factoring companies as a way to get your cash and give yourself a more comfortable future in the eyes of your trucking staff and your bank dividend?
Bank loans are an extremely traditional way for a business to get financing. 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.
Trucking Factoring Companies
Trucking Factoring companies don't offer loans, and you don't go into debt when you get money from a Trucking Factoring company. 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 finance you can receive will be based on the amount you have earned and the accounts receivable you are prepared 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
Not every business can benefit from Trucking Factoring account financing because you have to have a business with accounts receivable, however there are many benefits for those who can access this type of finance.
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. 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. 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 means that it's easier for new businesses to access the finance they need through a Trucking Factoring company, providing their accounts receivable are in good order. A bank may believe you haven't been in business long enough to be able to cover this risk.
3. You'll receive the money faster. With a Trucking Factoring company you can actually get the money you need faster. The money will normally be in your account within 24 hours, once the Trucking Factoring company is confident that your customers� accounts are likely to be paid. 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.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. 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. 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.
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.