How To Get More Cash -
Our Trucking Factoring Companies
Your Freight Company
The Money Your Company Needs
Truck Factoring is advantageous for numerous reasons. It permits a trucking business to raise cash without acquiring new financial obligation. While financial obligation is sometimes essential, many trucking companies would choose to raise cash without borrowing money. Debt is risky, and when it can not be paid back, assets can be repossessed. If the debt is large enough, it might even force a freight brokerage out of business.
I liked this product so much - that I - Pick
A Truck�Factoring Company Instead Of A Traditional Bank Funding
How to Enhance Cash Flow Without Loaning -Cash Money flow is one of the main reasons businesses fail.
At one time or another, every business, even effective ones, have experienced poor money flow.
Cash flow does not have to be an issue any more. Do not be deceived -- banks are not the only places you can get funding. Other solutions are offered and you do not have to borrow money. Exactly what is trucking factoring ? One option is called trucking factoring companies. Truck Factoring is the procedure of offering invoices to an investor rather than waiting to collect the cash from the
customer. Oh, the Irony- Truck factoring has an ironic difference:
It is the monetary
foundation of many of America's most effective companies. Why is this paradoxical ? Because receivable loan funding is not instructed in business colleges, is seldom discussed in business plans and is fairly unknown to bulk of most of American business people.
Yet it is a monetary process that frees billions of dollars every year, allowing countless businesses to grow and succeed. Invoice Factoring has been around for countless years. Receivable Loan Funding Companies are financiers 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 client has agreed pay in the near future. Factoring Principals--Although factoring
deals solely with business-to-business deals, a big percentage of the retail company utilizes a factoring principal. MasterCard, Visa, and American Express all use a type of factoring in their retail transactions. Utilizing the purest definition of the word, these big customer finance companies are really simply large Commercial Factoring Businesses of consumer paper. Think about it: You purchase at Sears and charge
it to your MasterCard. The shop gets paid almost immediately, although you do not pay up until you are prepared.
For this service, the credit card business charges Sears a charge (typical common normal fees range from two to four percent of the sale). The Advantages Commercial Factoring can offer many advantages to cash-hungry business. Instead of waiting 30, 60, 90 days or longer for payment on an item that has actually already been provided, a business can factor
(sell) its receivables for money at a small discount
off the amount of
the invoice. Payroll, marketing efforts, and working capital are simply a few of the business needs that can be satisfied with instant money.
Trucking Factoring Companies offers the means for a manufacturer to replenish stock and make more items to offer: There is no longer a need to wait for earlier sales to be paid. Receivable Loan Financing is not simply a money management tool for manufacturers: Almost any type business can take advantage of Invoice Factoring. Generally, a company that extends credit
will have 10 to 20 percent
of its annual sales bound in invoices at any given time. Think for a moment about how much is bound in 60 days' worth of invoices: You can not pay the power bill or this week s payroll with a client s invoice, but you can offer that invoice for the money to meet those obligations. Using trucking factoring companies is a quick and simple procedure. The factor buys the invoice at a discount, usually a couple of portion
points less than the stated value of the invoice.
Please call our freight factoring experts at 1 - 888-239-9162
or E-mail Us
The U.s. Truck Organization
states that there around
200,000 work with freight trucking
300,000 personal service providers trucking
companies certified to
operate in the U.S. that carried,
according to their most current listings of millions of
products, materials and
basic products .
There are several common
teams on our nation
roads transferring these
vital items to our
stores, manufacturing facilities and harbors.
countless of them and offer their
receivables financing services
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
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.
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.
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
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.
Watkins 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 boom times from 2002 to 2007 Watkins Truck & Haul was the mastermind of a top-rated accounts receivable in 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.But a short year later, in the fall of 2008, when the United States economy took a nosedive and businesses both small and large began to feel the pinch on their pocketbooks, those that used to make their demands had suddenly and largely gone silent. Business slowed down. Worse still, it was noticed by Watkins 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. And as spring turmed to summer and summer into the early days of fall, Greg Nguyen, CEO of Watkins felt a chill go down his spine whenever he would look at the weekly A/R reports. There was a growing list of clients who now owed them back debt.He had already been to the administrators to ask what the actual problem was. 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. 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 Watkins money had jumped ship and decided to leave him holding the bag.
. 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.To Greg Nguyen the situation looked desperate. Greg was very concerned, because there were constant overheads, goods to ship, employees to pay, and trucks which needed to be maintained, but there just wasn't the money coming back into the business. In the evenings he would discuss his concerns with his wife, Yvonne, and still find no relief from the worry and frustration.
""Lin, I have a really bad feeling,"" he would say with deep woe.""Well, what do you think it is?"" she would say.Greg would stare off into the distance, and then slowly close his eyes. In his mind he could clearly see the fleet of trucks purchased over the many 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. Why couldn�t he work out how to resolve this financial problem with his business?""I think I know what it could be,"" Greg 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."" Yvonne would look at her husband lovingly, and holding his hand would say 'It's such a harsh economy these days and our clients must be having difficulty meeting their responsibilities'.""Greg knew very well that Yvonne was only trying to help, but his responsibilities weighed heavily on his shoulders and he knew he had better do something soon to resolve this situation.The next day Greg strolled into his office and was determined to sit down and make every phone call to every client who had owed Watkins 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 Greg was realising just how much trouble he was in.Poor Greg spent the whole morning trying in vain to contact his debtors: they promised to call back, dodged his calls, or made small interest-only payments. He was beginning to feel quite despaired when his secretary knocked on his door.
""Can I have a word with you Greg?"" she asked standing in the doorway.
""Of course Gail, please come in."" Greg leaned back in his chair and looked expectantly at Gailerely.""Well Greg, this afternoon I did some research, trying to work out how we're going to get out of this mess."" She pulled a small stack of papers from a folder and set them on the desk before him.""Have you ever heard the word factoring?"" Gailerley asked.""It does sound vaguely familiar. What is it?"" he said.She began, ""Well, it's really very simple. So basically, factoring invoices would enable us to get paid on the nose for loads that we haul.""Greg interrupted ""Immediately?"".""Immediately, yes"" she added, ""In a nutshell, it's pretty easy. We can have an expert account manager review our numbers and help us complete 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�s a broad view.��Greg 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. This company tells us what the cost will be to purchase factoring for our accounts receivable. The funding commences once we�ve arrived at an agreement.�Greg was still a little concerned. He leaned forward in his chair and studied the paperwork very closely.""It sounds too good to be true, Gail,"" he said.""Now, now, I know, I thought the same thing. But think about it, Greg: 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. They appear to be very flexible, Greg,"" 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. It only takes 2 to 4 days for this to be figured out. """"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,"" Greg said.Greg took in a long slow breath, then looked at his secretary with something like hope in his eyes.""Precisely�. This could be the answer to our prayers: it will solve many problems we're facing due to these unpaid debts.""Greg 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 Watkins. Just because they were experiencing difficulties paying their own bills now, Greg 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. 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 Gail, thank you."" Gail nodded, satisfied with her work, and she left the office feeling quite content in the knowledge that she had helped Greg keep the shirt on his back, and possibly hers too.Greg sat behind his desk and looked over the details Gail had not mentioned in their meeting. What other issues could freight factoring help Watkins 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. Greg was surprised: it said that his company could get up to fifty percent cash advances on load pickups. Greg 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 Billy about this,"" Greg muttered to himself.Greg's son-in-law, Billy, loved the idea behind Watkins 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. Greg knew then what struggles Billy would face but he encouraged him nonetheless. With the faltering economy, if a big fish like Watkins was hurting, a little guy like Billy was about to catch his death. 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, Greg found that he was starting his journey out of the despair which had been created for him by his delinquent account holders.They adopted reasonable factoring purchase contracts and stopped wasting their own precious time trying to collect debts. They used that time to refocus their efforts in being competitive in new territories. Greg looked back on the dismal months of life before freight factoring and almost shuddered at the thought. He probably wouldn't be in business today had he not learned just in time about freight factoring.
More Trucking Factoring Companies Story Articles
Factoring in the Future of a Trucking Business: A Story The phone was ringing on his desk, and Joel Henry just sat there letting it ring. His morning coffee cooled and his cigarette smoked away in the tray: Joel is thinking, and pondering the biggest decision he's ever had to make for his trucking business. Henry 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.
More than forty years ago Joel's father had started this business working as an owner-operator and eventually growing Henry 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 Joel'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 Joel's hands and he needed to ensure that this business would be left in great 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. 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, Henry Trucking looked weak in a very strong market.
He knew what his father would have said - 'wait, take your time before adding new technology'. Joel chuckled, thinking about his father. His father had been against placing 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. He knew his father's days were long gone and new technology was very important for the business, like having Qualcomm to reduce communication time for bills of lading.
Joel believed a successful man is always thinking of his next step. What would be the next step for Henry Trucking? And how would he be able to afford it? Funding was all tied up in the mortgage for the office and garage and in the fuel bills. He just finished paying off the small bank loan for installing satellite radio in the trucks for the guys.
But was factoring the answer? There was a lot he didn�t understand about the process. It sounded like a ninth grade math problem and he wondered how this would fit into 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 Joel to do his homework. Joel 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 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. He knew he would have to be very careful if he was to avoid any of these shady companies?
But it turned out to be quite easy. All the factoring companies he researched were open about their business practices and very friendly on the phone when he called. 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. He was not charged for a credit check, and in addition he was offered a fuel advance on the pick-up of a 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 sounded like a great scheme to him.
For Joel it was quite a relief to be dealing with the factoring company. 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 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 Joel 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 think poorly of Henry 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.
Joel stepped out of his office to let his secretary know to expect the arrival of the factoring contract shortly. 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 Henry 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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�So, this is not a loan?� asked Ivan Payne, reclining back into his chair and crossing his legs. The woman who sat across the desk smiled and shook her head.�No, not exactly,� she said.Ivan 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 Bill. He named his business Fox Trucking, named after Russell and Raul, his two grandfathers. Both of these men had been very hardworking and had set a great example for Bill.Disaster had struck half a year ago, when two trucks in Bill�s fifteen truck fleet went down. One was a roll-over and ended up in the trucking graveyard: the other was involved in a serious and costly accident. The financial security of Bill's company relied on his full fleet on fifteen being on the road, and missing two trucks was just devastating . Furthermore, buying a whole new truck and fixing the other simply took more cash than Ivan 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.Ivan was an excellent business man, and he certainly hadn't done anything wrong. 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. Ivan knew she was employed by a Factoring company and that her name was Amy. 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.Amy explained. �It�s not a loan, we purchase your accounts receivable. We're not giving you finance to be repaid later: we're purchasing something from you, and when you can you can buy it back. 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.Ivan agreed. It sounded good to him, almost too good.The woman laughed. �I'm not sure that you believe me,� she chuckled.�Oh no, I do: it just sounds too good to be true. I actually thought I might end up losing my business.�Amy 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.��Well, I'm very grateful that you came to see me today.��No problem - I'm just down the road. We normally do it all online but I was happy to come and visit you today,� Amy said with a smile. �Let's work out a solution to your problem.�And right there and then they created a business profile. Ivan filled the form out, with Amy available to help him if he needed it. The profile filled Amy and her company in on Bill�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 Ivan completed his form, Amy listened to his story and she felt quite sure he would be the ideal candidate for Factoring.When the form was done Amy took it and slid it into her briefcase. Standing up, she reached over the desk and shook Bill's hand. He also stood up, and they smiled at each other. They said their goodbyes and Ivan walked her to the door, and then returned to 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 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 Amy 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.All those long, sleepless nights. The sudden panic attacks, not matter where he was. Already he could feel all the stress start to drain away. He knew it wasn't over yet and that there was still a way to go, but he could just feel everything start to change for him. 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.Ivan 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 successful. Offering home cooking in his own hometown, his business had really prospered.But he had gotten bored. He wasn't passionate about the food industry. He thought long and hard, and then he decided to sell the restaurant. He took six months off, and during that time he decided to create Fox 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 nearing 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. The idea of cutting his losses, shutting down, laying off his workers, it actually made him sick some nights. He didn�t know how to say quit.And now, because of factoring, he was sure he wouldn�t have to. Ivan opened his eyes, sat forward, turned his computer on. He had things to do. He could be thankful later, for now, it was time to work.
As the owner of your own business, you may well be much more than perceptive already of the challenge in making sure that capital matters do not become a difficulty down the line. Anyway, the toughest thing that can possibly develop for your company is to find yourself swept up in a long and perplexing circumstance that leaves you forever trying to find the money you are in need of on an on-going basis.
For just about any firm in this circumstance, the complication can come for waiting for work to lapse and actually be settled into your account. Bill of sales, checks, and the like could take some time to actually to beprocessed which can certainly leave you with momentary capital issues. Luckily, there are alternatives out there for enterprises to delve into-- and among these is factoring providers.
Factoring agencies will, in substitution for your statements, grant you with the money immediately to ensure you don't have to fret about the waiting duration that could make paying out the bills and purchasing toolsmore tough. With this style of system, invoice factoring can become extraordinarily beneficial for numerous establishments who have to avoid a cash lure which they have discovered themselves in.
Because, depending upon the size of the work, it can take up to 60 days for many companies to get paid out then it's significant to take care of your own back and definitely not leave yourself resources short to pay the costs. After all, how many enterprises possess two months revenue just occupying there to handle all their costs until they earn?
This is particularly correct of trucking agencies. They generally deal with numbers of invoices which means a notable quantity of collection period demands business owner themselves. Making an effort to get compensated in time can end up being an amazing difficulty and this is why you use trucking factoring firms who are happy to help out truckers primarily.
As all of us determine, trucking is an remarkably enormous field with plenty of firms out there working with hundreds of operators. The sad thing is, numerous of these drivers wind up in finances problems because they are still awaiting work from six weeks in the past to actually compensate them. When this is the scenario for a trucking firm, turning to factoring firms for help may be the ideal alternative left.
This signifies that a trucking firm can provide the salaries of the staff, keep all the cars topped off with gas and continue to escalate, thrive and expand without constantly waiting for the cash which is taking too long to come in. Trucking Companies functioning without a factoring system put in place are leaving themselves at critical hazard, as contenders cash out quickly and go on to expand.
There's genuinely nothing at all to be stressed about when it comes to using a Factoring firm-- they typically aren't like a banking company or an individual who is going to leave you with a significant heap of liability to repay. You give them legitimate invoices from work you have already completed , you are only just speeding up the payment process.
In the Usa, where trucking enterprises develop, factoring agencies are not considered getting a loan in any capacity. This confidential agreement then enables both parties to benefit and delight in a comfortable future-- it gives the factoring provider a warranted asset of cash flow to put into the list and it provides the trucking business the needed money that they worked hard to gain.
The trucking establishment gives their invoices to the factoring business. The trucking factoring company then receive the installment payments from the trucking company's customers. Factoring has been in existence for centuries and has been used for several years by lots of diverse business sectors-- but none much more so than truckers. While you may well lose out on a small part of the money, something like 1-3 % depending upon who you partner with, it signifies that you are obtaining the finances today and can actually start off putting the resources to function.
Once and for all, an IOU or an invoice is definitely not going to cover costs, is it? For trucking establishments when the resources can be very good one day and gone the next, it's up to the drivers to work smartly and to make certain they are leaving themselves with a substantial amount of time and money to get through the week until they are handed over once again.
So the next period your trucking company is enduring some short-term capital problems and you are shelling out too much time chasing inactive paying customers, why not start off thinking about using a factoring companies as a manner to get your money and give yourself a more worry-free future in the eyes of your trucking crew and your bank difference?
Traditional Bank Loans
Bank loans are an extremely traditional way for a business to get financing. While these loans are handy they are not available to every business. As an example, a newly formed business may not have the required assets to qualify for a bank loan, and even if they did, it's usual practise for a bank to use the business itself as collateral. This means that if you default on your loan payment you could lose 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.
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. 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 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. You don't incur debt as you do with a bank loan because the Trucking Factoring company actually purchases your accounts receivable. 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. In the event that your business fails, you wouldn't have to be concerned about someone coming after your personal or your business assets in order 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 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 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. You'll receive the money faster. Using a Trucking Factoring company means that you'll get the finance quicker. 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. 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.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 most important benefits is that once you sell your accounts receivable to the factory company, you don't have to take time away from running your business to collect the money owed from reluctant to pay 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.
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.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.