Is The Life of a Receivable Worth $1 to You -
Our Sell Your Accounts Receivable
Your Freight Company
The Cash You Want
Medium-Size truck companies, particularly those who have not been in existence for really long, will often discover it tough to secure a loan. Banks are frequently reluctant to lend cash to companies that do not have a great deal of earnings and possessions. They likewise want proof of the viability of a company and thus require that many operations, particularly small ones, be in business for a certain amount of time before they are prepared to hand over any money. Since of this, a small business frequently has few cash creating options when requires occur. One alternative offered, however commonly overlooked, is invoice factoring. This is an excellent method for a medium-size business to acquire money
For The Business Who Wants To Look Better - Choose
An Accounts Receivable Factoring Company Instead Of A Typical Bank Financing
How to Increase Money Flow Without Loaning -Cash Money flow is among the main reasons businesses fail.
At one time or another, every business, even successful ones, have experienced poor cash flow.
Money flow does not have to be an issue any ever more. Do not be deceived -- banks are not the only places you can get funding. Other options are offered and you do not have to borrow money. What is truck factoring ? One option is called sell your accounts receivable. Trucking Factoring is the process of offering accounts receivable to a financier rather than waiting to gather the cash from the
customer. Oh, the Irony- Truck factoring has a paradoxical distinction:
It is the financial
foundation of many of America's most effective companies. Why is this ironic ? Since receivable loan funding is not taught in business colleges, is rarely discussed in company strategies and is relatively unknown to bulk of most of American business people.
Yet it is a financial procedure that frees billions of dollars every year, allowing countless businesses to grow and succeed. Trucking Factoring has been around for thousands of years. Staffing Factoring Businesses are investors who pay money for the right to get the future payments on your invoices. An overdue receivable or invoice has value. It is a debt your customer has to pay in the near future. Factoring Principals--Although factoring
deals solely with business-to-business deals, a large portion of the retail company utilizes a factoring principal. MasterCard, Visa, and American Express all utilize a form of factoring in their retail deals. Utilizing the purest meaning of the word, these large customer finance business are really simply large Accounts Receivable Factoring Businesses of consumer paper. Think about it: You purchase at Sears and charge
it to your MasterCard. The shop gets paid practically instantly, 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 vary from 2 to four percent of the sale). The Benefits Trucking Factoring can provide numerous advantages to cash-hungry business. Rather than wait 30, 60, 90 days or longer for payment on a product that has already been delivered, a company can factor
(sell) its receivables for money at a small price cut
off the amount of
the invoice. Payroll, marketing efforts, and working capital are simply a few of the company needs that can be satisfied with instant cash.
Sell Your Accounts Receivable provides the ways for a producer to renew inventory and make even more products to offer: There is no longer a requirement to await for earlier sales to be paid. FACTORING is not just a money management device for producers: Almost any kind company can take advantage of Truck Factoring. Generally, a business that extends credit
will have 10 to 20 percent
of its yearly sales tied up in invoices at any given time. Think for a minute about exactly how much is tied up in 60 days' worth of invoices: You can not pay the power expense or this week s payroll with a client s invoice, however you can offer that invoice for the cash to satisfy those obligations. Using truck factoring companies is a fast and simple process. The factoring company purchases the invoice at a price cut, usually a couple of portion
points less than the face value of the invoice.
Please call our freight bill factoring experts at 1 - 888-239-9162
or E-mail Us
The American Transportation Organization
specifies that there are about
195,000 workers with truck
250,000 private companies trucking
companies certified to
operate in the States that transferred,
according to their newest listings of millions of
products, materials and
fundamental materials .
There are a number of usual
teams on our nation
roadways transporting these
crucial products to our
shops, manufacturingplants and shipping ports.
several of them and offer their
receivable loan 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
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.
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.
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.
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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
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
Arnold 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, Arnold was a top rated accounts receivable mastermind of the trucking industry. Very few customers were behind on their bills, and those customers who were late turned in their overdue payments within an acceptable time frame. 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. And worse yet, Arnold 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, Tim Taylor, CEO of Arnold 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 gone to his administrators and asked them what the problem had been. Were they doing things different, or wrong, when it came to collecting overdue accounts? By his bookkeepers records, this wasn't the case. Perhaps he was losing his customers to his competitor, who seemed to offer very low prices with no guarantee of quality or performance, and these clients who were in debt to his company had possibly disappeared leaving him stranded. Perhaps they were unable to pay their debt to him, but were able to meet the costs of a lesser service. So he did the necessary research and, after discussions with friends in the same field, he realised that no, his customers hadn't gone anywhere else. The had just gone!.The situation looked dire to Tim Taylor. 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. In the evenings he would discuss his concerns with his wife, Beatrice, and still find no relief from the worry and frustration.
""Lin, I have a really bad feeling,"" he'd sadly say to his wife.""Well, what do you think it is?"" she would say.Tim would stare off into the distance, and then slowly close his eyes. He could see the fleet of trucks he had purchased over the years. He could see them on the road, delivering good to all his loyal customers. But then a haze would cover his trucks and his vast fleet would vanish to leave just a few. Why couldn�t he work out how to resolve this financial problem with his business?""I know what it is,"" Tim said. ""I've relied too long on the profits I receive from invoices alone. I've let too many of our customers go too long without paying on their bills."" All Beatrice 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'.""Tim knew very well that Beatrice 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 Tim strolled into his office and was determined to sit down and make every phone call to every client who had owed Arnold 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 Tim was realising just how much trouble he was in.Poor Tim 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 Tim?"" she asked standing in the doorway.
""Of course Susan, please come in."" Tim leaned back in his chair and looked expectantly at Susanerely.""Well, I did a little searching this afternoon and tried to figure out a way out of this mess Tim."" 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?"" she asked.""It sounds vaguely familiar. What is factoring""? he asked.She began, ""Well, it's really very simple. Basically, factoring invoices means that we would get paid immediately for the loads we haul.""Tim interrupted ""Immediately?"".""Yes, immediately,"" she continued, ""In a nutshell, it's pretty easy. We can have an expert account manager review our numbers and help us complete a company profile. That profile will also include investigating our accounts receivable aging reports, our existing customer credit limits and so on. 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.��Tim 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. You'll be surprised at the amount of flexibility, all dependent upon the credit histories and business volume.
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.�Leaning forward, Tim studied the documents very closely.""It sounds too good to be true, Susan,"" he said.""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, Tim,"" 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.
""""It does all sound pretty good, remembering that we're all tapped out now with loans from the bank last year to repair vehicles, and we all know just how tight money is. It's imperative that we keep the business rolling as usual, and every day we go unpaid we're getting closer and closer to dealing with some serious issues in both the short term and the long term,"" said Tim.He took a deep breath and looked at his secretary with something she recognized as hope.""Precisely�. This could very well be the answer to resolving the problems we're having with these clients who still owe us money.""Tim 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 Arnold. Just because they were experiencing difficulties paying their own bills now, Tim was very concerned about losing these relationships. Tim knew only too well that the whole economy was floundering, and that it was not going to change overnight. 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.""Well, let me think about this tonight Susan, thank you."" Susan nodded, stood up and left the office feeling that she had helped her employer keep on his shirt and hers too.Tim sat behind his desk and looked over the details Susan had not mentioned in their meeting. What other issues could freight factoring help Arnold with? With his pencil gliding down the sheet he noticed that the factoring company could help fray the cost of fuel with fuel discount cards and fuel advances. In fact, Arnold 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 Dave the good news,"" muttered Tim to himself.Tim's son-in-law, Dave, loved the idea behind Arnold 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 Tim knew the struggles Dave would face, but he still encouraged him to follow his dream. With the economy the way it was, if an established company such as Arnold was struggling then the little guys, like Dave, were going to be in even more trouble. But, maybe the answer for both of them was in freight factoring, and Tim was going to find out very soon.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, Tim 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 used that time to refocus their efforts in being competitive in new territories. Tim looked back on the dismal months of life before freight factoring and almost shuddered at the thought. If Tim hadn't discovered freight factoring at just the right time, his business may not be operating today.
More Trucking Factoring Companies Story Articles
Factoring in the Future of a Trucking Business: A Story The phone was ringing on his desk, and James Smith just sat there letting it ring. He let his morning coffee cool and left his cigarette to ash itself in the tray, because he is trying to make the biggest decision ever for his trucking company. Smith 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.
James�s father had started as an owner-operator and had grown Smith 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 James's mother had jumped into the cab at times to make hauls. His father had lived long enough to witness the price of hires drop during the recession and watch the eruption of fuel prices afterwards. But now things were different: the company was in James'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. 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. Every time he had to turn down a request, Smith Trucking looked weak in a very strong market.
His father would have told him to wait and to take his time adding on new technology. James allowed himself a good hard chuckle. 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?� 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.
James knew he was right in his forward thinking. What would be the next step for Smith Trucking? More importantly, how could he afford it? Business funding was tied up in fuel bills and the mortgage for the garage and office. Thankfully he'd just finished paying off the bank loan for the installation of satellite radio in the trucks.
But was factoring the answer? 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. 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.
James had to really consider what his next step was going to be. James 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. 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. Customer service appeared to understand their company and explained in clear, concise English exactly how it all worked. 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 was good money.
For James 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. Factoring was based on the credit of his customers and on their reliability which worked well for James because he and his father had built up good strong relationships over decades with their list of clients. 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 Smith 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.
James stepped out of his office to let his secretary know to expect the arrival of the factoring contract shortly. 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 Smith 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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�So It is not a loan?� asked Derek Rogers, reclining back into his chair and crossing his legs. The woman sitting across the desk from Derek smiled at him, shaking her head.�Not quite,� she said.Derek 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 Clyde. His company was called Richards Trucking, named after both of his grandfathers, Jimmy and Harvey. Both of these men had been very hardworking and had set a great example for Clyde.Six months ago disaster struck Clyde's business when two out of his fleet of fifteen trucks were taken off the road.
One was involved in a very costly accident, and the other simply rolled over, and headed to the trucking graveyard. The financial security of Clyde'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 Derek 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.Derek 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. Derek knew she was employed by a Factoring company and that her name was Christy. 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.She sat there now, and explained. �It�s not a loan, we purchase your accounts receivable. We aren�t giving you money to be paid back later, we�re buying something from you, and you can buy it back when you can. This is a win-win situation: we're protected from a total loss, and you're protected from the ridiculous fees and charges you'd have to pay if you borrowed from a bank.Derek agreed. It sounded perfect - perhaps too good?.Christy laughed. �I'm not sure that you believe me,� she said.�No, I do, I just think it sounds a bit too good to be true. I actually thought I might end up losing my business.�Christy nodded. �Yes, we get a lot of that. Listen, I�d hate to see you lose your company. You work hard, you�ve put everything you can into it. We all need help sometimes. That's why we do what we do.��In any case, thank you for coming to see me.��It�s right down the road, usually we do it all online, but I didn�t mind swinging on by today,� Christy said with a smile. �Let�s see what we can do to help you.�And with that they set about making a profile.
Derek completed the form, with Christy offering advice as needed.
The profile filled Christy and her company in on Clyde�s company, and would help them determine if he was suitable for factoring. Unfortunately, not all companies are. Some businesses are beyond the help of a Factoring company, while other businesses weren't in enough financial stress to warrant it. As Derek completed his form, Christy listened to his story and she felt quite sure he would be the ideal candidate for Factoring.Christy took the completed form and placed it in her briefcase. Standing up, she reached over the desk and shook Clyde's hand. He also stood up, and they smiled at each other. They said their goodbyes and Derek walked her to the door, and then returned to his office.All his staff members were there, all seven who worked in his office. Sitting behind his desk once more he could hear the familiar sounds of his office workers going about their daily business.He leaned back and closed his eyes. He had felt so helpless lately, was sure the whole thing was collapsing, and would take him with it. Talking to Christy though, learning about factoring, it felt like a weight had been lifted from 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 terrifying panic attacks that occurred regardless of 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 there, he was on the right path, and he was working to make things right.Derek couldn�t help but think back to when he had first started the business. He had opened a restaurant at age twenty two when he was fresh out of school. It had been successful. Home cooking in his hometown, and he had done very well.But it wasn't what he really wanted to do. He wasn't passionate about 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 Richards Trucking. So he did it. For the second time in his short life he created a company from the ground up. He had been successful.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 giving up wasn't part of his personality either.
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. Derek 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.
More Trucking Factoring Company Story Articles
Why Trucking Establishments Use Factoring Companies.
As the operator of your own business enterprise, you may be more than aware already of the challenge in making sure that capital concerns do not become a difficulty down the line. Anyway, the most unfortunate thing that can possibly take place for your establishment is to find yourself swept up in a long and difficult situation that leaves you forever searching for the money you really need on an recurring basis.
For just about any business enterprise in this scenario, the complication can come for waiting for work to clear up and actually be brought in into your bank account. Statements, checks, and the like can take a long time to actually to be taken care of which can certainly leave you with temporary cash flow dilemmas. Luckily, there are solutions out there for companies to consider-- and among these is factoring providers.
Factoring firms will, in exchange for your bill of sales, offer you with the funds right away so you don't have to worry about the delaying phase which could make paying the bills and obtaining materialsmore tough. With this type of setup, invoice factoring can come to be tremendously practical for numerous businesses who have to get out of a money ploy which they have found themselves in.
Considering that, depending on the size of the work, it can take up to 60 days for a number of business enterprises to get compensated then it's vital to cover your own back and not leave yourself resources short to pay the bills. After all, how many enterprises possess two months profits just lying there to pay for all their bills till they get paid?
This is most notably correct of trucking enterprises. They usually handle numbers of accounts which means a serious volume of collection period demands business owner themselves. Making an effort to get paid promptly can develop into an incredible inconvenience and this is the reason why you make use of trucking factoring organizations who are glad to help out truckers mainly.
As most of us realize, trucking is an incredibly huge industry with countless firms out there handling hundreds of drivers. Regretfully, several of these drivers wind up in finances issues given that they are still anticipating work from six weeks earlier to actually compensate them. When this is the scenario for a trucking organization, consulting factoring companies for help maybe the very best choice left.
This means that a trucking business can pay off the wages of the work force, keep all the trucks refilled with gas and continue to escalate, thrive and expand without always waiting for the funds which is taking too long to come in. Trucking Enterprises running without a factoring system established are leaving themselves at critical danger, as competitors cash out promptly and go on to broaden.
There's absolutely nothing to be troubled about when it comes to utilizing a Factoring company-- they aren't like a financial institution or any individual who is going to leave you with a huge pile of financial obligation to repay. You give them authentic invoices from output you have already completed , you are only hastening the payment system.
In the Usa, where trucking companies prosper, factoring companies are not considered taking on loan in any capacity. This confidential settlement then allows both parties to make money and take joy in a comfortable future-- it gives the factoring company a secured resource of money to put into the list and it offers the trucking business the needed cash that they worked hard to acquire.
The trucking company gives their accounts to the factoring enterprise. The trucking factoring agency then acquire the installment payments from the trucking company's customers. Factoring has been all around for hundreds of years and has been adopted for decades by many varying business sectors-- but none more so than truckers. While you may miss out on a small part of the money, something like 1-3 % depending upon who you collaborate with, it signifies that you are receiving the finances today and can actually start putting the resources to function.
Anyway, an IOU or an invoice is certainly not going to finance overheads, is it? For trucking companies when the finances can be fantastic one day and gone the next, it's up to the vehicle drivers to work prudently and to guarantee they are leaving themselves with a significant volume of time and finance to get through the week up until they are handed over again.
So the next occasion your trucking enterprise is having some temporary capital problems and you are spending a lot of time chasing slow paying customers, why not start thinking about utilizing a factoring businesses as a means to get your money and give yourself a more pleasant future in the eyes of your trucking workers and your bank balance?
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. Once the loan is paid off, you can then apply for another loan if the need arises.
What Are Trucking Factoring Companies?
Trucking Factoring companies do not give loans, and the money you get from the Trucking Factoring company does not put you in debt. Rather the financing you receive from a Trucking Factoring company is based on money your business has already earned, but have not yet received. Trucking Factoring companies actually purchase your accounts receivable or at least part of them for a percentage of their total worth, Normally around 80%-95%. The amount of money you can receive is based on the amount of money you have earned and the accounts receivable you are willing to �sell.� Once 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.
What Are The Benefits Of A Trucking Factoring Company Versus A Traditional 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. 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. 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. 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. You'll receive the money faster. Using a Trucking Factoring company means that you'll get the finance quicker. 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.Interest is Paid 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. However, there are also a couple of other benefits that a factory company can offer your business is far beyond the scope of the bank. The 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. Since these accounts belong to the Trucking Factoring company, this is now their job. Trucking Factoring companies are very efficient at debt collecting, and this frees up your valuable time to devote to running your 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.