Small freight businesses, especially those who have not been in existence for extremely long, will frequently discover it hard to secure a loan. Banks are typically reluctant to provide cash to companies that don't have a lot of earnings and properties. They also want proof of the viability of a company and thus need that the majority of operations, especially little ones, been around for a particular quantity of time prior to they are prepared to hand
over any cash. Due to the fact that of this, a medium-size business typically has few money producing alternatives when needs arise. One option readily available, however commonly neglected, is factoring. This is an outstanding method for a small business to get money.
They Grinned When the Banker Spoke to Me in French - Pick
A Freight Bill�Factoring Company Instead Of A Typical Bank Financing
How to Enhance Cash Flow Without Loaning
-Cash Money flow is among the main reasons companies fail.
At one time or another, every company, even successful ones,
have actually experienced bad money flow.
Money 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 options are offered and you do not have to borrow. What is trucking factoring ? One solution is called truck factoring. Truck Factoring is the procedure of offering accounts receivable to an investor instead of waiting to gather the money from the
customer. Oh, the Irony- Truck factoring has a paradoxical difference:
It is the monetary
foundation of many of America's most effective companies. Why is this ironic ? Since staffing factoring is not instructed in business colleges, is seldom mentioned in company plans and is fairly unidentified to bulk of most of American company individuals.
Yet it is a financial procedure that releases up billions of dollars every year, enabling thousands of companies to grow and prosper. Receivable Financing has actually been around for countless years. Receivable Loan Financing Companies 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 actually agreed pay in the near future. Factoring Principals--Although factoring
deals exclusively with business-to-business transactions, a big portion of the retail company uses a factoring principal. MasterCard, Visa, and American Express all use a form of factoring in their retail deals. Utilizing the purest definition of the word, these big consumer finance companies are truly just large Invoice Factoring Businesses of customer paper. Consider it: You purchase at Sears and charge
it to your MasterCard. The shop makes money practically immediately, although you do not pay until you are prepared.
For this service, the charge card company charges Sears a fee (typical common normal charges range from 2 to four percent of the sale). The Advantages Receivable Financing can offer many benefits to cash-hungry companies. Rather than wait 30, 60, 90 days or longer for payment on an item that has actually already been delivered, a company can factor
(sell) its receivables for cash at a small price cut
off the dollar value of
the invoice. Payroll, advertising efforts, and working capital are simply a few of the business needs that can be met with instant cash.
Staffing Factoring offers the means for a producer to replenish inventory and make even more products to offer: There is no longer a requirement to wait for earlier sales to be paid. FACTORING is not simply a cash management tool for producers: Almost any type company can take advantage of Receivable Loan Funding. Generally, a business that extends credit
will have 10 to 20 percent
of its annual sales tied up in accounts receivable at any given time. Think for a minute about how much is bound in 60 days' worth of invoices: You can not pay the power expense or today s payroll with a client s invoice, however you can offer that invoice for the money to satisfy those responsibilities. Using trucking factoring companies is a fast and simple process. The factor buys the invoice at a price cut, typically a few percentage
points less than the stated value of the invoice.
The United states Transportation Association
states that there are about
200,000 employees with freight trucking
250,000 personal service providers trucking
companies licensed to
run in the United States that transferred,
according to their newest data of millions
products, supplies and
fundamental materials .
There are numerous typical
groups on our nation
roads carrying these
crucial items to our
shops, manufacturingplants and harbors.
Furthermore freight invoice factoring
numerous of them and offer their
receivable loan facilities
including the following states.
Alaska, Arizona, Arkansas,
California, Colorado, Connecticut, Delaware,
Florida, Georgia, Hawaii, Idaho State,
Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming
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
Searching for the right trucking companies to move your freight can be tough, with the large amount of local, regional, and national truck carriers out there. FreightCenter helps make freight shipping simple, finding you the safest, reliable trucking companies every time you ship. Our trucking companies are licensed and insured to carry freight safely and efficiently across the country, no
matter the size or type of freight you need to ship.Plus, with the high volume of freight we move, we will work to get you the best freight rates possible. Simply enter in a few details below and you�ll see instant freight rates from all the top trucking companies in one easy screen
The largest trucking companies in the U.S. set a revenue record in 2013, but revenuegrowth slowed for the second year in a row.
The combined revenue of the 50 largest motor carriers rose to $106.6 billion last year, according to The JOC Top 50 Trucking Companies list, based on data prepared by SJ Consulting Group in
EveryTruckJob.com is a free service dedicated to helping professional truck drivers find new truck driving jobs with the best trucking companies hiring today!
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
Click below to find Trucking Companies in the United States:
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.
Campbell 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, Campbell 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. Cash was flowing and times were good for all.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 to a crawl
. Worse still, it was noticed by Campbell 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, Henry Ramirez, CEO of Campbell felt a chill go down his spine whenever he would look at the weekly A/R reports. The numbers of clients who owed him back debt were growing.He had 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. 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 Campbell money had jumped ship and decided to leave him holding the bag.
. They couldn't afford to pay him their debt, but they could afford a lesser service, maybe. 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 Henry Ramirez the situation looked desperate. 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, Catherine, and neither were unable to stop the constant worry over the lack of funds.""I have a bad feeling, Lin,"" he would say with deep woe.""What could you do differently?"" she
would ask.Henry would stare off for a moment and then close eyes. He could see the fleet of trucks he had purchased over the years. He could see them on the road, delivering good to all his loyal customers. But 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 know what it is,"" said Henry. ""For way too long I've been relying solely on profits received from invoices.
For too long I've been allowing our clients to let their accounts become overdue."" All Catherine 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'.""Henry knew very well that Catherine 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 Henry strolled into
his office and was determined to sit down and make every phone call to every client who had owed Campbell 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 Henry was realising just how much trouble he was in.Poor Henry 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.
""Henry, can I have a word?"" she queried, standing in the doorway.
""Of course Misty,
please come in."" Henry leaned back in his chair and looked expectantly at Mistyerely.""Well, I did a little searching this afternoon and tried to figure out a way out of this mess Henry."" 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?"" Mistyerley asked.""It does sound vaguely familiar. What is factoring""? he asked.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.""Henry interrupted ""Immediately?"".""Immediately, yes"" she added, ""It's actually very simple. We start by having a professional account manager review our figures and help us set up a company profile. Included in the profile would be the investigation of our accounts receivable aging reports, our current customers'
credit limits etc.. In addition, factoring will assist in determining our customers' creditworthiness, independent from their credit relationship with our company. It�s a broad view.��I see,� Henry said. �And then what?��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.�Henry leaned forward and reviewed the paperwork closely.""It sounds too good to be true, Misty,"" he said.""Yes, I know; that's exactly what I thought at the beginning. But really, they have guaranteed us experts that do all the legwork, which would free us up here to focus on our clients in good standing and marketing, all that good stuff. They appear to be very flexible, Henry,"" she underlined a paragraph on the paper
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,"" said Henry.Henry took in a long slow breath, then looked at his secretary with something like hope in his eyes.""Exactly�. I think this might just be a way out of the trouble we're in with these folks who owe us money.""Henry took a moment to think about this solution, and agreed with his secretary. The customers who were in debt to Campbell Truck & Haul were professional resources
of the company, but they were also long-standing friends. Henry wasn't prepared to lose these relationships just because they were having financial issues at the moment. Henry knew that the economy had taken a hit and he knew that it would probably be a long time before things started to look up again. That unknown amount of time could create a disaster situation for both of them if he wasn't careful in how these debtors were handled. He didn't want to lose business but he also didn't want to lose any more money.""Well,
let me think about this tonight Misty, thank you."" Misty nodded, satisfied with her work, and she left the office feeling quite content in the knowledge that she had helped Henry keep the shirt on his back, and possibly hers too.Henry sat behind his desk and looked over the details Misty had not mentioned in their meeting. He wondered if there might be other problems freight factoring could help Campbell Truck & Haul 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, Campbell 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 Jeremy the good news,"" muttered Henry to himself.His son-in-law Jeremy had liked
the idea of Campbell so much and revered his father in law for having such business acumen that only two years before, he had gathered the venture capital to begin his own transportation service company. Henry knew then what struggles Jeremy would face but he encouraged him nonetheless. With the faltering economy, if a big fish like Campbell was hurting, a little guy like Jeremy was about to catch his death. But, maybe the answer for both of them was in freight factoring, and Henry was going to find out very
soon.A few months later after going through the entire application process and having the experts review his accounts receivable, credit history and statements, Henry 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. Henry recalled those dismal
months when he wasn't aware of freight factoring, and he shuddered at those memories. If Henry hadn't discovered freight factoring at just the right time, his business may not be operating today.
More Trucking Factoring Companies Story Articles
The Future of a Trucking Company, and Factoring Alex Ferguson let the phone ring on his desk. His morning coffee cooled and his cigarette smoked away in the tray: Alex is thinking, and pondering the biggest decision he's ever had to make for his trucking business. Ferguson 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 Alex's father had started this business working as an owner-operator and eventually growing Ferguson Trucking Company into a fifteen trailer fleet. There had been some hard times when it seemed everything was going to go under and even Alex�s mother strapped herself into a cab 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 Alex'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, Ferguson Trucking looked weak in a very strong market.
He knew what his father would have said - 'wait, take your time before adding new technology'. Alex 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?� 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). 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.
Alex believed a successful man is always thinking of his next step. What would be the next step
for Ferguson Trucking? 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.
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 this assistance, you're placed in the position of waiting for payment from your customers, and this can often be thirty days, or more. In those 30 days, a trucking company can�t pay its bills and employees in invoices.
had to really consider what his next step was going to be. He had heard of companies charging for same day money transfers, advancing a percentage of the money owed to your business, while the rest is held in a private account if the bill wasn't paid within sixty or more days. 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! 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?
However, it all turned out to be very simple. When he called the factoring
companies he discovered they were very open about their business practices, and very friendly and helpful. Their customer service actually knew things about their company and spoke in nice clear English so he could understand what was being explained. He was quite happy to sign an exclusive contract. 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. Nobody charged him for credit checks and they offered
him a fuel advance on the pick-up of the load. In fact there were a few companies who offered him a non-recourse factoring program, and this was exactly what he had been hoping for. He was more than happy with the figures he was offered in percentage terms on the freight bills. It was good money.
For Alex 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 Alex 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 think poorly of Ferguson 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, Alex stepped out of his office to advise his secretary to expect to receive the contract very shortly from the factoring company. He felt exhilarated by the new possibilities that would make the future of the company fun again and put the stress of the difficult
times behind him. He suddenly realized that, with this new cash flow, he could actually expand Ferguson Trucking Company and who knows, move into Canada, which had always been his dream. He was a happy man again knowing that he had just made a decision which would guarantee the success of his business and his sons wouldn't be inheriting a financial mess.
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Trucking Factoring Articles
�So It is not a loan?� asked 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
Precisely why Trucking Companies Use Factoring Companies.
As the owner of your own firm, you may well be much more than conscious already of the challenge in making certain that cash flow issues do not become a difficulty down the line. After all, the most unfortunate thing that can potentially happen for your enterprise is to find yourself involved in a long and problematic situation that leaves you forever looking for the cash
you require on an ongoing manner.
For any sort of firm in this condition, the trouble can come for waiting for work to lapse and actually be compensated into your statement. Invoices, checks, and the like could take some time to actually to be taken care of which could leave you with temporary cash flow problems. Gratefully, there are approaches out there for businesses to investigate-- and among these is factoring companies.
Factoring agencies will, in substitution
for your accounts, supply you with the resources immediately so that you don't have to worry about the lingering period that could make paying the expenses and purchasing materialsmore complicated. With this type of system, invoice factoring can end up being tremendously practical for many enterprises who ought to avoid a cash ploy which they have gotten themselves in.
Considering that, relying on the size of the project, it can take up to 60 days for several firms to get
compensated then it's crucial to cover up your own back and not leave yourself funds short to pay off the monthly bills. After all, how many business enterprises possess two months revenue just lying there to cover all their spendings till they earn?
This is most especially correct of truck companies. They often take care of numbers of statements which means a notable amount of collection time concerns business owner themselves. Striving to get paid out promptly can end up
being an unbelievable trouble and this is precisely why you employ trucking factoring organizations who are happy to help out truckers particularly.
As all of us understand, trucking is an extremely big industry with lots of organizations out there hiring hundreds of vehicle drivers. The sad thing is, plenty of these drivers wind up in money dilemmas since they are still waiting for work from six weeks back to actually pay them. When this is the situation for a truck organization,
depending on factoring providers for solutions maybe the finest alternative left.
This indicates that a truck company can provide the salaries of the crew, keep all the cars loaded with gas and continue to go up, evolve and expand without constantly waiting for the cash which is taking too long to come in. Trucking Business enterprises functioning without a factoring program established are leaving themselves at significant hazard, as competitors cash out promptly and go on
There's genuinely very little to be stressed about when it comes to employing a Factoring firm-- they typically aren't like a banking company or somebody who is going to leave you with a massive heap of personal debt to pay back. You give them authentic invoices from job you have already finished , you are only accelerating the repayment process.
In the United States, where trucking firms thrive, factoring establishments are not considered accepting loan
of in any capacity. This confidential deal then enables both groups to profit and delight in a convenient future-- it provides the factoring business a warranted resource of income to include in the list and it provides the trucking business the needed funds that they worked hard to gain.
The trucking establishment provides their statements to the factoring business. The trucking factoring firm then acquire the payments from the trucking company's clients. Factoring has been all
around for hundreds of years and has been used for many years by several varied business-- but none more so than truckers. While you may well miss out on a small part of the money, something like 1-3 % depending upon who you work with, it indicates that you are receiving the funds today and can actually begin setting the resources to perform.
Anyway, an IOU or an invoice is certainly not going to fund bills, is it? For trucking companies when the finances can be very good one day
and gone the next, it's up to the vehicle drivers to work sensibly and to make sure they are leaving themselves with a significant measure of time and finance to get through the week until they are handed over once more.
So the next time your trucking enterprise is bearing some temporary cash flow challenges and you are investing a lot of time chasing inactive paying clients, why not begin considering using a factoring companies as a means to get your money and give yourself a more
comfortable future in the eyes of your trucking staff and your bank difference?
Traditional Bank Loans
Finance through a bank loan is the normal, or traditional, way of financing your business. These loans can be a life-saver, but they're not always available to every business. For example, a fairly newly established business simply may not have the assets to readily get a loan from a bank, even if they do, the standard collateral for a business loan is the business itself, which means that if you cannot make your loan payment,
you risk losing your entire business. Plus, the amount you apply for through the bank is the actual amount that you are going to receive. Of course, once that loan has been re-paid, you can always re-apply for another loan.
What Are Trucking Factoring Companies?
Trucking Factoring companies don't offer loans, and you don't go into debt when you get money from a Trucking Factoring company. The finance you receive from the Trucking Factoring company is determined by money already earned
by your business, but not yet received. Trucking Factoring companies actually purchase your accounts receivable or at least part of them for a percentage of their total worth, Normally around 80%-95%. The amount of money you can receive is based on the amount of money you have earned and the accounts receivable you are willing to �sell.� Once a Trucking Factoring account has been created for you, it will continue for as long as you need it, with the money available continuing to grow as your business grows, and
providing cash as you require it.
What Are The Benefits Of A Trucking Factoring Company Versus A Traditional 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. 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 great benefit of using the services of a Trucking Factoring company instead of a bank loan is that there is no collateral required for the Trucking Factoring company, because the Trucking Factoring company is 'buying' your accounts receivables. Plus, the state of your credit rating is not an issue; however the Trucking Factoring company will run a credit check on your clients whose accounts
receivable are being offered for financing. This makes it easier for fledgling businesses to get the financing they need through a Trucking Factoring company (as long as their accounts receivables are in good order) then from a bank, who may not feel that you have been in business long enough to be worth the risk of issuing you a loan.
3. You'll receive the money faster. With a Trucking Factoring company you can actually get the money you need faster. Once the Trucking Factoring company assures
itself that the customers in your accounts receivable are likely to pay their debt, the money is usually in the account within 24 hours. Borrowing from a bank begins with vast amounts of paperwork, the loan must be underwritten, and this can take ages before you're notified if the loan has been approved.
4.Interest is Paid Up Front. 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 not only are you relieved of those monthly loan payments, but you also don't have to worry about the building up of interest, as every penny in the account is yours to spend on the business.
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.A Trucking Factoring company is not the only method of gaining access to finance for the running and growing of your business, however it does offer a financing option well worth considering.