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Medium-Size freight companies, specifically those who have actually not been around for extremely long, will often find it difficult to secure a loan. Banks are commonly hesitant to provide cash to companies that do not have a great deal of income and assets. They also want evidence of the practicality of a company and therefore require that many operations, especially little ones, been around for a specific amount of time prior to they are willing to turn over any cash. Because of this, a small company typically has few cash generating choices when requires arise. One choice readily available, however commonly overlooked, is invoice factoring. This is an exceptional way for a small company to get money.
How To Get More Cash - Select
A Trucking�Factoring Company Instead Of A Traditional Bank Financing
How to Enhance Money Flow Without Borrowing -Cash Money flow is among the main reasons companies fail.
At one time or another, every company, even effective ones, have actually experienced poor cash flow.
Cash flow does not have to be a problem any ever more. Do not be deceived -- banks are not the only locations you can get funding. Other options are offered and you do not have to borrow. Exactly what is trucking factoring ? One solution is called factoring business. Trucking Factoring is the process of offering invoices to a financier rather than waiting to collect the cash from the
client. Oh, the Irony- Trucking factoring has a paradoxical difference:
It is the monetary
foundation of numerous of America's most successful companies. Why is this paradoxical ? Because receivable financing is not taught in business colleges, is seldom mentioned in business strategies and is fairly unidentified to bulk of most of American company people.
Yet it is a monetary procedure that frees billions of dollars every year, allowing thousands of companies to grow and succeed. Receivable Loan Financing has been around for countless years. Invoice Factoring Companies are financiers who pay money for the right to get the future payments on your invoices. An overdue receivable or invoice has value. It is a financial obligation your client has actually to pay in the near future. Factoring Principals--Although factoring
deals exclusively with business-to-business transactions, a large portion of the retail company uses a factoring principal. MasterCard, Visa, and American Express all utilize a type of factoring in their retail deals. Utilizing the purest meaning of the word, these large customer finance companies are truly simply big Invoice Factoring Companies of customer paper. Think about it: You purchase at Sears and charge
it to your MasterCard. The shop makes money almost instantly, although you do not make payment up until you are prepared.
For this service, the credit card company charges Sears a fee (typical common normal charges range from two to 4 percent of the sale). The Benefits Accounts Receivable Factoring can provide many benefits to cash-hungry companies. Instead of waiting 30, 60, 90 days or longer for payment on an item that has currently been delivered, a company can factor
(sell) its receivables for cash at a little discount
off the dollar value of
the invoice. Payroll, advertising efforts, and working capital are simply a few of the company requirements that can be satisfied with instant cash.
Factoring Business provides the means for a manufacturer to replenish inventory and make even more items to offer: There is no longer a requirement to await for earlier sales to be paid. Receivable Loan Financing is not simply a money management device for manufacturers: Practically any type company can take advantage of Staffing 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 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, but you can sell that invoice for the money to satisfy those obligations. Using truck factoring companies is a fast and simple process. The factor buys the invoice at a discount, typically a couple of percentage
points less than the face value of the invoice.
Please call our trucking factoring specialists at 1 - 888-239-9162
or E-mail Us
The United states Transportation Association
specifies that there around
205,000 workers with freight trucking
276,000 personal service providers trucking
companies licensed to
operate in the States that carried,
according to their most current data of millions
products, supplies and
fundamental materials .
There are several typical
groups on our nation
highways carrying these
important items to our
shops, factories and harbors.
Furthermorefreight bill factoring
many of them and offer their
accounts receivablesfinancing facilities
including the following states.
Alaska, Arizona, Arkansas,
California, Colorado, Connecticut, Delaware,Florida,
Georgia, Hawaii, Idaho State,Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine,
Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina,
South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia,
Wisconsin, and Wyoming
Searching for the right trucking companies to move your freight can be tough, with the large amount of local, regional, and national truck carriers out there. FreightCenter helps make freight shipping simple, finding you the safest, reliable trucking companies every time you ship. Our trucking companies are licensed and insured to carry freight safely and efficiently across the country, no matter the size or type of freight you need to ship.Plus, with the high volume of freight we move, we will work to get you the best freight rates possible. Simply enter in a few details below and you�ll see instant freight rates from all the top trucking companies in one easy screen
The largest trucking companies in the U.S. set a revenue record in 2013, but revenuegrowth slowed for the second year in a row.
The combined revenue of the 50 largest motor carriers rose to $106.6 billion last year, according to The JOC Top 50 Trucking Companies list, based on data prepared by SJ Consulting Group in Pittsburgh.
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Locate truck driving jobs by city, state, position andbenefits offered. Search current driving jobs and fill out the EZ truck driver application customized for cdl trucking jobs
Life of a Truck driver, like many other professionals can be very challenging, rewarding, and frustrating at the same time. �The Truckers Place.com� is an information site for many of the Truckers needs. It is designed to encompass the needs of the Trucker, both on the Road and at Home.
If you're like most drivers, you're looking for a better company in trucking that might be offering the best jobs in terms of pay, freight, and hometime ' not to mention benefits or a sign on bonus. We've got all of our clients listed based on the states where they're hiring, so you can quickly find the best job in your home state. You'll see the very best nationwide trucking companies that have positions available.
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.
Gutierrez Truck & Haul have been operating their 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, Gutierrez 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.It was just one year later, in 2008, when the economy in the United States took a sharp decline, and both large and small businesses started to notice the squeeze on their pocketbooks: everyone had suddenly gone silent. Business slowed to a crawl
. And worse yet, Gutierrez 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. Spring changed to summer, summer changed to fall, and the CEO of Gutierrez, Reginald Craig, was beginning to feel very uncomfortable indeed whenever he looked at their weekly Accounts Receivable 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 something wrong or different when it came to reaching out to delinquent accounts? When checking his bookkeeper's records this was definitely not the case. Perhaps he was losing his customers to his competitor, who seemed to offer very low prices with no guarantee of quality or performance, and these clients who were in debt to his company had possibly disappeared leaving him stranded. 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. The had just gone!.This current state-of-affairs was causing Reginald Craig to have some very restless nights. He had employees to pay, goods to ship, trucks to maintain and overhead that was almost unbearable when compared against the lack of funds that were coming in. At night he would speak to his wife Carla and shake his head in frustration.
""I have a bad feeling, Lin,"" he'd sadly say to his wife.""What could you do differently?"" she would ask.Reginald 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 traveling, bringing goods to all of his clients. 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,"" said Reginald. ""I've relied too long on the profits I receive from invoices alone. For too long I've been allowing our clients to let their accounts become overdue."" Linda could only grab her husband's hand and look at him lovingly, ""It's a hard economy. It might be awhile until things get settled up.
""Reginald knew very well that Carla 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 Reginald strolled into his office and was determined to sit down and make every phone call to every client who had owed Gutierrez money. This wasn't really a very efficient way for a Chief Executive to spend his day, and Reginald knew he should be overseeing all the other sides of the business, such as shipments and deliveries, approaching prospective customers, or working with his sales team. 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 Reginald was realising just how much trouble he was in.Poor Reginald 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.
""Reginald, can I have a word?"" she asked standing in the doorway.
""Of course Grace, please come in."" Reginald leaned back in his chair and looked expectantly at Graceerely.""Well, I did a little searching this afternoon and tried to figure out a way out of this mess Reginald."" She pulled a small stack of papers from a folder and set them on the desk before him.""Have you ever heard of factoring?"" she asked.""It does sound vaguely familiar. What is factoring""? he asked.""Well,"" she began, ""It�s actually quite simple really.
Basically, factoring invoices means that we would get paid immediately for the loads we haul.""""Immediately?"" Reginald interrupted.""Immediately, yes"" she added, ""In a nutshell, it's pretty easy. We start by having a professional account manager review our figures and help us set up a company profile. Included in the profile would be the investigation of our accounts receivable aging reports, our current customers' credit limits etc.. Additionally, the factoring will help to determine the creditworthiness of our customers independent of their credit history with our business. It�s a broad view.��Reginald replied cautiously ""I see - and what happens then?��Following the completion of their review and once we've been approved for a contract with the factoring company, then we sit down to negotiate conditions and terms. There�s a lot of flexibility depending on the business volume and credit histories. The company will advise us the cost to purchase factoring for our company's accounts receivable. The funding commences once we�ve arrived at an agreement.�Reginald leaned forward and reviewed the paperwork closely.""It sounds too good to be true, Grace,"" he said.""Yes, I know; that's exactly what I thought at the beginning. But think about it, Reginald: they've guaranteed that experts will do all the paperwork, and that will free us up to do what we should be doing - focusing on our customers in good standing, and that kind of stuff. And they're flexible Reginald,"" she drew a circle around a paragraph on the document before him.""Just how flexible?"" asked Reginald.""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 Reginald.He took a deep breath and looked at his secretary with something she recognized as hope.""Precisely�. This could be the answer to our prayers: it will solve many problems we're facing due to these unpaid debts.""Reginald took a moment to think about this solution, and agreed with his secretary. The customers who were in debt to Gutierrez Truck & Haul were professional resources of the company, but they were also long-standing friends. Just because they were experiencing difficulties paying their own bills now, Reginald was very concerned about losing these relationships. Reginald 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, if he handled these debtors incorrectly, could spell disaster for both of them. Of course he didn't want to lose any more money, but he didn't want to lose business either.""Let me go over this tonight Grace, and thankyou."" Grace nodded, satisfied with her work, and she left the office feeling quite content in the knowledge that she had helped Reginald keep the shirt on his back, and possibly hers too.Reginald sat behind his desk and looked over the details Grace had not mentioned in their meeting. What other issues could freight factoring help Gutierrez 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. Reginald was surprised: it said that his company could get up to fifty percent cash advances on load pickups. Reginald 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.""I must tell Donald the good news,"" muttered Reginald to himself.Donald is Reginald's son-in-law, and he really admired the ideas behind Gutierrez, so much so that only two years before he had started his own transportation service business. At that time Reginald knew the struggles Donald would face, but he still encouraged him to follow his dream. With the faltering economy, if a big fish like Gutierrez was hurting, a little guy like Donald was about to catch his death. But, an antidote may have been found in freight factoring and Reginald was soon to find out.A few months later after going through the entire application process and having the experts review his accounts receivable, credit history and statements, Reginald found himself beginning to dig his way out of the hole his delinquent account holders had created for him.They adopted reasonable factoring purchase contracts and stopped wasting their own precious time trying to collect debts. They took that time and refocused effort to offering competitive prices in new territories. Reginald recalled those dismal months when he wasn't aware of freight factoring, and he shuddered at those memories. Had he missed the boat on this one, he probably wouldn't be in business today.
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The Future of a Trucking Company, and Factoring The phone was ringing on his desk, and Samuel Bailey 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. Bailey 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.
Samuel�s father had started as an owner-operator and had grown Bailey Trucking Company into a fifteen trailer fleet over forty years. There had been some hard times when it seemed everything was going to go under and even Samuel�s mother strapped herself into a cab to make hauls. His father had worked long enough to see the price of hires drop dramatically during the recession and to see the explosion of fuel prices afterwards. Now the company was solely in Samuel�s hands and he wanted to live to see it in better shape for his sons.
There just never seemed to be enough money to go around, and certainly no spare cash, but to move his company successfully into the future he needed a steady and reliable cash flow. 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. He knew that turning down these requests made Bailey Trucking look inefficient and weak in what was currently a strong market.
He knew what his father would have said - 'wait, take your time before adding new technology'. Samuel chuckled, thinking about his father. His father had been against placing GPS units in the cabs. He would say, �Why do you need the voice of some woman to tell you to get off at an exit that has been the same exit that has been there for years?� Also his father had the habit of teasing all the drivers he caught switching into automatic even though driving in automatic was much more efficient though not manly in his father�s eyes. His father days were long gone and technology was actually an important improvement for the business such as having Qualcomm to cut down on fruitless time communicating on the phone for bills of lading.
Samuel believed a successful man is always thinking of his next step. How would he take Bailey Trucking to the next level? 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. 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. A factoring company actually purchases your invoices and takes control of your accounts receivable, payment being a certain percentage of the amount invoiced. The factoring company gives the trucking business its payment right away which allows the business to have continuous cash flow so it can pay employees, buy fuel, and make repairs for upcoming hauls. Without this assistance, you're placed in the position of waiting for payment from your customers, and this can often be thirty days, or more. In those 30 days, a trucking company can�t pay its bills and employees in invoices.
Now it was time for Samuel to do his homework. 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! 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 colleague, Ronnie, who owned a trucking company in Missouri, was nearly destroyed by a factoring company who charged him the full freight bill on top of the fees for factoring. Well, what was the point of going to a factoring company if there was shady business like that going on?
However, it all turned out to be very simple. 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. He liked the idea of a long term commitment so he knew he wouldn�t have to bother going back and forth to different companies and wasting time filing more forms. He was not charged for a credit check, and in addition he was offered a fuel advance on the pick-up of a load. Many companies offered a non-recourse factoring program that suited him just fine. Also he was happy to hear how much he was offered in terms of percentages on the freight bills. It was good money.
It was really refreshing dealing with the factoring people. They were extremely helpful and more personable than the bank staff. It seemed as though those bank people spoke another language, but these factoring guys knew the trucking business and spoke to him like a client, not like a beggar 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 Samuel because he and his father had built up good strong relationships over decades with their list of clients. He knew immediately that there would not be any problems when they were contacted by the factoring company regarding their invoices. His clients wouldn't have any problems, nor would they think poorly of Bailey 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.
Samuel 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. With the capabilities of this new cash flow, Samuel could actually expand Bailey Trucking Company further across the country and perhaps even go international into Canada. His heart felt full knowing his sons wouldn�t have to worry about money because of the right decisions he had made for their trucking business.
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Trucking Factoring Articles
�So, this is not a loan?� asked Craig Olson, reclining back into his chair and crossing his legs. The woman sitting across the desk from Craig smiled at him, shaking her head.�Not quite,� she said.Craig 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 Rick. His company was called Sims Trucking, named after both of his grandfathers, Jorge and Milton. Both of these men had been very hardworking and had set a great example for Rick.Six months ago disaster struck Rick'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 Rick's company relied on his full fleet on fifteen being on the road, and missing two trucks was just devastating . In addition, he just didn't have the available cash to buy a new truck, plus repair the other one.A big problem a lot of trucking companies came across was how bills were paid in the industry. You could go a month or more before bills were completely paid off. This system works okay as long as no problems arise, but if they do, then things can get quite sticky.Craig wasn�t a bad owner, and he hadn�t messed up. 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.That�s where the woman across the desk came in. Her name was Minnie and she worked for a factoring company. Craig had come across her company as he sat in his office late one night, pouring over the internet for some solution to his problem long after his employees had gone home.Minnie explained. �it is really not a loan at all: we actually buy 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. That way we�re protected from a complete loss, but you�re protected from the outrageous fees you would find in a loan from the bank.Craig nodded. It sounded perfect - perhaps too good?.The woman laughed. �You look like you don�t believe me,� she chuckled.�No, I do, I just think it sounds a bit too good to be true. I thought I was going to lose my company.�Minnie nodded. �We get that a lot. There's no way we want to see you lose your business. 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.��It�s right down the road, usually we do it all online, but I didn�t mind swinging on by today,� Minnie said with a smile. �Let�s see what we can do to help you.�And with that they set about making a profile.
Craig filled the form out, with Minnie available to help him if he needed it. The profile filled Minnie and her company in on Rick�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 Craig completed his form, Minnie listened to his story and she felt quite sure he would be the ideal candidate for Factoring.When the form was done Minnie took it and slid it into her briefcase. Standing up, she reached over the desk and shook Rick's hand. He also stood up, and they smiled at each other. Craig walked Minnie to the door where they said 'Goodbye', then he went back into 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. But now, after speaking to Minnie and learning all about Factoring, he felt such a huge relief, like someone had just lifted a huge weight off his shoulders. He sat back in his chair and ran a hand through his graying but still thick black hair.The long nights, where he couldn�t sleep. The sudden panic attacks, not matter where he was. He could feel it all fading 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.His mind wandered back to the very beginning, when he first started his business. He had opened a restaurant at age twenty two when he was fresh out of school. It had been really successful. Offering home cooking in his own hometown, his business had really prospered.But he had gotten bored. His passion didn�t lie with the food industry. He thought long and hard, and then he decided to sell the restaurant. He took half a year off, and in that time he thought to start Sims Trucking. And that's exactly what he did. For the second time in his short life he created a company from the ground up. He had been successful.Then disaster! The two trucks went down and suddenly his success wasn't looking so guaranteed. He was nearing fifty. He didn�t think he had it in him, to save this company. 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 want to quit - both for himself and for his staff members.And now, because of factoring, he was sure he wouldn�t have to. Rick's eyes opened, he sat forward in his chair and turned on his computer. He had things to do. He could be thankful later, for now, it was time to work.
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The key reasons why Trucking Agencies Use Factoring Firms.
As the owner of your own company, you may be much more than mindful already of the hardship in making sure that capital matters do not become a problem down the line. After all, the most terrible thing that can potentially transpire for your company is to find yourself involved in a long and challenging circumstance that leaves you forever searching for the money you are in need of on an continuing manner.
For any sort of business in this predicament, the issue can come for waiting for work to clear up and actually be compensated into your account. Bill of sales, checks, and the like could take a long time to actually to be taken care of which may leave you with momentary capital issues. Luckily, there are alternatives out there for businesses to delve into-- and just one of these is factoring providers.
Factoring firms will, in trade for your invoices, supply you with the money immediately to ensure you don't need to fret about the waiting period that could make paying off the bills and obtaining materialsmore difficult. With this type of system, invoice factoring can become exceptionally useful for lots of companies who need to avoid a cash pitfall which they have found themselves in.
Considering that, depending on the size of the job, it can take up to 60 days for some businesses to get paid then it's necessary to blanket your own back and certainly not leave yourself resources short to settle the bills. After all, how many enterprises possess two months profits just lying there to handle all their overheads till they earn?
This is particularly true of truck agencies. They have the tendency to manage tons of accounts which means a considerable quantity of collection period concerns business owner themselves. Making an effort to get compensated in time can turn into an unbelievable headache and this is precisely why you employ trucking factoring providers who are glad to help out truckers exclusively.
As we all recognize, trucking is an unbelievably huge business with plenty of firms out there hiring hundreds of drivers. Regretfully, plenty of these drivers land up in finances predicaments for the reason that they are still anticipating work from six weeks previously to actually compensate them. When this is the situation for a trucking company, consulting factoring companies for help could be the most ideal choice left.
This signifies that a trucking corporation can pay out the salaries of the work force, keep all the cars loaded with gas and continue to surmount, rise and expand without continually waiting for the cash which is taking too long to come in. Trucking Business enterprises working without a factoring program applied are leaving themselves at significant hazard, as contenders cash out rapidly and go on to develop.
There's absolutely not a thing to be troubled about when it comes to employing a Factoring establishment-- they typically aren't like a bank or an individual who is going to leave you with a large heap of financial debt to pay back. You give them authentic invoices from job you have already wrapped up , you are simply expediting the payment process.
In the United States, where trucking enterprises prosper, factoring firms are not considered borrowing in any capacity. This private contract then lets both parties to make money and take pleasure in a convenient future-- it gives the factoring company a secured resource of cash flow to add to the list and it provides the trucking company the required money that they worked hard to gain.
The trucking company gives their accounts to the factoring agency. The trucking factoring agency then obtain the payments from the trucking company's customers. Factoring has beenaround for centuries and has been employed for several years by a lot of varying sectors-- but none much more so than truckers. While you could miss out on a small part of the money, something like 1-3 % depending upon who you deal with, it implies that you are obtaining the cash today and can actually start putting the money to do work.
Anyway, an IOU or an invoice is not going to finance bills, is it? For trucking companies when the money can be very good one day and gone the next, it's up to the drivers to work sensibly and to guarantee they are leaving themselves with a significant amount of time and money to get through the week until they are paid for again.
So the next occasion your trucking establishment is enduring some temporary cash flow problems and you are shelling out excessive time chasing inactive paying clienteles, why not begin thinking of employing a factoring businesses as a method to get your finances and give yourself a more comfortable future in the eyes of your trucking workers and your bank balance?
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. In addition, while you apply for a certain loan amount, that is all the financing you are entitled to. Of course, once that loan has been re-paid, you can always re-apply for another loan.
Trucking Factoring Companies
Trucking Factoring companies don't offer loans, and you don't go into debt when you get money from a Trucking Factoring company. The finance you receive from the Trucking Factoring company is determined by money already earned by your business, but not yet received. The Trucking Factoring company purchases your accounts receivable, or part of them, for a certain percentage of their value - this is normally about 80-95%. The amount of money you can receive is based on the amount of money you have earned and the accounts receivable you are willing to �sell.� Once you have set up Trucking Factoring account it continues as long as you wish it too and the amount of money available to you even can grow as your business grows, giving you the ready cash you need to meet your own obligations.
Benefits of a Trucking Factoring Company Vs. A Bank Loan
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. You Won't Incur 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. 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 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. In addition, while the Trucking Factoring company does run a credit check on your customers whose accounts receivables are offered for financing, the state of your credit is not an issue. This makes it easier for fledgling businesses to get the financing they need through a Trucking Factoring company (as long as their accounts receivables are in good order) then from a bank, who may not feel that you have been in business long enough to be worth the risk of issuing you a loan.
3. Receive Your Money Faster. 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. With a bank, there are vast amounts of paperwork, then the loan has to be underwritten, which can take months before you actually see the loan if it is approved.
4.You receive interest up-front. Unlike a bank loan that continues to build interest that you have to pay the entire time you have your business loan with a Trucking Factoring company, you don't have to continue to pay interest as they take it right off the top, deducting it from the total amount of accounts receivable. So you don't have to worry about monthly loan repayments, and you don't have to worry about the amount of interest payable, because all the money in the account is yours to spend.
As you can see, there are several benefits that makes considering financing through a Trucking Factoring company over a traditional bank worthwhile. 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 good at collecting these debts, saving you the time and effort that you need to devote to your growing company.
In addition, since the Trucking Factoring company evaluates the credit quality of your customers prior to purchasing the accounts receivable you gain valuable information into which customers are likely to pay and which ones are not so likely to pay.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.