Medium-Size truck businesses, specifically those who have not been in existence for very long, will typically find it hard to protect a loan. Banks are often hesitant to lend money to companies that don't have a great deal of earnings and assets. They also desire proof of the viability of a company and therefore need that many operations, especially little ones, been around for a certain amount of time before they want to hand over any money. Since of this, a medium-size company frequently has few money creating choices when needs occur. One alternative readily available, however commonly ignored, is receivable Financing. This is an outstanding way for a medium-size company to obtain cash.
How To Get More Cash - Select
A Freight�Factoring Company Instead Of A Regular Bank Financing
How to Increase Money Flow Without Borrowing -Cash Money flow is among the main reasons companies fail.
At one time or another, every company, even successful ones, have actually experienced poor money flow.
Cash flow does not have to be a problem any ever more. Do not be deceived -- banks are not the only places you can get financing. Other solutions are offered and you do not have to borrow. What is trucking factoring ? One solution is called best invoice factoring company. Truck Factoring is the process of offering accounts receivable to an investor rather than waiting to collect the money from the
customer. Oh, the Irony- Truck factoring has an ironic difference:
It is the financial
foundation of numerous of America's most effective businesses. Why is this ironic ? Because factoring is not instructed in business colleges, is seldom discussed in company plans and is relatively unknown to the majority of most of American business people.
Yet it is a monetary process that frees billions of dollars every year, allowing thousands of businesses to grow and succeed. Invoice Factoring has been around for thousands of years. Commercial Factoring Businesses are financiers who pay cash for the right to receive the future payments on your invoices. An unpaid receivable or invoice has value. It is a financial obligation your client has to pay in the near future. Factoring Principals--Although factoring
deals exclusively with business-to-business transactions, a big percentage of the retail company uses a factoring principal. MasterCard, Visa, and American Express all utilize a type of factoring in their retail transactions. Using the purest meaning of the word, these large customer finance companies are truly just large Receivable Financing Companies of consumer paper. Consider it: You purchase at Sears and charge
it to your MasterCard. The shop gets paid almost immediately, although you do not make payment up until you are prepared.
For this service, the credit card company charges Sears a charge (typical common normal charges vary from two to 4 percent of the sale). The Benefits Receivable Financing can provide numerous advantages to cash-hungry companies. Instead of waiting 30, 60, 90 days or longer for payment on a product that has currently been delivered, a company can factor
(sell) its receivables for money at a small discount
off the dollar value of
the invoice. Payroll, marketing efforts, and working capital are simply a few of the company needs that can be met with instant money.
Best Invoice Factoring Company provides the ways for a producer to replenish stock and make even more products to sell: There is no longer a requirement to await for earlier sales to be paid. Receivable Loan Financing is not simply a money management tool for manufacturers: Almost any kind company can take advantage of Truck Factoring. Typically, a company that extends credit
will have 10 to 20 percent
of its yearly sales bound in accounts receivable at any given time. Think for a moment about how much is tied up in 60 days' worth of invoices: You can not pay the power bill or this week s payroll with a customer s invoice, however you can sell that invoice for the money to satisfy those obligations. Using truck factoring companies is a quick and simple process. The factoring company buys the invoice at a discount, typically a couple of portion
points less than the stated value of the invoice.
Please call our trucking factoring experts at 1 - 888-239-9162
or E-mail Us
The American Truck Association
states that there around
205,000 work with transportation
276,000 personal service providers trucking
companies accredited to
run in the United States that transferred,
according to their latest data of millions
products, supplies and
fundamental materials .
There are several typical
teams on our nation
highways transferring these
vital products to our
stores, manufacturing facilities and ports.
countless 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.
If you're like most drivers, you're looking for a better company in trucking that might be offering the best jobs in terms of pay, freight, and hometime ' not to mention benefits or a sign on bonus. We've got all of our clients listed based on the states where they're hiring, so you can quickly find the best job in your home state. You'll see the very best nationwide trucking companies that have positions available.
The largest trucking companies in the U.S. set a revenue record in 2013, but revenuegrowth slowed for the second year in a row.
The combined revenue of the 50 largest motor carriers rose to $106.6 billion last year, according to The JOC Top 50 Trucking Companies list, based on data prepared by SJ Consulting Group in Pittsburgh.
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.
List of Trucking Companies for Owner/Operators and Company Drivers
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.
Since the mid 1980s Bennett Truck & Haul have been successfully running their freight business. 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, Bennett 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. Times were great for everyone, and the cash was flowing.It was just one year later, in 2008, when the economy in the United States took a sharp decline, and both large and small businesses started to notice the squeeze on their pocketbooks: everyone had suddenly gone silent. Business slowed to a crawl
. Worse still, it was noticed by Bennett in early 2008 that even though most of their loyal customers were on time with their payments, there were a few late bloomers who were starting to spread the disease. Spring changed to summer, summer changed to fall, and the CEO of Bennett, Aaron Wade, 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 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. 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 Aaron Wade 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. In the evenings he would discuss his concerns with his wife, Jane, and still find no relief from the worry and frustration.
""Lin, I have a really bad feeling,"" he'd sadly say to his wife.""What could you do differently?"" she would ask.Aaron would stare off into the distance, and then slowly close his eyes. In his mind he could clearly see the fleet of trucks purchased over the many years. He could see them traveling, bringing goods to all of his clients. But somewhere, a haze would form over his fleet and the vast number of vehicles would disappear to but a few. What on earth was happening to create the death of his business?""I know what it is,"" said Aaron. ""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."" Jane would look at her husband lovingly, and holding his hand would say 'It's such a harsh economy these days and our clients must be having difficulty meeting their responsibilities'.""Aaron knew his wife meant well, but he knew that he was responsible for too many people to sit idly by, waiting for the sun to peak over the clouds.The next day Aaron strolled into his office and was determined to sit down and make every phone call to every client who had owed Bennett 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. Wasting money, wasting time - even with the best of intentions, Aaron knew that he was in trouble.
Poor Aaron 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.
""Aaron, can I have a word?"" she asked standing in the doorway.
""Of course Kimberly, please come in."" Aaron relaxed back into his chair and looked up at Kimberlyerley.""Well Aaron, this afternoon I did some research, trying to work out how we're going to get out of this mess."" 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 the word factoring?"" Kimberlyerley asked.""It sounds vaguely familiar. What is it?"" he said.""Well,"" she began, ""It�s actually quite simple really.
Basically, factoring invoices means that we would get paid immediately for the loads we haul.""Aaron interrupted ""Immediately?"".""Immediately, yes"" she added, ""It's actually very simple. We can have an expert account manager review our numbers and help us complete a company profile. Included in the profile would be the investigation of our accounts receivable aging reports, our current customers' credit limits etc.. Additionally, the factoring will help to determine the creditworthiness of our customers independent of their credit history with our business. It�s a broad view.��Aaron replied cautiously ""I see - and what happens then?��Well, after their review, and we�re approved for a factoring contract, we can negotiate terms and conditions. There�s a lot of flexibility depending on the business volume and credit histories. This company tells us what the cost will be to purchase factoring for our accounts receivable. The funding commences once we�ve arrived at an agreement.�Aaron leaned forward and reviewed the paperwork closely.""It sounds too good to be true, Kimberly,"" he said.""Now, now, I know, I thought the same thing. But think about it, Aaron: 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 Aaron,"" she underlined a paragraph on the paper before him.""How flexible?"" he asked.""They personalize the factoring rates so that the amount they are willing to take on is commensurate with our needs and our client�s debt. 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 Aaron.Aaron took in a long slow breath, then looked at his secretary with something like hope in his eyes.""Precisely�. I think this might just be a way out of the trouble we're in with these folks who owe us money.""Aaron thought about this and agreed with Kimberlyerley. The clients who owed them money were long standing friends and professional resources of Bennett. Just because they were experiencing difficulties paying their own bills now, Aaron was very concerned about losing these relationships. Aaron 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.""Let me go over this tonight Kimberly, and thankyou."" Kimberly stood up and left Aaron's office, with the nice feeling of knowing that she may just have solved a very serious problem.Aaron sat behind his desk and looked over the details Kimberly had not mentioned in their meeting. What other issues could freight factoring help Bennett 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. Aaron was surprised: it said that his company could get up to fifty percent cash advances on load pickups. Aaron 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 Lee the good news,"" muttered Aaron to himself.Aaron's son-in-law, Lee, loved the idea behind Bennett 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 Aaron knew the struggles Lee would face, but he still encouraged him to follow his dream. With the economy the way it was, if an established company such as Bennett was struggling then the little guys, like Lee, were going to be in even more trouble.
But, maybe the answer for both of them was in freight factoring, and Aaron 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, Aaron found that he was starting his journey out of the despair which had been created for him by his delinquent account holders.They adopted reasonable factoring purchase contracts and stopped wasting their own precious time trying to collect debts. They used that time to refocus their efforts in being competitive in new territories. Aaron looked back on the dismal months of life before freight factoring and almost shuddered at the thought. He probably wouldn't be in business today had he not learned just in time about freight factoring.
More Trucking Factoring Companies Story Articles
Factoring in the Future of a Trucking Business: A Story The phone was ringing on his desk, and Ben Richards 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. Richards Trucking Company was at a turning point of growth and Ben had to decide if signing with a factoring company was the right way forward.
More than forty years ago Ben's father had started this business working as an owner-operator and eventually growing Richards Trucking Company into a fifteen trailer fleet. There had been some hard times when it seemed everything was going to go under and even Ben�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. Now the company was solely in Ben�s hands and he wanted to live to see it in better shape for his sons.
To move Richards Trucking Company ahead into the future, he needed a steady cash flow but there was just not enough money to go around. He had employees to pay. They all have families and the usual household bills. Some of the refrigerated trailers were in need of repairs and he felt to stay competitive it was also a good idea to invest in specialized haulers to be ready for the constant requests he was getting for loads of new energy and agriculture equipment. He knew that turning down these requests made Richards Trucking look inefficient and weak in what was currently a strong market.
His father would have told him to wait and to take his time adding on new technology. Ben allowed himself a good hard chuckle. He remembered when his father was totally against installing 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.
Ben believed a successful man is always thinking of his next step. What would be the next step for Richards Trucking? More importantly, how could he 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.
He wondered about factoring - was this the answer for him? If he was being honest, he didn't really understand how it all worked. 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 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.
Ben 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! 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. 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. When he called the factoring companies he discovered they were very open about their business practices, and very friendly and helpful. Customer service appeared to understand their company and explained in clear, concise English exactly how it all worked. He didn�t mind signing an exclusive contract. He liked the idea of a long term commitment so he knew he wouldn�t have to bother going back and forth to different companies and wasting time filing more forms. Nobody charged him for credit checks and they offered him a fuel advance on the pick-up of the load. Many companies offered a non-recourse factoring program that suited him just fine. He was more than happy with the figures he was offered in percentage terms on the freight bills. It was good money.
For Ben it was quite a relief to be dealing with the factoring company. They were extremely helpful and more personable than the bank staff. He was relieved to note that the factoring companies understood the trucking business and discussed business with him like a respected client, not like someone looking for a handout. The factoring companies didn�t worry over his credit and the debt troubles his father had had in the past of the company. All the factoring company was interest in was the credit of his customers and on their reliability: this worked great for Ben because he and his father had created a very strong and loyal list of clientele over the years. He knew immediately that there would not be any problems when they were contacted by the factoring company regarding their invoices. His clients wouldn't have any problems, nor would they think poorly of Richards 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.
Feeling happier now, Ben 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 Richards Trucking Company and who knows, move into Canada, which had always been his dream. His heart felt full knowing his sons wouldn�t have to worry about money because of the right decisions he had made for their trucking business.
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Trucking Factoring Articles
�So, this is not a loan?� asked Julio Rose, reclining back into his chair and crossing his legs. The woman who sat across the desk smiled and shook her head.�Not quite,� she said.Julio Rose owned a small trucking company, and his business had recently fallen on difficult times. Certainly the trucking business can be an extremely profitable venture, and for many years it had been that way for Claude. He named his business Caldwell Trucking, named after Isaac and Nathaniel, his two grandfathers. They had both been hardworking men, and had done a lot to make Julio the same.Disaster had struck half a year ago, when two trucks in Claude�s fifteen truck fleet went down. One was a roll-over and ended up in the trucking graveyard: the other was involved in a serious and costly accident. The financial security of Claude'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.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.Julio 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. Julio knew she was employed by a Factoring company and that her name was Emma. Julio had come across her company as he sat in his office late one night, pouring over the internet for some solution to his problem long after his employees had gone home.She sat there now, and explained. �it is really not a loan at all: we actually buy your accounts receivable. We're not giving you finance to be repaid later: we're purchasing something from you, and when you can you can buy it back. This is a win-win situation: we're protected from a total loss, and you're protected from the ridiculous fees and charges you'd have to pay if you borrowed from a bank.Julio agreed. It sounded perfect - perhaps too good?.Emma laughed. �You look like you don�t believe me,� she said.�No, I do, I just think it sounds a bit too good to be true. I thought I was going to lose my company.�Emma smiled, agreeing. �Yes, we get a lot of that. There's no way we want to see you lose your business. You work hard, you�ve put everything you can into it. We all need help sometimes. That's why we do what we do.��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,� Emma said with a smile. �Let�s see what we can do to help you.�And with that they set about making a profile.
Julio filled the form out, with Emma available to help him if he needed it. The profile filled Emma and her company in on Claude�s company, and would help them determine if he was suitable for factoring. In truth, not all companies were. Some were beyond factoring special brand of help, and sometimes things weren�t even dire enough for it. As Julio completed his form, Emma listened to his story and she felt quite sure he would be the ideal candidate for Factoring.Emma took the completed form and placed it in her briefcase. Standing up, she reached over the desk and shook Claude's hand. He also stood up, and they smiled at each other. Julio walked Emma to the door where they said 'Goodbye', then he went back into his office.His employees were there, seven who worked in the office, and as he sat behind his desk once more he heard the familiar clack of fingers on keyboards, the electronic whine of the copy machine.He leaned back and closed his eyes. He had felt so helpless lately, was sure the whole thing was collapsing, and would take him with it. Talking to Emma though, learning about factoring, it felt like a weight had been lifted from his shoulders. He relaxed into his chair, running his hand through his thick black hair with its telling streaks of grey.All those long, sleepless nights. The sudden panic attacks, not matter where he was. Already he could feel all the stress start to drain away. He knew it wasn't over yet and that there was still a way to go, but he could just feel everything start to change for him. He was still here; he knew this was the right path for him, and he felt proud that he had taken the appropriate steps to sort out his problems.Julio 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 he had gotten bored. 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 Caldwell 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 was concerned that he just didn't have the energy left to try and save the business. But he couldn�t give up. Just the thought of shutting down, cutting his losses, laying off his workers - the whole thing made him physically sick some nights. He didn�t know how to say quit.And now, because of factoring, he was sure he wouldn�t have to. Claude's eyes opened, he sat forward in his chair and turned on his computer. He had things to do. There would be plenty of time later to be thankful, but for now it was time to get back to work.
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Reasons why Trucking Firms Work with Factoring Companies.
As the owner of your own establishment, you may likely be more than conscious already of the difficulty in making sure that capital concerns do not become a predicament down the line. Anyway, the most horrible thing that can quite possibly occur for your company is to find yourself swept up in a long and tough predicament that leaves you forever searching for the resources you are in need of on an continuous manner.
For any type of enterprise in this scenario, the concern can come for waiting for work to clear up and actually be provided into your account. Invoices, checks, and the like can take a while to actually to beprocessed which could leave you with temporary capital issues. Thank goodness, there are alternatives out there for establishments to examine-- and just one of these is factoring agencies.
Factoring providers will, in substitution for your statements, give you with the cash now in order that you don't have to fret about the delaying duration which could make paying off the bills and getting materialsmore difficult. With this style of system, invoice factoring can end up being incredibly practical for numerous establishments who ought to avoid a cash lure which they have found themselves in.
Considering that, depending upon the scale of the job, it can take up to 60 days for some establishments to get compensated then it's critical to cover up your own back and certainly not leave yourself resources short to pay the expenses. After all, how many enterprises possess two months cash flow just lying there to address all their expenses till they get paid?
This is most notably correct of truck agencies. They have the tendency to handle bunches of accounts which means a substantial volume of collection period entails company owner themselves. Striving to get paid off in time can develop into an extraordinary headache and this is exactly why you use trucking factoring providers who are pleased to help out truckers specifically.
As most of us know, trucking is an remarkably enormous field with lots of companies out there hiring hundreds of vehicle drivers. Unfortunately, plenty of these drivers land up in income dilemmas due to the fact that they are still waiting for work from six weeks earlier to actually compensate them. When this is the condition for a truck firm, depending on factoring agencies for reinforcement maybe the most recommended option left.
This means that a truck business can pay the wages of the workers, keep all the vehicles refilled with gas and continue to escalate, grow and expand without constantly waiting for the income which is taking too prolonged to come in. Trucking Business enterprises running without a factoring system implemented are leaving themselves at significant risk, as contenders cash out promptly and go on to grow.
There's absolutely nothing to be distressed about when it comes to making use of a Factoring establishment-- they typically aren't like a banking company or a person who is going to leave you with a huge pile of financial obligation to repay. You give them genuine invoices from job you have already finished , you are simply speeding up the repayment system.
In the United States, where truck firms grow, factoring companies are not considered borrowing in any capacity. This private contract then makes it possible for both parties to benefit and take pleasure in a good future-- it gives the factoring provider a secured asset of cash flow to add to the list and it furnishes the trucking company the needed finances that they sweated to get.
The trucking business bestows their statements to the factoring enterprise. The trucking factoring business then receive the installment payments from the trucking company's clients. Factoring has been in existence for centuries and has been employed for several years by plenty of varied sectors-- but none more so than truckers. While you may well lose out on a small part of the money, something like 1-3 % depending on who you team up with, it implies that you are obtaining the money today and can actually begin putting the resources to do work.
Once and for all, an IOU or an invoice is absolutely not going to cover overheads, is it? For trucking enterprises when the funds can be fantastic 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 measure of time and money to get through the week until they are handed over again.
So the next period your trucking establishment is enduring some temporary cash flow issues and you are devoting excessive time chasing sluggish paying customers, why not begin looking at employing a factoring businesses as a manner to get your cash and give yourself a more convenient future in the eyes of your trucking team and your bank difference?
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. As an example, a newly formed business may not have the required assets to qualify for a bank loan, and even if they did, it's usual practise for a bank to use the business itself as collateral. This means that if you default on your loan payment you could lose your entire business. Plus, the amount you apply for through the bank is the actual amount that you are going to receive. 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. Rather the financing you receive from a Trucking Factoring company is based on money your business has already earned, but have not yet received. The Trucking Factoring company purchases your accounts receivable, or part of them, for a certain percentage of their value - this is normally about 80-95%. The amount of finance you can receive will be based on the amount you have earned and the accounts receivable you are prepared 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
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. Since the Trucking Factoring company actually buys your accounts receivable you don't actually incur debt like you do with a bank loan. This has many benefits including the fact, that this type of financing won't affect either your business credit rating or your personal credit rating. In the event that your business fails, you wouldn't have to be concerned about someone coming after your personal or your business assets in order to pay off a loan. With a bank loan, the debt goes onto your credit report, and even one late payment can adversely affect your businesses credit, and even the ability to get insurance and may even reflect upon your personal credit rating.
2. There's no collateral required. Another benefit of using a Trucking Factoring company instead of a traditional loan is that you aren't required to provide collateral to the Trucking Factoring company in order to secure financing, because the company �buys� the accounts receivables; not loans you money based on them. 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 means that it's easier for new businesses to access the finance they need through a Trucking Factoring company, providing their accounts receivable are in good order. A bank may believe you haven't been in business long enough to be able to cover this risk.
3. 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.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 main benefit is that once you've sold your accounts receivable to the Trucking Factoring company, you are free from having to collect money owed by your customers. Since these accounts belong to the Trucking Factoring company, this is now their job. Trucking Factoring companies are very good at collecting these debts, saving you the time and effort that you need to devote to your growing company.
In addition, since the Trucking Factoring company evaluates the credit quality of your customers prior to purchasing the accounts receivable you gain valuable information into which customers are likely to pay and which ones are not so likely to pay.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.