Medium-Size freight companies, especially those who have actually not been in existence for really long, will typically find it difficult to secure a loan. Banks are frequently reluctant to lend cash to companies that do not have a great deal of earnings and possessions. They likewise want proof of the practicality of a company and therefore need that many operations, especially little ones, been around for a particular quantity of time before they are ready to turn over any money. Since of this, a medium-size company often has a couple of money producing choices when requires arise. One option offered, however commonly ignored, is invoice factoring. This is an excellent way for a small business to obtain money.
Don't Even Think About Gpoing To The Bank Without Reading This Report - Select
A Factoring Company Instead Of A Typical Bank Funding
Exactly how to Increase Cash Flow Without Loaning -Cash Money flow is one of the primary reasons businesses fail.
At one time or another, every business, even effective ones, have experienced bad money flow.
Cash flow does not have to be a problem any more. Do not be fooled -- banks are not the only locations you can get funding. Other solutions are offered and you do not have to borrow money. Exactly what is truck factoring ? One option is called sale of accounts receivable. Trucking Factoring is the procedure 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 distinction:
It is the financial
foundation of many of America's most successful businesses. Why is this paradoxical ? Because receivable financing is not instructed in business colleges, is rarely discussed in business plans and is fairly unidentified to the majority of most of American company individuals.
Yet it is a monetary process that releases up billions of dollars every year, allowing countless businesses to grow and prosper. Receivable Funding has actually been around for countless years. Staffing Factoring Companies are financiers who pay cash 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 agreed pay in the near future. Factoring Principals--Although factoring
offers exclusively with business-to-business transactions, a big portion of the retail business uses a factoring principal. MasterCard, Visa, and American Express all utilize a form of factoring in their retail deals. Using the purest meaning of the word, these large customer finance business are truly just big Trucking Factoring Businesses of customer paper. Think about it: You purchase at Sears and charge
it to your MasterCard. The shop makes money practically instantly, although you do not make payment up until you are ready.
For this service, the charge card company charges Sears a charge (typical common normal charges vary from two to four percent of the sale). The Benefits Factoring can offer numerous advantages to cash-hungry companies. Rather than wait 30, 60, 90 days or longer for payment on a product that has currently been provided, a company can factor
(sell) its receivables for cash at a little discount
off the amount of
the invoice. Payroll, marketing efforts, and working capital are just a few of the business needs that can be met with instant cash.
Sale Of Accounts Receivable provides the means for a manufacturer to renew stock and make more products to offer: There is no longer a requirement to await for earlier sales to be paid. Receivable Loan Financing is not just a money management tool for producers: Almost any kind company can take advantage of Receivable Financing. Generally, a business that extends credit
will have 10 to 20 percent
of its annual sales bound in accounts receivable at any given time. Think for a moment about exactly how much is tied up in 60 days' worth of invoices: You can not pay the power bill or today s payroll with a customer s invoice, however you can offer that invoice for the cash to satisfy those responsibilities. Using truck factoring companies is a quick and simple procedure. The factoring company purchases the invoice at a price cut, typically a couple of portion
points less than the stated value of the invoice.
Please call our trucking factoring specialists at 1 - 888-239-9162
or E-mail Us
The American Transportation Association
specifies that there are about
200,000 employees with transportation
300,000 private companies trucking
firms certified to
run in the States that transferred,
according to their newest listings of millions of
items, materials and
fundamental products .
There are numerous common
teams on our country
roads transporting these
vital products to our
shops, manufacturingplants and shipping ports.
countless 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
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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.
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.
Nichols Truck & Haul have been operating their business since the mid 1980s. For more than twenty years they've been delivering goods for most major industries in the nation, with business booming as they traversed the country, in all kinds of weather, for all kinds of clients. During the boom times from 2002 to 2007 Nichols Truck & Haul was the mastermind of a top-rated accounts receivable in the trucking industry. Few customers were ever late on bills and those clients who were, were sure to turn in their late payments within a reasonable amount of time. The money was flowing, and times were great.But a short year later, in the fall of 2008, when the United States economy took a nosedive and businesses both small and large began to feel the pinch on their pocketbooks, those that used to make their demands had suddenly and largely gone silent. Business slowed down. Worse still, it was noticed by Nichols 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, Jim Hunt, CEO of Nichols 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 already been to the administrators to ask what the actual problem was. 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 Nichols 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. The had just gone!.To Jim Hunt the situation looked desperate. Jim was very concerned, because there were constant overheads, goods to ship, employees to pay, and trucks which needed to be maintained, but there just wasn't the money coming back into the business. After work he would confide in his wife, Suzanne, 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.Jim 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 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 Jim. ""I've relied too long on the profits I receive from invoices alone. I've let too many of our customers go too long without paying on their bills."" 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.
""Jim 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 following day Jim walked into his office with a spring in his step, determined to call each and every client who owed money to Nichols Truck & Haul. 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, Jim knew that he was in trouble.
After a half day of contacting debtors in vain - they dodged his calls or promised to call back at worst or made minimal interest-only payments at best - he was about to throw in the towel when his secretary Eleanorerley knocked at his door.
""Jim, can I have a word?"" she asked standing in the doorway.
""Of course Eleanor, please come in."" Jim leaned back in his chair and looked expectantly at Eleanorerely.""Well, I did a little searching this afternoon and tried to figure out a way out of this mess Jim."" 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?"" Eleanorerley asked.""It does sound vaguely familiar. What is it?"" he said.She began, ""Well, it's really very simple. Basically, factoring invoices means that we would get paid immediately for the loads we haul.""Jim 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.. In addition, factoring will assist in determining our customers' creditworthiness, independent from their credit relationship with our company. It�s a broad view.��Jim 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. The company will advise us the cost to purchase factoring for our company's accounts receivable. We come to an agreement and the funding starts pouring out.�Jim was still a little concerned. He leaned forward in his chair and studied the paperwork very closely.""I don't know, Eleanor - it just sounds too good to be true"", Jim said quietly.""Now, now, I know, I thought the same thing. But really, they have guaranteed us experts that do all the legwork, which would free us up here to focus on our clients in good standing and marketing, all that good stuff. And they're flexible Jim,"" she drew a circle around a paragraph on the document before him.""How flexible?"" he asked.""It seems that they personalize their factoring charges so that the amount they're prepared to work with is commensurate with our client's debt and our needs. Apparently they can figure this all out in two to four days.
""""It does all sound pretty good, remembering that we're all tapped out now with loans from the bank last year to repair vehicles, and we all know just how tight money is. 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 Jim.Jim took in a long slow breath, then looked at his secretary with something like hope in his eyes.""Exactly�. This could very well be the answer to resolving the problems we're having with these clients who still owe us money.""Jim took a moment to think about this solution, and agreed with his secretary. The clients who owed them money were long standing friends and professional resources of Nichols. Jim wasn't prepared to lose these relationships just because they were having financial issues at the moment. He was well aware that the economy was in a bad way and that it might be quite a while before things started picking up. That unknown amount of time could create a disaster situation for both of them if he wasn't careful in how these debtors were handled. Of course he didn't want to lose any more money, but he didn't want to lose business either.""Well, let me think about this tonight Eleanor, thank you."" Eleanor nodded, stood up and left the office feeling that she had helped her employer keep on his shirt and hers too.Jim stayed at his desk for a long time, looking over the details they hadn't discussed during their meeting. What other issues could freight factoring help Nichols 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. Jim was surprised: it said that his company could get up to fifty percent cash advances on load pickups. Jim was a typical business man: he despised binding contracts that didn't allow room to breathe, so he was pleasantly surprised to see that the factoring company didn't require a long term contract, that there was no minimum volume required, and that there were no sign-up fees.""Well, I'll have to tell Tyrone about this,"" muttered Jim to himself.His son-in-law Tyrone had liked the idea of Nichols 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. At that time Jim knew the struggles Tyrone would face, but he still encouraged him to follow his dream. With the economy the way it was, if an established company such as Nichols was struggling then the little guys, like Tyrone, were going to be in even more trouble.
But, maybe the answer for both of them was in freight factoring, and Jim was going to find out very soon.A few short months later, after completing the application process, having the legal experts review his credit history, accounts receivable, and statements, finally Jim was beginning to find his way out of the hole his debtors had created for him.They took on reasonable factoring purchase contracts and stopped spending their precious man hours scrambling to collect debt. They used that time to refocus their efforts in being competitive in new territories. Jim looked back on the dismal months of life before freight factoring and almost shuddered at the thought. If Jim hadn't discovered freight factoring at just the right time, his business may not be operating today.
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The Future of a Trucking Company, and Factoring Jerry Nelson let the phone ring on his desk. 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. Nelson 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.
Jerry�s father had started as an owner-operator and had grown Nelson 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 Jerry�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 Jerry�s hands and he wanted to live to see it in better shape for his sons.
To move Nelson 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 Nelson 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'. Jerry chuckled, thinking about his father. He remembered when his father was totally against installing 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?� 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.
Jerry knew he was right in his forward thinking. What would be the next step for Nelson 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 like a ninth grade math problem and he wondered how this would fit into 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. During those thirty days the trucking company can't pay its employees and bills with invoices.
Jerry 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. Worse still, if the customer defaulted on payment, the factoring company takes it out of the money supposedly coming to you! Through the grapevine, he�d also heard about how some companies suddenly slipped you onto a sliding scale of percentages even if you had already signed a lengthy contract for maybe 3% or 7% so there you are with 10% coming as a cost to you out of the freight bill. His friend Ronnie who had a trucking business in Missouri, was run nearly into the ground by a factoring company that charged him the full freight bill on top of the factoring fees. He knew he would have to be very careful if he was to avoid any of these shady companies?
But it turned out to be quite easy. 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 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.
It was really refreshing dealing with the factoring people. 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 were not interested in his credit nor the financial problems his father had experienced in the past. Factoring was based on the credit of his customers and on their reliability which worked well for Jerry because he and his father had built up good strong relationships over decades with their list of clients. So he knew they would understand when the factoring company contacted them for the invoices. His clients wouldn't have any problems, nor would they think poorly of Nelson 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.
Jerry stepped out of his office to let his secretary know to expect the arrival of the factoring contract shortly. He felt exhilarated by the new possibilities that would make the future of the company fun again and put the stress of the difficult times behind him. He suddenly realized that, with this new cash flow, he could actually expand Nelson Trucking Company and who knows, move into Canada, which had always been his dream. He was a happy man again knowing that he had just made a decision which would guarantee the success of his business and his sons wouldn't be inheriting a financial mess.
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�So, this is not a loan?� asked Jim Simmons, reclining back into his chair and crossing his legs. The woman sitting across the desk from Jim smiled at him, shaking her head.�Not quite,� she stated.Jim 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 Edgar. He named his business Watkins Trucking, named after Edgarua and Henry, his two grandfathers. Both of these men had been very hardworking and had set a great example for Edgar.Disaster had struck half a year ago, when two trucks in Edgar�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. Jim depended on his full fleet, and missing two trucks was 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.
You could go a month or more before bills were completely paid off. In the long run, this wasn�t an issue, but if problems arose, you could find yourself in trouble.Jim was an excellent business man, and he certainly hadn't done anything wrong. Certain events had occurred that he couldn't possibly have predicted, and now he had to find a way to protect his business and prevent it from ultimate devastation.That�s where the woman across the desk came in. Jim knew she was employed by a Factoring company and that her name was Gina. Jim 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.Jim agreed. It sounded perfect - perhaps too good?.Gina laughed. �I'm not sure that you believe me,� she said.�Oh no, I do: it just sounds too good to be true. I actually thought I might end up losing my business.�Gina nodded. �Yes, we get a lot of that. Listen, I�d hate to see you lose your company. We know how hard you work, and that you've invested everything in your business. We all need help sometimes. That's why we do what we do.��Well, I'm very grateful that you came to see me today.��No problem - I'm just down the road. We normally do it all online but I was happy to come and visit you today,� Gina said with a smile. �Let's work out a solution to your problem.�And right there and then they created a business profile. Jim completed the form, with Gina offering advice as needed.
The completed profile gave Gina and her company all the information they needed on Edgar's business, and with this information they would determine if this business would in fact be 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. Listening as Jim filled out his form, Gina was pretty sure he was a perfect candidate for factoring.Gina took the completed form and placed it in her briefcase. Standing up, she reached over the desk and shook Edgar's hand. He also stood up, and they smiled at each other. Jim walked Gina 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. Talking to Gina 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.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 there, he was on the right path, and he was working to make things right.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 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 Watkins 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.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 giving up wasn't part of his personality either.
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. Jim 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.
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Why Trucking Establishments Use Factoring Companies.
As the operator of your own business enterprise, you may be more than aware already of the challenge in making sure that capital concerns do not become a difficulty down the line. Anyway, the most unfortunate thing that can possibly take place for your establishment is to find yourself swept up in a long and difficult situation that leaves you forever searching for the money you really need on an recurring basis.
For just about any business enterprise in this scenario, the complication can come for waiting for work to clear up and actually be brought in into your bank account. Statements, checks, and the like can take a long time to actually to be taken care of which can certainly leave you with temporary cash flow dilemmas. Luckily, there are solutions out there for companies to consider-- and among these is factoring providers.
Factoring firms will, in exchange for your bill of sales, offer you with the funds right away so you don't have to worry about the delaying phase which could make paying the bills and obtaining materialsmore tough. With this type of setup, invoice factoring can come to be tremendously practical for numerous businesses who have to get out of a money ploy which they have found themselves in.
Considering that, depending on the size of the work, it can take up to 60 days for a number of business enterprises to get compensated then it's vital to cover your own back and not leave yourself resources short to pay the bills. After all, how many enterprises possess two months profits just lying there to pay for all their bills till they get paid?
This is most notably correct of trucking enterprises. They usually handle numbers of accounts which means a serious volume of collection period demands business owner themselves. Making an effort to get paid promptly can develop into an incredible inconvenience and this is the reason why you make use of trucking factoring organizations who are glad to help out truckers mainly.
As most of us realize, trucking is an incredibly huge industry with countless firms out there handling hundreds of drivers. Regretfully, several of these drivers wind up in finances issues given that they are still anticipating work from six weeks earlier to actually compensate them. When this is the scenario for a trucking organization, consulting factoring companies for help maybe the very best choice left.
This means that a trucking business can pay off the wages of the work force, keep all the trucks refilled with gas and continue to escalate, thrive and expand without always waiting for the funds which is taking too long to come in. Trucking Enterprises running without a factoring system established are leaving themselves at critical danger, as competitors cash out promptly and go on to broaden.
There's absolutely nothing to be troubled about when it comes to utilizing a Factoring company-- they aren't like a financial institution or any individual who is going to leave you with a huge pile of financial obligation to repay. You give them authentic invoices from output you have already completed , you are only hastening the payment system.
In the Usa, where trucking companies prosper, factoring companies are not considered taking on loan in any capacity. This confidential settlement then allows both parties to make money and take joy in a comfortable future-- it gives the factoring company a secured resource of money to put into the list and it offers the trucking business the needed cash that they worked hard to acquire.
The trucking company gives their accounts to the factoring enterprise. The trucking factoring agency then acquire the installment payments from the trucking company's customers. Factoring has been all around for hundreds of years and has been adopted for decades by many varying business sectors-- but none more so than truckers. While you may miss out on a small part of the money, something like 1-3 % depending upon who you collaborate with, it signifies that you are receiving the finances today and can actually start putting the resources to function.
Anyway, an IOU or an invoice is certainly not going to finance overheads, is it? For trucking companies when the finances can be fantastic one day and gone the next, it's up to the vehicle drivers to work prudently and to guarantee they are leaving themselves with a significant volume of time and finance to get through the week up until they are handed over again.
So the next occasion your trucking enterprise is having some temporary capital problems and you are spending a lot of time chasing slow paying customers, why not start thinking about utilizing a factoring businesses as a means to get your money and give yourself a more pleasant future in the eyes of your trucking workers and your bank balance?
Traditional Bank Loans
Bank loans are an extremely traditional way for a business to get financing. While these loans are handy they are not available to every business. 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.
What Are Trucking Factoring Companies?
Trucking Factoring companies do not give loans, and the money you get from the Trucking Factoring company does not put you in debt. Rather the financing you receive from a Trucking Factoring company is based on money your business has already earned, but have not yet received. Trucking Factoring companies actually purchase your accounts receivable or at least part of them for a percentage of their total worth, Normally around 80%-95%. The amount of money you can receive is based on the amount of money you have earned and the accounts receivable you are willing to �sell.� Once a Trucking Factoring account has been created for you, it will continue for as long as you need it, with the money available continuing to grow as your business grows, and providing cash as you require it.
Benefits of a Trucking Factoring Company Vs. A Bank Loan
While not every business can take advantage of Trucking Factoring account financing (you have to have a business that has account receivables) for those that can use this type of financing there are several distinct benefits.
1. There is no debt. 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. No Collateral Required. Another benefit of using a Trucking Factoring company instead of a traditional loan is that you aren't required to provide collateral to the Trucking Factoring company in order to secure financing, because the company �buys� the accounts receivables; not loans you money based on them. In addition, while the Trucking Factoring company does run a credit check on your customers whose accounts receivables are offered for financing, the state of your credit is not an issue. This makes it easier for fledgling businesses to get the financing they need through a Trucking Factoring company (as long as their accounts receivables are in good order) then from a bank, who may not feel that you have been in business long enough to be worth the risk of issuing you a loan.
3. 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 you don't have to worry about monthly loan repayments, and you don't have to worry about the amount of interest payable, because all the money in the account is yours to spend.
As you can see, there are several benefits that makes considering financing through a Trucking Factoring company over a traditional bank worthwhile. However, there are also a couple of other benefits that a factory company can offer your business is far beyond the scope of the bank. The most important benefits is that once you sell your accounts receivable to the factory company, you don't have to take time away from running your business to collect the money owed from reluctant to pay customers. Since these accounts belong to the Trucking Factoring company, this is now their job. Trucking Factoring companies are very efficient at debt collecting, and this frees up your valuable time to devote to running your company.
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.