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The Cash Your Company Needs
Using a Truck Factoring Company is advantageous for several reasons. It permits a trucking company to raise money without getting brand-new debt. While debt is occasionally required, a lot of truck companies would like to raise cash without obtaining money. Debt is high-risk, and when it can not be repaid, assets can be repossessed. If the debt is huge enough, it may even force a freight brokerage out of business.
Cash For Companies. Tell Us What You Want - Choose
A Receivable Loan C0mpany Instead Of A Regular Bank Funding
Exactly how to Enhance Cash Flow Without Borrowing -Cash Money flow is one of the main reasons companies fail.
At one time or another, every company, even successful ones, have actually experienced poor money flow.
Money flow does not have to be a problem any more. Do not be deceived -- banks are not the only places you can get financing. Other options are offered and you do not have to borrow. What is truck factoring ? One solution is called factoring companies truckers. Truck Factoring is the process of selling accounts receivable to a financier rather than waiting to collect the cash from the
customer. Oh, the Irony- Trucking factoring has a paradoxical distinction:
It is the monetary
foundation of numerous of America's most successful companies. Why is this paradoxical ? Since commercial factoring is not instructed in business colleges, is rarely mentioned in company strategies and is relatively unknown to the majority of most of American company people.
Yet it is a financial procedure that frees billions of dollars every year, allowing thousands of businesses to grow and succeed. Receivable Funding has been around for countless years. Accounts Receivable Factoring Businesses 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 debt your customer has agreed pay in the near future. Factoring Principals--Although factoring
offers solely with business-to-business transactions, a big portion of the retail business 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 business are really just big Accounts Receivable Factoring Businesses of consumer paper. Consider it: You make a purchase at Sears and charge
it to your MasterCard. The shop gets paid almost instantly, even though you do not pay up until you are ready.
For this service, the charge card company charges Sears a fee (typical common normal fees vary from two to four percent of the sale). The Benefits Accounts Receivable Factoring can provide many advantages to cash-hungry companies. Instead of waiting 30, 60, 90 days or longer for payment on an item that has actually already been delivered, a business can factor
(sell) its receivables for money at a small price cut
off the dollar value of
the invoice. Payroll, advertising efforts, and working capital are simply a few of the business needs that can be satisfied with instant cash.
Factoring Companies Truckers provides the ways for a producer to renew stock and make even more items to offer: There is no longer a need to wait for earlier sales to be paid. Receivable Loan Financing is not simply a money management tool for producers: Almost any type business can benefit from Trucking Factoring. Typically, a company that extends credit
will have 10 to 20 percent
of its annual sales tied up in accounts receivable at any given time. Think for a moment about how much is bound 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 offer that invoice for the cash to meet those obligations. Using truck factoring companies is a fast and easy procedure. The factor purchases the invoice at a price cut, typically a couple of portion
points less than the stated value of the invoice.
Please call our freight factoring experts at 1 - 888-239-9162
or E-mail Us
The U.s. Trucking Association
states that there around
205,000 work with truck
250,000 personal companies trucking
firms certified to
run in the United States that transferred,
according to their newest data of millions
products, materials and
basic materials .
There are numerous common
groups on our country
highways transporting these
crucial items to our
shops, manufacturingplants and harbors.
countless of them and offer their
receivables financing 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
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.
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.
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
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.
Since the mid 1980s Davis Truck & Haul have been successfully running their freight business. 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 Davis 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. 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, Davis 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 Davis, David Castro, was beginning to feel very uncomfortable indeed whenever he looked at their weekly Accounts Receivable reports. The numbers of clients who owed him back debt were growing.He had gone to his administrators and asked them what the problem had been. Were they doing things different, or wrong, when it came to collecting overdue accounts? 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. Perhaps they were unable to pay their debt to him, but were able to meet the costs of a lesser service. But after doing the cursory research for this and talking to friends in the field, he found that alas, no, customers of Davis hadn't gone elsewhere. The had just gone!.To David Castro the situation looked desperate. David 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. At night he would speak to his wife Jennifer and shake his head in frustration.
""I have a bad feeling, Lin,"" he would say with deep woe.""What could you do differently?"" she would ask.David 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. What on earth was happening to create the death of his business?""I think I know what it could be,"" said David. ""For way too long I've been relying solely on profits received from invoices. For too long I've been allowing our clients to let their accounts become overdue."" Jennifer 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'.""David 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 David strolled into his office and was determined to sit down and make every phone call to every client who had owed Davis money. This wasn't really a very efficient way for a Chief Executive to spend his day, and David 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. But, he felt like he was doing something proactive to help his business, even though he had staff on salary to do just that thing. A waste of time - a waste of money - he had the best intentions, but all the while David was realising just how much trouble he was in.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 Teresaerley knocked at his door.
""David, can I have a word?"" she queried, standing in the doorway.
""Of course Teresa, please come in."" David leaned back in his chair and looked expectantly at Teresaerely.""Well David, 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?"" Teresaerley asked.""It sounds vaguely familiar. What is factoring""? he asked.She began, ""Well, it's really very simple. Basically, factoring invoices means that we would get paid immediately for the loads we haul.""""Immediately?"" David interrupted.""Yes, immediately,"" she continued, ""It's actually very simple. We start by having a professional account manager review our figures and help us set up a company profile. Included in the profile would be the investigation of our accounts receivable aging reports, our current customers' credit limits etc.. Additionally, the factoring will help to determine the creditworthiness of our customers independent of their credit history with our business. It provides a very broad view.��David 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.�David leaned forward and reviewed the paperwork closely.""I don't know, Teresa - it just sounds too good to be true"", David said quietly.""Now, now, I know, I thought the same thing. But think about it, David: 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. They appear to be very flexible, David,"" she drew a circle around a paragraph on the document before him.""Just how flexible?"" asked David.""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. It only takes 2 to 4 days for this to be figured out. """"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 David.He took a deep breath and looked at his secretary with something she recognized as hope.""Exactly�. This could very well be the answer to resolving the problems we're having with these clients who still owe us money.""David thought about this and agreed with Teresaerley. The customers who were in debt to Davis 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, David was very concerned about losing these relationships. David knew only too well that the whole economy was floundering, and that it was not going to change overnight. 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.""Well, let me think about this tonight Teresa, thank you."" Teresa nodded, stood up and left the office feeling that she had helped her employer keep on his shirt and hers too.David stayed at his desk for a long time, looking over the details they hadn't discussed during their meeting. He wondered if there might be other problems freight factoring could help Davis Truck & Haul 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. In fact, Davis could receive up to fifty-percent cash advances upon load pick-ups. As a man who hated binding contracts with no room to breathe, he was pleased to see that this factoring company would not make him sign a long term contract, would not make him pay any sign up fees and there was no minimum volume required.""I must tell Ray the good news,"" muttered David to himself.David's son-in-law, Ray, loved the idea behind Davis 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. David knew then what struggles Ray would face but he encouraged him nonetheless. With the faltering economy, if a big fish like Davis was hurting, a little guy like Ray was about to catch his death. Perhaps the antidote to these problems was in freight factoring, and they were about 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, David found himself beginning to dig his way out of the hole his delinquent account holders had created for him.They took on reasonable factoring purchase contracts and stopped spending their precious man hours scrambling to collect debt. They took that time and refocused effort to offering competitive prices in new territories. David looked back on the dismal months of life before freight factoring and almost shuddered at the thought. If David 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 The phone was ringing on his desk, and Ted Welch 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. Welch Trucking Company had reached a turning point and he now had to make a decision as to whether he should sign up with a factoring company, and indeed if this would be a good or regrettable decision for his business.
More than forty years ago Ted's father had started this business working as an owner-operator and eventually growing Welch Trucking Company into a fifteen trailer fleet. There had been some hard times when it seemed everything was going to go under and even Ted�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 Ted�s hands and he wanted to live to see it in better shape for his sons.
To move Welch Trucking Company ahead into the future, he needed a steady cash flow but there was just not enough money to go around. His employees needed to be paid. They had families and household bills too. A few of the refrigerated trailers really needed some maintenance, and in order to stay competitive he really wanted to invest in specialized haulers to meet the increasing requests for loads of agricultural and energy equipment. Every time he had to turn down a request, Welch Trucking looked weak in a very strong market.
He knew what his father would have said - 'wait, take your time before adding new technology'. Ted allowed himself a good hard chuckle. His father had been against placing GPS units in the cabs. His Dad would say ""Why on earth do you need some stranger telling you to get off the exit that everyone knows has been there for years?� He smiled to himself as he remembered his father poking fun at the other drivers who switched to automatic, even though automatic was quite obviously more efficient (though less manly). He knew his father's days were long gone and new technology was very important for the business, like having Qualcomm to reduce communication time for bills of lading.
Ted believed a successful man is always thinking of his next step. How would he take Welch Trucking to the next level? More importantly, how could he afford it? Business funding was tied up in fuel bills and the mortgage for the garage and office. Thankfully he'd just finished paying off the bank loan for the installation of satellite radio in the trucks.
But was factoring the answer? There was a lot he didn�t understand about the process. It sounded 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 the assistance of factoring, you have to wait for customers to send you the payment which is often 30 days late. In those 30 days, a trucking company can�t pay its bills and employees in invoices.
Ted had to really consider what his next step was going to be. He had heard of companies charging for same day money transfers, advancing a percentage of the money owed to your business, while the rest is held in a private account if the bill wasn't paid within sixty or more days. Plus it was worse still if the customer didn�t pay up at all because then the factoring company would take it right out of the money supposed to be coming to you! He'd even heard about some companies putting you onto a sliding percentage scale regardless of any previously signed contracts for possibly 3% or 7%, and there you are now with 10% coming as a charge to you out of the freight bill. His 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?
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. 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. In fact, he was quite pleased with the idea of a long-term contract because he knew this was a one-off and he wouldn't have to keep going back and forth to different companies. He was not charged for a credit check, and in addition he was offered a fuel advance on the pick-up of a load. In fact there were a few companies who offered him a non-recourse factoring program, and this was exactly what he had been hoping for. Also he was happy to hear how much he was offered in terms of percentages on the freight bills. It sounded like a great scheme to him.
For Ted it was quite a relief to be dealing with the factoring company. They were more personable than those loan managers at the bank. He was relieved to note that the factoring companies understood the trucking business and discussed business with him like a respected client, not like someone looking for a handout. The factoring companies didn�t worry over his credit and the debt troubles his father had had in the past of the company. Factoring was based on the credit of his customers and on their reliability which worked well for Ted 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 Welch 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, Ted 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. With the capabilities of this new cash flow, Ted could actually expand Welch Trucking Company further across the country and perhaps even go international into Canada. 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 It is not a loan?� Justin Porter asked as he leaned back in his chair, crossing his legs. The woman sitting across the desk from Justin smiled at him, shaking her head.�No, not exactly,� she stated.Justin Porter 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 Dennis. His company was called Vargas Trucking, named after both of his grandfathers, Leroy and Lloyd. They had both been hardworking men, and had done a lot to make Justin the same.Six months ago disaster struck Dennis'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. Justin depended on his full fleet, and missing two trucks was devastating . Furthermore, buying a whole new truck and fixing the other simply took more cash than Justin had on hand.A big problem a lot of trucking companies came across was how bills were paid in the industry. Waiting a month or longer for bills to be paid was quite normal. In the long run, this wasn�t an issue, but if problems arose, you could find yourself in trouble.Justin wasn�t a bad owner, and he hadn�t messed up. 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.And that's why he found himself across the desk from this woman. Justin knew she was employed by a Factoring company and that her name was Jessie. He had accidentally come across her company one night when he was working late, searching the internet to see if there was some solution to his financial dilemma.She sat there now, and explained. �it 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.Justin nodded. It sounded perfect - perhaps too good?.The woman laughed. �You look like you don�t believe me,� she chuckled.�Oh no, I do: it just sounds too good to be true. I actually thought I might end up losing my business.�Jessie smiled, agreeing. �Yes, we get a lot of that. Listen, I�d hate to see you lose your company. You work hard, you�ve put everything you can into it. Sometimes you need help. That's why we do what we do.��In any case, thank you for coming to see me.��It�s right down the road, usually we do it all online, but I didn�t mind swinging on by today,� Jessie said with a smile. �Let's work out a solution to your problem.�And with that they set about making a profile.
Justin completed the form, with Jessie offering advice as needed.
The completed profile gave Jessie and her company all the information they needed on Dennis's business, and with this information they would determine if this business would in fact be 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. Listening as Justin filled out his form, Jessie was pretty sure he was a perfect candidate for factoring.Jessie took the completed form and placed it in her briefcase. Standing up, she reached over the desk and shook Dennis's hand. He also stood up, and they smiled at each other. They said their goodbyes and Justin walked her to the door, and then returned to 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 Jessie though, learning about factoring, it felt like a weight had been lifted from his shoulders. He sat back in his chair and ran a hand through his graying but still thick black hair.The long nights, where he couldn�t sleep. The sudden panic attacks, not matter where he was. Already he could feel all the stress start to drain away. He wasn�t out of the woods yet, there was still a lot of work to be done, but he could feel it. 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 successful. Home cooking in his hometown, and he had done very well.But it wasn't what he really wanted to do. His passion didn�t lie with 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 Vargas 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.And then the trucks went down, and his success looked to be in flux. He was about to turn 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 know how to say quit.And now it seemed as though he wouldn't have to - all because of Factoring. Justin opened his eyes, sat forward, turned his computer on. He had lots to do. He could be thankful later, for now, it was time to work.
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Precisely why Truck Companies Work with Factoring Firms.
As the operator of your own company, you may perhaps be more than aware already of the challenge in making certain that cash flow issues do not become a difficulty down the line. After all, the most terrible thing that can in all probability take place for your company is to find yourself embroiled in a long and troublesome situation that leaves you forever trying to find the resources you really need on an continual basis.
For any kind of enterprise in this condition, the issue can come for waiting for work to lapse and actually be settled into your account. Bill of sales, checks, and the like can take a long time to actually to beprocessed which could leave you with momentary available resources problems. Thank goodness, there are alternatives out there for enterprises to consider-- and just one of these is factoring agencies.
Factoring providers will, in substitution for your statements, supply you with the funds right now to make sure that you don't need to stress over the delaying duration that could make paying off the bills and obtaining materialsmore challenging. With this type of setup, invoice factoring can come to be extraordinarily valuable for plenty of companies who need to get out of a cash ploy which they have gotten themselves in.
Given that, relying on the size of the task, it can take up to 60 days for many establishments to get paid then it's essential to take care of your own back and definitely not leave yourself funds short to settle the bills. After all, how many businesses have two months revenue just occupying there to address all their bills until they get paid?
This is primarily correct of trucking establishments. They have the tendency to take care of numbers of accounts which means a substantial volume of collection period entails business owner themselves. Trying to get compensated promptly can turn into an extraordinary headache and this is exactly why you work with truck factoring organizations who are pleased to help out truckers particularly.
As we all understand, trucking is an incredibly huge business with lots of agencies out there working with hundreds of operators. Regrettably, plenty of these drivers end up in income issues for the reason that they are still waiting on work from six weeks back to actually compensate them. When this is the circumstance for a truck firm, depending on factoring firms for help maybe the most effective option left.
This means that a trucking firm can compensate the salaries of the personnel, keep all the cars loaded with fuel and continue to surmount, thrive and expand without always waiting for the resources which is taking too lengthy to come in. Trucking Companies working without a factoring system implemented are leaving themselves at substantial hazard, as contenders cash out fast and go on to expand.
There's genuinely nothing to be distressed about when it comes to working with a Factoring company-- they usually are not like a bank or an individual who is going to leave you with a substantial pile of financial debt to repay. You give them legitimate invoices from job you have already accomplished , you are only quickening the repayment system.
In the Usa, where truck companies grow, factoring firms are not considered taking on loan in any capacity. This confidential settlement then enables both parties to benefit and take pleasure in a worry-free future-- it gives the factoring agency a secured resource of revenue to add to the list and it gives the trucking business the required funds that they sweated to earn.
The trucking firm gives their invoices to the factoring agency. The trucking factoring firm then receive the payments from the trucking company's clients. Factoring has beenaround for centuries and has been utilized for decades by lots of different markets-- but none exceeding so than truckers. While you might lose out on a small part of the money, something like 1-3 % depending upon who you partner with, it indicates that you are obtaining the finances today and can actually start off putting the money to work.
Anyway, an IOU or an invoice is not actually going to fund spendings, is it? For trucking enterprises when the money can be excellent one day and gone the next, it's up to the vehicle drivers to work prudently and to make sure that they are leaving themselves with a substantial volume of time and money to get through the week till they are handed over once again.
So the next instance your trucking establishment is enduring some temporary cash flow dilemmas and you are devoting an excessive amount of time chasing slowly paying clients, why not begin thinking about using a factoring companies as a method to get your money and give yourself a more at ease future in the eyes of your trucking crew and your bank dividend?
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. 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.
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. 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 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
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. One of the main benefits of this kind of financing is that your business credit rating and your personal credit rating won't be affected. Should the unforeseeable happen and your business fails, you won't have to worry about anyone coming after your personal as well as your business assets to pay off a loan. The debt goes onto your credit report with a bank loan, with only one missed payment adversely affecting your business credit: it would also affect your ability to secure insurance, and may reflect on your personal credit rating as well.
2. There's no collateral required. Another 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. Plus, the state of your credit rating is not an issue; however the Trucking Factoring company will run a credit check on your clients whose accounts receivable are being offered for financing. This makes it easier for fledgling businesses to get the financing they need through a Trucking Factoring company (as long as their accounts receivables are in good order) then from a bank, who may not feel that you have been in business long enough to be worth the risk of issuing you a loan.
3. 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. Borrowing from a bank begins with vast amounts of paperwork, the loan must be underwritten, and this can take ages before you're notified if the loan has been approved.
4.You receive interest up-front. With a bank loan interest continues to build, and this has to be paid the whole time you have a business loan; however with a Trucking Factoring company there is no interest - they take it right off the top by deducting it from the total amount of receivable accounts. 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 from the above, there are some great benefits to financing through a Trucking Factoring company, and not through a traditional bank loan. 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 efficient at debt collecting, and this frees up your valuable time to devote to running your company.
Another bonus is that, because the Trucking Factoring company has evaluated the quality of your customers' credit before buying the accounts receivable, you learn valuable information regarding your customers, like which ones are likely to pay, and which ones are less likely to pay.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.