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Get Rid of Those Receivables! - Our Truck Factoring Company Can Give Your Freight Company The Money You Want


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Factoring invoices is advantageous for numerous reasons. It allows a truck firm to raise money without acquiring new financial obligation. While debt is often required, most truck companies would choose to raise cash without borrowing money. Debt is high-risk, and when it cannot be paid back, possessions can be repossessed. If the financial obligation is huge enough, it could even force a truck companies out of business.

 

Free Book Tells You 12 Secrets of Better Cash Flow - Choose The Best Factoring Company Instead Of A Typical Bank Funding

Exactly how to Enhance Money Flow Without Borrowing -Cash Money flow is among the main reasons businesses fail.

At one time or another, every company, even successful ones, have actually experienced bad money flow.

Money flow does not have to be a problem any more. Do not be fooled -- 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 option is called truck factoring. Trucking Factoring is the procedure of selling accounts receivable to a financier rather than waiting to collect the money from the client. Oh, the Irony- Truck factoring has an ironic difference: It is the monetary foundation of many of America's most successful businesses. Why is this ironic ? Since receivable financing is not instructed in business colleges, is seldom mentioned in company plans and is fairly unidentified to bulk of most of American company individuals.

Yet it is a monetary process that frees billions of dollars every year, enabling countless businesses to grow and succeed. Invoice Factoring has actually been around for countless years. Receivable Financing Companies are investors who pay money for the right to get the future payments on your invoices. An overdue receivable or invoice has value. It is a debt your client has agreed pay in the near future. Factoring Principals--Although factoring offers exclusively with business-to-business deals, a large percentage of the retail business utilizes a factoring principal. MasterCard, Visa, and American Express all utilize a form of factoring in their retail transactions. Using the purest meaning of the word, these big consumer finance business are really simply big Commercial Factoring Companies of consumer paper. Consider it: You purchase at Sears and charge it to your MasterCard. The store makes money almost immediately, although you do not pay up until you are ready.

For this service, the credit card company charges Sears a fee (typical common normal charges vary from two to 4 percent of the sale). The Advantages Receivable Funding can provide many advantages to cash-hungry business. Rather than wait 30, 60, 90 days or longer for payment on an item that has actually already been provided, a company can factor (sell) its receivables for money at a little price cut off the dollar value of the invoice. Payroll, marketing efforts, and working capital are simply a few of the business requirements that can be satisfied with instant  cash.

Account Receivable Financing offers the means for a manufacturer to renew inventory and make even more items to sell: There is no longer a need to await for earlier sales to be paid. FACTORING is not just a cash management device for manufacturers: Almost any type business can benefit from Invoice Factoring. Generally, a company that extends credit will have 10 to 20 percent of its annual sales bound in invoices at any given time. Think for a moment about how much is bound in 60 days' worth of invoices: You can not pay the power expense or this week s payroll with a client s invoice, however you can offer that invoice for the cash to satisfy those responsibilities. Using truck factoring companies is a quick and simple process. The factor purchases the invoice at a price cut, typically a couple of portion points less than the face value of the invoice.

 

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The United states Trucking Organization states that there around 200,000  work with transportation firms and 276,000 personal providers trucking firms accredited to operate in America that  transferred, according to their newest data of millions  products, materials and fundamental materials . There are a number of  common carriers either going solo or in teams on our nation roadways carrying these vital items to our shops, manufacturing facilities and ports.

Furthermore trucking factoring companies benefit numerous of them and offer their receivables financing facilities nationwide comprising including the following states.

: Alabama, 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

 

 

View Our Trucking Factoring YouTube Videos For More Information

 

Oilfield services Receivables Financing company Calculator
This calculator will show you how much you will make by using our Oilfield services Receivables Financing company . But, as your about todiscover, youwill certainly notice the increased cash flow that will occur when you use our Oilfield services Receivables Financing company
Enter the principal balance of your Oilfield services Receivables Financing company
(call your Oilfield services Receivables Financing company lender and ask for the current payoff amount):
Enter the amount of your monthly Oilfield services Receivables Financing company payment:
(invoice amount):
Enter the your Oilfield services Receivables Financing company's current interest rate:

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.

 

EveryTruckJob.com is a free service dedicated to helping professional truck drivers find new truck driving jobs with the best trucking companies hiring today!

Locate truck driving jobs by city, state, position andbenefits offered. Search current driving jobs and fill out the EZ truck driver application customized for cdl trucking jobs

 

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

 

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

 

United States Trucking Companies

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.

 

 

 

 

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Traditional Bank Loans

 

Finance through a bank loan is the normal, or traditional, way of financing your business. While these loans are handy they are not 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. Once the loan is paid off, you can then apply for another loan if the need arises.

 

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

 

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. 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. 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 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. With a Trucking Factoring company you can actually get the money you need faster. 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. 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 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 most important benefits is that once you sell your accounts receivable to the factory company, you don't have to take time away from running your business to collect the money owed from reluctant to pay customers. The Trucking Factoring company takes over that chore, since it is now their money to collect. Trucking Factoring companies are very good at collecting these debts, saving you the time and effort that you need to devote to your growing company.

 

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.While a Trucking Factoring company is not the only way for your business to obtain the money it needs to keep growing, it does offer a type of financing well worth considering.

 

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More Trucking Factoring Companies Story Articles

The key reasons why Trucking Establishments Work with Factoring Firms

 

As the operator of your own business enterprise, you may perhaps be much more than knowledgeable already of the difficulty in making sure that capital matters do not become a difficulty down the line. Anyway, the most disappointing thing that can potentially transpire for your enterprise is to find yourself embroiled in a long and tough situation that leaves you forever looking for the resources you need on an on-going manner.

 

For any type of business enterprise in this condition, the dilemma can come for waiting for work to clear up and actually be repaid into your account. Statements, checks, and the like could take a while to actually to beprocessed which could leave you with short-term cash flow issues. Thankfully, there are alternatives out there for establishments to check out-- and one of these is factoring firms.

 

Factoring companies will, in exchange for your accounts, supply you with the cash money today so that you don't have to worry about the lingering duration that could make paying the bills and purchasing materialsmore troublesome. With this type of setup, invoice factoring can become remarkably practical for several firms who have to avoid a money pitfall which they have gotten themselves in.

 

Since, basing on the volume of the task, it can take up to 60 days for a number of enterprises to get paid out then it's significant to take care of your own back and certainly not leave yourself cash short to settle the bills. After all, how many businesses possess two months profits just occupying there to pay for all their costs until they make money?

 

This is most especially true of trucking firms. They generally manage numbers of accounts which means a serious amount of collection time entails company owner themselves. Attempting to get paid out in time can eventually become an extraordinary hassle and this is the key reasons why you make use of truck factoring providers who are thrilled to help out truckers exclusively.

 

As we all understand, trucking is an surprisingly enormous business with numerous organizations out there utilizing hundreds of vehicle drivers. However, quite a few of these drivers end up in money difficulties for the reason that they are still anticipating work from six weeks ago to actually pay them. When this is the condition for a truck firm, depending on factoring companies for support might be the most recommended alternative left.

 

This implies that a trucking company can pay out the paychecks of the people, keep all the trucks loaded with gas and continue to go up, develop and expand without continually waiting for the money which is taking too long to come in. Trucking Companies operating without a factoring program applied are leaving themselves at critical hazard, as competitions cash out rapidly and continue to grow.

 

There's genuinely very little to be worried about when it comes to making use of a Factoring firm-- they typically aren't like a banking company or an individual who is going to leave you with a significant mound of personal debt to pay back. You give them genuine invoices from output you have already accomplished , you are merely quickening the repayment process.

 

In the Usa, where trucking agencies succeed, factoring providers are not considered taking on loan in any capacity. This private settlement then lets both groups to profit and take joy in a good future-- it provides the factoring provider a guaranteed resource of income to put into the list and it provides the trucking company the needed cash that they worked hard to gain.

 

The trucking enterprise presents their statements to the factoring agency. The trucking factoring business then receive the payment amounts from the trucking company's clients. Factoring has beenaround for hundreds of years and has been adopted for long times by several diverse industries-- but none more so than truckers. While you may well miss out on a small part of the money, something like 1-3 % depending on who you team up with, it means that you are obtaining the money today and can actually start setting the cash to operate.

 

Once and for all, an IOU or an invoice is definitely not going to pay for overheads, is it? For trucking companies when the money can be fantastic one day and gone the next, it's up to the drivers to work prudently and to make sure that they are leaving themselves with a significant amount of time and finance to get through the week till they are paid for again.

 

So the next moment your trucking business is enduring some momentary capital troubles and you are spending a lot of time chasing inactive paying clients, why not start thinking about using a factoring businesses as a means to get your money and give yourself a more comfortable future in the eyes of your trucking crew and your bank difference?

 

 

 

 

Watch Our Truck Factoring Videos For More Information

 

 

 

 

 

 

Trucking Factoring  Articles

?So it?s not a loan?? asked Stephen Wright, reclining back into his chair and crossing his legs. The woman sitting across the desk from Stephen smiled at him, shaking her head.?Not quite,? she said.Stephen Wright owned a small trucking company, and his business had recently fallen on difficult times. Trucking could be a profitable business, and for a little under a decade, it had been for Stephen. His company was called B and C Trucking, named after both of his grandfathers, Hank and Sam. Both of these men had been very hardworking and had set a great example for Stephen.Disaster had struck half a year ago, when two trucks in Stephen?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. Stephen 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 Stephen had on hand.A big problem a lot of trucking companies came across was how bills were paid in the industry. You could go a month or more before bills were completely paid off. This system works okay as long as no problems arise, but if they do, then things can get quite sticky.Stephen 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.That?s where the woman across the desk came in. Stephen knew she was employed by a Factoring company and that her name was Rebecca. 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.Rebecca explained. ?It?s not a loan, we purchase 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.Stephen agreed. It sounded good to him, almost too good.The woman laughed. ?You look like you don?t 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.?Rebecca nodded. ?We get that a lot. There's no way we want to see you lose your business. We know how hard you work, and that you've invested everything in your business. We all need help sometimes. That's 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,? Rebecca said with a smile. ?Let's work out a solution to your problem.?And right there and then they created a business profile. Stephen filled the form out, with Rebecca available to help him if he needed it. The completed profile gave Rebecca and her company all the information they needed on Stephen'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 were beyond factoring special brand of help, and sometimes things weren?t even dire enough for it. Listening as Stephen filled out his form, Rebecca was pretty sure he was a perfect candidate for factoring.Rebecca took the completed form and placed it in her briefcase. Standing up, she reached over the desk and shook Stephen's hand. He also stood up, and they smiled at each other. Stephen walked Rebecca 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. But now, after speaking to Rebecca and learning all about Factoring, he felt such a huge relief, like someone had just lifted a huge weight off 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 terrifying panic attacks that occurred regardless of where he was. He could feel it all fading 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 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 he had gotten bored. His passion didn?t lie with the food industry. He thought long and hard, and then he decided to sell the restaurant. He took six months off, and during that time he decided to create H&S Trucking. So he did it. For the second time in his short life he created a company from the ground up. The business had been an instant success.Then disaster! The two trucks went down and suddenly his success wasn't looking so guaranteed. He was nearing fifty. He didn?t think he had it in him, to save this company. But giving up wasn't part of his personality either. The idea of cutting his losses, shutting down, laying off his workers, it actually made him sick some nights. He didn't want to quit - both for himself and for his staff members.And now, because of factoring, he was sure he wouldn?t have to. Stephen's eyes opened, he sat forward in his chair and turned on his computer. He had things to do. He could be thankful later, for now, it was time to work.

 

 

 

More Trucking Factoring Company Story Articles

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Hill 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 Hill 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. 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 Hill 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 Hill, CEO of Hill felt a chill go down his spine whenever he would look at the weekly A/R reports. There was a growing list of clients who now owed them back debt.

 

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? When checking his bookkeeper's records this was definitely not 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 Hill money had jumped ship and decided to leave him holding the bag. 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 Hill hadn't gone elsewhere. They had just gone home.

 

This current state-of-affairs was causing Jim Hill to have some very restless nights. There were goods to ship, employees to pay, trucks to repair and maintain, and continuous overheads that were very extensive when compared to the funds (or lack of) that were incoming. After work he would confide in his wife, Sue, and neither were unable to stop the constant worry over the lack of funds.

 

""Lin, I have a really bad feeling,"" he'd sadly say to his wife.""What could you do differently?"" she would ask.Jim 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 on the road, delivering good to all his loyal customers. But somewhere, a haze would form over his fleet and the vast number of vehicles would disappear to but a few. What on earth was happening to create the death of his business?""I know what it is,"" Jim said. ""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.""

 

All Sue could do was hold his hand and look at him tenderly. 'We know it's a difficult economy at the moment - perhaps it will take a while for people to get on top of their bills'.""

 

Sue was trying so hard to support her husband in these worrying times, while Jim was weighed down with the worry of how he was going to handle this situation he found himself in.

 

The next day Jim strolled into his office and was determined to sit down and make every phone call to every client who had owed Hill money. Now, it wasn't the most efficient way to spend a day as a chief executive, what he really needed to be doing was to be overseeing all of the other intricacies of shipment and delivery and reaching out to prospective clients or retraining his sales team to do the same. But, he felt like he was doing something proactive to help his business, even though he had staff on salary to do just that thing. A waste of time - a waste of money - he had the best intentions, but all the while Jim was realising just how much trouble he was in.

 

Poor Jim 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.

 

""Can I have a word with you Jim?"" she asked standing in the doorway.""Of course Bev, please come in."" Jim leaned back in his chair and looked expectantly at Beverely.""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?"" she 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.""Jim interrupted ""Immediately?"".

 

""Yes, immediately,"" she continued, ""In a nutshell, it's pretty easy. 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???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. This company tells us what the cost will be to purchase factoring for our accounts receivable. Once we arrive at a mutual agreement, the funding begins.?

 

Leaning forward, Jim studied the documents very closely.""It sounds too good to be true, Bev,"" he said.""Yes, I know; that's exactly what I thought at the beginning. But really, they have guaranteed us experts that do all the legwork, which would free us up here to focus on our clients in good standing and marketing, all that good stuff. They appear to be very flexible, Jim,"" she drew a circle around a paragraph on the document before him.""Just how flexible?"" asked Jim.""It seems that they personalize their factoring charges so that the amount they're prepared to work with is commensurate with our client's debt and our needs. Apparently they can figure this all out in two to four days. ""

 

""That sounds pretty good, seeing as we tapped ourselves out with bank loans last year to repair the fleet and money sure is tight. We need to keep business rolling as normal and every day we?re going unpaid, we?re closer to facing some serious problems in both the short and long term,"" said Jim.Jim took in a long slow breath, then looked at his secretary with something like hope in his eyes.""Precisely?. 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 customers who were in debt to Hill Truck & Haul were professional resources of the company, but they were also long-standing friends. They didn't want to throw away these relationships because they were having trouble paying their bills now. 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, if he handled these debtors incorrectly, could spell disaster for both of them. He didn't want to lose business but he also didn't want to lose any more money.

 

""Well, let me think about this tonight Bev, thank you."" Bev 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. He wondered if there might be other problems freight factoring could help Hill Truck & Haul with? With his pencil gliding down the sheet he noticed that the factoring company could help fray the cost of fuel with fuel discount cards and fuel advances. In fact, Hill could receive up to fifty-percent cash advances upon load pick-ups. 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 Billy about this,"" muttered Jim to himself.Billy is Jim's son-in-law, and he really admired the ideas behind Hill, so much so that only two years before he had started his own transportation service business. Jim knew then what struggles Billy would face but he encouraged him nonetheless. With the faltering economy, if a big fish like Hill was hurting, a little guy like Billy was about to catch his death. Perhaps the antidote to these problems was in freight factoring, and they were about to find out.

 

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, Jim 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. 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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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. 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 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. 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 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. You Won't Incur Debt. You don't incur debt as you do with a bank loan because the Trucking Factoring company actually purchases your accounts receivable. This has many benefits including the fact, that this type of financing won't affect either your business credit rating or your personal credit rating. 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. 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 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. Once the Trucking Factoring company assures itself that the customers in your accounts receivable are likely to pay their debt, the money is usually in the account within 24 hours. With a bank, there are vast amounts of paperwork, then the loan has to be underwritten, which can take months before you actually see the loan if it is approved.

 

4.You receive interest up-front. Unlike a bank loan that continues to build interest that you have to pay the entire time you have your business loan with a Trucking Factoring company, you don't have to continue to pay interest as they take it right off the top, deducting it from the total amount of accounts receivable. So you don't have to worry about monthly loan repayments, and you don't have to worry about the amount of interest payable, because all the money in the account is yours to spend.

 

As you can see, there are several benefits that makes considering financing through a Trucking Factoring company over a traditional bank worthwhile. However, there are also a couple of other benefits that a factory company can offer your business is far beyond the scope of the bank. The most important benefits is that once you sell your accounts receivable to the factory company, you don't have to take time away from running your business to collect the money owed from reluctant to pay customers. The Trucking Factoring company takes over that chore, since it is now their money to collect. Trucking Factoring companies are very good at collecting these debts, saving you the time and effort that you need to devote to your growing company.

 

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.

 

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