Transportation factoring Companies For Freight Brokers


Offer protection to your business: 7  forms of insurance coverage


Starting a business is all about  opportunities,  exhilaration, and promise. But it should also be a time for  guaranteeing protection and security. And that  produces a comprehensive package of insurance  important for all  small companies. Also see Transportation  factoring Companies For Freight  Brokers


The  very first thing you  have to do is to  switch off your spigot of unbridled  wish for the moment and  as a substitute  figure out just what might  fail.  Although that may seem a bit macabre, it’s an  important step in  discovering those sorts of insurance risks that you’ll  eventually  must  take on.


Don’t  confine your risk  analysis to what you see yourself, have at least two insurance agents  carry out their own risk analysis of your business (it’s free, so don’t be  shy about getting two or more  studies). Try to  get insurance professionals who have  dealt with your type of business and are experienced in  finding what you  ought to insure and  just how much coverage is prudent. Additionally, check with your local town hall or state insurance office, as some communities and states mandate  specific forms of insurance coverage.


 Though insurance needs vary  extensively from one business to the next, here’s a  speedy checklist of policies you’ll want to  think of.


1. Business owner coverage. Otherwise  called “catch-all” coverage, business owner insurance provides damage protection from fire and other  misfortunes. Owner coverage also  provides a  level of liability protection.


2. Property insurance. This can  boost the property coverage offered by business owner insurance. Property insurance covers damage to the building that houses your business,  additionally to as items inside, such as furniture and inventory.


3. Liability insurance. In our  lawssuit-happy society, this may be as important a form of coverage as you can get. This covers damage to property or injuries suffered by someone else for which you are held responsible. This can take in a range of disasters, from the postal worker who sues you for a dog bite  acquired during a delivery to your home business, to the clumsy customer who  sears himself after you make your complimentary coffee just too  doggone hot.


4. Product liability insurance. You might want this form of coverage if you make a product that could  possibly harm someone else. For instance, catering businesses worried about some dicey-looking truffles or Brie would do well to tack on this coverage.


5. Errors and omissions insurance. This coverage is  specifically important to service-based businesses, offering protection should you make a mistake or neglect to do something that causes a customer or client some  impairment. A good example is doctor’s medical malpractice insurance, which practicing physicians are required to  have.


6. Business income insurance. This is disability coverage for your business. This  guarantees you get paid if you lose income  due to damage that temporarily shuts down or limits your business.


7. Automobile insurance. This last item should come as no  amazing  shock. If your business uses cars or trucks  somehow, you  will need to have this  form of insurance for collision and liability coverage.


The list might look  sizable. But  keep in mind the big rule:  Under no circumstances, ever  go for insurance you know  is  too little,  for instance, $300,000 in property insurance for a shop worth well more than half a million dollars.  Regretfully,  too little coverage is often the rule for beginning businesses. Not only can some owners have a  tough time  thinking of the worst happening,  substantial insurance premiums are often at the bottom of entrepreneurs’ preferred expenditures list:.


However, there are ways to  minimize crippling insurance costs. Start by  consulting appropriate trade associations or professional groups, as many offer  low insurance as part of a membership  deal.  Furthermore,  think of upping the size of your policy deductibles. Although that means paying more out of pocket if something  bad happens, higher deductibles can lower your premiums.


Finally, don’t  forget outsourcing certain elements of your business to  lessen insurance costs.  For instance, not every florist on the block  should maintain a fleet of delivery vans.  Even though that means having to pay  another to truck your roses  all around town, it does  remove the  cost of auto insurance, not to mention some of the liability if there’s an accident. See Transportation  factoring Companies For Freight  Brokers



Transportation Factoring Company Reviews


Factoring Companies- A  Chat With A  Small business owner


I’ve owned 11 businesses and still own four of them and  just in case you ‘d like to know one of them has an Letter Of Intent to Buy in hand and got to profitability  taking advantage of  INVOICE FACTORING ONLY and is  entirely – as in totally – debt free.  Exactly why? They  never ever had to borrow. See Transportation Factoring  Company Reviews


 Concerning having used or not used factoring: With three of them and soon  to become a fourth I have  made use of  invoice factoring.  Just why? You can capitalize the business without borrowing because factoring is not borrowing. FYI: One of those businesses fulfilled orders it could only have  hoped for  carrying out had it not used  invoice discounting. It’s the one with the LOI in hand in fact.


 Invoice discounting, like it or not, is actually a front end transaction that capitalizes a company without their having to borrow. It’s not complicated and only dates back to the Eqyptians … and still works.  About it not opening the flood gates? If you have a million dollars in invoices and can not borrow against them nor  turn them to cash your business (my businesses were any way until I factored) are dead in the water until you get in some cash. If you have some alternative to that then  let us all know . An invoice is a non-performing asset  until you can turn it into cash but I am sure that I’ll stand corrected.


QUESTION: If you as a business owner could  employ a sales person and they would help you access sales you  normally could not BUT you had to pay them a 2 % – 3 % – 5 % commission BUT they would increase your business 10 or 20 or 30 % would you hire that person? If you say yes to this then you are endorsing factoring. It’s not different than a credit card transaction. The business owner is selling the transaction to a third party to receive the payment so how is factoring different from cc transactions?


 About the cost of  receivable factoring? It appears that  surrendering 2 % on the front end of a credit card transaction is  ok (on a daily basis and using your  formulation in your reply  incidentally that calculates annually to 760 % by the way but we both know that this isn’t true now don’t we?). Why should a retailer accept cc processing? More business  perhaps?  More substantial sales? And what are doing? They are selling the transaction to the credit card company. Yes? No? FYI: I offer that service too … not  rocket technology.


 Invoice discounting  can be be  utilized by a company that is turning away sales and can not grow otherwise and note: The only time that they  use receivable factoring is when they  need to have working capital to  satisfy an order that they would otherwise lose. It’s like the sales commission: The only time you pay the salesman is when he sells i.e. it’s a sale you either didn’t have with the salesman or it’s a sale you can’t fulfill because your money if  shackled in your invoices and you can’t get it out.


That said it’s pretty simple equation when you can not access liquidity:.

1.) Factor and  surrender 3 % of the sale OR  dismisses the sale and  fail the customer and lose my profit margin … 10 %? 20 %? 30 %?


2.)  Use invoice factoring  and give up 3 % of the sale OR kiss off the sale and disappoint the customer and lose my profit margin … 10 %? 20 %? 30 %?


3.)  Use factoring  and give up 3 % OR kiss off the sale and disappoint the customer and lose my profit margin … 10 %? 20 %? 30 %?

What  aspect of being in business to maximize a profit am I  skipping?


As to the 24 % annually(or as above it would be 36 %) let’s keep in mind that the owner of the business above got to complete transactions that he or she otherwise wouldn’t have  had the chance to. Not a lot different than the retailer that get’s to close a sale with a customer comes in with their cc is it?


Also please explain this: A bank loans someone money ($100,000) at 9 % annually. A factor  gives $100,000 a month at a 2 % discount and  carries this out 12 times over the course of a year. Hmmmmnnn … the bank delivered $100K for 9 % BUT the factor  in fact delivered $1,200,000 for 24 % so which is the  far better  offer? The bank? It owns you: Invoices, inventory, equipment, your house and your signature … the  factoring firm has a right to your invoices: End. Which is  more desirable?


 Furthermore:  Precisely what happens with the bank when you need $200,000 and you are only approved for $100K? If you have invoices the  factoring firm funds you and you make the sales and  get the profit … the bank  says to you, “Let’s see how you do over the  subsequent year and come back” or the infamous reply, “We don’t like your collateral and your credit is weak” and the bottom line is that they don’t have ability to take the risk or perform the work that a  factoring firm does.


REMEMBER: MONEY IS NOT LOANED IN A FACTORING TRANSACTION. If you can not accept or  comprehend that then there is no sense in conversing  anymore on this …


In closing: To  associate to the last statement that  invoice factoring at 2 % monthly in discounted interest costs 24 % in interest margins annually then I’ll agree to that but only if it can be  acknowledged that a company that sells product with a 30 % monthly margin hereby  generates a 360 % annual profit to which you will  yell back “They’re not the same” and to that you ‘d be right:  Using a factoring company and borrowing money from a bank …  Are definitely not the same. Also see Transportation Factoring  Company Reviews



Transportation Factoring Costs


Good Credit Management  Recommendations &  Guidance About Collecting  Overdue Sales Invoices


The survival and prosperity of  each small, medium and large businesses is  contingent upon receipt of payment from customers in respect of the product and services that the business  offers and invoice for. It is not  good enough to secure the sales order and  supply the product if that sale can not be  transformed into cash.  Money is the  lifeline of every business and if debtors don’t pay outstanding invoices  in a timely manner it can  lead to  problems. See Transportation Factoring Costs


 Several businesses are  obliged to offer credit terms to customers in order to  stay  very competitive and win orders but this has a  bad effect upon their cash flow. The damage caused by non payment (bad debts) can also be  considerable, and the longer the period of credit that is offered the more  possibility there is for the customer’s circumstances to change, and  therefore payment to be  put off –  in many cases permanently. The secret to success is good credit management and credit control.


There are two  areas to  effective credit management. The first is taking care in choosing the businesses that you will  extend credit terms. The second is to  build and employ an effective system of credit control techniques to collect unpaid invoices.




The following  suggestions may be  valuable when  choosing  whether to offer credit terms to a customer:.


•  Regularly confirm the exact trading name of the customer e.g. XYZ Limited; XYZ Plc; Mr X and Mr Y trading as XYZ; or Mr X trading as XYZ. All of these are  distinctively  unique and  finding out the exact trading name  may be  crucial in pursing a customer for payment through the legal system, should the need arise. The customer’s headed stationery, business cards or brochures can  frequently be helpful in determining the exact name, although  always remember they  might be  wrong.


•  Provide the minimum credit period that will be competitively  appropriate. The longer the credit period the more chance there is that the customer’s financial  situations may change.


•  Ensure that that you have all the customer’s contact  particulars: addresses, phone numbers, fax numbers, mobile numbers, email addresses etc.  Ideally, take the contact details of the prime movers. These can be extremely helpful if you  have to  talk to the customer regarding unpaid invoices in the future.


• Trade references  could be  handy but most businesses will have at least a couple of customers that will  swear by them.


• Credit  facts about customers can be purchased from a  range of providers. This can give you  knowledge into the financial position of a business. You can also ask the customer to provide you with financial information about their business.


• If a considerable amount of credit will be at stake consider  paying a visit to the customer to  verify that the address given exists. A  pile of  data about a business can often be  acquired just by  going to their offices and noticing what is going on e.g. are they  swamped or is trade slack?


•  See to it that the customer has  checked out your terms of trade and has accepted the credit terms that you have agreed to offer.


•  Be sure you  learn the process for  sending your invoices and  getting payment from the customer e.g. who do you  give them to, when is their check run etc




The following  pointers and hints may be useful in  guaranteeing that you have an effective credit control process in place to collect unpaid sales invoices:.

•  Learn the customer’s payment process and procedures e.g. if you know the date that they  perform their monthly check run you can time your statement  as necessary.

•  Take into consideration “pre-dunning”, calling the customer before payment is due to confirm that your invoice has been received and that there are no reasons for non payment.

•  Start a systematic approach to  providing statements,  dispatching chasing letters (which gradually become firmer) and calling the customers.

• Keep copies of any correspondence and notes about telephone conversations.  Validate conversations in writing and  ideally  get the customer’s written  contract to any payment  vows.

• Try to call back and speak to the individuals concerned  in lieu of leaving messages on answer machines.

•  Think about other  techniques of  getting in touch with debtors e.g. text messages to mobile numbers or email and fax.

•  Make sure to remain calm but  self-assertive on the telephone.

•  Look into promptly on any broken promises of payment.

•  Minimize the process by emailing or faxing documents  as opposed to posting.

• If  required consider stopping further deliveries once invoices are overdue.


The field of credit management and credit control is  considerable and these are  just a few key points to  take into account.  A lot of businesses have staff in-house that undertake this  help them but there are alternatives.


Factoring companies  are experts in out-sourcing such services for their clients. They have specialist staff that can  carry out the collection of your sales  journal for you and  often this can be achieved with cost savings. The cost of  invoice factoring should be weighed against the cost of recruiting specialist staff or  dealing with the task yourself.


It is also possible to receive bad debt protection (also called non recourse) which can eliminate the need for you to worry about which customers are credit worthy. The factoring company will  look into the customers standing for you and they will grant a credit limit  for every customer. Also see Transportation Factoring Costs.



Transportation Factoring Services




Although industrial FACTORING has actually been used for over 200 years, it is particularly beneficial in today’s unpredictable economic environment. FACTORING includes the purchase of the invoices of an operating company by a 3rd party (the ‘Factor”). The Factoring Company supplies credit analysis and the mechanical activities included in with gathering the receivables. Factoring is a flexible financial tool providing timely funds, efficient record keeping, and effective management of the collection process. See Transportation Factoring  Services


Companies factor their invoices for numerous reasons, but a lot of frequently to gain higher CONTROL over those receivables. While the majority of elements of a company’s performance, i.e. stock control, labor expenses, overhead, and production schedules can be determined by its management, when and exactly how the business is paid is normally managed by its clients (the”Account Debtors”).


 Account Receivable Financing offers a means for turning your receivables into IMMEDIATE money! Other advantages of  Account Receivable Financing consist of: Security Against Bad Debts – Sadly, a negligent or overly positive method to the extension of credit by a business owner who is sales oriented by nature, and who follows the axiom” no company grows by turning clients away”, can result in financial catastrophe. A Factor provides you with a skilled, expert method to credit choices and collection operations by examining each Account Debtor’s credit standing and determining credit worthiness from a credit manager’s point of view.


Stronger Cash Flow – The funding managed by a Factor to its client is based upon sales volume instead of on conventional credit considerations. Generally, the quantity of credit obtainable is greater than the amount offered by a bank or other lender. This feature provides you with additional monetary leverage. 


So, why would not a business just go over to their friendly banker for a loan to assist them with their money flow troubles?  Getting a loan can be tough if not difficult, particularly for young, high-growth operation, since lenders are not anticipated to lower financing restrictions quickly. The relationships in between companies and their lenders are not as strong or as dependable as they used to be. The effect of a loan is much various than that of the Invoice Factoring process on a company.


A loan positions a financial obligation on your business balance sheet, costing you interest. By contrasts, FACTORING puts money in the bank without producing any commitment and frequently the factoring discount will be less than the current loan interest rate. Loans are greatly depending on the borrower’s monetary strength, whereas factoring is more concerned with the soundness of the customer’s consumers and not the customer’s company itself. This is a genuine plus for brand-new companies without established performance history.


There are numerous scenarios where Invoice Factoring can help business meet its cash flow requirements. By providing a continuing source of operating capital without incurring debt, Invoice Factoring can offer development opportunities that can considerably increase the bottom line. Essentially any company can benefit from Invoice Factoring as part of its general operating viewpoint.


When the Account Debtor has actually paid the amount due to the Factor, the reserve (less applicable.fees) is remitted to you on the terms set forth in the Master  Receivable Loan Financing Arrangement. Reports on the aging of receivables are produced on a routine basis. The Factoring Company follows up with the Account Debtors if payment is not gotten in a prompt fashion.


Due to the fact that of the Factoring Company’s experience in doing credit analysis and its capability to keep records, produce reports and effectively procedure collections, big numbers of our clients merely acquire these services for a cost instead of offering their accounts receivable to the Factor. Under thesecircumstances, the Factoring Company can even run behind the scenes as the customer’s accounts receivable division without alerting the Account Debtors of the assignment of accounts.


Typically, a company that extends credit will have 10 % to 20 % of its yearly sales tied up in invoices at any provided time. Think for a moment how much cash is bound in 60 days worth of invoices, you cannot pay the power bill or today’s payroll with a consumer’s invoice, but you can offer that invoice for the money to fulfill those commitments.


 Receivable Loan Financing is a reality and simple procedure. The Factor buys the invoice at a discount rate, typically a few percentage points less than the face value of the invoice.


Individuals think about the discount a small cost of doing business. A 4 percent price cut for a 30 day invoice is typical. Compared with the issue of not having cash when you need it to operate, the 4 percent discount rate is negligible. Simply the Factoring Company’s discount rate as however your business had provided the consumer a discount for paying cash. It works out the exact same.


Often companies that consider the discount rate the very same way they treat a sales price.


It’s just the expense of creating money flow, much like marking down merchandise is the expense of generating sales.


Receivable Loan Financing is a money flow device used by a range of businesses, not just those who are small or struggling. Numerous companies factor to lower the overhead of their own bookkeeping division. Others use  Receivable Loan Financing to generate money which can be utilized to broadenmarketing efforts and increase production. Also read about Transportation Factoring  Services



Transportation Factoring Program


Four Types of Invoice Factoring Companies

More or less, there are four  varieties of  invoice factoring companies:.

-  substantial,  establishment  receivable financing companies,

- full-service discount  receivable financing companies:

-  specialized niche  receivable factoring companies, and-  receivable factoring company brokers.

Eventhough full-service  factoring companies: make up the largest  percent of  factoring companies in the United States,  specialized niche  invoice factoring companies are gaining some ground. The  major  big difference  amongst the two is  capacity. Full-service  invoice factoring companies are  usually to  possess the financial  support needed to  take care of  almost any account, while  particular niche factors tend to be  smaller sized and  far more limited. Also see Transportation Factoring  Program.

When you have  limited your  option  to a  few of factors, you can  decide on your  factoring company based on how they  respond to a  number of  forthright questions– will you be in direct contact with a decision maker and how will your account compare to the  receivable financing companies’  other types of accounts? Take the time to get to  understand the factor  ahead of making a commitment. Look for stability, trust, and  professionalism and reliability. Most  notably, go with your  feelings.

In the event that you  find yourself in a position to  contrast  invoice factoring with bank loans, it won’t take long for you to learn the obvious. One is fast and flexible; the other is  snaillike and  strict.

Regulatory  criteria place  huge  restraints  about what banks can and can’t do for  many  firms.  Being  impartial, banks  do the job within an established set of  specifications. They must  look into your financial commitment to the business, the company’s cash flow for the last three years,  documentation of strong collateral, and your own personal wealth (and  possibly even that of your spouse). Factors,  conversely,  check out current sales and the creditworthiness of your customers.

The bottom line is that, for a growing  variety of  small companies, it is  just not  cost-effective for  the majority of banks to  authorize their loans. That is  perhaps why they make it so  tough to qualify. This  is among the  principal  good reasons  invoice discounting has grown into such a  wide-spread  operation– it is  supplying a  substantial  gap which was created when banks began  putting into effect stricter lending  criteria. Read also about Transportation Factoring  Program.



Factoring Companies For Freight Brokers


Upgrade Your Money Flow by using Invoice Factoring


  Nothing like a bank loan, the factoring company approval process can take  short of a week. The  trick to a  prompt  approved process is a  comprehensive and  correct client profile. You can save the factor hours, even days, when you are up front and hones  concerning the  information and facts requested. You should  offer  specifics about your clients and the  aging of their accounts.  Apart from a  clientele profile, you may  have to  supply specifics about your  firm  for instance, a  listing of the  clients,  amount of time in business, monthly sales volume, and a  summarization of your operation. Also see Factoring Companies For Freight  Brokers


 When approved, you can  assume to  work out terms and conditions with the receivable factoring company. The  agreement process  brings  numerous aspects of the  offer into consideration.  As an example, if you  would like to factor $10,000, you  just cannot  count on as  great a  agreement as a  business who  intends to factor $500,000.


 Through the negotiation process, you will become well aware of  precisely what it  takes to factor your accounts receivable.  According to the discount schedule you negotiate, a factor may  hold on to between 2-10 percent of the invoice’s  stated value as a  charge.  However,, when  evaluated against the cost of lost business or losing you business  altogether, the  value of the  charge  linked with factoring  decreases considerably.


 Shortly after you reach an agreement with the receivable factoring company, the  financing  tires begin to roll. The factor  performs due diligence by  analyzing your customers’ credit and any liens  set against your company. The receivable factoring company also  verifies the  authenticity of your invoice  just before  purchasing your receivables and advancing  money to you. See Factoring Companies For Freight  Brokers



Freight Factoring Company Reviews


Information on how a  Newfangled Financial  Innovation Made  a Typical  Firm  Outstanding


  As soon as your customers take 30 to 90 days to pay an invoice, you are  bankrolling their  company. They are  taking advantage of the money which is  really owed to you to  operate their  company …  dollars you  can be  employing to pay your  staff members, purchase new  tools or  expand your company in  various ways. Also search for Freight Factoring Company  Reviews


 Receivable factoring  empowers you to overcome the  issues created by your slow-to-pay customers by advancing to you a percentage of the invoiced amount.  Through this you have  funds  immediately after your service or product has been delivered, not 45 days later.


 Compared to traditional  kinds of financing, such as bank loans and venture capital,  invoice factoring companies  predominantly  check out the  credit reliability of your customers, not you.  In other words,  invoice factoring companies are most likely to say ” of course” when banks and investors say ” never”.  Thus,  despite the fact that you are a start-up  enterprise,  invoice discounting can  unlock previously closed doors to  business opportunity and growth. See Freight Factoring Company  Reviews



Freight Factoring Costs


The  difficulties of  financing a small business


The  thought that  alternatives available for  medium-sized business owners  fall to  selections between traditional financing,  factoring companies , or venture capital is the wrong way to  examine funding small business  efforts.  Even when the business  depends exclusively on debt financing to  sustain its capital  demands, business owners should  examine the financing options  readily available to them as a ‘portfolio’ of investment  choices. See Freight Factoring Costs


One size does not fit all– two or three sizes don’t fit all either.


The majority of the Main Street businesses we  discuss here will  sustain growth and fund working capital with borrowed money or cash flow.  Thankfully, there are a  number of options  accessible.  Regrettably, many small business owners look at the  selections as an either/or choice to be made. I think it makes sense to look at financing  alternatives that are appropriate to different  scenarios and how they might work together to help small business owners find the capital they need.


For example, a good relationship with a community banker is very important to the long-term health of a small business. That’s not to say an SBA loan or other traditional loan is  the very best and only  solution to the financing  demands of the local dry cleaner or restaurant. Yes, interest rates are lower on a traditional fixed-term loan, but how quickly a small business owner can  get capital can be  difficult with a term loan that takes weeks or months to fund if the small business owner  really needs the cash now.


And, the elephant in the room is that many Main Street business owners don’t have the credit, time in business, or revenues to  satisfy traditional loan criteria. This is  even more so painful for early or idea-phase startups. No history, no product, and no revenues  typically mean no loan.


For a business owner who doesn’t match the underwriting  guidelines of a traditional lender,  invoice factoring company products can  serve to help establish credit while  enabling the borrower to fill his or her short-term capital  demands.  Invoice Factoring Companies have less  rigid lending requirements than does the local bank– but that comes with higher interest rates. Because of  greater interest rates, small business owners should  review repayment terms of a few months  instead of a couple of years. Although  factoring company financing  can possibly be a  highly effective tool when used  properly, it can also be very costly if misused.


Many small business owners who do qualify for low-interest term loans still  go to  invoice factoring methods as a short-term bridge to a traditional term loan while they  anticipate a traditional loan  to become funded. If the business owner is trying to take advantage of an opportunity and can’t   an SBA or other traditional loan to close, the additional interest they pay over the two or three months they wait is well worth almost immediate  accessibility to capital offered by  receivable factoring .



When  checking out the many financing options  readily available for small business owners,  a number of the questions that should be asked include:.

1. What is the range of terms  readily available?

2. Are there any upfront costs?

3. What is the minimum credit score  needed  in order to get the loan?

4.  Precisely what are the underwriting  guidelines in addition to my credit score?

5. How quickly can the loan be funded?

6.  Will I  require the cash now, or can I  stand by?

7. Do I have the  capacity to make regular and  prompt payments?


A small business owner should  manage his or her credit score like a precious asset. Sometimes short-term financial  judgments have long-term  repercussions.  For instance; a business owner that had a  very good business  concept but no collateral, no income, and no credit was  distressed and upset that lenders weren’t interested in his idea and weren’t  gushing themselves to give him money. He wasn’t  considering bootstrapping because it would cause him to  downsize his growth plans. It wasn’t what he  would like to hear, but bootstrapping his idea was the only real  choice available and the approach I suggested. Many  exceptionally successful companies were  launched by an entrepreneur who bootstrapped his way to the top.


 Precisely what’s  the most effective  technique for your Main Street business? There are certainly more than one or even a  mix of many options– once size does not fit  everything. Also see Freight Factoring Costs



Freight Bill Factoring Services


Business  Finance:  Tips on how to Do It Yourself


 In contrast to what most small business owners  believe, financing a business is not rocket science.  Actually, there are only three main ways  to accomplish it: via debt, equity or what I call “do it yourself” financing. See Freight Bill Factoring Services


Each method  has benefits and drawbacks you should  take note of. At various stages in your business’s life cycle, one or more of these methods may be appropriate. Therefore, a thorough  knowledge of each  technique  is necessary if you think you may ever  have to  obtain financing for your business.


Debt and Equity: Pros and Cons


Debt and equity are what most people think of when you ask them about business financing. Traditional debt financing is  normally provided by banks, which loan money that must be repaid with interest within a certain time frame. These loans  normally must be secured by collateral  just in case they can not be repaid.


The cost of debt is relatively low,  particularly in today’s low-interest-rate  atmosphere. However, business loans have become harder to come by in the current tight credit environment.


Equity financing is  given by investors who receive shares of ownership in the company,  as opposed to interest, in exchange for their money. These are typically venture capitalists, private equity firms and angel investors.  Although equity financing does not have to be repaid like a bank loan does, the cost in the long run  can possibly be much higher than debt.


This is because each share of ownership you divest to an investor is an ownership share out of your pocket that has an unknown future value. Equity investors often place terms and conditions on financing that can  hog-tie owners, and they  count on a very high rate of return on the companies they invest in.


DIY Financing


My  preferred kind of financing is the do-it-yourself, or DIY, variety. And one of the best ways to DIY is  by utilizing a  funding technique called factoring. With  invoice discounting  programs, companies sell their outstanding receivables to a commercial finance company (sometimes referred to as a “factor”) at a discount. There are two key benefits of factoring:.


Drastically improved cash flow Instead of waiting to  get payment, the business gets  the majority of the accounts receivable when the invoice is generated. This reduction in the receivables  delay can mean the difference between success and failure for companies operating on long cash flow cycles.


 Say goodbye to credit analysis, risk or collections The finance company  conducts credit checks on customers and  evaluates credit reports to uncover bad risks and set appropriate credit limits essentially becoming the businesss full-time credit manager. It also performs all the services of a full-fledged accounts receivable (A/R) department, including folding, stuffing, mailing and documenting invoices and payments in an accounting system.


 Invoice discounting is not as  widely known as debt and equity, but it’s often more  helpful as a business  funding  instrument. One  main reason many owners don’t consider  invoice factoring first is because it takes some time and effort to make  invoice factoring work.  Many people today are  seeking out  immediate answers and immediate results, but  stopgaps are not always  offered or advisable.


 Getting it to Work.


For  invoice factoring to  function, the business must accomplish one  extremely important  detail: deliver a  top quality product or service to a creditworthy customer.  Undoubtedly, this is something the business was created  to perform in the first place, but it serves as a built-in incentive so the business owner does not forget what he or she should be doing anyway.


Once the customer is satisfied, the business will be paid  promptly by the factor it doesn’t have to wait 30, 60 or 90 days or longer to  get payment. The business can then  immediately pay its suppliers and reinvest the profits back into the company. It can use these profits to pay any past-due items, obtain discounts from suppliers or increase sales. These benefits will  often more than offset the fees paid to the  invoice factoring company.


By  invoice factoring, a business can  increase its sales,  establish strong supplier relationships and strengthen its financial statements. And by  relying upon the  factoring company’s A/R management  programs, the business owner can focus on  expanding sales and  improving profitability.  All this can  take place without increasing debt or diluting equity.


The average business factors for about 18 months, which is  the period of time it usually  requires to achieve growth objectives, pay off past-due amounts and strengthen the balance sheet. Then the business will likely be in a better position to  look for debt and equity opportunities if it still needs to. Also see Freight Bill Factoring Services



Freight Broker Factoring Program


Trade Credit Insurance Protects  Versus Customer Non-Payment



 Luckily, many companies that  make the most of  invoice discounting can  likewise  utilize a service that  assists protect them against the risk that the customer does not pay.


When you sell your invoices to a factoring  company, you get the funds upfront that you need for working capital and for  purchasing the  development of your business. There is no  requirement to wait for the receivables to age 60-90 days or in  lots of cases longer.  Profits  streams  straight to you, and you do not  need to  stress over collections. See Freight Broker Factoring  Program


 Invoice discounting by itself,  nonetheless, does not  always  shield you against non-payment by your  consumer. If  invoice factoring is done “with  option” and if your  consumer does not eventually pay the invoice– e.g., because of bankruptcy or for any other  factor– the factor can turn the invoice back to you.


The  Option: Receivables Factoring plus Credit  Defense


There is a solution,  nevertheless, that will provide risk protection in case your client fails to pay the invoice. It is called trade credit  insurance coverage or bad  financial obligation  security. It can be achieved in either of two ways.


The  very first  choice is  making use of an  developed  receivable financing  business that  provides a credit protection policy as part of its  receivable financing  bundles. One of the  finest things about  invoice discounting is that you can outsource your credit  division and  threat to the  element. If an invoice  decays, you are  shielded and the factor is  liable. This is  thought about a “non-recourse” factoring  center. The factoring  business has a master credit policy against bankruptcy or insolvency  versus your  customers. Under this  plan, if your customer fails to pay the invoice, you are  secured. An  well-known  aspect can offer this  due to the fact that they have the  capability to  transfer the  threat  amongst  lots of  customers.


A  2nd  alternative is trade credit  insurance coverage or credit protection, which would  include a factoring facility with a separate credit  insurance plan The  insurance coverage protects you against the  danger of the customer’s bankruptcy or  other  kind of non-payment.


This  kind of arrangement might seem to  provide greater flexibility than the non-recourse solution. But there is a significant  trouble with this  technique,  specifically with smaller companies or  companies with a concentrated  customer list– i.e., they  just have a  couple of  customers.  Lenders do not like it when you have very few clients– and this drives up the insurance rates you will pay. Therefore these policies can be  extremely expensive.


On the other hand, if you sign on with a factoring company that already has their own credit  insurance plan, then your receivables will be protected under their policy at no  additional charge to your  business. It’s a  concealed  advantage that  the majority of prospects  would not otherwise  find out about. You  must  constantly ask the factoring company if they have a credit insurance policy. See Freight Broker Factoring  Program



Trucking Invoice Factoring Companies


The best ways to Get Working Capital With Invoice Factoring Offered By Factoring Companies



For  numerous  companies,  creating enough working capital to keep things running can be a  difficulty. When the company invoices their  customers, they  might have to wait   around 90 days  prior to they   get payment  for goods or services they  have actually already delivered. While this  might be convenient for  consumers, it can put a  great deal of stress on a  company’s cash flow. See Trucking Invoice Factoring  Companies


Companies are  required to wait  prior to they  get  cash they  have actually already  made.  On the other hand,  companies  has to  continue as  typical. There are  expenses and  workers to be paid and supplies to be  bought. These things must be  dealt with even if a business has not yet been paid by their  clients. For  lots of companies,  handling this can be a  fantastic  difficulty. For some, it  might even cost them their  company. Many companies  count on  financial obligations to  instill  money into their coffers so they can   remain to  run, though this  isn’t really always necessary. 


Invoice  financing is rather  easy. A company  offers their invoices or receivables to a receivable factoring company. This invoice factoring company will  buy them at a discounted rate,  normally  in between 70 %– 95 % of their  complete value amount. This  cash is paid in  money and can be  utilized for whatever the business  requires it for.


The factoring company then collects on the invoices, returning the  cash to the  business they  bought them from, minus a fee. This  enables the  business who sold the invoices to  create the capital they  require to  run  and even grow their  company without assuming a bank loan. While  financial obligations can be an effective  means for a  business to raise  cash, it  isn’t really always the  finest or  most safe.


Anytime a person  gets a loan, they put their  company at  danger if they aren’t able to pay it back. Debt can put a company under a  significant  quantity of  tension,  since if they aren’t able to pay back what they owe, they  could  need to return property they purchased with debt or even be forced of their  company.


Invoice  financing leverages work that a company has already done. By selling their invoices, it is no longer necessary to  get a  company loan. Business loans can be  hard to to get, and they are nearly impossible to  acquire if a company  has actually not been operating for  extremely long time or if their credit is not  really  great. Invoice  financing also tends to be much  more affordable than a loan.


  The majority of factoring companies charge between 1 % and 3 %. The final  quantity  depends on a  variety of things,  mainly the credit worthiness of  clients and the due date on the invoice. An invoice due in 15 days will be  less costly than one due in 60 days. Also see Trucking Invoice Factoring  Companies



Trucking Invoice Factoring

Are  Funding Invoices and Trucking  Factoring the  very same? 

Truck Factoring and Financing Receivables Accounts Receivables Are the  Exact same!


The definitions of the  2 terms “financing receivables  invoices” and “factoring accounts receivables” are  almost one in the  very same. The words “financing” and “factoring” are interchangeable when it comes to  mentioning the process by which a  company  offers its invoices to a Truck Factoring Company for cash.


The following is a description of Invoice  Funding: “A  sort of asset-financing  plan  where a company  utilizes its receivables– which is  cash owed by  consumers– as  security in a financing  contract. A  business receives an amount that  amounts to a  lowered value of the receivables pledged. The age of the receivables has a  big effect on the amount a  business will receive. The older the receivables, the less the  business can  anticipate. Also  described as “factoring” or trucking invoice factoring
Invoice  funding, or Trucking Factoring is a method  wherein businesses of any size and within any  market can sell their accounts receivable invoices to a Truck Factoring Company  for cash. There is a common  misunderstanding that Invoice Factoring is  just used by  having a hard time or  not successful  companies as a last resort before they  go bankrupt or  ponder bankruptcy. This  might not be farther from the truth. Most businesses utilize Invoice Factoring in order to stabilize their cash flow. In other words, they use  to  quicken the  popular  3 month payment period that is  normal of  lots of customers, who usually do not pay their outstanding invoices  promptly.  Companies ranging from huge Fortune 500 companies to  mid-size start-ups have been  understood to  make use of Factoring as a means of offsetting  money flow  dilemmas.


The most  typical myth  connected Invoice Factoring is that it is only used by failing  companies. However, failing businesses usually do not have a huge number of current  overdue invoices. Invoice Factoring  business are in business of purchasing these invoices– – not lending money to failing  business.  In fact,  a lot of businesses that sell their invoices to Receivable Factoring companies turn around and  make use of the  money they receive to facilitate additional sales– which results in more invoices that can be factored down the  way.


In addition to the notion that only struggling  businesses  make the most of invoice  funding, there are several other  typical myths  connected  this service. Examples are as follows:.


 MISCONCEPTION: A  Company’s Customers will Become Upset When They  Recognize Their Invoices Have Been Sold to a  3rd party (e.g. a Factoring  business)– Due to the  truth that Receivable Factoring has become such a popular  methods of raising  fast cash for  companies, most  consumers are neither  stunned nor  concerned when their invoices are sold. In today’s  financial world,  many  consumers understand that businesses of all  kinds and sizes  make use of Truck factoring companies as a  way of expanding and growing and not as a last-ditch effort to  make it through. Because  lots of  effective  companies use  as a preferred  technique of managing their  money flow it is  extensively accepted and even endorsed by knowledgeable  clients.


When invoices are sold to Factoring companies, the Factoring companies send a letter, called a “Notice of  Project” to all of  business’s  clients  notifying them of the sale/transfer of their invoices.  Usually, the letter will explain to the customers why their invoices were  offered and will enumerate the  advantages of the sale (e.g. to support the  company’s  fast  development). In most  circumstances, the only  distinction the customers will see is the address where they are  advised to remit their payments. In essence, the factoring company  assures customers and answers any questions or concerns they  might have.  Nonetheless, in some situations,  companies prefer to  provide this information to their customers themselves– – and this is certainly something that Invoice Factoring companies will honor.


MYTH: Invoice Factoring Companies  resemble Collections Agencies and Will Harass  Clients Who are Late in Paying their Invoices– It is  crucial to  develop that Factoring  business are NOT collections  companies. But  since they are the owners of the invoices they  bought from a  company, it is their  top  objective to  gather every invoice that is  unsettled. Even so, they do not operate in the same fashion as  conventional  debt collection agencies, which are  well-known for aggressive and distressing practices .


Invoice Factoring  business do remind  consumers of unpaid or late invoices, but they  doing this in a  expert and  well-mannered way. Invoices that  stay unpaid for an  prolonged  amount of time are  handled on an  specific basis, which usually  includes collaboration between the Factoring companies,  business, and the customers.

MYTH:  Making use of a Factoring Company Costs a  Great deal of Money and it’s Not  Rewarding– is a  special business arrangement that is not the  like a business  securing a bank loan. It does not  include borrowing money at high  rate of interest.  invoices is intended to help  companies make  even more  cash. By receiving cash  swiftly for selling their invoices, a business has opportunities to  make use of the  offered  money Is  an  pricey  procedure? to grow and  hence to thrive. Therefore, the  expense of factoring invoices  ends up being  nearly moot  due to the fact that Invoice Factoring is  just being  utilized to launch a business forward. Another reason   makes sense and is a  rewarding  expenditure is that it  eases the need for a  company to employ an  whole  personnel for the sole purpose to accounts receivable.The savings on salaries alone  might  offset the  whole  expense of Invoice Factoring.  With Receivable Factoring,  business  generally pays a nominal percentage of the  overall invoices being  offered to the Factoring  business–  however this is  typically equal to a very  little cut.


 MISCONCEPTION: Receivable Factoring  Business Only Understand How Certain/Common  Kind of Businesses Function– The concept of invoice factoring has been in  presence for many decades.  Since it has  turned into one of the most commonly and  commonly accepted  approaches for a  company to  swiftly raise  money, invoice factoring companies  have actually expanded to  deal with businesses associated with about  every industry.


 companies are  understand that every business is  distinct, and they work to  totally understand each and every business with which they work. Businesses  need to not necessarily  prevent invoice factoring  merely  due to the fact that they think they are  special or  have actually seemingly complicated operation practices. 


 A lot of invoice factoring companies  have actually  taken care of extremely  complicated  circumstances and are experienced in  managing even the most  uncommon  situations.  Eventually, a  company  associated with any  kind of  item or service or   market that bills  consumers using invoices is a  prospects for Trucking Invoice Factoring.



Trucking Factoring Definition


Factoring Invoices: An  Exceptional  Funding  Choice for Small Businesses


Small  companies,  specifically those who have not been in existence for  extremely long, will  frequently find it  challenging to secure a loan. Banks are  commonly  reluctant to  provide  cash to businesses that don’t have a lot of income and  properties. They also  desire  evidence of the  practicality of a business and  hence  need that  the majority of businesses,  particularly small ones,  be in business for a  particular amount of time before they are willing to  turn over any money. Because a medium-size  company|   frequently has few cash generating  alternatives when needs  develop. One  alternative  offered,  however often  neglected, is invoice factoring. This is an excellent  method for a  medium-size  company to  acquire cash. See Trucking Factoring Definition


Factoring invoices is  useful for  a number of reasons. It  enables a  business to raise money without  obtaining  brand-new  financial obligation. While debt is sometimes  needed,  the majority of businesses would  like to raise  money without  obtaining money. Debt is risky, and when it can’t be  repaid, assets can be repossessed. If the  financial obligation is large enough, it  might even  require a  business  to close its doors.


Factoring  does not   these  exact same  troubles. The money paid to the business  offering their invoices is secured by those invoices. The work  frequently has  currently been done and the  company is  just waiting to  get payment.


Invoice Factoring invoices is also a  really  great  alternative because it is a  method for a  medium-size  company to get  cash really fast. More often than not ,  when a company is in a cash crunch, they  do not have much time to figure things out. Their employees have to be  paid, there are  materials to  get and rent to be paid. These things  typically  can not wait, at least not for a  long time.  For that reason, the time factor is critical. A  medium-sized  company will need  get funds as soon possible. Factoring  permits them to do that. The  business’s  very first experience with a factor  might  mean they wait 4-7 days to get paid.  Nevertheless, from then on it is  most likely they will  get money in  as low as  1 Day.


After all of the details  have actually been arranged, the factoring  procedure is  rather simple. A  business will  offer their invoices to a factor  around 95 % of their value.  For instance, a $100,000 invoice  could get $90,000. This  cash can be used for whatever the  business  desires to  utilize them for. After they  have actually received cash for the invoices, the  factoring company will collect on the invoices. The original terms of the invoices  are in effect. After they  have actually collected on them, the money is  goes back to the  business they  bought them from, minus the  factoring company’s  cost. It’s as  easy as that. Read Trucking Factoring Definition



Trucking Factoring


The Essentials of Truck FACTORING


Over the past fifteen years, growing varieties of small and mid-sized trucking businesses have actually started to check out Truck Factoring as a practical source of working capital. Regrettably, the accessibility of precise, updated information has actually not kept pace with the mounting interest in this much under-utilized type of commercial funding. Wefor that reason provide the following discussion for those seeking a more comprehensive understanding of this dynamic alternative to conventional debt/equity financing.


Exactly what is  Account Receivable Financing?


The term “FACTORING” describes the straight-out purchase and sale of accounts receivable (A/R) invoices at a discount rate from their stated value. The structure, terms and conditions of such a deal may differ in any variety of ways, as evidenced by the variety of factoring programs presently readily available throughout the United States.


Business engaged in business of getting accounts receivable are called “factors.” Factoring companies typically exhibit a versatility and entrepreneurial awareness hardly ever demonstrated by banks and other secured lenders, whose activities are more typically restricted by policy and prevailing law.


Business offering their receivables are generally referred to as “customers” or “sellers” (not “customers”). The customer’s clients, who actually owe the cash represented by the invoices, are generally referred to as “account debtors” or “clients. Classically, there appears to be no industry-wide term of art to explain the real event that happens when an invoice factoring company accepts invoices for purchase. Common terms for this event include: “schedule,” “funding,” “advance,” “project” and “deal.”


The money which a factoring company problems to a client as initial payment for factored invoices is normally called an “advance.”.


Truck Factoring differs from commercial financing due to the fact that it involves a transfer of assets rather than a loan of money. In assessing risk, for that reason, factoring companies look primarily to the quality of the possession being purchased (i.e. the capability to collect client receivables, as opposed to to the underlying monetary condition of the seller/client. This focus makes factoring a suitable vehicle for many growing businesses when traditional commercial borrowing verifies either unwise or not available.


Specifying Accounts Receivable.-

In the truck factoring market, the term “invoice” normally refers to short-term commercial trade financial obligation having a maturation of less than 90 or, at the outside 120 days. To be sure, invoice factoring companies sometimes get offers to acquire longer-term financial obligations,commitments, such as leases or industrial notes. The purchase of such debt instruments, nevertheless, does not fall within the significance of the term “factoring” as it is most commonly utilized.


Invoice Factoring Companies are universally fast to distinguish between invoices which represent lawfully enforceable debts and purchase orders (which do not). The majority of invoice factoring companies decline to advance money versus order under any conditions. A few, however,have developed separate purchase order funding programs.


Similarly, factoring companies normally refuse to purchase “pre-ship” invoices that clients in some cases create prior to shipping products or supplying services to account debtors.


Lots of trucking factoring companies will instantly terminate a factoring relationship if they find that their clients are trying to factor “pre-ship” invoices.


Truck Factoring Companies vs. Accounts Receivable (A/R) Financing.-


Although factoring is sometimes confused with A/R lending, it differs both legitimately and operationally. Lawfully, a factoring company takes instant title to the invoices it purchases. The A/R loan provider, on the other hand, never ever takes title to invoices unless and until the borrower defaults on its loan arrangement.


In connection with the transfer of title, the factoring companies purchases the right to collect payments straight from account debtors, who hence become legitimately obliged to the factoring companies. An A/R loan, nevertheless, does not legitimately oblige account debtors to pay the loan provider directly, except when the loan provider notifies them of a default by the borrower.


Further, while an A/R lender will have virtually no communication with specific account debtors, the typical factors will discover it required to contact them straight as a matter of course.


A/R lenders do not generally take an active duty in collecting invoice payments, although they may often set up a “lockbox account,” to which a provided customer’s entire invoice earnings should be initially directed and deposited. Under this arrangement, the lender (or designated trustee) then “sweeps” the lockbox on a regular basis, deducts for the advantage of the loan provider any exceptional loan payments, charges or other charges due from the customer, and transfers the continuing to be balance in the borrower’s operational account. This system allows the lender to monitor basic cash flow, ensure instantly readily available funds covering the borrower’s responsibilities to the loan provider, and preserve access to the collateral if the borrower defaults.


A trucking factor, nonetheless, must directly gather the proceeds of particularly bought invoices in order to recuperate its advances and fees. General administration of a lockbox needs fairly little functional effort as compared to the myriad processing, collection and reporting activities which invoice factoring companies routinely perform (see “The Factoring Procedure below). The reality is, unless they also provide factoring services, the majority of secured lenders do not have the needed operating capability to collect and handle an invoice portfolio of even moderate size.

Because many monetary service business offer even more than one type of financing it is not uncommon to find aspects likewise engaging in A/R financing. In basic, A/R lending programs have the tendency to be rather cheaper than factoring (although not always).


A/R loans can be more difficult to obtain, nonetheless, considering that loan providers usually anticipate higher monetary strength from customers than factoring companies do from clients.


In some cases the distinction between factoring and A/R loaning becomes less clear. For instance, recourse factoring, which is gone over below, has specific functions that make it lawfully similar to A/R loaning in some states, despite the fact that it is operationally dissimilar.



Trucking Factoring Companies


5  Great  Factors A  Business  Ought to  Use A Factoring Company


One of the most noted  advantages of  using a factoring company is the  capability for a  business to quickly raise cash when a  standard loan is unattainable, or when the company is experiencing rapid  development and needs  buy  products, pay  suppliers and cover  costs. See Trucking Factoring Companies


 Nevertheless, this is not the only advantage. There are a  substantial number of reasons why companies  need to  think about accounts receivable factoring. 


1. Using factoring companies is an extremely  quick  method for  business to raise  cash:


A factoring  offer can be done in only a  couple of days. A  business can have  money in a  really short amount of time. This can be extremely  advantageous for a  business that is desperate for cash or that is looking to  rapidly  broaden their operations.


It can take a  significant  quantity of time  getting a loan  then hearing back from them on whether or not they are  ready to  supply a company with the money needed. A business may not have that amount of time. The  income of their  company  might  rely on getting  cash fast.


2. Using a factoring company shortens the collections process: Businesses  in some cases  need to wait weeks  and even months before they are paid for services rendered. During this time, they  could be cash poor and  might not have the funds  readily available to grow their  companies  and even pay for  existing  business expenses.


3. Using a factoring company allows  business to  generate  cash without taking on new  financial obligations:  Financial obligations can be an  reliable tool to  develop and sustain a  company.  Nonetheless, it can  likewise be  dangerous,  specifically for  brand-new businesses. Factoring  permits  business to receive  terribly  required capital without  depending on an expensive loan.


4. Using factoring companies can be a  excellent  choice for companies having  problems  getting a bank loan: Getting a business loan has  constantly been challenging. Today, it is even tougher  due to the fact that banks are holding on tighter than ever to their  cash.


If a company has not  been around  extremely long  or has had  issues  paying back loans in the past, the  probability they will be able to  get a bank loan is  quite small. In this case, a  great  option would be for a company to  utilize receivable financing services.


5. Using invoice factoring companies can  assist companies that have no collection department or an understaffed one: For  start-ups  companies that don’t have a collection  division or  appropriate  workers, factoring companies can  offer a much needed service. Factoring can provide them with what they  require for money to  make it through and/or  broaden by advancing  cash for their invoices  and afterwards collecting them. The seller will obviously have to pay for these services,  however it is well worth it for  lots of  companies. Also see Trucking Factoring Companies



Truck Factoring Costs

Trucking Business  Finance:  Tips on how to Do It  By yourself


 In contrast to what most small truck business owners  believe,  funding a business is not rocket science.  As a matter of fact, there are only three main ways  to perform it: via debt, equity or what I call “do it yourself”  funding. See Truck Factoring Costs


Each method comes with benefits and drawbacks you should  know of. At various stages in your business’s life cycle, one or more of these methods may be appropriate. Therefore, a  comprehensive  knowledge of each  approach  is very important if you think you may ever  want to  obtain financing for your business.


Debt and Equity: Pros and Cons


Debt and equity are what  lot of people  imagine when you ask them about business financing. Traditional debt financing is  often provided by banks, which loan money that must be repaid with interest within a certain time frame. These loans  generally must be secured by collateral in case they can not be repaid.


The cost of debt is  reasonably low, especially in today’s low-interest-rate  setting. However, business loans have become  more difficult to come by in the current tight credit environment.


Equity financing is  offered by investors who receive shares of ownership in the company, rather than interest, in exchange for their money. These are typically venture capitalists, private equity firms and angel investors.  Though equity financing does not  need to be repaid like a bank loan does, the cost  ultimately  can possibly be much  more than debt.


This is because each share of ownership you divest to an investor is an ownership share out of your pocket that has an unknown future value. Equity investors often place terms and conditions on financing that can handcuff owners, and they expect a very high rate of return on the companies they invest in.


DIY Financing


My  absolute favorite kind of financing is the do-it-yourself, or DIY, variety. And one of the best ways to DIY is  by utilizing a financing technique called  invoice discounting. With factoring  products, companies sell their outstanding receivables to a commercial finance company (sometimes referred to as a ” invoice factoring company”) at a discount. There are two key  advantages of factoring:.


 Significantly  bolstered cash flow  Rather than waiting to  get payment, the business gets  the majority of the accounts receivable when the invoice is generated. This reduction in the receivables lag can mean the difference between success and failure for companies operating on long cash flow cycles.


 Say goodbye credit analysis, risk or collections The finance company  conducts credit checks on customers and  scrutinizes credit reports to uncover bad risks and set appropriate credit limits essentially becoming the businesss full-time credit manager. It also  conducts all the services of a full-fledged accounts receivable (A/R) department, including folding, stuffing, mailing and documenting invoices and payments in an accounting system.


 is not as well-known as debt and equity, but it’s often more  useful as a business financing  instrument. One  explanation many trucking owners don’t consider  trucking factoring first is because it takes some time and  energy to make  invoice factoring work. Most people today are  seeking out instant answers and immediate results, but quick fixes are not always  accessible or advisable.


 Getting it to Work.


For  trucking factoring to work, the business must accomplish one  extremely important thing:  supply a quality product or service to a creditworthy customer.  Undoubtedly, this is something the business was created to do  initially, but it serves as a built-in incentive so the business owner does not forget what he or she should be doing anyway.


Once the customer is satisfied, the business will be paid  promptly by the  factoring company it doesn’t have to wait 30, 60 or 90 days or longer to  get payment. The business can then promptly pay its suppliers and reinvest the profits back into the company. It can  utilize these profits to pay any past-due items, obtain discounts from suppliers or increase sales. These benefits will  generally more than offset the fees paid to the  factoring company.


By using a truck factoring company, a trucking business can  increase its sales,  establish strong supplier relationships and strengthen its financial statements. And by relying on the  factoring company’s A/R management  products, the business owner can focus on  increasing sales and  boosting profitability.  All this can  happen without increasing debt or diluting equity.


The  typical truck business uses trucking factoring companies for about 18 months, which is  the amount of time it usually  requires to achieve growth objectives, pay off past-due amounts and strengthen the balance sheet. Then the business will likely be in a better position to  look for debt and equity opportunities if it still needs to. Also see Truck Factoring Costs



Truck Factoring Brokers


Funding A New Business By Factoring Companies


For brand-new business, the ability to get a bank loan is almost nil. The vast majority of banks will not even think about loaning cash to a company that hasn’t been in company a minimum of 3-5 years. They consider it too much of a risk. See Truck Factoring Brokers


Business that are brand name brand-new likewise have not developed adequate credit history, and so the capability to identify their credit worthiness is just not possible. Banks, particularly in today’s financial environment, are simply not prepared to provide money to business with little or no credit history. Luckily, there are other choices offered for businesses just beginning.


Invoice factoring is a viable choice and can be extremely useful to business wanting to grow.


Factoring invoices in order to raise cash is a lot easier then attempting to obtain a bank loan. There are no extensive, monetary audits. Companies with below ordinary credit can qualify since the factor is more worried about the credit history of the business’s clients than they are about the business’s credit.


Another fantastic advantage is that factoring permits companies to money certain jobs without a loan. As an outcome, when a company is in a position to receive a loan, they will be more most likely to certify for it due to the fact that they do not have a surplus of existing debt. Below are few of these benefits more in depth:.


Even company with below ordinary credit can qualify for factoring: Among the most significant obstacles for business trying to obtain a bank loan is their credit. Banks typically just want do business with and loan cash to business that have clean credit records. Therefore, business that have a few imperfections might be immediately omitted from using a factoring company even if they are strong in other locations.


Factoring business consider the credit worthiness of a business’s customers since that is who they will be gathering from. They are not as concerned about the credit history of the company offering the invoices.


Factoring is not a loan; factoring includes a company selling their invoices or invoices. This is not a loan by any methods. This makes the company appear more powerful on their balance sheets due to the fact that they are not bogged down in debt.


A company can offer as numerous or as couple of invoices as they such as.


Factoring permits a fast money mixture: Imagine if your business required money in 8-10 days. The chance of your business being able to protect a new bank loan in this time frame would be small. In fact, it would probably never occur. Nonetheless, getting cash in this quantity of time may be possible with factoring. Factoring can help your business get the cash it needs in as low as 2 Days. It is much simpler and requires far less work than attempts of securing bank financing. Also see Truck Factoring Brokers



Truck Factoring Services


Exactly how to Enhance Money Flow Without Loaning


Cash flow is one of the primary reasons companies fail. At one time or another, every business, even effective ones, have actually experienced bad cash flow. Cash flow does not have to be an issue any ever more. Do not be tricked– banks are not the only locations you can get funding. Other solutions are readily available and you do not have to take out of loan. See Truck Factoring Services


What  is a truck factoring company?

One option is called truck factoring. 

Oh, the Irony …


 Trucking factoring has a paradoxical difference: It is the financial foundation of many of America’s most successful companies. Why is this ironic? Due to the fact that  trucking factoring is not instructed in business colleges, is seldom discussed in company plans and is relatively unidentified to most of American business individuals. Yet it is a monetary procedure that releases up billions of dollars every year, allowing hundreds of companies to grow and flourish.


 Receivable Loan Financing has actually been around for hundreds of years. FACTORING Businesses 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 financial obligation your customer has actually  to pay in the near future.

Factoring Principals–


Although factoring deals solely with business-to-business deals, a huge portion of the retail company utilizes a factoring principal. MasterCard, Visa, and American Express all make use of a form of factoring in their retail deals. Utilizing the purest definition of the word, these large consumer finance companies are truly simply large  Receivable Loan Financing Businesses of customer paper.


Think about it: You purchase at Sears and charge it to your MasterCard. The shop gets paid almost right away, despite the fact that you do not pay up until you are prepared. For this service, the credit card company charges Sears a charge (common charges vary from two to 4 percent of the sale).


The Advantages


 Trucking factoring can offer lots of benefits to cash-hungry business. Rather than wait  30, 60, 90 days or longer for payment on an item that has already been delivered, 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 company requirements that can be met with instantaneous money. Account Receivable Financing offers the means for a manufacturer to renew inventory and make more products 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 makers: Nearly any kind business can profit from  Receivable Loan Financing.


Normally, a company that extends credit will have 10 to 20 percent of its annual sales bound in accounts receivable at any given time. Think for a minute about how much is tied up in 60 days’ worth of invoices: You can not pay the power costs or this week’s payroll with a consumer’s invoice, however you can sell that invoice for the money to fulfill those responsibilities.


 Using trucking factoring companies is a fast and easy process. The factoring company buys the invoice at a discount rate, usually a few portion points less than the face value of the invoice. Also read about Truck Factoring Services



Truck Factoring Reviews


The Oilfield Factoring Story 


A thick smoke came out and Bryan Figueredo felt a sense of deep disappointment. The engine of his truck failed to work. Bryan slapped the truck’s hood in frustration because he had a crew full of new welders out on a line and they needed some extra supervising. He had foreseen this happening, the engine of his truck dying but he thought it was okay to keep repairing it and was expecting it to last a bit longer. There was just not enough budget from his company the Burton Oilfield Services to buy a new vehicle. He already had spent the money for new pneumatic trailers so they could do the frac sand hauling services for his clients. It was a beauty but expensive. See Truck Factoring Reviews.


Burton had kept the company small and just handled welding since the start, though a company was like a child and needed to grow. The frac sand business began to boom in their area so he made a decision to invest all the company’s money into this because its really not easy to feed a family using only the white paper where invoices are printed on. Now he doesn’t know what to do because if he buy a new truck he wouldn’t be able to pay his new workers at the end of the month.His employees will surely be unable to pay their bills using the invoice and they could surely not wait for 90 days for the customers to make payments.


His pal named Dan had suggested for him to contact a factoring company so he could have new cash flow to buy new trailers for the company at a meeting. Dan was telling him about it because he had bought a pneumatic trailer too with the factoring money. Competition is present between the two of them and it cannot be avoided but Bryanknew that Dan is way more advanced compared to him and his company.This factoring idea might work for his company too and he thought with a smile, it might give him something to brag about to Dan at the next Elks Lodge meeting.


Bryan hitched a ride from one of his crews to return to his office. He heard a good report back about the new guys and then began researching factoring companies online. There were plenty of factoring companies he can choose from. Several of these companies were so huge and even handled factoring for industries outside of the trucking business. Others were small time companies which offered factoring for businesses in the oilfield industry. He went for half and half. He called a few of the big companies and he called a few of the smaller ones. What he learned about factoring amazed him.


He almost couldn’t believe its true. There was no interest, therefore he wouldn’t have to spend even 1 cent above the amount of the invoice just to get the money he needed. It was way better than getting a loan from the bank where you would have to pay for the amount you borrowed plus the interest. Credit was also not an issue and he was not even asked about it plus there was no background check on his or the company’s credit report. The company was only concerned whether the clients on the accounts receivables were reliable enough to make the payments and he knew that they were as he had checked it himself.


There was little Bryan loved more than being out the on the line with his crews.He hated being trapped in the office doing paperwork and he preferred the laughs with the guys much more the meetings with his administration.So it was a big bonus for him to have a large section of his office work taken over by the factoring company who offered credit analysis of potential customers, accounts receivable management, and much of his overall billing. Not only that but he also had the choice to decide which accounts would go to the factoring company therefore he can choose to keep accounts which are in super close relationship with the company. Bryanhad a sense of confidence since he knew that the factoring company has already started a great working relationship with most of his most important clients, therefore it was an easy move to put all of them in the accounts receivables to be handled by the factoring company.


Once he had chosen a factoring company, all he had to do was to fill out an application that required having his secretary fax documentation and an accounts receivable report.The next thing he knew the factoring company was sending back a contract to sign and the price for his invoices paid promptly to Burton Oilfield Services. The cash that was sent to him was almost 85% of the invoice value. Some money had been saved as a reserve by the factoring company and would be reimbursed once the invoice was paid in full by the customers, but Bryanhad no worries. He trusted the customers that he had brought on board and knew he would be able to get that reserve back later. The main part of the cash is already in his hands and is now a ready source of funds for doing things so his company can continue to thrive.


Bryan and his company are now able to expand to more work. All he had to do was to keep the invoices coming and the money would be there ready and waiting so he could bid for twice as many jobs as he had before he turned to factoring. Now he did not have to worry about where the money for equipment, men, or even the fuel for transport would come from for the new projects. Furthermore, he can hire additional journeymen pipe layers as well as professional welders for those big automated welding projects or perhaps decide to be a leader in hand welding. He can imagine feeling so proud while telling Dan at the next Elks Lodge meeting that he has purchased new cold bending equipment. One of the things Bryan really wished to do was to be able to give a raise to his workers. They hadn’t receive any raise for a span of a year and a half. For him, his crew deserved more paycheck as compared to the union men. Factoring gave him a lot of possibilities which he never imagined would be possible for him. A free source of cash would certainly enable him to achieve his dream of expanding and developing his business so that it can become a huge company which he always believed it could be. Also see Truck Factoring Reviews



Truck Factoring Rates


Oil Well Cleaning: Interview with Owner


There’s a renewed interest in searching and drilling for oil these days, both on state and private properties, with the oilfield services business becoming a fast-growing industry. Apart from the actual drilling for oil, one of the more lucrative ventures in this field is the cleaning of gas and oil wells in order to maintain full operating efficiency. Oil and gas drilling is a dirty business and wells will quickly become clogged even with regular maintenance. See Truck Factoring Rates.


Larry Smith is the owner of an oil well cleaning company who works with several drilling companies in providing cleaning and maintenance of oil wells. Over the past couple of years, Larry has managed to grow his business considerably thanks in large part to his perseverance and determination. However, things were really tight when Larry first started up his company and at one point he was faced with a dilemma that he didn’t know how to overcome.


The following interview with Larry tells how he managed to expand his company at a crucial time thanks to oilfield services factoring. If it wasn’t for the presence of factoring companies that worked in his field, Larry might be in a completely different business today.


“Good morning Larry. Thank you for taking the time from your busy schedule to meet with me and share your story.”

Larry Smith: “Thanks, I’m glad to be here.”

“Larry, tell us a little about how you got into the oil well cleaning business first as it’s something our listeners may not be fully aware of.”


JF: “Yes, certainly, I’ll tell you how it all started. About ten years ago I joined an oil well crew as a roughneck, working my way up through the business. It was pretty hard work, and usually we were out in the middle of nowhere; but advancement opportunities kept coming up for me, and the money was really good. I was fortunate that I was able to learn the business pretty quickly, and was soon hired by a few drillers to manage their rigs over the next few years while we were in the oil industry boom.”


“Even in the beginning I was noticing the oil well cleaning guys that worked the rigs, and I got to know them pretty well over the years. It slowly dawned on me that oil well cleaning could be a very profitable business because the work was steady and the money was good – probably better than I was making at the time. So, with the money I had saved up along with a couple of partners I opened up an oil well cleaning company of my own.”


“It certainly sounds like you struck gold so to speak. So tell us how your business started.”


JF: “It was pretty straightforward as we got our business loan, purchased the equipment and hired a couple of experienced people to help us clean oil wells. We had some pretty good connections and the orders started to pile in, but then we ran into a problem that none of us could even dream of happening. We became victims of our own success.”

“I don’t think I quite understand, could you explain just how that happened?”


JF: “Certainly – our business was raging, then about six months into it we had new drillers wanting our services, but we just didn’t have enough money to expand. Because we get paid on our invoices, payment can take anywhere from 30 to 60 days, and this meant that we were paying payroll, paying down the loan, and buying equipment, fuel and other running costs, and there was no cash on hand to enable us to expand. We were in a situation where, if we couldn’t hire new staff members and purchase new equipment, we would miss these great business opportunities. However, one of my friends told me about oilfield services factoring companies that could help us out.”

“What are factoring companies?”


JF: “What a factoring company does is to basically buy your invoice and give you immediate cash. We had good credit and our invoices were certainly good as well. By using the factoring company we had access to immediate cash and were able to buy new equipment in order to expand our business.”

“It certainly sounds like the factoring companies saved the day for you, but just how do they work?”


JF: “Well, it was a pretty simple process. We just filled out a few forms with the information that they requested and then we sold the invoices we had already collected, but had not collected to the factoring company. We got the cash we needed immediately and they collected the invoice.”

“It does sound very simple and straightforward, but were you not able to just get another loan?”


JF: “This was something that my partners and I discussed, but we all felt that paying off yet another loan would just be another burden. We were still paying off the original loan which was quite considerable, and none of us wanted any further debt. By going with the oilfield factoring companies, we didn’t owe anyone, anything. We just collected the money that we were owed a lot more quickly.”

“So, how is business today?”


JF: “It’s amazing – better than ever. By using a factoring company I was able to buy new tubing, cleaning fluids, a new vehicle and other equipment that let us take on the new orders. Our business has expanded a lot, and with our already great reputation we’ve been able to work with even more drilling companies.”

“It certainly sounds like a great business idea – a dream come true for you, I guess.”


JF: “Absolutely, and I’m not sure how we would have proceeded if there were no such thing as factoring companies. We still use them when we need cash for new equipment or products to do our job. It’s immediate, it’s safe, and it provides us with money in order to continue growing our business.”


Larry’s company really benefitted from using oilfield factoring companies that served his industry. There are factoring companies for other types of businesses as well that can take invoices and turn them into quick cash for businesses that need to expand. For Larry and many other small business owners, factoring companies can make the difference in the success of your efforts. Read Truck Factoring Rates



Trucking Factoring Costs


Oilfield Services Factoring Services


Running a company in the oilfield services industry is no easy business, especially with payrolls to meet, equipment to purchase and deadlines that must be met. The sheer complexity of combining the geological research and modeling, imaging and exploration and finally the drilling to see whether oil is really present can take a lot of investment before any payoff can be seen. See Trucking Factoring Costs.


For those who own a Frac Sand Hauler for example, the efforts that must be put in to start such as business can be considerable. But the biggest challenge of all is trying to pay all expenses as the invoices get paid. A Frac Sand Hauler often has expenses that must be met immediately, but their invoices can take up to 60 days before they see the money.


What follows is an interview with Donald Slye, a man who owns a Frac Sand Hauler business and ran into the same difficulties that many new companies of his type face. In this interview Donald explains how he faced his challenges of paying expenses by using oil service factoring.


“Welcome Ray; can you tell us first of all why you wanted to begin your Frac Sand Hauler business, and what steps you took to prepare for the inevitable challenges.”


Donald Slye (DS): “I’ve worked in this business for more than 15 years, doing different jobs for different companies, from roughneck right through to foreman and deskwork. A few years ago I saw the potential of having a Frac Sand Hauler business in this area and got together with a couple of partners to create a company. We sat down, went over the details and decided that this would be a real good time to build a business that was serving a particular need in this industry.”


“So, I take it you created a business plan and took out the appropriate loans in order to purchase the equipment and hire the personnel necessary to get your company started?”


DS: “Yes, that’s right. I knew what was required in teDSs of equipment and personnel because I’ve been around this business for a long time. In addition, I already had contacts within the industry and I knew they could use my Frac Sand Hauler services. I knew there was some great potential to create a very profitable business.”


“So how were the first six months of running the business?”


DS: “At the beginning it was really great because my contacts had lined up some great project for me. Our loans covered the first six months or so of operations and we were doing quite well with the business we had. My partners and I were certainly happy and everything was going good when something really strange happened.”


“Could you elaborate on what you mean by “strange”?

DS: “Well, we started getting requests to work with other businesses in the area. This would mean having to expand our company through buying new equipment and hiring more people. But we did not have the cash on hand to make such a move. Because we were using the invoice system of payment we had to wait two months or more before we were getting paid.”


“You mean that you were making enough money, but couldn’t expand because of the invoice payment system?”

DS: “You got it. Add to that our initial money from the loan was running out and we needed to start paying it back as well. I knew full well that if we didn’t accept this new business that our competitors would, and it would be gone forever. So, we were in a real pickle until I heard about oil service factoring companies.”


“Tell us a bit about oil service factoring and how it helped you out?”

DS: “Well, one of my partners had heard about factoring companies, so we checked it out and decided to go with one that was best suited for our needs. The factoring company purchases our invoices and pays us with cash, so we always have money ready to cover any expenses that may arise. When the invoices become due, the factoring company collects from our clients. It’s really been a win-win for what we do.”


“That’s interesting. I wonder if you could you explain a little further just how factoring has helped your company?”

DS: “Of course; prior to factoring we had to wait a long time before our invoices were paid, but now we have ready access to cash so we can meet payroll, purchase equipment, hire staff, or whatever comes up. This meant that we could accept the new offers that other businesses were providing for us and not having to pass. Really, I just can’t say enough good things about factoring and how it really helped our business to continue flourishing.”


“Well, obviously factoring has really paid off for you. Are you still using factoring today?”

DS: “Yes we do. Although for the most part we still cash our own invoices, whenever we need money quickly so we can buy some new equipment or expand our business a little further, we go back to the factoring company and cash in our upcoming invoices. It has totally changed our business for the better.”

“I wonder what you would have done had factoring not been an option?”

DS: Quite frankly, I really don’t know if we could have survived without factoring. This is a business where you have to grab the opportunities as they arise, because if you don’t your competitor will step in. Basically, I don’t think we would be anywhere near the company we are today if it had not been for factoring.


Rays story tells us that his company may not have survived had it not been for oil service factoring, which allowed him to grow his company when he needed it most. For those businesses working in the oil industry, using factoring companies to purchase your invoices allows for great flexibility so your business can continue to grow while you take advantage of all the opportunities that come your way. Read also Trucking Factoring Costs



Trucking Factoring Brokers


Staffing Factoring for Healthcare


In the United States today, healthcare is arguably one of the fastest growing industries. With the baby boomers, the largest section of our population, reaching retirement age the need for expanding healthcare services has never been more pronounced. See Trucking Factoring Brokers.


Right in the middle of all this are the healthcare staffing agencies who hire out staff to clinics, hospitals, doctor’s offices, and many other medical facilities. However, while business is booming the ability for these staffing agencies to expand is inhibited by the customer invoice system. Fortunately, there are healthcare staffing factoring companies around to help them in their time of need.


We asked the owner of a local healthcare staffing agency, Janet Reeling, to talk to us about how factoring companies helped expand her business and provide a much needed boost at a critical time for her company.


“Hello Janet and welcome. I was hoping you would tell us a little about how healthcare staffing factoring companies helped your business, but I suppose we should begin by how you got started in this business?”


Janet Reeling (JR), “Thanks for having me. I actually have been a part of several start-up businesses in my recent career and was looking for a field that would show a lot of promise. It was immediately clear to me that there was a huge need for medical staffing in the healthcare industry, so I decided this was where I wanted to be. I had experience in starting up businesses before, so I drew up a business plan, took out a loan, rented the offices and hired a staff to get started.”


“So, you did what most people do in starting up a business. How were you able to achieve this?”


JR: “This business was actually quite easy to get started. I already had some contacts in the industry so was able to get business in pretty quick. This was really helpful because as you might know our clients use invoices for payments and it can take up to 90 days before we actually get the cash in hand. Around four months in we were facing a real crossroads as new opportunities opened up for our business, but we didn’t have the cash on hand to take advantage.”


“Can you explain this to me. What do you mean when you say you were going really well, but that you couldn’t expand your business?”


JR: “That’s exactly right. The issue we had was that the invoices were taking so long to convert to cash. I was desperately wanting to expand my business to take advantage of the new opportunities, but I was still waiting for invoices to be paid. So I turned to my accountant and asked what my options were, and that’s when I learned about healthcare staffing factoring services.”


“Tell us a bit more about factoring companies.”


JR: “It’s very simple really. The factoring company purchases your invoices and gives you cash in hand, so you don’t have to wait three months to get paid. For healthcare staffing factoring companies, they will then collect the money from the business when the invoice is read to be fully paid. It worked out so well for me because the instant cash meant I was able to employ new personnel and expand my offices to accommodate them.”


“I understand that factoring companies are there for many different kinds of businesses, including medical staffing. How difficult was it to get the factoring under way?”


JR: Once we found the right company for us, it was very easy. I completed their paperwork and they had a quick look at some of our invoices to see what businesses I was working with. In no time at all they had agreed to cash in some of the invoices and I was immediately given the cash I desperately needed.”


“Can you explain to us why using a factoring company is a good idea?”


JR: “Absolutely! The cash I was paid enabled me to hire new staff and rent more space, and since then I’ve been cashing invoices as needed if an unexpected bill pops up or I need to purchase a new piece of equipment. This has come in really handy recently when I decided to move to a new location and needed some cash on hand to make the transition. The factoring services are really quite good with reasonable rates and fast service.”


“What’s the differences in using factoring companies over getting a new loan?”


JR: “It is frankly much better than getting a loan because with factoring there is nothing to pay back. Factoring pays us our own money back and deducts a small fee for their service, so there’s no loan. If I had taken out a loan I would have to pay the loan back plus interest as well. Factoring for us has really been a godsend when it comes to making decisions about how to expand my business. Now it doesn’t matter that the invoices take 3 months to get paid because I have access to immediate cash with my invoices.”


“So it sounds like you’re very happy with the way factoring has worked for you?”


JR: “Yes, that’s true. I don’t know how I would have been able to expand the business at such a critical time without using factoring. Factoring helped me at a time when I most needed help, and because of that my medical staffing business is continuing to grow. If any business out there has to rely on invoices being paid, and they need access to cash, then I really recommend using a factoring service.”


There is little doubt that Janet Reeling has been quite happy about the services she received working with a factoring company. Perhaps factoring is right for you and your needs, be sure to search for the type of factoring business that works in your field so that you can get the right services in helping your company to succeed. Also see Trucking Factoring Brokers



Trucking Factoring Services


“Cash Problems? Now Business Owners Have Access To Cash In As Little As 24 Hours. Say ‘YES’ to those New Projects And Increase Productivity!”


A Breakthrough Factoring Company, VITAL FORCE FACTORING, Offer Their Unique Factoring Program Which Was Designed to Help You Make More Money !


Running a business means that there’s always something you need to do, but usually you have to wait until your accounts have been paid. And Vital Force Factoring is here to help you with our breakthrough factoring system. See Trucking Factoring Services.


So, the question is: What would you do right now if you didn’t wait to wait for your invoices to be paid?


The answer to that question is WHY WE’RE HERE—to help you do what you need to do right now!


We offer personalized service and tailored factoring programs so you don’t have to wait for your clients to pay anymore!


The Reason Vital Force Factoring Is Different From The Rest Is Because We Offer What They Can’t


Highly Competitive Rates. You’ll be hard-pressed to find better rates than ours.


Our service is highly responsive and personal, so combined with our excellent rates, you won’t find better! 


With the latest and greatest technology, we do credit checks on customers 24/7 and upload invoices electronically, so with our cutting edge technology you reap the benefits


Save Money At The Gas Pump. For truckers, we offer the fuel discount partnership to save on cash prices at the pump. 


For all sized businesses, at any level and in a lot of different industries, we’re here to help in all situations, including start-ups.

No Minimums or Set-up Fees. We have a very straight-forward policy, with nothing hidden.


In addition you get all the following at no extra cost, and you won’t find this anywhere else: 


- 24 hour funding on approved accounts

- Highest advance rates in the factoring industry

- Credit analysis on new and existing clients

- Continuous collection management

and follow up on factored invoices

 - Invoice and statement  mailing (postage    included) 

- Account status inquiries anytime;

24/7 online account access.

 -We allow you to electronically submit invoices

 -Free credit checking on new customers

at no additional cost

Find out about Trucking Factoring Services

Call our factoring business professionals at



On – Line Factoring Request Form



Trucking Factoring Reviews


The Medical Staffing Story – Horner Medical Staffing


Amanda Horner had to stop working on her laptop as the company’s head of marketing department came into her office. He slammed a magazine down onto her desk. He couldn’t stop grinning from ear to ear. Amanda couldn’t help but to quickly flip the pages of the magazine to understand why the marketing head is acting that way. This reputable business guide had published a current listing of the best staffing companies throughout the nation.Quickly flicking to the list, she saw her company, Horner Medical Staffing Solutions posted high in the under $99 million revenue column. Now, she is also grinning and smiling ear to ear just like the marketing head.She didn’t expect using factoring will help her make all of this happen. See Trucking Factoring Reviews.


In those years of the recent recession, Horner Medical Staffing Solutions was barely pulling in any revenue. The problem caused by the recession wasn’t demand. It was actually the supply of quick payment for the services rendered. Although business was available for the staffing firm, the payment from clients had slowed to a snail’s pace and sometimes took as long as 3-4 months with lots of time and manpower allocated to collections. The downsizing brought about by the recession didn’t hurt the company as much as the increase in new medical staffing companies and the difficulty in finding the right people to hold the medical postings due to increased competition.

Cash flow was crucial. Cash flow was really difficult during those hard times. Amanda had to apply for 3 different company credit cards in a span of 6 months just to keep up and pay for basic needs such as website hosting, utilities and bills and other important items that the company can never do without such as toilet paper for the office bathroom. The thing is that these credit cards could not really cater to the needs for larger expenses and incidentals.


To maintain an excellent reputation, Horner company maintained the highest salaries for their employees among all other medical staffing company in the region. To thrive in the medical industry, it is wise to hire only the best medical staffing people, those who knew their worth and payroll requirements. It seemed that the company  really revolved around nothing else but payroll in those days. The moment Horner fail to do this, the company will surely fall behind getting the best medical workers.


She knew beforehand how factoring has helped so many other industries but hesitant how it would help the medical staffing industry. Amanda just couldn’t feel sure about factoring at that time so she went with the traditional approach and applied for a loan at a big bank. The loan she applied for was denied. Then she went to smaller neighborhood bank and was denied again! It seemed that the bank didn’t have a good understanding of the medical staffing industry. The banks offered lower rates however they were not approved with the idea of loaning the company the needed cash to stay afloat in business.


In order for Horner to stay afloat, Amanda made the best decision possible for her company. She went on interviewing factoring companies. Many of the representatives that walked in the door were professional but she liked best Jonathan who came in representing his own factoring company. He was neat, good looking and very smart to speak with. He was interested in history and culture of Horner Medical Staffing Solutions. He understood the medical industry and had a clear vision of how the firm’s needs. He was the sort of person whom Amanda could trust to contact clients’ accounts receivable on the firm’s behalf.

Jonathan told her he could utilize his skills in the medical industry to appropriately vet the invoices although he already knew many of her clients from  experience and could tell her he had the full confidence that they will be able to  work together perfectly. Soon, in less than 72 hours, he would provide her with the upfront payments for her invoices and Horner would have the freedom of a freer cash flow. She had an idea that the factoring company would then get in touch with the medical centers to collect payments for the accounts receivables but she was not worried because she knew that the factoring company will display  professionalism. Also Horner Medical Solutions was able to keep some long-time clients’ invoices off the accounts receivable list for factoring. Those long-time paying accounts will only be kept in the accounting books of Horner instead. This type of flexibility was key in Justine’s decision making. Although she was happy to have the factoring company take over the trouble of collections. In the future, by working with a factoring company, Horner was able to cut costs from eliminating now unnecessary office staff positions, since accounting services were provided as well as some tax services.

Signing the factoring company contract has changed the future of the medical staffing firm of Justine. The numbers can tell you that everything is right.Due to the good amount of cash that the company received from the invoices, it had been able to go beyond its 30% margins.

The company was a success when it comes to recruiting pharmacists as well respiratory workers just to fill the void in many different regions especially as the great reputation of the firm popularized as  various medical centers from all over the country started to make inquiries. Furthermore, when a strong hurricane affected the region, the need for plenty of different medical workers surfaced. Hospitals were in great need of temporary staff to provide additional care for the victims.The new source of cash flow enabled Horner Medical Staffing Solutions to cater to these needs and fill the needs for those staff  immediately. Because the hospitals waited for the emergency federal funds, payment was not made right away to the company but this had never been a problem because of the continued cash flow offered by factoring.


Looking at the magazine cover, Amanda saw companies like CompHealth printed in bold. Yes, Horner does not produce the same amount of revenue like CompHealth yet at this point, but surely, they do have the best network of skilled nurses and medical workers. Amanda can’t help but be proud of the fact that Horner nurses for example are regularly asked to renew contracts in the hospitals where they work. This is true not only for the nurses but even for other medical workers including doctors, therapists and pharmacists.  This would surely be impossible if not for the ease, comfort and flexibility offered by factoring. Read Trucking Factoring Reviews online now.



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Scott’s Truck & Haul Factoring Story


Since the mid 1980s Scott’s Truck & Haul have been successfully running their freight business. They’ve delivered goods for nearly every major industry in the nation and for 20 plus years, business was booming as they’ve traversed the country in all weather for all clients. During the boom times from 2002 to 2007 Scott’s 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. See Trucking Factoring Rates


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. And worse yet, Scott’s 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. And as spring turmed to summer and summer into the early days of fall, Marion C. Haskins, CEO of Scott’s felt a chill go down his spine whenever he would look at the weekly A/R reports. The number of clients who were late in their payments was continuing to grow.


He had gone to his administrators and asked them what the problem had been. Were they doing things different, or wrong, when it came to collecting overdue accounts? By his bookkeepers records, this wasn’t the case. 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 Scott’s 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 Scott’s hadn’t gone elsewhere. The had just gone!.


This current state-of-affairs was causing Marion Haskins to have some very restless nights. He had employees to pay, goods to ship, trucks to maintain and overhead that was almost unbearable when compared against the lack of funds that were coming in. At night he would speak to his wife Linda and shake his head in frustration.


“I have a bad feeling, Lin,” he’d sadly say to his wife.


“What could you do differently?” she would ask.


Marion 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 then a haze would cover his trucks and his vast fleet would vanish to leave just a few. Why couldn’t he work out how to resolve this financial problem with his business?


“I know what it is,” said Marion. “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 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’.”


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


The following day Marion walked into his office with a spring in his step, determined to call each and every client who owed money to Scott’s 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. Even though he was doing something to help his company, he knew he had folks on salary to do just this thing. A waste of time – a waste of money – he had the best intentions, but all the while Marion 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 Beverley knocked at his door.


“Marion, can I have a word?” she asked standing in the doorway.

“Sure thing Bev, come on in.” Marion relaxed back into his chair and looked up at Beverley.


“Well Marion, 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?” she asked.

“It does sound vaguely familiar. What is factoring”? he asked.

“Well,” she began, “It’s actually quite simple really. Basically, factoring invoices means that we would get paid immediately for the loads we haul.”

Marion interrupted “Immediately?”.


“Yes, immediately,” she continued, “In a nutshell, it’s pretty easy. We start by having a professional account manager review our figures and help us set up a company profile. That profile will also include investigating our accounts receivable aging reports, our existing customer credit limits and so on. In addition, factoring will assist in determining our customers’ creditworthiness, independent from their credit relationship with our company. It’s a broad view.”


“Marion 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. We come to an agreement and the funding starts pouring out.”


Leaning forward, Marion studied the documents very closely.

“I don’t know, Bev – it just sounds too good to be true”, Marion said quietly.

“Yes, I know; that’s exactly what I thought at the beginning. But think about it, Marion: they’ve guaranteed that experts will do all the paperwork, and that will free us up to do what we should be doing – focusing on our customers in good standing, and that kind of stuff. And they’re flexible Marion,” she drew a circle around a paragraph on the document before him.


“Just how flexible?” asked Marion.

“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. It only takes 2 to 4 days for this to be figured out. ”


“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 Marion.

He took a deep breath and looked at his secretary with something she recognized as hope.

“Exactly”. I think this might just be a way out of the trouble we’re in with these folks who owe us money.”


Marion 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 Scott’s. Marion wasn’t prepared to lose these relationships just because they were having financial issues at the moment. Marion knew that the economy had taken a hit and he knew that it would probably be a long time before things started to look up again. If he didn’t handle these debtors in the right way, that unknown amount of time could spell disaster for all of them. Of course he didn’t want to lose any more money, but he didn’t want to lose business either.


“Let me go over this tonight Bev, and thankyou.” Bev nodded, stood up and left the office feeling that she had helped her employer keep on his shirt and hers too.


Marion 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 Scott’s 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, Scott’s 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 Billy the good news,” muttered Marion to himself.


His son-in-law Billy had liked the idea of Scott’s 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 Marion knew the struggles Billy would face, but he still encouraged him to follow his dream. With the economy the way it was, if an established company such as Scott’s was struggling then the little guys, like Billy, were going to be in even more trouble. But, an antidote may have been found in freight factoring and Marion was soon to find out.


A few months later after going through the entire application process and having the experts review his accounts receivable, credit history and statements, Marion 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. Marion looked back on the dismal months of life before freight factoring and almost shuddered at the thought. He probably wouldn’t be in business today had he not learned just in time about freight factoring. Also see Trucking Factoring Rates