Top Notch Oil Hauls of West Virginia Factoring Story
In West Virginia, Top Notch Oil Hauls have really been on top of their game. In early spring a well of oil had been located in the Appalachian Hills and Top Notch was first on the scene, and ready to go. Top Notch began taking orders as they were needed, for acid hauling, water hauling, flow-back hauling, and crude oil hauling – the whole lot. Whatever the oilfield needed, Top Notch was there, and wanted to stay there for both the financial success of the business and to make a name for themselves. See Best Trucking Factoring Companies.
For months the rumors had been going around about a new oil source and both old and new clients of Top Notch were scheduling appointments to take out contracts and be ready to start hauling. They wanted as little time as possible to be wasted and when the black gold began to bubble up, they needed haulers there to pick it up and send it out to their customers at various locations, nationwide.
The CEO of Top Notch, Hardin Gray, was a veteran of the oilfield industry and he knew that he was onto a really good thing, for both his business and for his staff. But the demand was getting a bit out of control, because Hardin was quickly realising that Top Notch couldn’t afford to hire extra truckers to fill these new orders. Everyone was already flat out and working very long hours. The overtime was killing Hardin’s bottom line to start and privately, he feared that these costs alone might sink him. If the truckers weren’t being paid well and yet there was a boom in the industry, surely his employees would look around and begin to question their loyalty. If they left, Top Notch would remain holding the bag. And an empty bag at that. Hardin used to be a trucker himself and he empathized with their efforts: hauling was hard work, often done in dangerous, difficult terrain and even when overtime wasn’t an issue the hours were long and both physically and mentally taxing.
And it wasn’t just overtime for his truck drivers, it was overtime for the trucks. Trucks require regular maintenance, and some of his needed some minor repair work, some needed major repairs, and one was out of commission altogether. To pay for this upkeep, more money had to be coming in. With the demand being so high one wouldn’t think cash would be a problem, but it was. The reason being that many of the clients on his A/R were aging out past 30 days. Many accounts weren’t paid for over 60 days, sometimes even longer, and this was causing Hardin serious problems because it was becoming a financial drain on the business. Hardin considered his position and realised two things that he knew for sure. The first is that he would need more truckers to keep overheads down. And secondly, he would need more trucks to meet this sudden and sharp increase in demand.
Hardin was a very clever businessman so he started doing his research, looking for different ways to give the business a bit of a reprieve. He’d already cut a lot of corners and to go any further could jeopardize the quality and integrity of his company. But Hardin wasn’t prepared to do that. Then one night while working into the wee hours of the night, Hardin discovered the answer – he found factoring. He got the details of the factoring company and planned to call them the following morning, just to see if what they advertised was in fact true: that factoring would be a viable option for companies like his who required an immediate influx of cash money to meet unexpected demands on a business.
Morning came and Hardin dialed.
A very friendly voice answered the phone, “Good morning, this is Linda, how can I help you?”
“Hello Linda, good morning,” Hardin began. “I’d really like to speak to someone today regarding factoring to see if it might be a viable option for my oil hauling business.”
“Oh wonderful, sure. I can answer any of your questions. Do you have any idea how factoring works?” Linda asked.
“A little but I’d like to get it straight from you, if that’s all right,” said Hardin.
“Yes of course sir. This is how it works: if you’ve got invoices from your clients that are overdue, or if you’ve got a sudden increase in invoices and you’re finding it hard to make ends meet, meaning you can’t meet the expense of hiring staff or paying for equipment, what we do is to purchase your invoices that are up to 3 months old and in return we’ll give you instant money so you’ve got funds to keeping your business moving.”
“Sounds good,” said Hardin, “it’s exactly what I need. I’m really stuck because of these clients. But what I would like to know is, how do you make your profit then?” Hardin was a no-nonsense fellow but he was also fair, he knew these companies had to stay in business somehow, he just wasn’t sure how this part played out for them.
Linda gave a friendly laugh and replied, “Well sir, I’m happy to explain how it works. We’re not here to ruin your business. We’re in business to ensure that your business continues growing. We take a nominal percentage of one to three percent of the total value of the invoice.”
“My, that’s not bad at all,” said Hardin, quite surprised.
“I’m glad to hear you say that,” Linda said. “So if you’d like, let’s talk about what we can do to get this ball rolling immediately…”
Hardin and Linda went through all the details that day and decided that it was indeed a win-win situation for both companies. He would be able to hire on new drivers, he could repair his trucks that needed the work and after crunching the numbers, he could probably even afford a brand new hauler with all the bells and whistles of the modern day, making him more efficient than ever. Also see Best Trucking Factoring Companies.