Largest Trucking Factoring Companies

 

Are you a part-time banker for your customers?

 

Look at your accounts receivable aging schedule and count the  amount of accounts over 30 days.

 

Congratulations, you are (drum roll , please) stretching credit to those  clients. You are not getting paid for delivering your end of the  bargain in a  prompt  way and as a  final result you are  granting the  usage of your  hard earned cash to your customer for  free of charge. See Largest Trucking Factoring  Companies.

 

Not  precisely the  business venture you  assumed you were  entering, is it? Ask yourself this question: If those customers of yours  headed to a bank, borrowed the same amount of  cash for the  very same amount of time, would they expect to pay a  considerable amount of interest for the privilege? Of course they would!

 

And  think of this: Not  simply are you receiving no interest on that money, but,  more  notably, you are also  giving up the  usage of that money  when you are  standing by for your customer to pay you. Economists have a fancy  title for this: opportunity cost.  Just what is the cost of not having that  cash available? In essence, your customers are asking you to  subsidize their business by  stretching terms and  enabling them to pay in 30 days (and usually  much longer, right?).  However what is it  setting you back you in ” passed up  ventures”  the moment your money is  restricted in your  invoices?

 

What’s a “missed  possibility?”  Listed below are some  examples:.

- Parts offered to you by a  vendor at below-market  rates.

-A  possibility to  get a  component of equipment at a bargain.

-The  option to  create more during any given month.

 

And the  listing could go on and on. The  expense of   this credit to your customers  will have to  manifest an  impact  someplace. Someone  will have to pay the piper.  Oftentimes: A) you are  soaking up the cost, resulting in  reduced profits, or B)  all your other customers are paying higher prices across the board. One way or the other, you are  paying for  another person’s  company and perhaps losing  hard earned cash for the opportunity to do it.

 

Many  firms lose  cash  in this way.  Our team see this  predicament  everyday and in each  circumstance the owners are  astounded to  know  just how much money they are really  forfeiting. Also see Largest Trucking Factoring  Companies

 

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