Small freight companies, especially those who have actually not been around for extremely long, will commonly find it hard to protect a loan. Banks are frequently hesitant to provide cash to companies that don't have a great deal of income and possessions. They likewise want evidence of the practicality of a business and thus need that the majority of operations, particularly small ones, be in company for a certain quantity of time prior to they are willing to turn over any cash. Due to the fact that of this, a medium-size company typically has few money producing choices when needs emerge. One alternative offered, however commonly neglected, is factoring. This is an excellent way for a small business to acquire money.
You Can Laugh at Money Worries - if You Follow This Simple Plan - Choose A Factoring Company Instead Of A Regular Bank Financing
How to Increase Cash Flow Without Borrowing -Cash Money flow is among the primary reasons businesses fail.
At one time or another, every business, even effective ones, have experienced poor money flow.
Money flow does not have to be a problem any ever more. Do not be fooled -- banks are not the only places you can get financing. Other solutions are offered and you do not have to borrow money. Exactly what is truck factoring ? One option is called truck factoring. Truck Factoring is the procedure of offering accounts receivable to an investor instead of waiting to collect the cash from the customer. Oh, the Irony- Trucking factoring has an ironic distinction: It is the monetary backbone of numerous of America's most effective companies. Why is this ironic ? Because accounts receivable factoring is not taught in business colleges, is seldom mentioned in company plans and is fairly unknown to the majority of most of American company individuals.
Yet it is a monetary process that releases up billions of dollars every year, enabling countless businesses to grow and succeed. Staffing Factoring has actually been around for countless years. Receivable Funding Businesses are investors who pay money for the right to get the future payments on your invoices. An unpaid receivable or invoice has value. It is a financial obligation your client has agreed pay in the near future. Factoring Principals--Although factoring offers exclusively with business-to-business transactions, a large percentage of the retail business uses a factoring principal. MasterCard, Visa, and American Express all utilize a form of factoring in their retail deals. Using the purest definition of the word, these big customer finance business are really simply big Truck Factoring Companies of consumer paper. Think about it: You purchase at Sears and charge it to your MasterCard. The shop gets paid almost instantly, even though you do not make payment until you are ready.
For this service, the charge card business charges Sears a fee (typical common normal fees range from 2 to 4 percent of the sale). The Advantages Receivable Loan Funding can provide numerous advantages to cash-hungry companies. Rather than wait 30, 60, 90 days or longer for payment on a product that has currently been provided, a business can factor (sell) its receivables for money at a little discount off the dollar value of the invoice. Payroll, marketing efforts, and working capital are just a few of the company requirements that can be met with instant cash.
Truck Factoring provides the means for a producer to renew inventory and make even more products to sell: There is no longer a requirement to wait for earlier sales to be paid. FACTORING is not simply a cash management device for manufacturers: Almost any kind business can take advantage of FACTORING. Typically, a business that extends credit will have 10 to 20 percent of its yearly 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 expense or today s payroll with a customer s invoice, but you can offer that invoice for the money to satisfy those obligations. Using trucking factoring companies is a fast and simple process. The factoring company purchases the invoice at a discount, usually a few portion points less than the face value of the invoice.
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The American Truck Organization specifies that there around 205,000 employees with truck firms and 300,000 private companies trucking firms licensed to run in the U.S. that transported, according to their latest data of millions items, supplies and fundamental products . There are a number of usual carriers
or in teams on our country roadways carrying these vital products to our stores, factories and ports.
Furthermore trucking factoring firms aid several
of them and offer their receivable loan
facilities nationwide counting
including the following states.
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho State, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming
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List of Trucking Companies for Owner/Operators and Company Drivers
If you're like most drivers, you're looking for a better company in trucking that might be offering the best jobs in terms of pay, freight, and hometime ' not to mention benefits or a sign on bonus. We've got all of our clients listed based on the states where they're hiring, so you can quickly find the best job in your home state. You'll see the very best nationwide trucking companies that have positions available.
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Companies will be listed under all categories in which they provide specified Trucking Services.
To find companies offering specific Trucking Services in the United States, click on the list of services below.
The largest trucking companies in the U.S. set a revenue record in 2013, but revenuegrowth slowed for the second year in a row.
The combined revenue of the 50 largest motor carriers rose to $106.6 billion last year, according to The JOC Top 50 Trucking Companies list, based on data prepared by SJ Consulting Group in Pittsburgh.
Searching for the right trucking companies to move your freight can be tough, with the large amount of local, regional, and national truck carriers out there. FreightCenter helps make freight shipping simple, finding you the safest, reliable trucking companies every time you ship. Our trucking companies are licensed and insured to carry freight safely and efficiently across the country, no matter the size or type of freight you need to ship.Plus, with the high volume of freight we move, we will work to get you the best freight rates possible. Simply enter in a few details below and you�ll see instant freight rates from all the top trucking companies in one easy screen
Seattle's economy is driven by a mix of older industrial companies, and ""new economy"" Internet and technology companies, service, design and clean technology companies. The city's gross metropolitan product was $231 billion in 2010, making it the 12th largest metropolitan economy in the United States. The Port of Seattle, which also operates Seattle�Tacoma International Airport, is a major gateway for trade with Asia and cruises to Alaska, and is the 8th largest port in the United States in terms of container capacity. Though it was affected by the Great Recession, Seattle has retained a comparatively strong economy, and remains a hotbed for start-up businesses, especially in green building and clean technologies: it was ranked as America's No. 1 ""smarter city"" based on its government policies and green economy. February 2010, the city government committed Seattle to becoming North America's first ""climate neutral"" city, with a goal of reaching zero net per capita greenhouse gas emissions by 2030. Amazon headquarters building in South Lake UnionStill, very large companies dominate the business landscape. Four companies on the 2013 Fortune 500 list of the United States' largest companies, based on total revenue, are headquartered in Seattle: Internet retailer Amazon.com (#49), coffee chain Starbucks (#208), department store Nordstrom (#227), and freight forwarder Expeditors International of Washington (#428). Other Fortune 500 companies popularly associated with Seattle are based in nearby Puget Sound cities. Warehouse club chain Costco (#22), the largest retail company in Washington, is based in Issaquah. Microsoft (#35) is located in Redmond. Weyerhaeuser, the forest products company (#363), is based in Federal Way. Finally, Bellevue is home to truck manufacturer Paccar (#168). Other major companies in the area include Nintendo of America in Redmond, T-Mobile US in Bellevue, Expedia Inc. in Bellevue and Providence Health & Services � the state's largest health care system and fifth largest employer � in Renton. The city has a reputation for heavy coffee consumption; coffee companies founded or based in Seattle include Starbucks, Seattle's Best Coffee, and Tully's. There are also many successful independent artisanal espresso roasters and caf�s.Prior to moving its headquarters to Chicago, aerospace manufacturer Boeing (#30) was the largest company based in Seattle. Its largest division is still headquartered in nearby Renton, and the company has large aircraft manufacturing plants in Everett and Renton, so it remains the largest private employer in the Seattle metropolitan area. Former Seattle Mayor Greg Nickels announced a desire to spark a new economic boom driven by the biotechnology industry in 2006. Major redevelopment of the South Lake Union neighborhood is underway, in an effort to attract new and established biotech companies to the city, joining biotech companies Corixa (acquired by GlaxoSmithKline), Immunex (now part of Amgen), Trubion, and ZymoGenetics. Vulcan Inc., the holding company of billionaire Paul Allen, is behind most of the development projects in the region. While some see the new development as an economic boon, others have criticized Nickels and the Seattle City Council for pandering to Allen's interests at taxpayers' expense. Also in 2006, Expansion Magazine ranked Seattle among the top 10 metropolitan areas in the nation for climates favorable to business expansion. In 2005, Forbes ranked Seattle as the most expensive American city for buying a house based on the local income levels. In 2013, however, the magazine ranked Seattle No. 9 on its list of the Best Places for Business and Careers.Alaska Airlines, operating a hub at Seattle�Tacoma International Airport, maintains its headquarters in the city of SeaTac, next to the airport
Lambert Truck and Haul has been in business since the mid 1980s. 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 heady times from 2002 to 2007, Lambert was a top rated accounts receivable mastermind of the trucking industry. Few customers were ever late on bills and those clients who were, were sure to turn in their late payments within a reasonable amount of time. Times were great for everyone, and the cash was flowing.
It was just one year later, in 2008, when the economy in the United States took a sharp decline, and both large and small businesses started to notice the squeeze on their pocketbooks: everyone had suddenly gone silent. Business slowed to a crawl. Worse still, it was noticed by Lambert in early 2008 that even though most of their loyal customers were on time with their payments, there were a few late bloomers who were starting to spread the disease. Spring changed to summer, summer changed to fall, and the CEO of Lambert, John Rondstadt, was beginning to feel very uncomfortable indeed whenever he looked at their weekly Accounts Receivable reports. There was a growing list of clients who now owed them back debt.
He had already been to the administrators to ask what the actual problem was. Were they doing things different, or wrong, when it came to collecting overdue accounts? By his bookkeepers records, this wasn't the case. Perhaps he was losing his customers to his competitor, who seemed to offer very low prices with no guarantee of quality or performance, and these clients who were in debt to his company had possibly disappeared leaving him stranded. Perhaps they were unable to pay their debt to him, but were able to meet the costs of a lesser service. So he did the necessary research and, after discussions with friends in the same field, he realised that no, his customers hadn't gone anywhere else. They had just gone home.
To John Rondstadt the situation looked desperate. There were goods to ship, employees to pay, trucks to repair and maintain, and continuous overheads that were very extensive when compared to the funds (or lack of) that were incoming. At night he would speak to his wife Linda and shake his head in frustration.
""Lin, I have a really bad feeling,"" he would say with deep woe.""What could you do differently?"" she would ask.John would stare off for a moment and then close eyes. He could see the fleet of trucks he had purchased over the years. He could see them traveling, bringing goods to all of his clients. But then a haze would cover his trucks and his vast fleet would vanish to leave just a few. Why couldn�t he work out how to resolve this financial problem with his business?""I know what it is,"" John said. ""I've relied too long on the profits I receive from invoices alone. For too long I've been allowing our clients to let their accounts become overdue.""
Lin?da could only grab her husband's hand and look at him lovingly, ""It's a hard economy. It might be awhile until things get settled up.""
Linda was trying so hard to support her husband in these worrying times, while John was weighed down with the worry of how he was going to handle this situation he found himself in.
The following day John walked into his office with a spring in his step, determined to call each and every client who owed money to Lambert 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 John was realising just how much trouble he was in.
Poor John spent the whole morning trying in vain to contact his debtors: they promised to call back, dodged his calls, or made small interest-only payments. He was beginning to feel quite despaired when his secretary knocked on his door.
""Can I have a word with you John?"" she asked standing in the doorway.""Sure thing Bev, come on in."" John relaxed back into his chair and looked up at Beverley.""Well John, this afternoon I did some research, trying to work out how we're going to get out of this mess."" She pulled a small stack of papers from a folder and set them on the desk before him.""Have you ever heard of factoring?"" she asked.""It sounds vaguely familiar. What is it?"" he said.She began, ""Well, it's really very simple. So basically, factoring invoices would enable us to get paid on the nose for loads that we haul.""John interrupted ""Immediately?"".
""Immediately, yes"" she added, ""It's actually very simple. 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 provides a very broad view.��John replied cautiously ""I see - and what happens then?��Following the completion of their review and once we've been approved for a contract with the factoring company, then we sit down to negotiate conditions and terms. There�s a lot of flexibility depending on the business volume and credit histories. This company tells us what the cost will be to purchase factoring for our accounts receivable. Once we arrive at a mutual agreement, the funding begins.�
Leaning forward, John studied the documents very closely.""It sounds too good to be true, Bev,"" he said.""Now, now, I know, I thought the same thing. But think about it, John: they've guaranteed that experts will do all the paperwork, and that will free us up to do what we should be doing - focusing on our customers in good standing, and that kind of stuff. They appear to be very flexible, John,"" she underlined a paragraph on the paper before him.""How flexible?"" asked John.""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. ""
""That sounds pretty good, seeing as we tapped ourselves out with bank loans last year to repair the fleet and money sure is tight. We need to keep business rolling as normal and every day we�re going unpaid, we�re closer to facing some serious problems in both the short and long term,"" said John.John took in a long slow breath, then looked at his secretary with something like hope in his eyes.""Exactly�. This could very well be the answer to resolving the problems we're having with these clients who still owe us money.""
John took a moment to think about this solution, and agreed with his secretary. The customers who were in debt to Lambert Truck & Haul were professional resources of the company, but they were also long-standing friends. Just because they were experiencing difficulties paying their own bills now, John was very concerned about losing these relationships. He was well aware that the economy was in a bad way and that it might be quite a while before things started picking up. That unknown amount of time could create a disaster situation for both of them if he wasn't careful in how these debtors were handled. 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.John 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 Lambert with? Running his pencil down the sheet, he noted that the freight factoring company could assist with fuel costs, fuel advances, and fuel discount cards. In fact, Lambert 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.
""Well, I'll have to tell Billy about this,"" John muttered to himself.Billy is John's son-in-law, and he really admired the ideas behind Lambert, so much so that only two years before he had started his own transportation service business. John knew then what struggles Billy would face but he encouraged him nonetheless. With the faltering economy, if a big fish like Lambert was hurting, a little guy like Billy was about to catch his death. Perhaps the antidote to these problems was in freight factoring, and they were about to find out.
Some months later, having successfully gone through the entire process of the application, having experts study his credit history and statements and review his accounts receivable, John found that he was starting his journey out of the despair which had been created for him by his delinquent account holders.
They adopted reasonable factoring purchase contracts and stopped wasting their own precious time trying to collect debts. They used that time to refocus their efforts in being competitive in new territories. John recalled those dismal months when he wasn't aware of freight factoring, and he shuddered at those memories. Had he missed the boat on this one, he probably wouldn't be in business today.
More Trucking Factoring Companies Story Articles
Why Trucking Corporations Work with Factoring Firms.
As the operator of your own firm, you may likely be more than perceptive already of the difficulty in making certain that cash flow concerns do not become a difficulty down the line. Anyway, the toughest thing that can potentially come about for your establishment is to find yourself embroiled in a long and perplexing situation that leaves you forever searching for the finances you need to have on an continuing basis.
For just about any company in this predicament, the issue can come for waiting for work to lapse and actually be paid out into your account. Bill of sales, checks, and the like could take some time to actually to be taken care of which can easily leave you with momentary capital dilemmas. Gratefully, there are opportunities out there for establishments to consider-- and among these is factoring firms.
Factoring firms will, in exchange for your bill of sales, provide you with the finances right now to ensure you don't have to stress over the delaying phase that could make paying the expenses and acquiring materialsmore complicated. With this style of system, invoice factoring can end up being exceptionally beneficial for countless businesses who ought to get out of a cash ploy which they have found themselves in.
Given that, depending on the scale of the project, it can take up to 60 days for some companies to get paid out then it's crucial to blanket your own back and not leave yourself cash short to pay off the monthly bills. After all, how many business enterprises possess two months cash flow just occupying there to deal with all their expenditures till they earn?
This is most especially true of truck enterprises. They usually manage good deals of invoices which means a considerable amount of collection period concerns business owner themselves. Attempting to get paid off in time can eventually become an unbelievable hassle and this is precisely why you use trucking factoring providers who are pleased to help out truckers specifically.
As we all know, trucking is an remarkably large industry with lots of firms out there working with hundreds of vehicle drivers. The sad thing is, several of these drivers wind up in finances predicaments due to the fact that they are still waiting on work from six weeks in the past to actually pay them. When this is the condition for a truck firm, turning to factoring companies for help might be the most effective alternative left.
This implies that a trucking organization can pay off the wages of the crew, keep all the cars filled with gas and continue to escalate, progress and expand without continually waiting for the finances which is taking too long to come in. Trucking Firms functioning without a factoring system implemented are leaving themselves at significant hazard, as rivals cash out promptly and go on to expand.
There's honestly nothing to be troubled about when it comes to employing a Factoring business-- they usually are not like a banking company or an individual who is going to leave you with a big heap of financial obligation to pay back. You give them authentic invoices from job you have already finalized , you are just expediting the payment system.
In the United States, where trucking establishments survive, factoring agencies are not considered getting a loan in any capacity. This confidential contract then lets both groups to benefit and delight in a comfortable future-- it gives the factoring agency a secured asset of profit to include in the list and it gives the trucking company the needed cash that they sweated to acquire.
The trucking business provides their accounts to the factoring establishment. The trucking factoring business then acquire the payment amounts from the trucking company's customers. Factoring has been in existence for centuries and has been employed for long times by many different business sectors-- but none much more so than truckers. While you may miss out on a small part of the money, something like 1-3 % depending on who you team up with, it means that you are receiving the money today and can actually start putting the funds to work.
Anyway, an IOU or an invoice is absolutely not going to fund spendings, is it? For trucking firms when the cash can be excellent one day and gone the next, it's up to the vehicle drivers to work prudently and to ensure they are leaving themselves with a substantial quantity of time and money to get through the week up until they are paid once more.
So the next period your trucking company is having some short-term cash flow dilemmas and you are putting in an excessive amount of time chasing sluggish paying customers, why not start off thinking of making use of a factoring companies as a manner to get your cash and give yourself a more at ease future in the eyes of your trucking crew and your bank balance?
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Trucking Factoring Articles
The Advantages of Trucking Factoring for Trucking Companies
Around the country, many owners of small trucking companies are running into the same problems when trying to expand their business. It's true that a trucking business can be very lucrative, however it often takes weeks (sometimes months) to get paid on hauling invoices. This puts trucking companies in a real bind by having to play catch-up while trying to pay bills and salaries of their drivers.
We just caught up with Steve Anderson, owner of a small trucking company that he built only a few years back. Like many trucking owners, Steve was trying to expand his company to meet the needs of his clients, but was running into money issues that were holding him back. We asked Steve about his particular situation, the challenges he faced, and how he was rescued by Trucking Factoring without being forced into deeper financial burdens.Steve, it�s good to have you with us.Steve: ""Thanks very much, I'm glad to be here.�
Can we begin by talking about your trucking company and how it all began for you.SA: ""I've been truck driving for many, many years, and then back in 2011 I made the decision to start my own business. I went through all the normal procedures for getting my loan, purchased two trucks, and away I went. At first, it was really exciting because I had made a few connections as a driver and I picked up some early business. Everything was going great, business was snowballing and I was getting jobs from other businesses, but I was very quickly starting to have financial problems.�
It seems strange that your business success was creating these cash problems for you?SA: �I know. You see in the trucking business we charge invoices which means that it could take weeks or even months before the cash would roll in. Typically, a normal invoice takes from 45 - 60 days before it's paid. Here I was getting offers from other businesses and I didn�t have the cash on hand to buy trucks and hire drivers.�So, what did you do?
SA: I�ll admit I was at my wit�s end because I thought by the time I had the cash to expand that the interest would dry up first. I didn't want to sign up for another loan because that would just be another debt to pay off later, and I really had nothing to sell or any other way of getting money. It was around that time when I heard from one of my friends in the trucking business about Trucking factoring.�Can you explain to me exactly what Trucking factoring is?
SA: �Well, Trucking factoring is a way for trucking companies like mine to get paid quickly for the loads we are hauling. With factoring, we don't have to wait to get paid for hauling; the Trucking factoring pays us straight away for the work we've completed.�
So how does that work?
SA: �Well, there are companies out there who are willing to purchase the invoices that trucking companies like mine get when we perform a job. I was very fortunate in that I found a reputable company that purchases my invoices after we've completed the job, plus other bills associated with our business. In return, they pay us cash that I not only use to cover my payroll, fuel costs and expenses, but I was able to put back enough money to purchase another truck a lot more quickly than if I had simply waited for the invoices to be paid.�
It seems like you stumbled on a pretty good deal when it comes to Trucking factoring. Are there other benefits to you in using this Anderson of service?
SA: You bet, because the invoices act as the means to pay the company. It is not a loan where I have to pay back any money. The Trucking factoring company simply takes a very small percentage off each invoice or bill as their fee and I get the rest in cash right away. It�s really worked out for me because not only was I able to get the cash needed to expand my business I was able to pay off my original loan a lot more quickly as well.
Truth is, I was able to accept new business offers immediately because, thanks to the Trucking factoring company, I was able to purchase new trucks and hire new drivers long before I would ever have been able to do it had I been waiting on payment of my invoices.This Trucking factoring sounds almost too good to be true, surely there must be a catch somewhere?
SA: I wondered the same thing at the beginning: I was pretty sceptical, but it's all been very straightforward. It gets even better - there was no sign-up fee, and I haven't signed any long term contract. I just took a few minutes with them to set everything up and when I turn in an invoice, they pay me cash right on the spot.
You said you didn�t have to sign any long term contracts. Are there a minimum number of invoices or amounts that you have to turn in each month?
SA: Actually, no. When I first began working with them I turned over almost all my invoices because I really needed the cash immediately. Now, when I need some cash to pay off bills or make quick purchases, I go to the company with my invoices. Some months I�ve turned in quite a few invoices, other months not so much.
It really sounds like you found a great deal in Trucking factoring?SA: You bet. I have even used their fuel advances and discount cards to help me save money which really helped out in the first year of my business. I�ve had other trucking owners call me up and ask me how I was able to expand my company as fast as I did. I tell them all the same thing, if you have invoices, then Trucking factoring is the way to get fast cash without having to take out loans or put yourself in a deeper hole.
Steve's business continues to flourish, and it's all thanks to Trucking factoring. Without their help his business would not have been able to expand so quickly. If your business is suffering from a cash flow problem and you have invoices that haven't been paid, think very seriously about Trucking factoring as a means to an end. It will save you an enormous amount of stress by putting instant money into your hands right when you need it most.
More Trucking Factoring Company Story Articles
Trucking Companies: The Advantages of Factoring
It's the same story right around the country: small trucking companies are trying to expand their businesses but running into the same problems. It's true that a trucking business can be very lucrative, however it often takes weeks (sometimes months) to get paid on hauling invoices. This creates such a huge cash-flow problem and it seems like you're always playing catch-up in paying salaries and other bills.
We caught up with Steve Anderson, an owner of a small trucking business that he created just a few years ago. Like so many trucking company owners, Steve really wanted to expand his company in order to satisfy his clients' needs, but was constantly held back by finance issues. We asked him about his situation, the challenges he faced and how Trucking factoring played a real role in helping his company to expand without being burdened by paying back high interest loans.Steve, it�s good to have you with us.Steve Anderson: �Thanks, I appreciate being here.�
Can we begin by talking about your trucking company and how it all began for you.SA: �I had been driving trucks for years when in 2011 I decided to start my own trucking business. I went through the loan process, purchased a couple of trucks and got started. In the beginning it was fantastic, and I was pretty excited: I'd made some connections when driving previously so was lucky to pick up some great business straight away. Everything was going great, business was snowballing and I was getting jobs from other businesses, but I was very quickly starting to have financial problems.�
It seems strange that your business success was creating these cash problems for you?SA: ""Yes, and that's what I thought too. Unfortunately in our line of business we issue invoices, which means that it can take weeks (sometimes even months) before the money comes in. A typical invoice takes anywhere from 45 to 60 days before the payment comes through. Here I was getting offers from other businesses and I didn�t have the cash on hand to buy trucks and hire drivers.�So, how did you handle it?
SA: I admit that I was getting pretty stressed, because I knew that by the time the cash was available, the business opportunities wouldn't be there. I didn't want to sign up for another loan because that would just be another debt to pay off later, and I really had nothing to sell or any other way of getting money. And at just the right time I overheard one of my friends in the same business talking about Trucking factoring.�What exactly is Trucking factoring?
SA: Well, to put it simply, it's a way for companies like mine to have access to quick cash in payment for the loads we haul. With factoring, we don't have to wait to get paid for hauling; the Trucking factoring pays us straight away for the work we've completed.�
How does Trucking factoring work?
SA: Well, thankfully there are companies who purchase the invoices from companies like mine, once we've completed a job. I was very fortunate in that I found a reputable company that purchases my invoices after we've completed the job, plus other bills associated with our business. In return, they pay us cash that I not only use to cover my payroll, fuel costs and expenses, but I was able to put back enough money to purchase another truck a lot more quickly than if I had simply waited for the invoices to be paid.�
It sounds like you found yourself a really good Trucking factoring company to deal with. Are there other benefits to you in using this Anderson of service?
SA: You bet, because the invoices act as the means to pay the company. This is not an ordinary loan where I have to pay back the money. How it works is this: the Trucking factoring company takes a small percentage off the top of each invoice or bill as payment of their fee, and I receive the rest in cash immediately. This has been an absolute blessing for me, because I was able to get the cash I desperately needed to expand my business, and (this is the best bit) I've also paid off my original loan.
In fact, I was able to leap onto new business offers more quickly because the Trucking factoring allowed me to start purchasing new trucks and hire drivers months before I could even consider doing that simply waiting on the invoices.This Trucking factoring sounds almost too good to be true, surely there must be a catch somewhere?
SA: I wondered the same thing at the beginning: I was pretty sceptical, but it's all been very straightforward. It gets even better - there was no sign-up fee, and I haven't signed any long term contract. I just took a few minutes with them to set everything up and when I turn in an invoice, they pay me cash right on the spot.
You mentioned that you didn't sign any long term contracts. Are there a minimum number of invoices or amounts that you have to turn in each month?
SA: Actually, no. When I first started with them I was turning in practically all of my invoices so I could generate some cash up front. Today, if I need some ready cash to make certain purchases, or to pay bills, I go direct to the company with my invoices. Some months I�ve turned in quite a few invoices, other months not so much.
It really sounds like you found a great deal in Trucking factoring?SA: You bet. I have even used their fuel advances and discount cards to help me save money which really helped out in the first year of my business. I�ve had other trucking owners call me up and ask me how I was able to expand my company as fast as I did. I'm happy to tell anyone who asks: if you have invoices, then Trucking factoring is the only way to get cash fast, without all the stress of having to take out loans and getting even deeper into debt.
Steve�s business continues to grow and Trucking factoring was a big reason why he was able to expand so rapidly. If your trucking business is short of needed cash with invoices that have yet to be paid, then you should consider Trucking factoring as a way to put money into your hands right away.
Finance through a bank loan is the normal, or traditional, way of financing your business. While these loans are handy they are not available to every business. As an example, a newly formed business may not have the required assets to qualify for a bank loan, and even if they did, it's usual practise for a bank to use the business itself as collateral. This means that if you default on your loan payment you could lose your entire business. In addition, while you apply for a certain loan amount, that is all the financing you are entitled to. Of course, once that loan has been re-paid, you can always re-apply for another loan.
What Are Trucking Factoring Companies?
Trucking Factoring companies do not give loans, and the money you get from the Trucking Factoring company does not put you in debt. The finance you receive from the Trucking Factoring company is determined by money already earned by your business, but not yet received. Trucking Factoring companies actually purchase your accounts receivable or at least part of them for a percentage of their total worth, Normally around 80%-95%. The amount of money you can receive is based on the amount of money you have earned and the accounts receivable you are willing to �sell.� Once a Trucking Factoring account has been created for you, it will continue for as long as you need it, with the money available continuing to grow as your business grows, and providing cash as you require it.
Benefits of a Trucking Factoring Company Vs. A Bank Loan
While not every business can take advantage of Trucking Factoring account financing (you have to have a business that has account receivables) for those that can use this type of financing there are several distinct benefits.
1. You Won't Incur Debt. You don't incur debt as you do with a bank loan because the Trucking Factoring company actually purchases your accounts receivable. One of the main benefits of this kind of financing is that your business credit rating and your personal credit rating won't be affected. In the event that your business fails, you wouldn't have to be concerned about someone coming after your personal or your business assets in order to pay off a loan. The debt goes onto your credit report with a bank loan, with only one missed payment adversely affecting your business credit: it would also affect your ability to secure insurance, and may reflect on your personal credit rating as well.
2. There's no collateral required. Another benefit of using a Trucking Factoring company instead of a traditional loan is that you aren't required to provide collateral to the Trucking Factoring company in order to secure financing, because the company �buys� the accounts receivables; not loans you money based on them. Plus, the state of your credit rating is not an issue; however the Trucking Factoring company will run a credit check on your clients whose accounts receivable are being offered for financing. This means that it's easier for new businesses to access the finance they need through a Trucking Factoring company, providing their accounts receivable are in good order. A bank may believe you haven't been in business long enough to be able to cover this risk.
3. Receive Your Money Faster. Using a Trucking Factoring company means that you'll get the finance quicker. Once the Trucking Factoring company assures itself that the customers in your accounts receivable are likely to pay their debt, the money is usually in the account within 24 hours. With a bank, there are vast amounts of paperwork, then the loan has to be underwritten, which can take months before you actually see the loan if it is approved.
4.You receive interest up-front. Unlike a bank loan that continues to build interest that you have to pay the entire time you have your business loan with a Trucking Factoring company, you don't have to continue to pay interest as they take it right off the top, deducting it from the total amount of accounts receivable. So not only are you relieved of those monthly loan payments, but you also don't have to worry about the building up of interest, as every penny in the account is yours to spend on the business.
As you can see from the above, there are some great benefits to financing through a Trucking Factoring company, and not through a traditional bank loan. However, there are also a couple of other benefits that a factory company can offer your business is far beyond the scope of the bank. The most important benefits is that once you sell your accounts receivable to the factory company, you don't have to take time away from running your business to collect the money owed from reluctant to pay customers. Since these accounts belong to the Trucking Factoring company, this is now their job. Trucking Factoring companies are very good at collecting these debts, saving you the time and effort that you need to devote to your growing company.
In addition, since the Trucking Factoring company evaluates the credit quality of your customers prior to purchasing the accounts receivable you gain valuable information into which customers are likely to pay and which ones are not so likely to pay.While a Trucking Factoring company is not the only way for your business to obtain the money it needs to keep growing, it does offer a type of financing well worth considering