How Freight Factoring Can Help Trucking and Logistics Companies

Owning a trucking company or logistics company (freight brokerage) can be very profitable. At the same time, transportation companies tend to be cash hungry. There are fuel expenses, employee expenses, operator expenses, repair expenses and many other expenses that need to be paid quickly. However, most customers don?t offer quick-pays and usually pay their freight bills in 30 to 60 days.

This creates a major challenge. Why? You have expenses that need to be paid quickly and customers that want to pay slowly. Unless your company has some available funds, you will most likely run into problems.

Many company owners try to address this cash gap by trying to get business financing from their bank. However, they soon learn that banks seldom provide business loans to small transportation companies. Unfortunately, a business loan is not an option for most logistics and transportation companies. So, what is?

In many cases, trucking companies have an option that is better that a business loan. It is called invoice factoring. Factoring can provide logistics companies with the financing they need to meet their current expenses and grow. And, as opposed to bank financing, factoring is easy to obtain and can be setup in about a week. So what is factoring? Factoring provides companies with an advance on your slow paying freight bills. This enables them to meet expenses while waiting to get paid by customers. It works as follows:

1. You company delivers the load and invoices the customer 2. The factoring company provides you and advance of up to 90% of your freight bill 3. You can use the advance to meet all expenses 4. Once your customer pays, you?ll get the remaining 10% less a small factoring fee

The cost of factoring can be anywhere between 1.5% to 3% per month. The cost is determined by your industry, the quality of your customers (who pay the freight bills) and the amount of financing you require. Freight bill factoring is a great solution for logistics and trucking companies and can help grow your company to the next level.

About Invoice Factoring Group / Commercial Capital LLC
Looking at factoring companies? We can provide you a competitive factoring and freight factoring quote. For more information, call (877) 300 3258

Invoice Factoring: An Effective Alternative for Small Businesses

?Cash is the king? is an undebatable truth. The vital importance of cash to the growth and day-to-day management of modern small businesses is very much evident. Even though profit, turnover and market shares are indicators of success, there is no replacement for cash. If there is no cash in the bank to meet monthly bills, wage runs and loan payments then any business can succumb to the crunch. Cash flow is generally acknowledged as the only pressing concern of the small and medium sized business enterprises. Small businesses typically enter into factoring arrangements to solve cash flow problems.

The lack of access to capital has prevented many small businesses from growing and capitalizing on the many opportunities that are available to them. Small companies do have to forgo large deals or opportunities because they do not have the necessary capital to obtain the resources to service the account. Inadequate capital resources along with the necessity to offer commercial credit to clients, often makes business owners victims of their own ventures. Factoring is a relatively unknown financial solution that has become available for smaller companies in such crisis situations.

Factoring, by definition, is the purchase of accounts receivable without recourse. Factoring is one of the oldest forms of commercial finance. The term factor comes from the Latin verb ?facio?, which means ?he who does things.? The history of factoring is the history of agents doing things for others. The colonists started widespread usage of factoring in the 1600s in Northern America.

Factoring accounts receivable is a form of short-term borrowing. Typically, the small business owner transfers all or a portion of your accounts receivable to a bank or other lender known as a factor. This factor immediately gives him a percentage of the accounts receivable. The percentage the lender is willing to advance is known as the discount rate that is typically 60 to 80 percent. This money allows the business owner to fund current business operations and generate new accounts receivable. The factor, usually takes responsibility for collecting all the accounts receivable.

Accounts receivable factoring is the sale of part or all of a debt that someone owes to the company. When companies provide financing through accounts receivable factoring, they essentially pay for the invoices as soon as the business owner generates them at a small discount of the invoice amount. They also provide accounts receivable management services by collecting the debt directly, monitoring credit of your clients and providing aging reports. Factoring allows a company to obtain financing without selling part of the company. It should be viewed as a bridge to growing a company, an interim step to obtaining a traditional credit facility or an equity capital.

Factoring is prefect for companies that are fast growing or those that seek to seize market opportunities. By using factoring, the entrepreneur can meet increasing sales demands. Today, it is estimated that factoring is a ?$100-billion-a-year? industry in the United States. Accounts receivable factoring makes up about a third of all financing secured by American companies using accounts receivable and inventory as collateral. Wholesalers, distributors, transportation, staffing companies, manufacturing and business services are some of the more common industries.

Christine is an expert Internet marketing professional with years of experience in various industries such as: Business, Finance, Real Estate, Web-Design, Health & Medicine and many more. Business Cash Advance

Receivables Factoring - An Exciting Alternative to Business Loans

Do your clients take 30, 60 or even 90 days to pay their invoices? Extending payment terms, as it is commonly known, is very common in the business world. Customers demand that they be given credit, in the meantime you still have to pay for your company's ongoing expenses.

This can be a problem for companies of all sizes - from large established concerns to small startups. Unless you have enough cash to pay for business expenses - rent, salaries and suppliers - while you wait to get paid - your company is bound to run into problems. You may have to avoid taking large orders to conserve cash. Or worse, you may have to delay payments to employees or key suppliers.

Is the solution to get a business loan from the bank? Hardly. Banks only lend to companies that can provide detailed financials and show profitable operations for many years. If you get a loan, it will be for a fixed amount. If you need additional funds, you'll need to go through the process one more time. And worse, getting a business loan takes a very long time.

A better solution is accounts receivable factoring. Receivable factoring eliminates having to wait for customers to pay you - and provides you with the funds you need to meet business expenses. Furthermore, it's easier and quicker to obtain than a bank loan.

How does receivables factoring work? Simple. The factoring company gives you an advance on your accounts receivable. The advance ranges from 70% to 90% depending on industry and the types of clients you work with. This advance allows you to meet ongoing business expenses without having to wait for your clients to pay. The transaction is settled as soon as your client pays the open invoice.

Factoring receivables is also a cost effective solution. Factoring rates are usually determined based on the amount of financing you receive and on the payment reliability of your customers. The cost will be anywhere between 1.5% to 3.5% per month based on these criteria.

As opposed to other financing tools, factoring invoices is convenient and easy to obtain. Furthermore, it is usually more flexible than other financing tools since your financing line is based exclusively on your sales. That means, that your financing grows with your sales, making factoring a true tool for growth.

Commercial Capital LLC Looking for accounts receivable factoring? We can provide you with a factoring and invoice factoring at competitive prices. For more information, call (866) 730 1922

Accounts Receivable Factoring - An Exciting Alternative to Business Loans

Do your clients take 30, 60 or even 90 days to pay their invoices? Extending payment terms, as it is commonly known, is very common in the business world. Customers demand that they be given credit, in the meantime you still have to pay for your company?s ongoing expenses.

This can be a problem for companies of all sizes ? from large established concerns to small startups. Unless you have enough cash to pay for business expenses ? rent, salaries and suppliers ? while you wait to get paid - your company is bound to run into problems. You may have to avoid taking large orders to conserve cash. Or worse, you may have to delay payments to employees or key suppliers.

Is the solution to get a business loan from the bank? Hardly. Banks only lend to companies that can provide detailed financials and show profitable operations for many years. If you get a loan, it will be for a fixed amount. If you need additional funds, you?ll need to go through the process one more time. And worse, getting a business loan takes a very long time.

A better solution is accounts receivable factoring. Receivable factoring eliminates having to wait for customers to pay you ? and provides you with the funds you need to meet business expenses. Furthermore, it?s easier and quicker to obtain than a bank loan.

How does receivables factoring work? Simple. The factoring company gives you an advance on your accounts receivable. The advance ranges from 70% to 90% depending on industry and the types of clients you work with. This advance allows you to meet ongoing business expenses without having to wait for your clients to pay. The transaction is settled as soon as your client pays the open invoice.

Factoring receivables is also a cost effective solution. Factoring rates are usually determined based on the amount of financing you receive and on the payment reliability of your customers. The cost will be anywhere between 1.5% to 3.5% per month based on these criteria.

As opposed to other financing tools, factoring invoices is convenient and easy to obtain. Furthermore, it is usually more flexible than other financing tools since your financing line is based exclusively on your sales. That means, that your financing grows with your sales, making factoring a true tool for growth.

Commercial Capital LLC

Looking for accounts receivable factoring? We can provide you with a factoring and invoice factoring at competitive prices. For more information, call (866) 730 1922

Receivables Factoring - How To Finance Your Business Using Your Invoices as Collateral

Obtaining business financing has always been challenging for small and mid size company owners. Traditional sources of financing, such as venture capital companies, angel investors or banks, provide financing that is hard to obtain and usually takes weeks - or months - to set up.

Angel investors and venture capitalists, although more generous than banks, only provide capital if you are willing to give them an ownership stake in your company. Usually a big one too. Banks don't demand an ownership stake. Instead, they will only lend you money if your company can show a three-year track record of profitability and if your personal credit record is spotless.

But, what if you don't want to give up ownership and if you don't meet banking requirements?

There is an option that is growing in popularity - and it provides you with easy to obtain financing. It's called accounts receivable factoring. Factoring is an ideal tool for companies whose biggest challenge is that they cannot afford to wait 30 to 60 days to get paid by customers. By factoring your receivables, you can get paid in as little as two days. This helps business owners to easily meet ongoing obligations such as payroll and rent, and allows them to grow the business. In effect it eliminates the uncertainty of when you'll be paid and allows you to streamline your cash flow.

Receivables factoring is very different than a business loan or line of credit. Rather than focusing on physical collateral (real estate, equipment, etc.) like banks do, factoring companies focus on your invoices. Are they from good credit worthy clients? Do they pay reliably on 30, 60 or 90 days? If they do, you have a good change of qualifying for invoice factoring.

Accounts receivable factoring is very easy to implement and works as follows:

1. Your company delivers the goods or services to the client

2. You invoice your client and send a copy of the invoice to the factoring company

3. The factoring company advances you between 70% and 90% of the invoice as the first installment

4. Once the invoice is actually paid, the factoring company advances you the remaining 10% to 30% as a second installment, less a small fee

Factoring financing is a great alternative to bank financing and venture capital that is easily available to small and medium sized businesses.

About Commercial Capital LLC We are a leading factoring company and can provide you with factoring financing and accounts receivable factoring financing. For a quote, please call (866) 730 1922

Invoice Factoring - How To Get Paid Promptly By Every Single Customer

What happens if you are taken seriously ill while on holiday? Not just a bout of food poisoning, but in hospital, either as the result of an accident or a stroke.

When you are too ill to take a regular airline seat you will need to be brought home by air ambulance. Make sure that your vacation insurance covers this, because it will make a big hole in your bank account otherwise. Read the small print to see under exactly what circumstances an air ambulance will be provided by the insurance company.

If one of your party dies while abroad an air ambulance company can be hired to bring the body home for burial, even if it is not provided by your insurance company.

Long-range air ambulances are usually small business jet type aircraft. These business jets provide the fastest and most comfortable transport, where speed can be of the utmost importance.

Smaller fixed wing aircraft are used where the distance involved is smaller. They are faster than a helicopter and can sometimes be landed on a road near to an accident. Where poor weather would ground a helicopter, a twin or single engined, fixed wing air ambulance can still operate.

Rural parts of the United States, Europe and Australia depend on air ambulances to transport patients to hospitals in the shortest possible time.

In urban locations helicopter air ambulances are often most useful. They can dodge traffic and land on rooftops, sports grounds or roads, carrying EMT personnel to the scene of a traffic accident and rapidly taking injured patients to nearby hospitals.

Helicopters may be the only way that emergency personnel can reach a climbing or shooting accident in mountainous regions. They are small though, and only carry the minimum of supplies to enable the crew to stabilize a patient long enough to reach a nearby hospital.

Pearl Deloria has an SME management background. If you want more information on business factoring and how it can help your company then visit business factoring.

 

FACTORING: What's In It for You?

Factoring or Accounts Receivable Financing is a tool for providing working capital and cash flow to businesses of all sizes and in all industries. It is especially useful for startups and for small, minority, women-owned and / or disadvantaged companies. There are many reasons why Factoring should be considered. Below I have highlighted some of the benefits.

QUALIFYING: If you're a start up or already have significant debt, you can still qualify for this financing. Funding is based on the financial strength of your customers. SPEED: the initial application process is fast, usually within a week. Then, as you generate and submit your invoices, CA$H is deposited into your bank account in 24 to 48 hours. PREDICTABLE: You have access to a steady, predictable cash flow. Invoices can be submitted daily. CONTROL: No longer do your customers determine your cash flow. No longer are you held hostage to the whims of your customers. And you are freed of credit term abuses. UNLIMITED: Virtually unlimited funds are available. We try to match you up with a factor / funding source that can handle current and future growth. But, in the unlikely event that you do exceed the capabilities of the funding company, Noble Finance$ will assist in converting your account so that you have uninterrupted cash flow. COST SAVINGS: Factoring clients have the ability to take advantage of early payment discounts from their suppliers. Additional savings are made when you can take advantage of volume discounts. These savings can significantly offset the factoring expenses. GOODWILL: Paying suppliers on time improves vendor relations and fosters good will. Suppliers are incented to provide better and more timely goods and services. This is a win-win situation. Vendors are better able to survive and support your expansion and growth. GROWTH: Factoring provides the working capital you need to fund business fund growth in general and to fund new lines of products or services, in particular. DIFFERENTIATION: Without concerns about cash flow, you can attract more business by offering better terms on your invoices. Most companies negotiate on price to win business in a competitive market. Factoring allows you to negotiate with terms instead of, or in addition to price. SCALABLE: Your funding grows as your business grows. No need to re-apply for a new or increased loan or line of credit. PEACE OF MIND: Get freedom from worry about how to meet payroll and pay tax obligations. You'll have sufficient working capital to eliminate these concerns. COLLECTIONS: The factor handles the collections. This frees up time spent on collections. Factoring clients generally have faster payments, since customers tend to pay financial entities faster than they pay other corporations. FLEXIBLE: No obligations, no minimums, and no maximums. You can control some of the factoring fees by waiting to submit invoices.

Noble Finances: Accelerating Cash Flow. Sandra Noble, CPIM, MBA, DCFS, CDP is president of Noble Finances, which is a division of Noble & Associates Consulting, Inc. Noble Finances helps companies Turn their Accounts Receivables into CA$H Now! See http://www.GetCashFromReceivables.com/

Non Recourse Factoring vs Recourse Factoring

There are very few things more important to a new, starting small or medium business than cash equity. There are many things that count as equity for example business equipment, cash on hand, line of credit, and even invoices. That's right! Invoices can be a means of equity for almost any business, but getting a working cash flow is usually only possible through recourse or non recourse factoring.

What exactly is non recourse factoring? How does non recourse financing differ from recourse financing? Is non recourse financing right for your blooming business? Let's take a few moments to explore the answers to these fascinating questions.

Factoring is a means of getting a cash advance on payable invoices. Factoring companies hold the payable invoices, and the business gets the much needed cash. When the debtor pays the invoice directly through the financing company, and monies remaining are then given to the business. There is a fee, of course, for this service, and the service has two types of factoring coverage: recourse and non recourse.

Recourse financing translates to what the meaning of recourse actually is in and of itself. When recourse financing is the term of the cash advance on payable invoices, should the debtor of that invoice not pay his or her invoice, the factoring company has "recourse", or the option, to get the monies owed directly from the business receiving the cash advance. Recourse financing means the business is held liable for the future payment of the payable invoice.

On the other hand, non recourse financing is similar but different. With non recourse factoring, should the debtor of the payable invoice not come through on the payment(s), the business is not responsible for the cash advance amount or fee. Instead, in non recourse financing, the financing company is held liable for receiving payment from the payable invoice.

Both types of factoring are popular, and usually, a financing company only does one. However, more and more financing companies are choosing to offer both services to their customers. Since recourse financing is less dangerous for the factoring company than the alternative, factoring companies are choosing both as a viable option for your cash advance needs.

As may be obvious, non recourse financing has a higher liability than the recourse financing to the factoring company. This means it is easier to get a recourse financing cash. Nonetheless, getting a factoring loan will have a lot of different factors taken into consideration such as credit rating, cash amount of the invoices available, and/or time business has been in business.

Finding a good financing company will be the best way to decide this answer. Factoring companies have different requirements and offers, and finding out whether financing is right for your growing or established business is only determined by speaking directly with a reputable factoring company.

Troy Degarnham is the author and webmaster of http://www.accounts-receivable-financing.info an informative website about Invoice Factoring.

Extensive help and tips on factoring companies, assets, small business, medical factoring, non recourse factoring and other factoring financial services

Non Recourse Factoring vs Recourse Factoring

There are very few things more important to a new, starting small or medium business than cash equity. There are many things that count as equity for example business equipment, cash on hand, line of credit, and even invoices. That's right! Invoices can be a means of equity for almost any business, but getting a working cash flow is usually only possible through recourse or non recourse factoring.

What exactly is non recourse factoring? How does non recourse financing differ from recourse financing? Is non recourse financing right for your blooming business? Let's take a few moments to explore the answers to these fascinating questions.

Factoring is a means of getting a cash advance on payable invoices. Factoring companies hold the payable invoices, and the business gets the much needed cash. When the debtor pays the invoice directly through the financing company, and monies remaining are then given to the business. There is a fee, of course, for this service, and the service has two types of factoring coverage: recourse and non recourse.

Recourse financing translates to what the meaning of recourse actually is in and of itself. When recourse financing is the term of the cash advance on payable invoices, should the debtor of that invoice not pay his or her invoice, the factoring company has "recourse", or the option, to get the monies owed directly from the business receiving the cash advance. Recourse financing means the business is held liable for the future payment of the payable invoice.

On the other hand, non recourse financing is similar but different. With non recourse factoring, should the debtor of the payable invoice not come through on the payment(s), the business is not responsible for the cash advance amount or fee. Instead, in non recourse financing, the financing company is held liable for receiving payment from the payable invoice.

Both types of factoring are popular, and usually, a financing company only does one. However, more and more financing companies are choosing to offer both services to their customers. Since recourse financing is less dangerous for the factoring company than the alternative, factoring companies are choosing both as a viable option for your cash advance needs.

As may be obvious, non recourse financing has a higher liability than the recourse financing to the factoring company. This means it is easier to get a recourse financing cash. Nonetheless, getting a factoring loan will have a lot of different factors taken into consideration such as credit rating, cash amount of the invoices available, and/or time business has been in business.

Finding a good financing company will be the best way to decide this answer. Factoring companies have different requirements and offers, and finding out whether financing is right for your growing or established business is only determined by speaking directly with a reputable factoring company.

Troy Degarnham is the author and webmaster of http://www.accounts-receivable-financing.info an informative website about Invoice Factoring.

Extensive help and tips on factoring companies, assets, small business, medical factoring, non recourse factoring and other factoring financial services