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

Factoring For The Small Business

Cash flow is critical to all businesses, but it can be of particular importance to small to medium-sized businesses that have been only been established for a few years. They often find themselves in the working capital 'trap' of having plenty of potential business opportunities, but not enough cash available to exploit them. Factoring can be the perfect answer in this situation.

Factoring provides cash for the business as soon as an invoice is issued. It also has substantial benefits in terms of reducing management time spent on accounts receivables. There are two other important aspects of factoring that are useful to the growing business:

- They do not require personal guarantees

- They work with your customers' creditworthiness, not your own

How does factoring work?

After the initial setting up of your account with a factoring company, you will issue invoices in the normal manner, but they will be stamped to show that they are payable to the factor. The factor will then provide you with immediate access to funds, typically about 80% of the face value of the invoice. The balance will be credited to your account (less a small service charge) when the cash is actually collected.

From that point on, the factor will take over responsibility for managing your sales ledger and accounts receivable. The very fact that they are involved will usually bring about a reduction the time taken to pay invoices, as supplier know that factors often report delinquent payment performance to the major credit reporting agencies, whereas companies supplying the services do not.

Factoring companies are very careful about selecting and training people to handle collections professionally, as they are acutely aware that the task must be handled sensitively but firmly. They understand that customers are the lifeblood of your business, and that they need to maintain their goodwill toward you.

A good partnership with a factoring company can be one of the most valuable assets of a developing business, particularly in the early years, when there can be a danger of over-trading if adequate working capital is not available.

Andrea Lucas is CEO of Celera Financial, LLC, and has over 20 years? financial experience working with small and medium-sized businesses, both internationally and in the USA. Andrea can be reached by email at info@accountsfactoring.com or call (703) 651-3168. Website: http://www.celerafinancial.com

Factoring invoices| accounts receivables| invoice factoring company

Factoring, invoice factoring, or accounts receivable financing means selling your company's invoices at a discount to a finance company for immediate capital. Factoring makes it possible for your company to utilize funds that otherwise would not be available during a normal billing cycle.

In other words, invoice factoring or selling of an {a rel="nofollow" href= http://www.magfinancial.com/faq.cfm} accounts receivable invoice to a "factor" helps your business obtain the cash flow it needs. Prior to that there are a few key points to be emphasized:

* Elimination of bad debt: A non-recourse factor presupposes the risk of bad debt, thus eliminating this expense from the business' income statement.

* Invoice processing: In invoice factoring, "factors" usually handle a majority of the work associated with processing invoices. This includes posting invoices, depositing checks, producing regular computer reports and entering payments.

* Unrestrained capital: Invoice factoring is the only source of financing that grows with your sales. This means that as sales increase, additional money becomes instantly available. In this way, your business constantly grows and is also able to meet increasing demand.

* Advantage of timely payment: In your business transaction you can save 2 - 5% of your raw materials cost since you have the money to pay within ten days. In addition to volume purchasing, you can considerably lessen the true cost of factoring.

* Avoid early payment discounts to your clients: Since you are receiving your money without delay, you do not have to offer early payment discounts. Factoring will save you every dollar in discounts that your clients are currently taking.

* Don't give up equity: Invoice factoring ensures that you do not have to give up any equity in the company or take on any partners with factoring.

* Don't invite any additional debt: People have a misconception that factoring is a loan. This is not true; {a gref= http://www.magfinancial.com/factoring.cfm }invoice factoring<a/> is not a loan. Therefore, your business will not incur any additional debt.

In invoice factoring, the first transaction usually takes 3 to 5 days. Once the account has been set up, cash can be advanced toward your invoices to your bank. People mistakenly believe that there are monthly obligations with invoice factoring. As factoring is not a loan there is no debt repayment. Moreover, you are in control of how much you factor and when, depending on your personal {a rel="nofollow" href= http://www.magfinancial.com/cash-flow-program.cfm}cash flow needs.

If you are looking for an invoice factoring company that will help your company grow, then Magnolia is there for you. For more information on factoring, factoring invoice discounting, invoice factoring company and receivable management, please visit www.magfinancial.com.

Mr. Scott Stevens is well known author who writes about financial services such as cash flow programs, account recievables, factor recievable etc. Find more information about magnolia financial service at www.magfinancial.com

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

Overcoming the Myths of Receivables Factoring

Although factoring volume exceeded $112 billion in volume in 2005, which represented a 9.3% increase over the prior year, many decision makers tend to either employ other methods or choose not to go after additional financing to grow their business. If a company is either in a high-growth mode or is experiencing serious cash flow issues and is not able to establish a working line of credit with a bank, why wouldn?t they turn to factoring? There are three main concerns and objections that many decision makers have that can be overcome with educating the customer about the product.

Concern #1: Cost

The reality is that the cost of factoring is expensive compared to other types of financing (typically bank loans or lines of credit). If a company has the credit standing to get a bank line of credit that offers flexible terms, they should do so. If they have overextended their line or don?t qualify altogether and need additional capital to expand the business, the CFO should at least crunch the numbers to see if factoring is a viable option. There are some industries that experience low margins and slow payers. In general, factoring probably isn?t a good option for those types of companies. If, however, the margins are higher (over 12%), factoring may be a good way to take advantage of new sales opportunities and increase profits. Factoring fees can range anywhere from 2% to 4% per month depending upon several variables, including average dollar amount per invoice, credit standing of the debtors, and the average time it takes to collect the receivables. If a company enjoys the size of margin that can easily cover the factoring fees, it makes perfect sense to employ this type of financing, rather than forgo incremental profits and lose market share to a competitor.

Concern #2: Customer Perceptions

This is a concern with most prospects that are unfamiliar with factoring. The issue centers around notification and collection. At the inception of a factoring relationship, each account debtor is notified that a secured party (the factor) has taken title to invoices in which they owe payment. The letter also states that all present and future invoices due must be paid directly to the factoring company until otherwise notified by the factor. This is necessary to do this because if protects the factors collateral and to be protected by the UCC. Many business owners worry that they will be perceived in a negative light when the customers get these notices. There is no reason to worry. Factoring is hardly a new form of financing. Many industries (manufacturers, distributors, apparel & textile, trucking, and temporary staffing) rely on the services a factor provides. Factors only interact with customers on a random basis, mainly at the inception of the relationship.

Several large companies such as Walmart, Costco, and Target, have internal divisions within their accounts payable department to work with those vendors who factor their receivables. Should a customer who is unfamiliar with factoring question the notice and ask what is going on, the owner or manager only needs to tell them they have chosen to use a company to manage and finance their accounts receivable.

Concern #3: Losing Control over Receivables

Some people feel that allowing a factor to collect their receivables takes control away from them. A prospect should consider that a factor has provided an advance on a piece of paper and until they collect from the customers, they have nothing. However, it would be counterproductive for a factor to be overly aggressive in collecting receivables and risk alienating the customer base. Factors typically work hand in hand with the client to collect receivables and oftentimes allow the company to make collection calls. When payment is substantially late, the factor?s staff will likely make collection calls, but normally in a professional and courteous manner. A good factoring company will provide the client with comprehensive aging and performance reports, as well as credit screening for new customers. In effect, the client will not lose control of their receivables. They will actually be more on top of things because of the enhanced services the factor offers.

If more decision makers were educated about the benefits of receivables factoring, they would likely take a look at how it could help expand their business. Traditional lenders can?t always provide the solutions, so it makes sense to keep an open mind to alternative forms of financing.

Kent Harlan has been a CPA since 1984 and has provided consulting, accounting and financial services to several industries. He is the owner of Ozarks Capital Funding, LLC, a Springfield, MO based company offering financing in the areas of accounts receivable factoring, equipment leasing, asset based lending, and healthcare provider. He is an active member in the Missouri Society for Certified Public Accountants and has written several articles for the Springfield Business Journal. Website: http://www.ocflink.com email: kenth@ocflink.com

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.

 

Invoice Factoring: Cash Now, No Waiting, NO Debt? Your competitor is doing it, Are you?

What are Your costs for NOT Factoring?

Consider the time value of money and the benefits of improved cash flow to your business. By having, cash for your invoices within 24 hours are you able to pay your suppliers faster and receive better discounts. Are you able to fulfill your next order to XYZ Company and make payroll without tapping your line of credit at the bank? Can you offer longer terms to larger customers and attract more business? Can improved cash flow help your business grow or survive without incurring more debt at the bank? Can the financial benefits of improved cash flow to your business offset the fees of Factoring, and then some? Sure it can, the savings alone in taking discounts from your vendors can equal the cost of Factoring. All the other savings are in your pocket! Factoring is a smart business decision. Why are you doing it?

Is Cash needed immediately for growth or survival?

Is long billing cycles putting a strain on your business cash flow? Despite increasing sales, does the management of receivables and payables seem like a juggling act? Could your business increase sales by offering better terms to your new and larger customers? Are you spending too much time collecting from slow paying customers and not enough time building your business? Is your bank turning you down for traditional financing due to years in business, profitability, lack of assets, personal guarantees or financial strength?

Have you considered turning away new business due to slow cash flow?

These are challenges many businesses face that can be solved with Factoring.

Benefits of Factoring Receivables

Simplicity

The advanced funding you receive for your receivables and the discount fees you will pay are based solely on the financial strength and credit worthiness of your customers, not your business!

You receive Cash for your unpaid accounts receivable invoices. Usually the factoring company buys the invoice from you for an amount less than its actual face value (70-90%). When the Factor later collects the full amount of the invoice from your client, you will receive the remainder of the advance less the factoring fee (discount rate). Fees will vary depending on the total dollar amount you intend to factor on a monthly basis.

Flexibility

Need a flexible financial solution that can help your business be more competitive while improving your cash flow, credit rating, and supplier discounts? Factor as much as your want or as little as you want. You decide. No obligations. There are No minimums and No maximums in the amount you can factor. No binding contracts, if that is what you want.

Unlike traditional bank financing, factoring relies on the financial strength and credit worthiness of your customers, not you. Here?s why you should use Factoring services:

Offer Better Terms - Win More Business

With Factoring, you can attract more business by offering better terms on your invoices. Most companies negotiate on price to win business in a competitive market, but with Factoring, you can negotiate with terms instead of price.

To your customers, better terms can be more attractive than better prices.

When using attractive terms to win business, you can build the cost of factoring into your costs of good and services.

Example: A new customer may choose to do business with your company because you can offer NET 30 or NET 45 terms while your competitor (who isn't factoring) requires payment up front but has a 3% better price. If you factor the subsequent invoice at a discount of 3%, you have leveraged factoring services to win the business at no extra cost and improved your cash flow at the same time.

Improve Cash Flow * NO Additional Debt *WIN over customers

Your Business Receives:
* Get cash in 24 hours or less from your outstanding invoices! Eliminate long billing cycles.
* No new debt is created. Factoring is not a loan. This allows you to preserve your financial leverage to take on new debt. Improved credit rating.
* Purchase capital equipment to expand your business.
* Increase inventory for quicker shipments or handle seasonal inventory needs.
* Market for additional business.
* Take trade discounts. This alone can offset Factoring fees and all the other savings are gravy!
* Pay off nagging, expensive delinquent obligations.
* End payroll worries.
* Meet tax requirements on time. No more exhaustive penalty fees.
* Negotiate discount purchasing.
* Unlimited sales and profit potential.

You Receive:
*Cash stability
*Simple to start and use
*You keep control
* Reduce stress, improve planning, focus on what is critical to make money.
Customer Credit Services:
*Reduce bad debt expense, work with experts at collecting.
* Streamline credit approvals for new customers.
* Improve decision-making on new business.
* Reduce administration costs: long distance calls for collection and credit investigation, postage, staff, monthly statements and more.
* Larger customer credit lines and better terms, which increase sales.
* As you grow, your payroll budget for credit and collection department is minimal.
Accounts Receivable Management:
* Reduce administrative costs. Factor will post invoices and apply cash applications.
* Improve customer relationships. You are no longer the bad guy looking for payment.
* Improve receivable turns. Fact: Customers pay Factors before independent businesses.
* Improve accounting performance; timely reports, online access and more.
* Redirect your critical resources to marketing and production

If you are looking to receive an increase in cash flow and increase your bottom line profits, you need to factor your invoices now!


Please feel free to reprint this article as long as it is left intact and all links are hyperlinked.

www.brtfinancial.com/arecfac.htm

BRT Financial specializes in Invoice Factoring; it gets you the cash you need now! Factor as many invoices as you need! Invoice Factoring will provide the cash flow you need to increase your bottom line profits! www.brtfinancial.com/arecfac.htm www.brtfinancial.com

Can Medical Factoring Financing Fix your Cash Flow?

Most healthcare businesses have to wait between 15 to 150 days to get claims paid by private insurance, Medicare/Medicaid and HMOs. Although most payments are made in 15 to 45 days, a simple change in billing codes or a request for additional documentation can add weeks or months to the expected payment date of a medical claim.

However, if you own a healthcare practice, DME, hospital or testing center you have expenses that must be paid like clockwork. Payroll needs to be met. Rent needs to be paid. Equipment must be bought. Not surprisingly, all these expenses have one common element - you either pay them or you go out of business.

This leaves you with two possible options. Either you must have a cash reserve sitting at the bank or you need to get financing to cover the wait.

Many healthcare businesses try to get a loan or a line of credit. Although they can work reasonably well, they have one serious drawback. They have limits. And once you reach them, you are usually out of luck if you need additional financing.

The best alternative is to factor your medical receivables with medical factoring. Medical factoring provides you with financing based on your insurance claims, eliminating the wait and providing you with funds to operate your business. And opposed to traditional financing, you have no set limits. You can factor as many insurance claims as you can generate. It's really a tool for growth.

Factoring is easy to implement and incorporate into your business. Here is how it works.

1. You send your claims to the insurance company and to the factor
2. The factor advances you up to 85% of your expected net collections
3. 15% is not advanced and is used as a reserve to handle charge backs
4. You get immediate use of the funds while the factoring company waits
5. When the claim is paid, the transaction is settled

Since factoring relies on the insurance company's payment habits and financial strength, it can be a great tool for new and growing businesses that may not qualify for - or have exhausted - their bank options.

About Commercial Capital LLC
Are you looking to factor your medical receivables? We can provide you with a medical factoring quote. Call Marco Terry at (866) 730 1922. Need more information? please go to our medical factoring resources area

Invoice Factoring Software

Invoice factoring software enables factoring companies to provide all the necessary information to their clients and keep track of their own business. It provides the clients of factoring companies with online information regarding cash flow and allows tracking of cash flow. This allows companies to efficiently manage their business plans.

Most invoice factoring software makes use of SQL databases and is highly reliable. It is easy to use and provides quick information. Invoice factoring software is usually Web-enabled and can create portfolios of different types. Since factoring companies deal with different types of business, the software is designed to meet all types of business needs. Most invoice factoring software runs on any type of Web browser. It also provides a user-friendly information format. The software can accommodate any type of Internet connection speed and provides quick online information.

Apart from complete invoice process, Invoice factoring software features general ledger and double entry accounting. Assigning flexible rates, purchase schedules of invoices, account debtor payments, and reserve rebates and negative reserve rebates are the common features in the software. In addition to this, several types of reports can be prepared using the software. Reports can be exported into word, excel and HTML formats. Some software is also able to set periodic reminders.

Invoice factoring software provides online information regarding receivables and provides information on the financial situation with factoring companies to clients. This often allows smooth transfer of funds and improves the relations of factoring companies and clients. The greatest advantage of invoice factoring software is the time saved. With most business companies facing time crunch, the software provides up to date information about the ‘receivable money.’ It also saves money and work force. Energy spend on mails, phone calls, fax and physical meeting can be fully avoided using the software.

With factoring business getting more complicated, software companies are releasing newer versions of the software to meet the new challenges.

Invoice Factoring provides detailed information on Invoice Factoring, Invoice Factoring Companies, Invoice Factoring Discounting, Invoice Factoring Rates and more. Invoice Factoring is affiliated with Loan Factoring.