How to Address the Financial Challenges of Delivery Service CompaniesTransportation and logistics would always be a profitable business as long as there is a constant demand for the movement of goods, and there will always be a steady demand for delivery service because the current orientation of the world is geared toward an indispensable producer-consumer relationship. Running such a business, however, is not as easy as one two three. Many factors should be considered if longevity in the game is the clientís main concern. For one, the necessary equipment necessary to maintain business operations require a huge overhead cost in the form of freight trucks, and the expenses do not end there because the cost of maintaining them, let alone the cost of operating them, translates to a steady outflow of cash, for which you might just need a helping hand when your bank account could no longer handle the pressure.
Should You Get a Loan?
The answer is totally dependent on you, but to paint a not so ideal picture, you would need: a stellar reputation when it comes to your credit history rating; collateral which would be the bankís guarantee in case you decide to default on your loan; and tons of paperwork and waiting time that could kill that urgent deal at hand. Not every company would really qualify for a bank loan, and the strings attached could actually hound your companyís financial health in the long run. For urgent cases, invoice factoring could be a viable alternative.
How Delivery Service Benefits from Factoring
Freight services usually benefit from big industry players as their clients, which most of the time place big orders and issue an invoice as a promise of payment. This payment, however, takes a while to be liquidated and it is perfectly normal for it to takes weeks or even months of waiting. The rising cost of fuel and maintenance could not wait, though, and one broken freight truck could mean the difference between business and bankruptcy, and you just could not afford to take that risk if you want to stay long in the industry.,br>
As such, why not trade your invoices at hand for quick cash through the help of factoring agencies? The downside here is that they would be getting a minimal fraction of the total face value of your invoice as payment for their services, but most of the time the urgency far outweighs the disadvantages of such a minimal deduction.
Delivery service companies are just among the many loyal clients which run to NeeBo Capital for help when they need a quick fix in terms of cash inflow. What keeps them coming back as loyal customers are exactly the features that set NeeBo Capital apart from the rest: low factoring rates starting at 0.59%; flexible terms minimum of 30 days; no financials needed; no monthly minimums; and cash amounting from USD5k to USD1 million depending on the value of your invoices at hand.
Donít wait while your competitors factor their accounts receivable. Take advantage of low factoring rates in the Delivery industry Today!!
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
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|Purchase Order Financing||Accounts Receivable Financing||Asset Based Lending Options|
General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company
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