Freight and Trucking Business Factoring SolutionsManaging funds in the Freight and Trucking Business is a tough challenge for the entrepreneurs engaged in it. Mainly because it has become difficult to find shippers that are able to provide quick and reliable payments. Freight and trucking companies are often in the midst of the battle between expenses and income.
Donít Let Your Business Hear a Death Knoll
Drivers are on a payroll and therefore need to be paid, repairs have to be made and then paid, fuel has to be purchased and paid for, and other expenses such as logistical requirements that need to be met and, you guessed it, paid. These situations demand a cash flow that is constantly replenished. And, with shipper invoices being paid only after 30 or more days after they have been issued, your business will have to meet obligations such as deliveries and get paid only after a month or two.
This is a death knoll for your cash flow since you cannot default on payments of your operational expenses like payroll from your cash reserves. If even these are running at an all time low, you have got yourself a problem. Additionally, customers usually prefer term payments since this scheme preserves their own cash flow. But what about your companyís cash flow? Turn down the business from a slow-paying customer or take in on and risk worsening your already beleaguered cash flow?
Creditworthiness of Your Customers, Not Your Financial Condition
The best alternative for you is to use a freight bill factoring service that will finance your accounts receivable or invoices. A factoring company that you select will advance your Freight and Trucking Business invoices to give you working capital immediately. This gives you financial freedom to continue operating your business and minimize the concerns associated with suppliers, slow-paying customers, payroll, and basically all other problems which result in a restricted cash flow.
Unlike banks or other financial and lending institutions, a factoring company will not grill you on your current financial state. All a factoring company needs to know from you is some basic company information and the creditworthiness of your customers. The factoring company does the collecting and receiving of the payments from your customers on your behalf. How hard could that be?
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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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