The Different Ways Factoring Helps Freight DeliveriesThere are a lot of factors that can affect your freight deliveries, but one of the most difficult is waiting for invoice payments. The industry moves at a rapid pace and you need to keep abreast or risk failure. It is for these reasons why factoring has become crucial in the industry.
No matter how big or small a freight or trucking business is, there is bound to be a problem with delayed payments and the need for funds. You can try getting a bank loan but the process is long and difficult. If you need the money now, you can turn to factoring so youíll have the money you require right away.
With the aid of a factoring company, youíll have access to the funds to pay the bills and other expenses. Trucking and freight businesses can incur a lot of expenses such as marketing, repairs, maintenance and fuel costs. This does not even include the money you have to pay for growth. If your cash flow is tied with the invoices, youíll be in a financial bind until your client pays. Thatís why freight deliveries factoring makes sense, because youíll have an alternative to traditional lending institutions that leave you in debt.
How Factoring Differs from Other Services
There are several ways factoring companies differ from the typical lending institutions that freight services turn to for cash. First off, they work very fast and it doesnít take long before you get the payment you need. This translates to improved cash flow so youíre never left hanging and waiting for the invoice to be paid.
Second, factoring fees are much lower compared to other institutions and there are no hidden fees. Unlike other companies you just need to pay a small fee after your clientís payment has been completed. Third, contracts are for specific cases so youíre not going to get stuck long term.
Factoring companies also have no minimum requirements and your credit history doesnít come under the microscope as it does with a bank. Using a factor also means you no longer have to worry about getting in debt. All you need to do is pay the small fee and youíll have the cash flow ready.
There are several kinds of factoring companies, but they work the same way in that youíll get a cash advance funding. The amount is equivalent to a percentage of the payment, and the balance will be paid after your customer pays. The process consists of three steps. The first is to complete the delivery, second is to provide the factoring company with a copy of the invoice you sent your client. The third is to just wait as the factoring company will send you an advance, and thatís all there is to it.
There are many factoring freight deliveries, and one of the most dependable is NeeBo Capital. With headquarters at Boca Raton, Florida, this world class factoring company offers rates as low as 0.59% for 30 days. In addition the company offers free consultation and instant quotes online.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
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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