If you own a small or a mid-sized trucking company and you are finding it difficult to keep your business going amidst rising fuel prices and insurance rates, do not worry. Make use of freight bill factoring to fuel the growth of your trucking business.
Freight bill factoring is a great option to provide your business with the necessary funding. Factoring companies are willing to buy your freight bills and offer you instant cash for it. They would only charge you a nominal fee for providing you with cash against your freight bills. You can instantly enhance your cash flow through this method and can use it for whatever purpose you want to. Pay your drivers, get your trucks serviced, take new orders or offer extended payment to your existing customers to build long lasting relationship. It is up to you how you decide to use your working capital to grow your trucking business.
Compared to conventional means of financing, freight bill factoring is quick, simple, and affordable. You can use freight bill factoring even if you have hundreds of trucks. Factoring companies have factoring packages to suit varied needs and requirements. Factor your freight bills to capture new customers and to grow your business even further.
Obtaining cash for your business should involve serious consideration and research as a wrong choice can put lot of strain on your company’s operations rather than easing your cash flow gaps.Here are 5 things you need to consider when choosing accounts receivables factoring company for your business.
Look for a factoring company that is familiar with the nature and type of your business. Such a company would know the payment terms and processes, day to day business operations etc. and would ensure that the factoring process runs smoothly.
Choose a factoring company that is highly flexible to work with. Good factoring companies do not ask their customers to sell all of their invoices. Nor do they refuse to factor more invoices when your business expands. They do not sign any contracts and do not bind you with them for any specific duration. You enjoy a good amount of flexibility working with such a factoring company.It is important to work with receivables factoring company that is stable and that enjoys a good track record in the industry.
Check the pricing offered by the factoring company. How much fee is the company charging for factoring your accounts receivable? Is there any additional fees for extra services that the factoring company is offering such as same day or overnight funds transfer? To enjoy good rates, have a proper understanding of how the factoring company is structuring their fees.
Finally, check the level of customer service that the factoring company offers. Make sure they have dedicated staff to answer all your queries and to cater to your needs every time.
Keep the above points in mind in order to choose the right factoring company for yourself.
If client payments are not coming on time and you are finding it difficult to run your trucking business, take the advantage of freight bill factoring .
Selling your freight bills to a reliable factoring company will let you enjoy instant cash while the factoring company collects the payment from your customers later on. Regardless of slow payments from your clients, you can make timely payments to your drivers, for repairs and fuel. You can keep your trucks on road with the help of this easy and quick financing solution.
There are some factoring companies that offer funding against freight bills on the very same day. You can set up an account with a reliable factoring company and can get cash whenever you need it. No need to go through lengthy and time consuming options for raising cash anymore. With the advent of online factoring companies, improving cash flow using freight bill factoring has become even more easy and fast. Fill online form and get instant quote. Choose the best quote and get fast cash to manage the finances of your trucking company.
Factoring companies charge a nominal fee for their services. The rate can be as low as 1%. Freight bill factoring is one of the most cost effective options for funding your trucking business.
Use your freight bills and get quick cash to retain existing customers and to tap in new customers.
It is not uncommon for businesses to face a cash-flow squeeze. As the business expands, the companies are required to offer multiple payment options to their clients. Slow-paying customers, however, can make it difficult for the companies to fund their business. This is particularly true in case of small companies and start-ups. And when it comes to raising additional capital, the options available to these companies are limited. This is where factoring comes in.
Accounts receivables factoring, or simply factoring, is a method by which a company sells its invoices for immediate cash. There are specialized companies, known as ‘factors’, which buy accounts receivable of businesses and offer cash in return. This cash can be used to meet financial requirements of the business.
How is factoring helpful?
It makes it possible for businesses to obtain cash in less time (as little as 24 hours).
As owed receivables are collected by the third party, businesses don’t have to spend its resources on collecting cash from its customers. This saves considerable amount of time and money.
Factoring doesn’t require businesses to risk their property or other assets for cash. This makes it a safe option for businesses to meet their financial obligations.
When it comes to maintaining cash flow, there are many options available to the companies. Accounts receivables factoring and bank loans are two of the popular choices for enhancing flow of cash in the company. However, there are certain advantages that make Receivables factoring the preferred choice of many businesses in the US.
Firstly, unlike loans, factoring provides an instant access to cash. You can sell your accounts receivables to specialized companies, known as ‘factors’, and obtain cash in as little as 24 hours.
Secondly, as factoring only converts one asset into another, it does not prove to be a liability on your balance sheet.
Thirdly, there is no ‘repayment’ in factoring. Thus, you can easily avoid the hassles of making monthly payments to your bank.
Fourthly, it can help you save time and resources as you no longer have to worry about collecting money from your customers. Also, factoring makes it easier for you to decide the credit worthiness of your customers.
The funds obtained from factoring can be used for any purpose. From paying off the debts to hiring new people, you can use the cash for all types of business activities. The loans, on the other hand, are provided for a specific purpose only.
Every business owner wants ton ensure the smooth functioning of its business. However, many people consider factoring as an expensive alternative. This is not the case. Invoice factoring is an asset and does not cause any liability to your company.
Instead, invoice factoring provides immediate cash to your company in times of need and inform your clients that you have hired an invoice factoring service. It takes responsibility of the funds owed by your clients and allows smooth functioning of your business without any hindrance.
In order to reap all these benefits of an invoice factoring company, you must follow certain tips:
Your firm must devise accounting software in order to keep the financial records well-maintained.
Your firm must make sure that the account receivables are associated with only the most credit worthy clients.
Your firm must ensure that the client’s contact information is corrected and updated.
Your firm must ensure that your clients’ relations remain strong even in the time of adversities.
Following the above tips will allow you to derive maximum benefits from the invoice factoring company.
So, what are you waiting for? Search across the web and get in touch with a well-trusted, reliable firm dealing in invoice factoring and ensure a smooth business.
Once you will be connected with a well-known invoice factoring firm, you will be able to access to immediate cash within 24 hours.
Is your company going into debt? Have some of your clients failed to pay their due amount on time? You do not need to worry anymore. With invoice factoring service you can ensure smooth functioning of your business when your clients fail to pay.
Invoice-factoring service is typically an asset-based working capital solution which aid small, medium, as well as, large-sizes firms by providing instant funds to them. When payments from clients are delayed for a longer, it is natural for a business to go down. However,
invoice factoring service can facilitate your company with instant cash and makes your business debt-free. The big idea behind the invoice factoring service is to help businesses grow and expand even in adverse situations.
Without locking your company’s assets, invoice factoring aids clients with credit checks and even develops financial reports.
Whether you are a small or medium sized firm, invoice factoring service can be highly beneficial to your business and gives you an opportunity to access to immediate cash in times of need so that the functioning of your business is not get affected due to lack of funds.
Also called ‘debt factoring’, invoice factoring also includes an invoice financier managing, as well as, organizing your sales ledger. It accumulates the cash owed by your respective clients and aware them that your firm is connected with invoice finance service.
While many people have misconceptions that invoice factoring is a loan to the company, the service acts like a back-up and fulfills the requirement of funds on immediate basis.
Factoring Fast presented the infographic titled ‘Factoring – Reasons Why It Is Beneficial for Your Business?‘ aims with the big idea of showing importance of unrestricted cash in your business. This will be useful for readers showing Factoring is the most reliable form of business financing.
This Video titled ‘HOW TO BOOST YOUR CASH FLOW ‘ has been created with the big idea of showing importance unrestricted cash in your business. This video will be useful for readers showing various steps to improve cash flow in there business and right strategy to maintain a healthy cash flow in there business.
A right Freight Factoring Company can be a great way for a business to generate working capital. There are many factors to consider when choosing the right fright bill factoring company,
a) Rates: As we know every freight factoring company will charge you for its services. Of course, there are also other things you should pay attention to, but rates are really important, because the payment you receive from a given client is not net profit
b) Experience: This is one of the biggest factors for selecting the right fright bill factoring services.
c) Reputation: Everyone do the small research when we go for the factoring company, reputation shows that your clients are satisfied with its services or not.
d) Flexibility: But it is worth noting that some of them will agree to work with you only if you agree to factor all of your clients. And many more..
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Original Source : http://quicktransportsolutions.com/blog/how-to-choose-the-right-freight-factory-company/#.U1id7iT6SJM