Trucking and logistics are good businesses to be in, but at the same time they are very cash intensive. Trucking and logistic companies have to deal with ever rising fuel prices, driver payments, repairs, tire purchases and other operational expenses. These expenses are a constant drain on the finances of these companies and are unavoidable. [...]
You are in a profitable business, if you run a freight brokerage company. However, it can prove very challenging financially if you do not have a nice cash cushion to help pay off your drivers on time. Your clients may take anywhere from a month to two months to clear your bills. In the absence [...]
Freight bill factoring companies offer instant finance against freight invoices. The amount of advance ranges between 70, 90 and even 97% of the invoice value, depending on the specific terms of the factoring agreement between the transporter/freight brokerage company/ trucking company as also on the factoring company’s internal policies. The need for factoring arises because [...]
Factoring basically amounts to accounts receivables financing. It has become increasingly difficult for businesses, especially new ones, to obtain accounts receivable financing in the face of existing financial and banking practices in today’s cutthroat business environment. In this scenario, factoring offers the best alternative way, to obtain the necessary finance. Freight factoring is a very [...]
The freight factoring industry is a blessing for those trucking companies that face the problem of slow paying customers. It is critical for the trucking companies to get paid on time as they have to deal with some expenses on a regular basis, the timely payment of which is very important. It is necessary for [...]
When you have a small or middle sized business serving commercial and government customers it usually means waiting for up to two months for getting paid against your freight invoices. All big companies and the government as well, are very slow in making payments, making it a challenge to work for them. Slow paying clients [...]
In a business such as transportation, where the productive assets are on the streets and freeways, away from the owner it is important that the trucking company owners have a steady flow of funds to meet operational expenses. Trucking company owners need cash for fuel, repairs/breakdowns, drivers, tires, loan/lease installments, and other day to day [...]