New to Factoring?

For those who aren't familiar with factoring, it is basically a fast way to get cash to run your business.

Factoring is Not a Loan

When you send your customers an invoice, they usually have 30 days to pay you back. Factoring companies will give you the bulk of the cash up front, sometimes within 24 hours, and collect the payments from your customers themselves. Once the invoices are paid in full, you’ll get the balance left over, minus a small fee.


Factoring Doesn't Require Debt

Sounds simple enough – fast cash for your business – no loans, no debt.

So how do you go about choosing the best factoring company?

Not all of them are created equal. Not all of them will give you the same level of service you need to help grow your business.

Everyone claims they have the simplest rate structure in the industry, no long-term contracts, same day funding, no up-front fees, no monthly minimums or maximums, etc., etc., etc.

We also offer these same benefits, but we GO THE EXTRA MILE FOR YOU that other factoring companies don’t.

Here’s Why We Are The Factoring Company You Need For Your Business

No other factoring company matches our level of superior service and offerings.


As you can see, we simply have more to offer you.

Other factoring companies don’t even compare.

And Not All Factoring Companies Can Say This:

More than half of our new business comes through client referrals.

Some of the benefits you receive with factoring are:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information for the city of

The Denver MSA has a gross metropolitan product of $157.6 billion in 2010, making it the 18th largest metro economy in the United States. Denver's economy is based partially on its geographic position and its connection to some of the major transportation systems of the country. Because Denver is the largest city within 500 miles (800 km), it has become a natural location for storage and distribution of goods and services to the Mountain States, Southwest states, as well as all western states. Another benefit for distribution is that Denver is nearly equidistant from large cities of the Midwest, such as Chicago and St. Louis and some large cities of the West Coast, such as Los Angeles and San Diego.Over the years, the city has been home to other large corporations in the central United States, making Denver a key trade point for the country. Several well known companies originated in or have relocated to Denver.

 

Instrument Company in 1895 to make analytical balances for gold assayers. Its factory is now in Arvada. the largest owner and operator of apartment communities in the United States, with approximately 870 communities comprising nearly 136,000 units in 44 states is headquartered in Denver, employing approximately 3,500 people. Also producer of automotive belts and hoses, was established in S. Denver in 1919. Denver. . Along with federal agencies come many companies based on US defense and space projects, and more jobs are brought to the city by virtue of its being the capital of the state of Colorado. The Denver area is home to the former nuclear weapons plant Rocky Flats, the Denver Federal Center, the Denver Mint and the National Renewable Energy Laboratory.In 2005, a $310.7 million expansion for the Colorado Convention Center was completed, doubling its size.

 

The hope was that the center's expansion would elevate the city to one of the top 10 cities in the nation for holding a convention.Denver's position near the mineral rich Rocky Mountains encouraged mining and energy companies to spring up in the area. In the early days of the city, gold and silver booms and busts played a large role in the economic success of the city. In the 1970s and early 1980s, the energy crisis in America and resulting high oil prices created an energy boom in Denver captured in the soap opera Dynasty. Denver was built up considerably during this time with the construction of many new downtown skyscrapers. When the price of oil dropped from $34 a barrel in 1981 to $9 a barrel in 1986, the Denver economy dropped with it, leaving almost 15,000 oil industry workers in the area unemployed (including former mayor and current governor r, a former geologist), and the highest office vacancy rate in the nation (30%). Since then, the industry has recovered and there remain 700 employed petroleum engineers in the region.

 

Advances is hydraulic fracturing has made the DJ Basin of Colorado into an accessible and lucrative oil play. Energy and mining are still important in Denver's economy today, with companies such The Downtown region has seen increased real estate investment with the construction of several new skyscrapers set to be completed in 2010 2013.Denver has also enjoyed success as a pioneer in the fast casual restaurant industry, with many popular national chain restaurants founded and based in Denver. In 2013, Denver ranked No. 6 on list of the Best Places for Business and Careers

 

 

Information for the state of Colorado

The Bureau of Economic Analysis estimates that the total state product in 2010 was $257.6 billion. Per capita personal income in 2010 was $51 940, ranking Colorado 11th in the nation. The state's economy broadened from its mid-19th century roots in mining when irrigated agriculture developed, and by the late 19th century, raising livestock had become important. Early industry was based on the extraction and processing of minerals and agricultural products. Current agricultural products are cattle, wheat, dairy products, corn, and hay.

 

The federal government is also a major economic force in the state with many important federal facilities including NORAD (North American Aerospace Defense Command, United States Air Force Academy, Schriever Air Force Base located approximately 10 miles (16 kilometers) east of Peterson Air Force Base, and Fort Carson, both located in Colorado Springs within El Paso County; NOAA, the National Renewable Energy Laboratory (NREL) in Golden, and the National Institute of Standards and Technology in Boulder; U.S. Geological Survey and other government agencies at the Denver Federal Center near Lakewood; the Denver Mint, Buckley Air Force Base, and 10th Circuit Court of Appeals in Denver; and a federal Supermax Prison and other federal prisons near Canon City.

 

In addition to these and other federal agencies, Colorado has abundant National Forest land and four National Parks that contribute to federal ownership of 24,615,788 acres (99,617 km2) of land in Colorado, or 37% of the total area of the state. In the second half of the 20th century, the industrial and service sectors have expanded greatly. The state's economy is diversified and is notable for its concentration of scientific research and high-technology industries. Other industries include food processing, transportation equipment, machinery, chemical products, the extraction of metals such as gold, silver, and molybdenum. Colorado now also has the largest annual production of beer of any state. Denver is an important financial center.

 

You have things to do and sometimes it just does not make sense to put them off until you get paid  

There are many reasons why factoring has become a popular and valuable financial tool for businesses today. The key benefit of factoring is that a business receives a quick boost to its cash flow: in fact, many factoring companies offer cash on their Accounts Receivable within 24 hours! -Best Factoring Companies For Trucking

 

 

IMAGINE YOU? HOLDING ALL THE CASH YOU NEED  

Best Factoring Companies For Trucking Articles

"How a Factoring Company Saved This Owner of a Trucking Company Business"

 

Transportation industry plays a vital role in the economic scene. As people's lives become more and more sophisticated as time goes by, making the most out of the limited resources is the concern of all. Say for example the proper use of land to get optimum profit and convenience or what is known as the zoning. It is defined as the process of planning for land use to allocate certain kinds of structures in certain areas. This method separates the manufacturing sites from the sources of its raw materials, the employees and employers to their respective offices. This made the transportation industry play a vital role in the economic scene. It is a primary necessity for businesses of any size and of any type. It does not just transport raw materials to the manufacturers but also bring finished products into our every door.

 

Investing in a business which plays a vital role in the current economic scene is a thing that every investor should not think twice about. But business does not work that easy. The big question is, how you are going to survive the most challenging phase of establishing a business - the start. Starting a business requires a capital. If you now have enough money for capital, you can now start your business and since you are investing in a very promising type of business, finding customers is not a problem. The problem is, what if you found bad ones. Even if your customers are also managing a business and expecting cashflow, which does not guarantee that they would pay you up to date because some businesses are just ill-managed. For the business to survive, the most important thing that you would be doing is funding your operational cost - make payrolls, fuel, maintenance - it should rely on cashflow, but since things like mentioned above is very common, some business owners would resort for a loan. But that does not solve the problem of getting your receivables paid on time. As a business owner, you cannot afford the time it takes to collect the receivables, while trying to make your business grow.

 

Mr. Paul, an owner of a small trucking company experienced the same kinds of problems and shared how he managed to survive. "I just released my head from the stress of how am I going to get my receivables, and focused on making the business grow"¦"

 

Mr. Paul just got his retirement fee from a big trucking company for almost forty years and was thinking on how to double his money in the shortest time possible. Seeing a small trucking company as a business of great potential and is a business that he knows. When he was still driving a truck, he was fascinated by how much money the company is making. He has also never experienced a delay in his salary. When he decided to invest his retirement fee in establishing a small trucking company, everything was just according to what he expected. He started with a single truck from his home. He started with just a few clients, the ones he knew already and never missed one deadline and kept freight damage as minimal as possible. Because of his outstanding services he started to get referrals and had more work than he can handle. From then, he started to expand, bought more trucks, hired more personnel. Using the knowledge he acquired from the company that he had served for a very long time, and dedication to his work, his little business grew in a rate that he had never imagined. The business is now requiring a more strategic plan and when Mr. Paul thought that everything was going very well, he encountered problems that he failed to foresee.

 

He had customers that made him wait for weeks or even months before paying. Since his little business is rapidly growing, his operational cost is also growing . This is a problem that he never knew and never observed in his entire career as a driver of a trucking company since he was never in an administration role. He was at the verge of breaking down, his business is losing money, growing too fast, not big enough has to rely cashflow to keep up to his fast growing business. He had to make his payroll, pay his suppliers, maintenance and fill his orders. Mr. Paul thought of going to bank and apply for a loan but was denied. "Maybe because I had a bad personal credit...haha"

 

Mr. Paul thought of declaring bankruptcy because of the stress that he never imagined he will be handling. He had to think of how to manage his business and at the same time, how will he keep the business alive by thinking of a solution on how is he going to deal with his receivables.

 

"You know that time, I, I, I just don't know what to do... I felt that as the business kept growing and growing, I become more and more incompetent. Then suddenly, a hero came along... Just at the nick of time. "

 

Then a close friend of his introduced him to a factoring company and everything turned out just fine. So what is this factoring company then? What does it do? How did it save Mr. Paul's business?

 

Well, this is how it works, Mr. Paul sells his invoices or receivables to a factoring company at a discount and not in an amount where he can no longer make a profit. The factoring company will then be the one collecting the invoices of Mr. Paul's business from his customers. Say for example, Paul still has 100 dollars to collect from one of his customers. He then sells it to the factoring company at a lesser price, say 90 dollars. The factoring company will now be the one who is going to get the 100 dollars collectible from Paul's customer.

 

The factoring company immediately gave Mr. Paul the cashflow he needed. He now has instant customer credit checks. He can rest well and likes doing business with companies that pay their bills on time. Save him from the stress of thinking how to deal with his collectibles, thus saving time and money. He can now focus on growing his business and keeping his customers happy. Increase his sales and cashflow.

 

The Factoring Company not just saved Mr. Paul's start-up business but made it a big company now. It has helped Mr. Paul's business, why don't you let it help yours?

 

 

 

You have things to do and sometimes it just does not make sense to put them off until you get paid

 

 

Best Factoring Companies For Trucking Articles

Bookkeeping for Freight Brokers and the Most Common Mistakes Businesses Make

 

A freight broker is either a company or an individual who effects the transportation of goods by pairing up shippers with transportation services. The freight broker is not only responsible for pairing reliable and authorized transportation carriers with shippers, but also organizing the shipping needs for various organizations. Besides matching shippers with carriers, a freight broker is also responsible for ensuring each and every piece of cargo reaches its destination - and in good condition.

 

In addition to these tasks, freight brokers are also responsible for maintaining accurate bookkeeping records, and those who fail to keep meticulous accounting records are likely to lose money in the long run. In this post we've detailed what we believe are the most common accounting mistakes freight brokers make, and ways in which they can be avoided.No. 1: Attempting to DIY Your Bookkeeping Can Result in Costly Errors

 

Whether you handle the books yourself or delegate this vitally important job to an unqualified employee or even a family member, DIY bookkeeping is seldom, if ever, a good idea. Yes, initially you'll undoubtedly save some money, but your inexperienced bookkeeper's errors can ultimately become very costly to your business and result in expensive financing terms, increased bond premiums, and other unnecessary costs.

 

We strongly suggest you employ the services of an experienced bookkeeper who's qualified to deliver accurate accounting records, which will ultimately result in fewer errors and the job being completed quickly and efficiently.

 

No. 2: Postponing Important Bookkeeping Tasks Due to Heavy Workloads

 

It's not easy running a business, and anyone who finds themselves in this situation understands only too well just how difficult it can be to find the time to complete day-to-day time-consuming tasks. It's imperative that things like reconciling credit card and bank statements be completed each month because it's only through these reconciliations that errors can be found; plus of course it's how you determine out how much credit or cash you actually have.

 

As tempting as it may be to postpone these tedious tasks, you must ensure that your credit card and bank statements are reconciled every month, ideally as soon as you receive each statement. Keeping on top of statements means you can quickly identify any lost checks, missing deposits, or fraudulent charges, and be able to handle any discrepancies in a timely manner.

 

No. 3: Failing to Track Receivables and Invoices

 

Your business depends on you getting paid, and you won't be paid if you're not regularly and properly accounting for receivables. The lifeblood of your business is cash, which means the success of your business is entirely dependent upon you accounting for receivables. To put it another way, if the period of time between paying your carriers and receiving payment from customers is unnecessarily delayed by poor accounting practices, your business cash flow is going to be very strained.

 

If you're time-poor and realize you simply don't have time to track and collect invoices, then invoice factoring is the perfect solution for you. For just a small fee your applicable invoices will be purchased by the invoice factoring company, but the best part about invoice factoring is that you receive immediate payment! No longer will you have the time-consuming responsibility of trying to collect payments, thus saving an enormous amount of office time: plus, it leaves you free to take care of your own job, which is handling the day-to-day running of your business.

 

No. 4: Overlooking Liabilities Can Have Disastrous Results

 

When a surety inspects your business records to underwrite a bond, one of their first and most important considerations is whether your assets are sufficient to cover your liabilities. It's difficult for inexperienced bookkeepers to understand the full implications of accurate record keeping and sometimes DIY accountants record a liability but once the payment is made they forget to reverse the liability. This is a serious error because it understates net income while overstating liabilities, which makes your business appear less financially stable than it actually is.

 

The only way to avoid these unnecessary accounting errors is to hire an experienced bookkeeper. It's always handy to have another set of eyes, whether it be a CPA or an owner, to regularly review the balance sheet and check for discrepancies in account balances.

 

No. 5: Miscategorizing or Creating Unnecessary Expense Categories

 

All too often we see inexperienced bookkeepers either creating unnecessary expense categories or wrongly categorizing expenditures, either of which can be a huge red flag. Generally, each industry uses a standard set of categories for expenses and failing to follow this set of rules can signal to a surety or loan underwriter that an inexperienced person is handling your books; meaning that they may not be well prepared.

 

It's really important that your business's accounting software is correctly set up, preferably with the help of an accountant or experienced bookkeeper. Additional expense categories should not be added unless absolutely necessary. If you have any queries about how to classify expenses, don't hesitate to ask for guidance from your qualified accountant or CPA.

 

No. 6: Submitting Invoices with Insufficient Details

 

Don't try to save time by skimping on invoice details. Your customers' invoices should have detailed information on each line item; for example, do you invoice per mile, by weight, or by piece? Is the charge a flat fee? If there are additional charges such as fees or reimbursements for fuel, these should be listed as separate line items. The only way to avoid any confusion is to ensure that charges are properly detailed on invoices.

 

The last thing you want is for your customers to complain about charges they don't recognize on their invoices; and missing information can cause much confusion, resulting in delays in payment. All of these problems can be prevented by ensuring that your invoices have complete, detailed, and accurate information. Don't create unnecessary problems by trying to skimp on invoice details.

 

No. 7: Not Learning or Understanding the Full Functionality of Your Accounting Software

 

Getting a business up and running can be very expensive and time-consuming, and many freight brokers simply don't have time to learn how to use their accounting software package to its full capacity. This is not a problem if all your accounting and bookkeeping tasks are being outsourced; however, if you're using the software in any way at all, perhaps even just for entering checks and running reports, we strongly recommend that you learn how to use all functions of your accounting software package.

 

You can save so much time and have easy access to real-time information on the financial status of your business if you have the right accounting software and you know how to use it correctly. Having this information at your fingertips can help you make the right decisions to grow your business.

 

 

 

 

 

 

Best Factoring Companies For Trucking Articles

How Medical Staffing Helps The Medical Industry

 

Mary Henderson sat in her office, waiting for the phone to ring. Her job was a busy one, and she had stopped all her calls and shut her door five minutes before the phone conference was set to begin just to get some time for herself. The truth was she was stressed to her breaking point. Her company Med Staff needed to hire three new people to cover the demand of their clients. The problem was, they couldn't. They were short on funds.

 

Med Staff did temporary medical staffing. They employed LPN's, RN's, and a few others of the same ilk. Companies that needed nursing for a short amount of time paid Med Staff, and the nurses were sent over on short term contracts. Then they came back, and they were sent somewhere else.

 

A retirement home had contacted Mary two weeks ago, they were undergoing an expansion, and they would need temporary staffing until they could appoint permanent nurses to the shifts. Mary had known she didn't have enough people for this, but she took the contract on anyways, figuring she could hire people. There were always a number of nurses and technicians applying for work at Med Staff, and she knew it wouldn't be a problem to hire a few new people.

 

There had been a problem though. There simply wasn't enough money in the books to do it. The company was doing fine, but a quick expansion, even as small as three people, simply wasn't going to happen, not without help.

 

She had gone to the bank for a loan, but they had denied her. It seemed to Mary that the only people who could get loan money from a bank were the people who didn't need to do so. And then she had found something different, a website online about factoring. She had looked the site over, and set up the conference call.

 

The phone rang, she picked it up. "Hello?"

 

"Hi, is this Mrs. Henderson?" a cheery woman's voice asked over the phone."

 

"It is."

 

"Great! My name is Stacy, I'm going to help you today."

 

"Okay great." Mary said.

 

"I'm looking over the form you filled out, it looks like your company temporarily staffs medical professionals?"

 

"Yes," Mary said. "Nurses mostly."

 

"Great," Stacy said. "And if you called me, it means you ran into a snag."

 

"I took a contract to fill five places in an expanding retirement community. I have two people available but needed to hire three more. Unfortunately, we just don't have that kind of money in the books right now. We have a few outstanding invoices yet to be paid, but until they come in, there's nothing I can do."

 

"Do you know how factoring works?" Stacy asked.

 

"Not really," Mary admitted.

 

"Okay, well we don't look at your business credit, we look at your clients' credit. We know they have some time to pay bills, and we're interested to see if they can pay those bills. If they can, we become interested in helping you out, because we think all businesses should have a fair shot to make it, and sometimes things just don't work out."

 

"This is the first time it hasn't worked out," Mary said. "And it's hard."

 

"I know. I hear about it every day. The cool thing about my job is I get to help fix it. So what we do, if we feel secure in our ability to help you, is we buy a piece of your accounts receivable. We aren't just loaning you money, we're basically becoming active in your business. That is you get the money you need right now, but we have an assurance that we get our money back, later down the road."

 

Mary nodded behind her desk, even though the other woman couldn't see her. She had never heard of factoring before she came across the site on the internet, but the way Stacy explained it certainly made sense.

 

The call continued, with Mary giving the information that Stacy would need. She promised to get back to her within a couple of days, and then they hung up. Mary went on with her work, and a day and a half passed.

 

Mary was at her desk when he phone rang then. It was Stacy.

 

"Good news," she said as soon as Mary said hello. Mary couldn't help but smile as Stacy went on. "We're going to be able to help you out."

 

"You don't know how great it is to hear you say that," Mary said.

 

"Believe me, I do," Stacy said. "I get to say it more often than not, and I know that we're really helping good people, and good businesses."

 

"The bank, they couldn't do anything," Mary said, she felt salty tears stinging her eyes as they welled there.

 

"They aren't built to help people like we are. They just want as much money as they can get. We want money too, because it's a business, but if you don't succeed, we don't succeed, and it's also important to us that we help people."

 

"So what's next?" Mary asked.

 

"Well the real answer is I fax some stuff over for you to fill out and sign, but the fun answer is your business gets the help it needs, and you keep going to work each day. Well, not the weekends."

 

Mary couldn't help but laugh. "Believe me," she said. "I work plenty of weekends."

 

Stacy laughed as well, and then got the fax number she would need. Once again the women hung up and Mary let out a long breath as she sat back in her chair. She used a tissue to dab the tears from her eyes. She knew everything was going to be okay.

 

 

 

 

 

Best Factoring Companies For Trucking Articles

Factoring: An Overview

 

What Is Factoring?

 

'Factoring' is when a third party commercial finance company purchases the Invoices or Accounts Receivable from a business. The finance company concerned is called a 'Factor' and the transaction is known as 'Factoring'. Factoring is also known as 'Accounts Receivable Financing' because factoring occurs when a business needs to access cash quickly, quicker than if it had to wait the 30 to 60 days (or longer) to receive payment from a customer.

 

The majority of factoring companies purchase invoices and advance cash within 24 hours, although the terms and nature of factoring can differ between industries and different financial service providers. Depending on the industry, the customers' credit histories, and various other criteria, the advance rate can range from between 80% and 95%. The business also receives back office support from the factor. Once the factor has collected from the business's customers, the business will be paid the reserve balance of the invoices, less a nominated fee for assuming the collection risk.

 

The main benefit of factoring is that a business is not required to wait one or two months (sometimes more) for payment by a customer - the business will receive cash in hand to operate and grow their business. It's important to note that factoring is not a loan: there's no debt with factoring. Funding is unrestricted, which means that a business has more flexibility than borrowing from a bank.

 

The Five Simple Steps of Factoring

 

1. As a business, you provide a service to your customer;
2. The invoice for this service is sent to a factoring company;
3. On this invoice, you'll receive a cash advance from the factoring company;
4. It's now up to the factoring company to collect full payment from your customer;
5. Once payment has been received, you'll receive the balance of your invoice account from the factoring company - minus their fee.
The Advantages of Factoring

 

There are many reasons why factoring has become a popular and valuable financial tool for businesses today. The key benefit of factoring is that a business receives a quick boost to its cash flow: in fact, many factoring companies offer cash on their Accounts Receivable within 24 hours! The factoring company takes responsibility for collecting customer payments, and may also evaluate the payment and credit histories of a business's customers.

 

Other Benefits Include:

 

' When a business needs access to cash, factoring can be customized and managed in order to provide the necessary capital;
' The business balance sheet will not show this financing as a debt;
' Factoring is not based on the company's credit or business history: it's based on the quality of its customers' credit;
' Factoring is not determined by the company's net worth: it provides a Line of Credit based on sales;
' There's no limit to the amount of financing through factoring, unlike a conventional loan;
' Factoring is an ideal solution for start up businesses that often require immediate cash flow.

 

Is the Concept of Factoring New?

 

No, it's not! In fact, the origin of factoring comes from overseas trade among nations and dates back several centuries to the 1400s when it became part of doing business in England. In the year 1620 it arrived in America with the Pilgrims. Like other financial tools, factoring has improved and evolved over the years. It became an effective way of creating cash flow in the United States at a timewhen companies faced strict limitations when trying to secure loans in the country's damaged banking system.

 

Who Uses Factoring?

 

Factoring is available for companies of all sizes, ranging from a one person business to Fortune 500 companies. Every business can use factoring as an effective way of increasing their cash flow. In addition, factoring spans all types of industries, from transportation, trucking, textiles, manufacturing and distribution, staffing agencies, and oil and gas.

 

The cash generated from factoring is used by companies to purchase new equipment, pay for inventory, expand operations, add employees, and basically cover any expenses related to the running of their business. The beauty of factoring is that it allows companies to make quick decisions and to expand at a faster pace.

 

How Does Factoring Work?

 

For the purpose of this post, we'll describe a fictional example as a way of illustrating a common factoring situation.

 

XYZ Transport is a trucking company: their intention is to double their fleet size over the next two years in order to service more clients in the West. The company has just successfully won a new customer on the West Coast who requires freight to be shipped from Oklahoma to Los Angeles. This new customer is more than happy to pay for the service within 30 days; however, that won't cover all the immediate costs involved, like payroll, fuel, and maintenance costs of running the route.

 

This is a familiar situation for the owners of XYZ Transport: the lack of available cash flow in the past has prevented the company from accepting new business. So now XYZ Transport has turned to a factoring company: they have agreed to sell the West Coast customer's invoice to the factoring company in exchange for a 90% advance on the total amount - within 24 hours! This much needed influx of cash will replenish the trucking company's reserves and allow it to continue running the Oklahoma - Los Angeles route. In addition, XYZ Transport now has the added flexibility of taking on new customers.

 

How Much Do Companies Factor?

 

Each company has its own unique business needs, so somecompanies only factor invoices for customers that are slow in paying, whilst other companies factor all of their invoices. Companies can factor receivables ranging from a few thousand dollars right through to millions of dollars each month.

 

What's the Difference between Factoring and a Traditional Bank Loan?

 

Factoring, also known as Accounts Receivable Financing, is a quick, flexible and effective way for businesses to create a steady cash flow stream. See below for how factoring is different to a Line of Credit at a bank or a traditional business loan

 

 

 

 

 

Best Factoring Companies For Trucking Articles

Why Trucking Companies Use Factoring Companies.

 

As the owner of your own business, you may be more than aware already of the difficulty in making sure that cash flow issues do not become a problem down the line. After all, the worst thing that can possibly happen for your business is to find yourself embroiled in a long and difficult situation that leaves you forever trying to find the cash you need on an ongoing basis.

 

For any business in this situation, the problem can come for waiting for work to clear up and actually be paid into your account. Invoices, checks, and the like can take some time to actually to be processed which can leave you with short-term cash flow issues. Thankfully, there are options out there for businesses to look into - and one of these is factoring companies.

 

Factoring companies will, in exchange for your invoices, provide you with the cash today so that you don't need to worry about the waiting period that could make paying the bills and getting materials more difficult. With this type of setup, invoice factoring can become incredibly useful for many businesses who need to get out of a cash trap which they have found themselves in.

 

Because, depending on the size of the job, it can take up to 60 days for some businesses to get paid then it's important to cover your own back and not leave yourself cash short to pay the bills. After all, how many businesses have two months revenue just lying there to cover all their expenses until they get paid?

 

This is especially true of trucking companies. They tend to deal with lots of invoices which means a significant amount of collection time involves business owner themselves. Trying to get paid in time can become an incredible hassle and this is why you use trucking factoring companies who are happy to help out truckers specifically.

 

As we all know, trucking is an incredibly large industry with many companies out there employing hundreds of drivers. Unfortunately, many of these drivers end up in money troubles because they are still waiting for work from six weeks ago to actually pay them. When this is the situation for a trucking company, turning to factoring companies for assistance might be the best choice left.

 

This means that a trucking company can pay the wages of the staff, keep all the trucks topped off with fuel and continue to scale, grow and expand without always waiting for the money which is taking too long to come in. Trucking Businesses running without a factoring program put in place are leaving themselves at significant risk, as competitors cash out fast and continue to expand.

 

There's genuinely nothing to be worried about when it comes to using a Factoring company - they aren't like a bank or somebody who is going to leave you with a huge pile of debt to pay back. You give them genuine invoices from work you have already finished, you are merely speeding up the payment process.In the United States, where trucking companies thrive, factoring companies are not considered borrowing in any capacity. This confidential agreement then allows both parties to profit and enjoy a comfortable future - it gives the factoring company a guaranteed asset of income to add to the list and it gives the trucking firm the needed cash that they worked hard to earn.

 

The trucking company provides their invoices to the factoring company. The trucking factoring company then receive the payments from the trucking company's customers. Factoring has been around for hundreds of years and has been used for many years by many different industries - but none more so than truckers. While you may miss out on a small part of the money, something like 1-3% depending on who you work with, it means that you are getting the money today and can actually start putting the money to work.

 

After all, an IOU or an invoice is not going to pay for expenses, is it? For trucking companies when the money can be good one day and gone the next, it's up to the drivers to work sensibly and to ensure they are leaving themselves with a significant amount of time and finance to get through the week until they are paid again.

 

So the next time your trucking business is having some short-term cash flow issues and you are spending too much time chasing slow paying clients, why not start considering using a factoring businesses as a way to get your money and give yourself a more comfortable future in the eyes of your trucking staff and your bank balance?

 

 

 

 

 

Best Factoring Companies For Trucking Articles

The benefits of using a Factoring company versus a bank loan

 

If you are looking for a convenient way to obtain business capital, factoring is one of the best options available out there. From a recent study, it has been identified that many people go for bank financing in such instances, considering that it is the least expensive method of investing. However, factoring is associated with many other advantages and we will let you know about them through this article.

 

A proper cash flow is something that every business in the present world should have. In addition, they need to speed up their cash flows along with time. Otherwise, it will not be possible for them to get banks for financing. Unfortunately, banks are not in a position to accommodate all the financial requirements of a company, due to tough credit standards. That is where factoring comes into play. It happens when a company sells its accounts receivable to a bank or a factoring company. The amount that can be taken depends on value of the invoice.

 

Key benefits associated with factoring

 

' A company can get large amounts of capital through factoring. It is because this method is entirely based upon accounts receivable. It has impressed many small scale businesses out there since they can obtain a bigger line from their accounts receivable for services or goods. They will not be able to get such a big amount of capital from any conventional bank lender out there. Factoring is something that is based on the credit strength of your potential customers. If your company has more potential customers with healthy credit strengths, you can easily enjoy the benefits of factoring.

 

' Factoring is quicker than traditional bank loans. Since most of the accounts receivable factoring lines are in a position to be set up, approved and actively funded within a matter of few weeks, you can go through a hassle free process. However, banks will take more time to engage with their credit reviewing activities about your company. They might even wait for audit results or fiscal period closes. Therefore, if you are in need of quick business capital, factoring is the number one option available out there to consider.

 

' Factoring is something that expands quickly along with the growth of your company. Almost all the factoring companies out there support it. Your company doesn't need to have an excellent track recording of business. You just need to select a factoring company that is big enough to accommodate all your business development ambitions.

 

' A factoring company does not offer loans to their clients. Therefore, you cannot find many similarities between a loan and factoring. A factoring company will purchase your accounts receivables along with cash. Therefore, it can be considered as a similar process to increasing the working capital, while showing it as a liability in the account balance sheets. This will even reduce debt in the balance sheet, when compared to borrowing. At the end of the day, your company will get the opportunity to enjoy a lower debt to equity ratio.

 

' Factoring is less expensive than equity. Most of the businesses approach equity investors to cater their financing requirements. However, there isn't any substitute for equity capital in some expansion purposes and business investments. Almost all the equity investors expect a higher return from the accounts receivable than the cost. When it comes to factoring arrangements, you won't be able to find any dilutive effect on shareholders. This will assist you a lot to stay away from hassle.

 

' Factoring is also recognized as one of the best options available to improve your turn. In the present world, many factoring companies will verify invoices with your customers and check whether they are being paid on time. This will motivate your customers to pay the invoices on time through a gentle reminder. This will result in a better service delivery from your end as well.

 

 

 

 

 

Best Factoring Companies For Trucking Articles

Factoring

 

Invoice factoring
trucking factoring companies
factoring companiesp> 

As the owner of your own business, you may be more than aware already of the difficulty in making sure that cash flow issues do not become a problem down the line. After all, the worst thing that can possibly happen for your business is to find yourself embroiled in a long and difficult situation that leaves you forever trying to find two pennies to rub together.

 

For any business in this situation, the problem can come for waiting for work to clear up and actually be paid into your account. Invoices, cheques and the like can take some time to actually processed which can leave you with short-term cash flow issues. Thankfully, there are options out there for businesses to look into - and one of these is factoring companies.

 

Factoring companies will, in exchange for your invoices, provide you with the cash today so that you don't need to worry about the waiting period that could make paying the bills and getting materials more difficult. With this type of setup, invoice factoring can become incredibly useful for many businesses who need to get out of a cash trap which they have found themselves in.

 

Because, depending on the size of the job, it can take up to 60 days for some businesses to get paid then it's important to cover your own back and not leave yourself short in that day. after all, how many businesses have two months revenue just lying there to cover all the losses until they get paid?

 

This is especially true of trucking companies. They tend to deal with lots of invoices which means a significant amount of running around and donkey work for the business owner themselves. Trying to get paid in time can become an incredible hassle and this is why you get specific trucking factoring companies who are happy to help out truckers specifically.

 

As we all know, trucking is an incredibly large industry with many companies out there employing hundreds of drivers. Unfortunately, many of these drivers can spend night in the cold or hungry as they are still waiting for work from six weeks ago to actually pay them. When this is the situation for a trucking company, turning to factoring companies for assistance might be the best choice left.

 

This means that a trucking company can pay the wages of the staff, keep all the vans topped up with fuel and continue to scale, grow and expand without always waiting for the never-never with money which is taking forever to arrive coming in. businesses running without a factoring model put in place are leaving themselves in significant risk, as competitors cash out fast and continue to expand.

 

There's genuinely nothing to be worried about when it comes to using a Factoring company - they aren't like a payday loan firm or somebody who is going to leave you with a huge pile of debt to apy back. Although you are technically borrowing a loan, so long as you only ever give them genuine invoices from work you have already finished you are merely speeding up the payment process.

 

In the United States, where trucking companies thrive, factoring companies are not considered borrowing in any capacity. This confidential agreement then allows both parties to profit and enjoy a comfortable future - it gives the factoring company a guaranteed asset of income to add to the list and it gives the trucking firm a wad of cash that they worked hard to earn.

 

The trucking company will usually need to pick up the invoice and cash it in still, and then make the payments back to the factoring company. Because it's a confidential agreement, and it can look bad for a business to be involved in this type of short-term finance even though it's perfectly legal and a very common practice, it's usually in the hands of the company to get the money for the factor.

 

This is an extremely old business type and has been used for many years by many different types of work - but none more so than truckers. While you may miss out on a small part of the money , something like 15% depending on who you work with, it means that you are getting the money today and can actually start putting some food on the table.

 

After all, an IOU or an invoice is not going to be you fed and washed, is it? For trucking companies when the money can be good one day and gone the next, it's up to the drivers to work sensibly and to ensure they are leaving themselves with a significant amount of time and finance to get through the week until they are paid again.

 

So the next time your trucking business is having some short-term cash flow issues and you are spending too much time chasing up slow paying clients, why not start considering to use factoring businesses as a way to change your motive and give yourself a more comfortable future in the eyes of your trucking staff and your bank balance?

 

 

supplied clothing

 

 

 

Best Factoring Companies For Trucking Articles

Payroll Funding: The Perfect Solution for Financing a Temp Staffing Agency

 

Many people run very profitable temp staffing agencies. Today's business environment lends itself very nicely to outsourcing employees instead of hiring them; thus providing staffing agencies with very attractive financial opportunities. But, like all other businesses, temp staffing agencies require working capital. In this industry, accessing capital can become a serious problem and many agencies struggle to meet their own financial obligations. In addition, business growth suffers because the agency is unable to add new clients. Fortunately, there is an answer to cash flow problems in temp staffing agencies.

 

Payroll: The Biggest Expense for Temp Staffing Agencies

 

Perhaps the most important expense, and often the biggest expense for a temp staffing agency, is employee payroll. It's vitally important that employees are paid regularly and on time. Failure to cover payroll will result in your employees leaving and seeking work elsewhere.

 

Of course, there are other financial obligations to be met by the temp staffing agency, such as paying employment taxes. Failure to meet tax obligations can become a costly and serious legal issue for agencies, with the result that businesses begin to struggle.

 

All Businesses Need Funds to Grow and Prosper

 

Most clients (both commercial and government) settle their invoices within 30, 60, and sometimes 90 days, and it's this lengthy period of time that creates financial issues for staffing agencies. Once a staffing agency has accepted a new client, it must be capable of covering the employee's wages for a period of up to 2 months - and this is before the agency itself starts being paid. So, in order to meet operating expenses, it becomes imperative that the staffing agency has a substantial cash reserve. And, the bigger the contracts the bigger reserve required. Without this reserve, the agency won't be able to accept new contracts, and without new contracts there can be no growth. What a vicious cycle! And it all comes down to cash flow.

 

Grow Your Temp Staffing Agency with Payroll Financing

 

Today there's an easy way to resolve cash flow problems experienced by so many businesses. It's called Payroll Funding, and it's a solution that's been designed specifically to assist staffing agencies access much-needed working capital.

 

What Is Payroll Financing?

 

Payroll financing is just one type of invoice factoring, and invoice factoring is a financing solution designed to help businesses finance their slow-paying receivables. With payroll financing your agency will receive immediate funds. No waiting 30, 60, or 90 days to receive payment from your government or commercial clients because you'll receive a payment from the factoring company within a day or two of receiving your invoice. Sounds too good to be true, doesn't it! Well, it is true, and it works very well for many businesses in many industries.

 

Factoring works because it provides the much-needed working capital required to cover payroll and other running expenses. Now you don't need to stress about slow paying clients; you can still meet your financial obligations and continue growing your business

 

How Factoring Works

 

Invoice factoring is a very easy process. Basically, your invoice will be financed in two payments. The first payment you receive will cover approximately 90% of the total value of your invoice, and your agency will receive this payment once you've submitted the invoice for financing. You'll receive the remaining payment, typically 10% less factoring fees, once your client has paid their account. It's important to note that your clients will still pay on their regular schedule; they're not being asked to pay any sooner.

 

Payroll Funding Is Available to Small Agencies Too!

 

Don't be concerned that your agency may be too small to be accepted for payroll funding. This is one of the great advantages of factoring; that it's available to businesses of all sizes, even start-ups. The reason for this is that factoring companies are more interested in the credit quality of your customers, because the factoring company is financing the invoices, which are the assets. When you apply for factoring, the factoring company will confirm whether (or not) your clients have good commercial credit, because this is what will determine if the factor is prepared to finance your invoices. So, if your temp staffing agency has reliable-paying customers, your business is an ideal candidate for payroll financing. You can see, therefore, that factoring becomes a very attractive financing option for agencies with a strong lineup of clients.

 

Grow Your Agency with Payroll Factoring

 

In case you're still not entirely clear about payroll factoring, let's have a look at a hypothetical example

 

Let's say you can't afford to grow your temp staffing agency because you're experiencing cash flow problems. A new client has just contacted you and requested 5 full-time employees for a 6-month period. This new client is a relatively large company with a good reputation. Unfortunately, though, you can't afford to carry the cost of this contract because they wait 50 days to pay their invoices.

 

The solution: You'll invoice this new client weekly and factor the invoice. By factoring the invoice you'll receive weekly cash advances, which means your agency can both service the new contract and continue paying your employees in a timely manner. Providing you're servicing reputable clients with no credit issues you'll be able to use receivables factoring to continue growing your agency. Besides resolving immediate cash flow problems, payroll factoring could be the catalyst for growing your business well in excess of its current capabilities.

 

 

 

 

 

Best Factoring Companies For Trucking Articles

The Basics of Invoice Factoring: Choosing a Factoring Company

 

Probably the biggest frustration for business to business (B2B) companies is waiting to get paid.Anyone involved in a seasonal business, long payment cycle, or lumpy cash flow will be able to relate to this statement. Some customers are very slow payers (of course corporate clients and governments come to mind!) and other customers demand generous terms.

 

Explaining Invoice Factoring

 

Basically, with invoice factoring your current but unpaid invoices are turned into cash – it "s a financing solution for businesses. Other terms used for factoring are ‘Accounts Receivable Financing ", ‘Invoice Financing ‘and ‘Receivables Financing ". Because many clients demand generous terms, it means that invoices can remain unpaid for anywhere between 30 and 90 days; while in the meantime you "re left without cash and falling behind on important expenses, such as payroll, and missing opportunities to grow your business. And this is where factoring comes in: factoring reduces, and sometimes eliminates the frustration of unpaid accounts.

 

A receivable financing transaction usually involves three parties, and these are the company that initially issues the invoice, the customer who is required to pay the invoice (otherwise known as the account debtor), and the ‘factor ", which is the financing company prepared to supply the cash.

 

Explaining Invoice Financing

 

An invoice is issued to a customer after a company has delivered a service or product. This invoice will now be sold to the factor and, in return, the company will receive a cash advance: this will usually be between 70% and 90% of the invoice "s value. With this cash the company finds it easier to pay employees; plus, it can now purchase supplies, materials, and inventory, and it can take on more work. Once the debtor pays their invoice the business will receive a rebate for the rest of the funds, less a fee which will be based on the value of the invoice and the term. This type of financial agreement benefits all three parties: the customer receives cash almost immediately, the debtor gets favorable payment terms, and the factoring company collects a fee.

 

Explaining the Difference between Traditional Bank Financing and Invoice Financing

 

There are, of course, both drawbacks and benefits to this type of financing for businesses. The obvious benefits of factoring are a simpler application process, quicker funding, and higher approval rates when compared to bank lending. Having access to cash allows a business to grow, to meet payroll, achieve supplier discounts for bulk purchases or early payment, and to purchase equipment in order to improve productivity.

 

Factoring has a very simple application process which eliminates some of the main hurdles placed on small businesses by banks. The speed of funding with factoring offers businesses the opportunity to take advantage of opportunities as they arise. In addition, the high approval rates with factoring means that many more businesses qualify, even though they may have previously been declined by a bank. Another bonus is that funds received from factoring invoices can be used to supplement bank credit, if necessary.

 

On the other hand, when it comes to cost, a line of credit at a bank is less expensive than factoring; this is assuming that the business will be successful in their application to the bank and that they "ll have access to the finance within a reasonable timeframe. Unfortunately, these applications are not always successful (four out of five companies are refused bank loans), while others find the whole process too discouraging.

 

Another possible issue with working with traditional factoring companies is that some of these companies will advise your customers that their invoices have been financed: this information can cause issues for some small businesses because they prefer to maintain control over all correspondence with their clients. Other factoring companies actually take control of your account receivables. Our advice is that you look for a factoring company that "s prepared to work on a non notification basis.

 

Receivables Financing Has Become Good Business Sense

 

Today we see factoring becoming quite commonplace in many industries, such as IT companies, professional services, wholesale trade, marketing, manufacturing companies and so on. Many, many industries are discovering the benefits of receivables financing.

 

Invoice factoring is an ideal solution for business to business companies who issue invoices payable within 15 to 90 days. Any B2B company who "s experiencing rapid growth, long payment cycles, or lumpy cash flow, will benefit the most from accounts receivable factoring. On the other hand, businesses and business to consumer (B2C) companies that are paid on delivery and don "t issue invoices would have no need of factoring services.

 

If you "re interested in invoice financing and believe it may be an option for your business, see below for our tips on how to approach working with a factoring company.

 

How to Work with an Invoice Factoring Company

 

There are many advantages to invoice financing, but it can be tricky working with some traditional factoring companies. Some factoring companies don "t have excellent customer service, and between confusing terms, long term contracts, monthly minimums, and hidden penalties, the experience can be quite daunting. Our aim is to ensure that you get a fair deal when working with a factoring company, and please remember that, as always, if a deal sounds too good to be true, then it probably is!

 

You "re Looking for Transparent Factoring Fees and Rates

 

Companies that make it difficult to work out their all inclusive fees are companies who are working for their own advantage, so when determining pricing, transparency is key. If you "re getting frustrated and not receiving direct answers, we suggest you move on to another factoring company that will be respectful of your time.

 

Another Word of Caution: Beware of receivables factoring companies who advertise low rates, which then increase when all their hidden fees come to light. We "ve heard of factoring companies who charge low monthly factoring rates, but you "ll be charged for two months " even if the invoice was paid in one month and one day. We also know that some factors require monthly minimums, which means that you pay for financing even if it "s not required. We strongly suggest that you read our article on factoring rates and tricks so that you approach factoring with knowledge and awareness.

 

Understanding Penalties, and How to Avoid Them

 

Be aware that some invoice factoring companies out there have hidden penalties. In order to avoid these penalties, you need to know why they occur. If you believe these penalties are out of proportion or unfair, then move on to another factor. It won "t be long before you "ll understand what fair and reasonable terms look like.

 

Read the Fine Print in Your Contract

 

In order to guarantee their profits, most factoring companies will try to lock you into a long term contract. Obviously this is good business for the factoring company, but it may not be so good for your business. You need to know what you "re signing up for, so be aware of long term contracts where you "ll be charged exorbitant cancellation fees if you should decide to leave.

 

Also, be aware that some long term contracts include minimums, so consider this carefully: you may find yourself paying for something you "re not using when you only needed the factoring company to meet occasional cash flow needs. You shouldn "t be forced to remain with a service that "s not meeting your needs, so it "s vitally important that you carefully read the fine print.

 

Customer Confidentiality

 

Once you start your research on factoring you "ll discover that most factoring companies operate on a notification basis, which means that when you sell your invoices to the factor, they notify your customers. They "ll also ask that the funds be routed directly to the factoring company "s bank account, instead of your account. This can be an issue for business owners who prefer to have control of all communications with their customers. If discretion is important to you and your business,

 

we strongly suggest that your accounts receivable financing company provides non notification factoring, meaning that you retain control over customer communications. If this is not an option for your factoring company, then you need to move to a companythat will provide non notification factoring.

 

How Much Cash Will You Receive Upfront?

 

You "ll receive an advance upfront, which is a percentage of the face value of the invoice. This advance will probably be somewhere between 70% and 90% of the invoice "s face value. For example, let "s say your customer owes you $1000: your advance payment should be somewhere between $700 and $900.

 

Factoring Minimums Compared with Single Invoice Discounting

 

You "ll also notice in your research that many factors require small businesses to submit all invoices from certain customers. On the other hand, ‘single invoice discounting ", also known as ‘spot factoring ", means that the business concerned determines which invoices will be sent to the factoring company for advance payment. Make sure you understand your factoring company "s terms before you sign anything. Single invoice discounting or spot factoring is generally the preferred method for small businesses because it enables you to retain control over your financing by determining which invoices will be sent for factoring.

 

Choosing Your Factoring Company

 

Think about all the above criteria, and look for a business partner who will provide your business with the best combination of flexibility, features, and terms that you require. By doing a little research you "ll soon find a partner and an agreement that offers you the flexibility, funds, terms, and transparency that work best for you. Your aim is to find a partner that you "ll be happy to work with long term, so don "t settle for anything less.

 

 

 

 

 

 

Best Factoring Companies For Trucking Articles

Oil Well Cleaning Owner Interview

 

The oilfield services industry is certainly a booming one these days thanks to a renewed emphasis on searching and drilling for oil on private and state properties. One of the more profitable ventures in this field is not the drilling for oil, but the cleaning of oil and gas wells to keep them operating at full efficiency. Oil and gas drilling is a dirty business and wells will quickly become clogged even with regular maintenance.

 

Jeffrey Fielding is the owner of an oil well cleaning company who works with several drilling companies in providing cleaning and maintenance of oil wells. Over the past couple of years, Jeffrey has managed to grow his business considerably thanks in large part to his perseverance and determination. However, things were really tight when Jeffrey first started up his company and at one point he was faced with a dilemma that he didn't know how to overcome.

 

The following interview with Jeffrey tells how he managed to expand his company at a crucial time thanks to oilfield services factoring. If it wasn't for the presence of factoring companies that worked in his field, Jeffrey might be in a completely different business today.

 

"Hello, Jeffrey. It's good to talk with you and I'm glad you were able to spare the time to share your story with us."

 

Jeffrey Fielding: "Thanks, I'm glad to be here."

 

"Jeffrey, tell us a little about how you got into the oil well cleaning business first as it's something our listeners may not be fully aware of."

 

JF: "No problem, I'll start at the beginning. About ten years ago I joined an oil well crew as a roughneck, working my way up through the business. It was hard work and our crew was usually out in the middle of nowhere, but the money was good and the opportunities kept building for me. I quickly learned the job and was hired by a number of drillers to work their rigs over the next few years during the boom in the oil industry."

 

"Right from the beginning, I took notice the oil well cleaning crews that would work each rig and started talking to the guys who were a part of that business. After a few years it became clear to me that oil well cleaning was really where it was at 'cause the work was really steady and the money was just as good, if not better than what I was making. So, with the money I had saved up along with a couple of partners I opened up an oil well cleaning company of my own."

 

"It certainly sounds like you struck gold so to speak. So tell us how your business started."

 

JF: "It was pretty easy as we got our business loan, purchased the equipment and hired a couple of experienced people to help us clean oil wells. We had some pretty good connections and the orders started to pile in, but then we ran into a problem that none of us could even dream of happening. We became victims of our own success."

 

"I don't think I quite understand, could you explain just how that happened?"

 

JF: "Sure, about six months in we suddenly got new drillers who wanted to use our services, but we didn't have the money to expand. We get paid by invoice which can take up to 60 days to see the cash which meant that we trying to pay down our loan, the payroll and the equipment, fuel and other costs and didn't have enough cash on hand to expand. We knew that if we didn't hire new people and buy new equipment that we would miss out on a golden opportunity. However, one of my friends told me about oilfield services factoring companies that could help us out."

 

"What are factoring companies?"

 

JF: "Basically, a factoring company will buy the invoice and get us the cash immediately. We had good credit and our invoices were certainly good as well. By using their services, we were able to get the cash in our hands quickly and pay for new equipment to then expand our business efforts."

 

"It certainly sounds like the factoring companies saved the day for you, but just how do they work?"

 

JF: "Well, it was a pretty simple process. We just filled out a few forms with the information that they requested and then we sold the invoices we had already collected, but had not collected to the factoring company. We got the cash we needed immediately and they collected the invoice."

 

"It certainly sounds pretty easy, but why didn't you just get another loan?"

 

JF: "My partners and I went over that and another loan would just be too big a burden. We were already paying off our old loan which was considerable and didn't want to have more debt hanging over our company. By going with the oilfield factoring companies, we didn't owe anyone, anything. We just collected the money that we were owed a lot more quickly."

 

"So, how is business now?"

 

JF: "It's better than ever. By using a factoring company I was able to buy new tubing, cleaning fluids, a new vehicle and other equipment that let us take on the new orders. We were able to expand the business quite a bit and our reputation is such that we work with several drilling companies."

 

"It sounds like a dream come true."

 

JF: "It really does, but I don't know what we would have done if factoring companies didn't exist. We still use them when we need cash for new equipment or products to do our job. It's quick, safe and brings us the money we need to continue our business."Jeffrey's company really benefitted from using oilfield factoring companies that served his industry. There are factoring companies for other types of businesses as well that can take invoices and turn them into quick cash for businesses that need to expand. For Jeffrey and many other small business owners, factoring companies can make the difference in the success of your efforts.

 

 

 

 

 

Best Factoring Companies For Trucking Articles

Discovering Trucking Factoring

 

Lambert Truck and Haul has been in business since the mid1980s. They've delivered goods for nearly every major industry in the nation and for 20 plus years, business was booming as they've traversed the country in all weather for all clients. During the heady times from 2002 to 2007, Lambert was a top rated accounts receivable mastermind of the trucking industry. Few customers were ever late on bills and those clients who were, were sure to turn in their late payments within a reasonable amount of time. Cash was flowing and times were good for all.

 

But a short year later, in the fall of 2008, when the United States economy took a nosedive and businesses both small and large began to feel the pinch on their pocketbooks, those that used to make their demands had suddenly and largely gone silent. Business slowed down. And worse yet, Lambert had noticed during the early part of 2008 that though the bulk of their clients were always on time with payments, the few late-bloomers there were, had seemingly started to spread this illness. And as spring turmed to summer and summer into the early days of fall, John Rondstadt, CEO of Lambert felt a chill go down his spine whenever he would look at the weekly A/R reports. The numbers of clients who owed him back debt were growing.

 

He had gone to his administrators and asked them what the problem had been. Were they doing something wrong or different when it came to reaching out to delinquent accouts? By his bookkeepers records, this wasn't the case. He thought perhaps that he was losing clients to a competitor who offered rock-bottom prices with little to no guarantee of quality performance and the folks who owed Lambert money had jumped ship and decided to leave him holding the bag. They couldn't afford to pay him their debt, but they could afford a lesser service, maybe. But after doing the cursory research for this and talking to friends in the field, he found that alas, no, customers of Lambert hadn't gone elsewhere. They had just gone home.

 

The situation looked dire to John Rondstadt. He had employees to pay, goods to ship, trucks to maintain and overhead that was almost unbearable when compared against the lack of funds that were coming in. At night he would speak to his wife Linda and shake his head in frustration. "I have a bad feeling, Lin," he would say with deep woe."Well, what do you think it is?" she would ask.

 

John would stare off for a moment and then close eyes. He could see the fleet of trucks he had purchased over the years. He could see them traveling, bringing goods to all of his clients. But somewhere, a haze would form over his fleet and the vast number of vehicles would disappear to but a few. What could cause this ultimate death spiral of business?

 

"I know what it is," John said. "I've relied too long on the profits I receive from invoices alone. I've let too many of our customers go too long without paying on their bills."Rhonda could only grab her husband's hand and look at him lovingly, "It's a hard economy. It might be awhile until things get settled up."John knew his wife meant well, but he knew that he was responsible for too many people to sit idly by, waiting for the sun to peak over the clouds.

 

The next day John strolled into his office and was determined to sit down and make every phone call to every client who had owed Lambert money. Now, it wasn't the most efficient way to spend a day as a chief executive, what he really needed to be doing was to be overseeing all of the other intricacies of shipment and delivery and reaching out to prospective clients or retraining his sales team to do the same. Even though he was doing something to help his company, he knew he had folks on salary to do just this thing. Wasting money, wasting time - even with the best of intentions, John knew that he was in trouble.

 

After a half day of contacting debtors in vain - they dodged his calls or promised to call back at worst or made minimal interest-only payments at best - he was about to throw in the towel when his secretary Beverley knocked at his door."John, can I have a word?" she asked standing in the doorway.

 

"Sure thing Bev, come on in." John leaned back in his chair and looked expectantly at Beverely. "Well, I did a little searching this afternoon and tried to figure out a way out of this mess John." She pulled a small stack of papers from a folder and set them on the desk before him. "Have you ever heard of factoring?" Beverley asked."It sounds vaguely familiar. What is it?" he said. "Well," she began, "Its actually quite simple really. So basically, factoring invoices would enable us to get paid on the nose for loads that we haul.""Immediately?" John interrupted.

 

"Yes, immediately," she continued, "In a nutshell, it's pretty easy. We can have an expert account manager review our numbers and help us complete a company profile. That profile will also include investigating our accounts receivable aging reports, our existing customer credit limits and so on. Additionally, the factoring will help to determine the creditworthiness of our customers independent of their credit history with our business. It's a broad view."

 

"I see," John said. "And then what?""Well, after their review, and we're approved for a factoring contract, we can negotiate terms and conditions. There's a lot of flexibility depending on the business volume and credit histories. This company tells us what the cost will be to purchase factoring for our accounts receivable. We come to an agreement and the funding starts pouring out."John leaned forward and reviewed the paperwork closely.

 

"It sounds too good to be true, Bev," he said. "Now, now, I know, I thought the same thing. But really, they have guaranteed us experts that do all the legwork, which would free us up here to focus on our clients in good standing and marketing, all that good stuff. And they're flexible John," she underlined a paragraph on the paper before him. "How flexible?" he asked. "They personalize the factoring rates so that the amount they are willing to take on is commensurate with our needs and our client's debt. It only takes 2 to 4 days for this to be figured out.

 

"That sounds pretty good, seeing as we tapped ourselves out with bank loans last year to repair the fleet and money sure is tight. We need to keep business rolling as normal and every day we're going unpaid, we're closer to facing some serious problems in both the short and long term," John said.

 

He took a deep breath and looked at his secretary with something she recognized as hope."Exactly". I think this might just be a way out of the trouble we're in with these folks who owe us money."John thought about this and agreed with Beverley. The clients who owed them money were long standing friends and professional resources of Lambert. They didn't want to throw away these relationships because they were having trouble paying their bills now. John knew that the economy had taken a hit and he knew that it would probably be a long time before things started to look up again. That unknown amount of time, if he handled these debtors incorrectly, could spell disaster for both of them. He didn't want to lose business but he also didn't want to lose any more money.

 

"Well, let me think about this tonight Bev, thank you." Bev nodded, stood up and left the office feeling that she had helped her employer keep on his shirt and hers too.John sat behind his desk and looked over the details Bev had not mentioned in their meeting. What other issues could freight factoring help Lambert with? With his pencil gliding down the sheet he noticed that the factoring company could help fray the cost of fuel with fuel discount cards and fuel advances. In fact, Lambert could receive up to fifty-percent cash advances upon load pick-ups. As a man who hated binding contracts with no room to breathe, he was pleased to see that this factoring company would not make him sign a long term contract, would not make him pay any sign up fees and there was no minimum volume required.

 

"Well, I'll have to tell Billy about this," John muttered to himself.His son-in-law Billy had liked the idea of Lambert so much and revered his father in law for having such business acumen that only two years before, he had gathered the venture capital to begin his own transportation service company. John knew then what struggles Billy would face but he encouraged him nonetheless. With the faltering economy, if a big fish like Lambert was hurting, a little guy like Billy was about to catch his death. But, an antidote may have been found in freight factoring and John was soon to find out. A few months later after going through the entire application process and having the experts review his accounts receivable, credit history and statements, John found himself beginning to dig his way out of the hole his delinquent account holders had created for him.

 

They took on reasonable factoring purchase contracts and stopped spending their precious man hours scrambling to collect debt. They took that time and refocused effort to offering competitive prices in new territories. John looked back on the dismal months of life before freight factoring and almost shuddered at the thought. Had he missed the boat on this one, he probably wouldn't be in business today.

 

 

 

 

You Can Find More Information at  https://fredcoutts.com
and at www.truckingfactors.org

Call Us Today at: 1-888-239-9162

 

Watch our Factoring Company Video below to see how we work for you.

 

 


 

Get CASH NOW for your outstanding receivables.

 

New York City
Los Angeles
Chicago
Houston
Philadelphia
Phoenix
San Antonio
San Diego
Dallas
San Jose
Austin
Jacksonville
Indianapolis
San Francisco
Columbus
Fort Worth
Charlotte
Detroit
El Paso
Memphis
Boston
Seattle
Denver
Washington DC
Nashville Davidson
Baltimore
Louisville Jefferson
Portland
Oklahoma City
Milwaukee
Las Vegas
Albuquerque
Tucson
Fresno
Sacramento
Long Beach
Kansas City
Mesa
Virginia Beach
Atlanta
Colorado Springs
Raleigh
Omaha
Miami
Oakland
Tulsa
Minneapolis
Cleveland
Wichita
Arlington
New Orleans
Bakersfield
Tampa
Honolulu
Anaheim
Aurora
Santa Ana
St. Louis
Riverside
Corpus Christi
Pittsburgh
Lexington Fayette
Anchorage
Stockton
Cincinnati
St. Paul
Toledo
Newark
Greensboro
Plano
Henderson
Lincoln
Buffalo
Fort Wayne
Jersey
Chula Vista
Orlando
St. Petersburg
Norfolk
Chandler
Laredo
Madison
Durham
Lubbock
Winston Salem
Garland
Glendale
Hialeah
Reno
Baton Rouge
Irvine
Chesapeake
Irving
Scottsdale
North Las Vegas
Fremont
Gilbert town
San Bernardino
Boise
Birmingham
Rochester
Richmond
Spokane
Des Moines
Modesto
Fayetteville
Tacoma
Oxnard
Fontana
Columbus
Montgomery
Moreno Valley
Shreveport
Aurora
Yonkers
Akron
Huntington Beach
Little Rock
Augusta
Amarillo
Glendale
Mobile
Grand Rapids
Salt Lake City
Tallahassee
Huntsville
Grand Prairie
Knoxville
Worcester
Newport News
Brownsville
Overland Park
Santa Clarita
Providence
Garden Grove
Chattanooga
Oceanside
Jackson
Fort Lauderdale
Santa Rosa
Rancho Cucamonga
Port St. Lucie
Tempe
Ontario
Vancouver
Cape Coral
Sioux Falls
Springfield
Peoria
Pembroke Pines
Elk Grove
Salem
Lancaster
Corona
Eugene
Palmdale
Salinas
Springfield
Pasadena
Fort Collins
Hayward
Pomona
Cary
Rockford
Alexandria
Escondido
Mckinney
Kansas City
Joliet
Sunnyvale
Torrance
Bridgeport
Lakewood
Hollywood
Paterson
Naperville
Syracuse
Mesquite
Dayton
Savannah
Clarksville
Orange
Pasadena
Fullerton
Killeen
Frisco
Hampton
Mcallen
Warren
Bellevue
West Valley City
Columbia
Olathe
Sterling Heights
New Haven
Miramar
Waco
Thousand Oaks
Cedar Rapids
Charleston
Visalia
Topeka
Elizabeth
Gainesville
Thornton
Roseville
Carrollton
Coral Springs
Stamford
Simi Valley
Concord
Hartford
Kent
Lafayette
Midland
Surprise
Denton
Victorville
Evansville
Santa Clara
Abilene
Athens
Vallejo
Allentown
Norman
Beaumont
Independence
Murfreesboro
Ann Arbor
Springfield
Berkeley
Peoria
Provo
El Monte
Columbia
Lansing
Fargo
Downey
Costa Mesa
Wilmington
Arvada
Inglewood
Miami Gardens
Carlsbad
Westminster
Rochester
Odessa
Manchester
Elgin
West Jordan
Round Rock
Clearwater
Waterbury
Gresham
Fairfield
Billings
Lowell
Ventura
Pueblo
High Point
West Covina
Richmond
Murrieta
Cambridge
Antioch
Temecula
Norwalk
Centennial
Everett
Palm Bay
Wichita Falls
Green Bay
Daly City
Burbank
Richardson
Pompano Beach
North Charleston
Broken Arrow
Boulder
West Palm Beach
Santa Maria
El Cajon
Davenport
Rialto
Edison
Las Cruces
San Mateo
Lewisville
South Bend
Lakeland
Erie
Woodbridge
Tyler
Pearland
College Station
Albany
Allegheny
Brooklyn
Camden
Canton
Dearborn
Duluth
Fall River
Flint
Gary
Hammond
Kenosha
Livonia
Lynn
Macon
New Bedford
Niagara Falls
Parma
Portsmouth
Reading
Roanoke
Scranton
Somerville
St. Joseph
Trenton
Utica
Wilmington
Youngstown
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming