Truck Factoring 101: Transportation Factoring Basics

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Transportation Factoring BenefitsFreight and trucking companies depend on healthy cash flow to stay on the road. As with most businesses, you probably experience fluctuations depending on the time of the year and economic conditions. You need cash to pay drivers, maintain your vehicles, purchase fuel and cover other business expenses. Transportation factoring is a way to ensure that you always have cash on hand.

What is Transportation Factoring?

Transportation factoring or freight bill factoring is a way to sell your unpaid invoices for immediate cash. The truck factoring company provides you with up to 95% of the value of your invoices and takes responsibility for collecting from your clients. Unlike other types of financing, such as bank loans, you don’t need a long business history or pristine credit to get approved for transportation factoring. The factoring company is more concerned with the credit history of your clients as they are the ones who are paying. Read more

4 Leading Trucking Industry Trends For 2019

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The trucking industry is experiencing quite a bit of growth right now, largely fueled by e-commerce. While this is good news overall, it also means you need to be prepared to meet the demands of retailers and consumers. The following are four of the top trucking trends for 2019 to help you prepare.

 

1. Driver Shortage

One of the biggest challenges facing the trucking industry right now is the lack of qualified drivers. At a time when the demand for freight is growing, older drivers are retiring with not enough younger drivers to replace them. There are several reasons for this including long hours and the grueling nature of life on the road. Transportation companies must find incentives to encourage more people to choose driving as a career. Otherwise, the driver shortage could have a harmful effect on the entire economy. Read more

3 Key Trends That Will Drive Business Success in 2019

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3 Key Trends That Will Drive Business Success in 2019As you start preparing for the coming year, it’s important to take a close look at the trends that will impact your business in 2019. In order to satisfy your customers and stay ahead of the competition, you should identify the developments that will make the most difference to your business and are affecting your industry. The following are three broad trends that may have great bearing on your business success in 2019.

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How Invoice Factoring Can Help a Seasonal Business

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Invoice FactoringMany businesses are seasonal and experience spikes and valleys during different times of the year. For example, if your business depends on summer tourist traffic, sales may be slow during the winter. On the other hand, you may have a business that depends heavily on holiday sales. In such cases, it can be tricky to maintain healthy cash flow during the slower periods.

There are many tactics to help offset cash flow problems. For example, you might introduce new products or services that are popular during your off season. Another very effective way to enjoy steady cash flow is to use invoice factoring, a type of financing that lets you collect payment up front for your invoices. Read more

Purchase Order Financing vs. Invoice Factoring

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P.O. Financing vs Invoice FactoringMany question the difference between purchase order financing and invoice factoring.  Here we will explain the difference and when each form of financing is used.

Purchase Order Financing

Purchase order financing is for importers, wholesalers, and distributors of goods who receive a purchase order (PO) from another business, and need financing to pay their supplier or manufacturer for the finished goods.  As an example, we’ll use a toy company that is selling to a big box retailer.  The toy company receives a PO from the big box retailer.  Read more