Factoring your accounts receivable invoices and financing you trucking company in today fast paced competitive trucking industry. We can help! www.Factor.bid
Cash flow problems can happen to anyone. Financial problems usually exist for transportation and logistics Companies that are seeing steady growth. Why? Because as you grow so do your operating expenses. This makes managing the company more difficult and may even affect your ability to stay competitive or even stay in business.
Factoring your open accounts receivable invoices is a good idea and can help out with operating expenses, equipment purchases and investments and even day-to-day fuel costs.
Freight Factoring or Transportation Factoring is being used by almost every small to midsize trucking company to improve cash flow, pay operating expenses, online credit checks, fuel cards, fuel discounts, fuel advances, buy equipment and insurance.
Larger fleet companies may have better results with asset based lending (ABL). Lines of funding can provide the same or equal benefits as bank funding, but are easier to get. This makes asset based lending ideal for midsize fleets that have cash flow problems and need funding.
Asset based lending enables you to leverage your current assets, like accounts receivables and equipment to get the cash you need right away. (ABL) is flexible and can be used for improving cash flow, pay operating expenses, buy equipment and other assets, leverage buyouts and turnarounds.
As opposed to conventional loans you may get through your bank, asset based loans have ew covenants and can be approved quickly. On average, the application and due diligence can be done in a couple weeks. This is ideal for midsize to larger logistics companies that need an injection of cash.
The differences between asset based lending and factoring are: asset based lending is only available to companies that have bigger fleets; Shippers are not usually notified of the relationship, Most invoices are not verified and you handle your own accounts receivables.
Asset based lending (ABL) is a great option for finance in the transportation industry and can help your business if you have cash flow problems and need immediate funding. They are a good alternative to conventional lender products and provide you with many of the benefits of conventional lending.
To qualify your trucking company should have a *minimum of $1 million in monthly revenues (if you have less than this, try factoring your open accounts receivable invoices) *Must have invoices from quality shippers, *established invoice tracking and collections process as well as *reasonable finance statements.
Every Factor is different. Make sure and download Factor App to get multiple offers on your Factoring needs. At Factor App – Factors compete to Buy your Accounts Receivable Invoices so you get the best deal. Download Factor App now – and get paid as soon as today!