Freight factoring for trucking company

road-train-1021563_640Freight factoring is a means that is of great help to the truckers. It helps them in getting paid immediately for the work they have done. A factoring company purchases invoice at discount rates from trucking companies and pays them cash in return. These factoring companies then collect the amount from the clients. Many trucking companies rely on freight factoring because it helps them a lot especially during those tough times when they need cash the most. It ‘s hard for a trucking company to wait until 30 to 45 days for receiving payments from clients.

 

By selling your invoices to these factoring companies, your cash flow worries are lessened. These companies help you in getting the money you need for meeting the financial demands. The biggest benefit is that you can cash without any extra debts or without going for any loans. The factoring is based on the creditworthiness of the customers.

 

It is better than a bank loan because if you take loans for such expenses, then you would find difficulty in getting loans when you need them. Moreover, these factoring companies handle many of the duties which otherwise would be tough for us to handle. They’ll do billing and collection both for you.

 

A good company will handle everything related to factoring and will help you in getting immediate cash. With some of the companies, you can even check your accounts online. Look for the one that offers the high amount of advances for your factoring industry.

 

When freight factoring companies pay you almost your entire freight invoice value within two days, this not only improves your cash flow to enable you to pay your fuel bills and other expenses but also takes care of your collection end and helps you to increase your business. You can now take on more freight deliveries and earn more in the long run. It also removes worries about delays in payments from your customers. Hence, a freight factoring company is more than just a way of finance. It is an extension of your business.

 

So, if you have a trucking company, it makes sense to use the services of a freight factoring company to help you grow your business.

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Financial Tips For Starting A Truck Driving Delivery Service

trucks-1There are a lot of advantages to being an employee driver for a great trucking company. On the other hand, there are also advantages in becoming your own boss through buying a truck and moving into the ranks of the owner-operators. Not all owner-operators are going to work independently and many contracts with larger trucking companies as lease drivers, which definitely has benefits.

This combination of being on contractor, if you will, leasing your rig and your services to a big company offers a lot of flexibility and options. You can still have greater control over your loads and routes, depending of course on the terms of your contract or agreement with the company. You also have less hassle in trying to book loads, manage clients while on the road and make sure that you are staying on top of marketing and advertising. In some ways it may be the best of both worlds, but it is not the perfect match for every driver.

Moving from an employed truck driver to being your own rig owner and operator is a serious decision that shouldn’t be entered into lightly. There are many different factors to consider and not the least is the initial expense of the rig, insurance and all the expenses of starting up a business.

Let’s see some financial tips for this kind of business.


The Expenses involved in the Truck Driving Delivery Service

real-truck-driverMost people want to start out with a new tractor trailer rig, but in the real world this is rarely an option. This is especially true if you are a typical middle income earner that already has the expenses of daily living to contend with. A rig will cost as much as a small home in many areas, but, unlike a home, it is not as easy to find lenders that will back you. The actual manufacturers will typically lend to most people that meet financial criteria, but they may not have the best interest rates on the loan.

You may want to opt to buy an older rig from a larger trucking company fleet. This is a lower cost option and, if you have worked for the company, you have a good idea of their routine maintenance and vehicle care. There is also the option to buy a rig privately and this option tends to have the lowest overall price. It is also the option that leaves you the least recourse should there be a problem with the truck somewhere down the line.

If you can find a lender or have the credit that allows you to pay money for the truck you still have to insure the rig. The costs of this insurance will vary based on the types of loads you haul and other factors. Fuel, maintenance, licensing and other costs all come into play and are an ongoing expense that has to be calculated into the costs of doing business.

icon175x175While you may be able to rely on your own skills to limit your overall expenses, the time that you spend doing these tasks is time you aren’t out on the road making money. This needs to be factored into the equation to determine if hiring someone else may actually be more cost effective based on your own particular situation.

The true issue is pricing and being able to actually make a profit. Since the large companies get huge discounts with repairs, maintenance and fuel they are typically going to be able to offer lower prices to their consumers. Most people, especially when economic times are tough, look for the lowest price.

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