Turn Your Freight Bills Into Cash in
Why Should You Choose Us.
Factors help start-up companies intheir first few years of business, aswell as companies that are havingtremendous growth that areoutstripping their cash. Businessesthat need turnaround help are also
able to utilize a factor's services.
Industries from Trucking to high
tech are contacting factors to help
them create positive cash flow and
help them change their cash flow
gauge from empty to full.
Factors are able to
assist such diverse
industries in different
stages of business
because factors are
in four things:
The business is properly
licensed and registered,
including authority and
proof of insurance
The product and/or service
being delivered is of
consistent and acceptable
Freight bills are creditworthy,
accurate and verifiable
The factor can perfect a
priority position over all
Currently, $90 billion in freight bills
each year. In the last 10 years,
according to Mace Edwards, of the
Edwards Research Group in
of freight bills factored has increased
by $20 billion dollars.
The overall increase in factoring
volume is mainly attributed to the
credit crunch in the late 80s. As the
availability of bank commercial credit
tightens, more businesses look
towards alternative sources of
financing to achieve growth.
Factoring can be used
as a tool to increase
profit margins. Other
benefits besides peace
of mind include:
On Road Advance
Improved credit rating
Able to take volume
Reduced late payments
penalties and interest charges
Offer credit terms to
Meet obligations on time
End payroll and tax
Finding a Company
Each factor operates a little different-
ly, so there are different benefits and
costs. When searching for a
reputable factor you should look at
Are there any fees involved besides
the cost of the time the money
Are there set up fees, maintenance
fees or other penalty fees?
Does the factor, provide credit
services on existing, new, or
Does the credit service cost extra
or is it free?
What value added services does
the factor provide?
Does the factor supply monthly
reports on what is happening with
What is the depth of the factor's
How much experience does the
factoring company have?
Most business bankers are a good
referral source for a reputable
factoring company. Other referral
sources for factors might be found
with your suppliers, customers,
business colleagues, and business
Bankers refer to factors because they
realize that although the customer
may not be bankable at the time of
the referral, in a short time the com-
pany could be a viable candidate for
conventional financing. Factoring is
considered a short-term financing
solution to cash flow problems.
Factoring relationships generally last
for 6 months to several years.
Setting up a factoring relationship is
quick and easy compared to other
forms of financing. Applications
simply call for basic company
information and a customer list. It is
possible for funding to occur in as
little as a few days after receipt of the
application and freight bills.
All businesses want to be successful
and to be successful you must have
sufficient cash flow. Finding the
right source of funding is crucial.
With a factor behind your company,
you- will be able to change your cash
flow gauge from empty to full to
continue down the highway
The transportation industry can be broken down into three major groups of companies: Shipping, passenger transport, and equipment manufacturers. In some cases, particularly within shipping and passenger transport, companies provide services in multiple areas of the industry. Shipping companies are responsible for the transportation of supplies, and products to businesses, governments and individual consumers and operate on a global basis. The passenger transport segment provides people with
the means to get anywhere on the planet, whether it is by air, sea or land. Finally, the manufacturing segment produces the trucks, planes, ships and railcars along with all the technology that allow transportation to exist in its current form. These manufacturers are just as essential to the transportation of materials and people as are the companies that transport them.
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