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 Carlsbad 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.
Carlsbad

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 Carlsbad

Carlsbad is an affluent seaside resort city occupying a 7 mile (11 km) stretch of Pacific coastline in North San Diego County, California. The city is located 87 miles (140 km) south of Los Angeles and 35 miles (56 km) north of downtown San Diego and is part of the San Diego Carlsbad, CA Metropolitan Statistical Area. Referred to as "The Village by the Sea" by locals, the city is a tourist destination. The city's estimated 2013 population is 110,972. According to 2011 figures,[31] the top employers in the city are:

 

 

Information for the state of California

The economy of California is large enough to be comparable to that of the largest of countries. FY 2011, the gross state product (GSP) is about $1.96 trillion, the largest in the United States. California is responsible for 13.1 percent of the United States' $14.96 trillion gross domestic product (GDP). California's GDP is larger than that of all but 8 countries in dollar terms (the United States, China, Japan, Germany, France, Brazil, the United Kingdom, and Italy).

 

California's GDP is larger than the GDPs of Russia, India, Canada, Australia, and Spain; in terms of Purchasing Power Parity,[103] it is larger than all but 9 countries (the United States, China, India, Japan, Germany, Russia, Brazil, France, the United Kingdom, Italy), larger than Mexico, South Korea, Spain, Canada, and Turkey. In terms of jobs, the five largest sectors in California are trade, transportation, and utilities; government; professional and business services; education and health services; and leisure and hospitality. In terms of output, the five largest sectors are financial services, followed by trade, transportation, and utilities; education and health services; government; and manufacturing. Agriculture is an important sector in California's economy. Farming-related sales more than quadrupled over the past three decades, from $7.3 billion in 1974 to nearly $31 billion in 2004.[107] This increase has occurred despite a 15 percent decline in acreage devoted to farming during the period, and water supply suffering from chronic instability.

 

Factors contributing to the growth in sales-per-acre include more intensive use of active farmlands and technological improvements in crop production.[107] In 2008, California's 81,500 farms and ranches generated $36.2 billion products revenue.[108] In 2011, that number grew to $43.5 billion products revenue.

 

Saves yourself stress of thinking how to deal with your receivables.  

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. -Carlsbad Factoring Companies

 

 

TAKE THE GUESSWORK OUT OF CASH FLOW  

Carlsbad Factoring Companies 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?

 

 

 

Saves yourself stress of thinking how to deal with your receivables.

 

 

Carlsbad Factoring Companies 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.

 

 

 

 

 

 

Carlsbad Factoring Companies Articles

Business Is Great, but Our Company's Cash-Strapped!

 

There comes a time in the life of most businesses when cash flow becomes a problem, and it's not just during difficult times that this occurs. There are so many different reasons why businesses may need an injection of cash, like sudden growth, or perhaps wanting to purchase new equipment or service bigger clients. Every business at one time or another will require urgent funding to sustain or grow their business.According to research, many small and medium-sized businesses are failing, certainly not due to lack of sales, but solely because they're unable to meet their short-term financial obligations. Considering the time, money, and personal investment that goes into the creation of every business, the failure of a business to thrive has become a heartbreaking reality for many people. Why would a profitable and growing business find itself in financial trouble? The answer is very simple. When just one or more of your larger accounts hold off on paying their accounts for perhaps an additional 60 or 90 days, you've now got a cash flow problem.

 

Running Out of Funding Options?

 

When experiencing cash flow problems, business people typically depend on conventional lending sources for a corporate line-of-credit, and many find themselves applying for short-term bridging finance. And how many business owners admit to using their personal credit card to pay for business-related expenses? However, there are times when traditional methods of funding are no longer available, leaving the acquisition of extended financing a frustrating and sometimes impossible task.

 

Fortunately, there's a viable alternative today, one which has been around for a long time but one that many businesses are not fully aware of. There's now a way for businesses to avoid cash flow problems and continue growing their business from strength to strength, even during difficult times. Factoring, also known as Accounts Receivable Financing, Asset Based Lending (and various other terms) is an alternative form of financing, designed to help businesses through periods of expansion and business growth. Factoring has quickly become a very practical and workable financial solution for many businesses, and more and more we're seeing businesses from different industries look towards factoring to resolve their cash flow problems.

 

How Does Freight Factoring Work for Trucking Companies?

 

Basically, a business with creditworthy accounts receivables can use factoring to receive an immediate injection of cash on those receivables. Factoring companies will typically say yes when a bank says no, thus providing a business with a much-needed cash injection. The process of factoring is actually quite simple. Your trucking company needs cash, and because you have quality accounts receivables your chosen factoring company will purchase any number of those receivables and immediately provide you with cash - anywhere up to 90% of the value of your invoices. Once your customer has paid the factoring company the total amount of your invoice, the remaining balance will be forwarded to you - less the agreed-upon fees.

 

A good factoring company will respond quickly to its trucking company clients and provide them with personalized and professional attention. With freight bill factoring, a trucking company will always have its cash needs satisfied with cash flow. It may be true that, when compared to other means of lending, factoring is more expensive, but borrowers report that the benefits they receive far outweigh the cost.

 

Freight Bill Factoring Is Not A Loan

 

Perhaps the greatest advantage of invoice factoring is the fast turnaround time because, unlike banks, there's no loan approval process with factoring. This means that business owners of trucking companies can receive cash in-hand on the same working day! In order to be approved for freight factoring a trucking company must have creditworthy customers and have a good reputation; however, once approved for freight factoring the process of receiving funding is quite automatic. Cash advances will be made on the same day, and it's important to note here that future financing is only limited by the value and number of receivables involved.

 

Freight Bill Factoring Is Very Popular with Trucking Companies

 

In the last decade many trucking companies have taking advantage of freight factoring, mostly because it's a great alternative to bank financing. In fact, freight factoring is often recommended by trucking companies financial advisers or accountants. We know of many cases where freight bill factoring is solely responsible for trucking companies being able to accept and process orders from customers that otherwise would have declined due to a lack of financing. Freight bill factoring has saved many companies from severe financial crisis, and even bankruptcy.

 

It's now very clear that freight bill factoring is playing a very important role in today's business environment. This type of financing allows trucking companies to increase loads, expand their customer base, and even survive a seasonal slump. The truth is that freight bill factoring works, and it works well!

 

 

 

 

Carlsbad Factoring Companies Articles

Medical and Healthcare Invoice Factoring

 

Don't Wait to Be Reimbursed - You Can Receive Payment Today!

 

Anyone in the healthcare profession is painfully aware that third-party payers like Medicaid, Medicare, HMOs, Workers Compensation, and other private insurers, can take what appears to be an unnecessary long time to settle your accounts. But there's good news, because with 'factoring' there'll be no more long waiting periods to receive payment on your medical receivables. For anyone in the healthcare profession who provides any type of medical services, factoring is here to assist with cash-flow.

 

Is There a Difference between Medical Factoring and Healthcare Factoring?

 

There actually is a difference between these two types of factoring, even though we hear many people using these two phrases interchangeably. Basically, when there is no third-party payer involved, then healthcare factoring applies, and if a third-party payer is involved, then medical invoice factoring companies are used.

 

Healthcare and medical receivables factoring is available for the following services -

 

- Hospitals

 

- Group and Sole Practitioners

 

- Laboratories

 

- Physical Therapy and Rehabilitation Facilities

 

- Chiropractors

 

- Nursing Homes

 

- Durable Medical Equipment (DME)

 

- Medical Staffing Companies

 

- Medical Billing Services

 

- Medical Supply Companies

 

- Medical Coding Services

 

- Ambulance Providers

 

- Medical Transportation

 

- Medical Transcription Services

 

- Medical and Non-Medical Home Healthcare Providers

 

- Imaging Facilities Providing CT Scans, X-Rays, MRIs, and so on; and

 

- Many More!

 

Factoring for Healthcare Receivables

 

We typically associate healthcare receivables with customers who are not reliant on third-party payers. This includes sectors involved with medical staffing, medical supplies, medical transcription, medical coding and billing, and so on. Basically, it means that vendors who use healthcare factoring receive the benefits of an unlimited line-of-credit, all based on the services they provide.

 

 

You can see below that factoring healthcare receivables is a very simple process -

 

 

- As the healthcare vendor, you still invoice your customer for work you've completed. Some of the more common customers will include medical offices, nursing homes, hospitals, and so on.

 

- The next step is for the vendor to forward a copy of the invoice to the healthcare factoring company. Your factor will handle the collection of payment on your behalf.

 

- The factoring company will deposit an amount of money in the range of up to 85% of the gross value of the invoice into the vendors bank account within 24 hours, or less.

 

- The remaining (approximately) 15% will be held by the factor until such time as the account has been paid in full by the customer.

 

- Once the invoice has been paid in full by the customer, the factor will release the remaining 15%, less the agreed-upon fees, back to you, the vendor.

 

Factoring for Medical Receivables

 

Regardless of whether your business bills Medicaid, Medicare, Blue Cross/Blue Shield, a third-party insurance company, or HMOs, we have the perfect factoring solution for you.

 

The benefit to you of factoring your medical claims is that you'll receive upfront capital. It's the factor who will seek payment of your invoice.You can see below that factoring medical claims is a very simple process -

 

 

- As the provider, you'll continue submitting your claim to the third-party payer.

 

- At the same time, you'll submit a copy of the paperwork to your factoring company.

 

- The factoring company will deposit an amount of money in the range of up to 85% of the net collectable value into the vendors bank account within 24 hours, or less.

 

- Once the third-party payer pays your claim in full, the factor will release the remaining 15% (approximately), less the small agreed-upon factoring fee.

 

 

 

 

Carlsbad Factoring Companies Articles

Important Points to Remember When Choosing Your Factoring Company

 

Now that you've decided that factoring would be a solid business decision for your company, the next step is to find the perfect factoring company for you. Once you start looking you'll discover that there are many factoring companies (or 'factors') in the marketplace, and this is the perfect situation for you as a potential factoring client.

 

But it can also be confusing, because now you have to find the right factoring company to suit your business's needs. To assist you in making the right decision we've listed below the main issues that should be considered when choosing a factoring company.

 

Factoring Fees and Terms

 

Before making your final decision and entering into a factoring agreement, check out the fees applicable and the terms of the contract. Both of these can vary a lot, depending on the factoring company and the industry it's serving. When you start your research you'll discover that some factoring companies charge a flat fee: this fee is, in effect, a certain percentage of the total value of the customer invoices you sell to them; whilst others have additional charges to cover the general costs of doing business - such as, money transfers, shipping, collateral, and so on.

 

Ensure that the factoring company you're considering working with is transparent and upfront with you about its fee structure. In addition, you may want to consider a long term contract with your factoring company if it includes flexible rates or a price break. If you're receiving competitive offers from other factoring companies or you have increased factoring volume, you'll discover that many factoring companies will be prepared to adjust their rates. A one year contract is the industry standard for most factoring agreements. Generally, unless you give your factor a 60 or 90 day notice, your factoring contract will automatically renew.

 

What's the Difference between Recourse and Non Recourse Factoring?

 

It's important that you understand the difference between recourse and non recourse factoring prior to choosing your factoring company, because you need to know what the best fit would be for your company and your customers. So, with non recourse factoring, all of the credit risks for the collection of the invoice belong to the factoring company; while recourse factoring means that, with you being the client, you'll ultimately be responsible if the factoring company is unable to collect payment on your customers' invoices.

 

There are benefits to recourse factoring, and perhaps the main benefit is that it's less expensive than non recourse factoring. If you have a recourse agreement and the customer defaults on payment, it doesn't automatically mean that you'll be asked to settle the debt out of pocket. Generally, what happens is that the factor will hold back a portion of either future cash advances or payments being held in reserve, with the money being placed in an escrow account awaiting settlement of the debt.

 

Our suggestion is that you find a factoring company that offers both recourse and non recourse factoring, because not all of your customers will be good candidates for recourse factoring. An experienced factoring company working with a strong credit team can also behelpful in ensuring you're working with good customers: this will relieve some of the pressure of being stuck with bad debt.

 

Experience and Capital: The Two PreRequisites

 

Your company should be looking for a factoring company with experience in your industry, including the capital structure to fund your business as it continues to grow. Once you start researching factoring companies you'll discover that there are a lot to choose from; however, many of these are recent start ups with limited experience. Prior to signing any factoring agreement, do your research and look into the history and background of the factoring company concerned, especially its ability to provide financial services in your area of expertise.

 

The idea with factoring is that, as your company grows, the funding of your customer invoices will grow with you.Research the factoring company's client base and their capital structure. What's a typical account size? What's the factoring volume of their largest client? Is the factoring company limited to how many debtors it can handle? In general, factoring companies that have been serving your industry for many years will usually be able to offer your business the best deal.

 

Additional Factoring Services

 

There are many more benefits to factoring than simply increasing your company's cash flow. Because the factoring company will be handling the collection of your customer's invoices, your company will be saving time and resources. A good factoring company will also be able to evaluate companies in your industry and provide credit information. In short, your factor will ensure that you experience excellent customer service. You'll be matched with your own representative who'll be able to address any questions or concerns you may have about your factoring account.

 

So, when researching factoring companies, look for a factor who not only offers additional products but provides a high level of customer service that will help your business grow by assisting you in making smart business decisions.

 

 

 

 

 

Carlsbad Factoring Companies Articles

Growing Your Trucking Company Just Got a Whole Lot Easier

 

There's a lot of hard work and dedication involved in growing a successful trucking business, but perhaps above everything else a disciplined approach to making the right decisions and taking the right actions is required. The aim of this post is to help both small fleet owners and owner-operators accomplish these goals.

 

The three key steps to building your trucking business are to grow your fleet, find profitable shippers and loads, and the successful day-to-day running of your trucking company.

 

The 1st Step: Growing Your Fleet

 

You won't be able to grow your trucking company unless you have the right equipment. But, securing finance to purchase this equipment can be very difficult, and this is where many truckers run into trouble. Today, there are several financing options for owner operators of trucking companies, and even those with less-than-stellar credit are typically able to achieve some sort of financing.

 

There are two more-commonly used financing options - the trucking company either leases a truck or it gets a loan to purchase a truck. There are various ways of structuring leases and loans, and each option has its disadvantages and advantages. Your final decision will be determined by its merits, your objectives, and your available resources.

 

We strongly urge you to consult with a CPA with expertise in trucking when considering financing. It's true that a visit to a CPA could cost around $150, but not only will they help you determine your best option, they could also save you a lot of money in taxes. In fact, it's critical that you seek a CPA's advice if you're planning on growing your fleet. This is not an expense you should try to avoid.

 

The 2nd Step: Finding Profitable Shippers and Loads

 

Possibly the hardest part of running a trucking company is finding quality shippers and loads. Many owner-operators use a loadboard to find loads, and this approach does have its advantages. Perhaps the main advantage is that the loadboard allows you to match your equipment and preferred routes with loads. Unfortunately, though, loadboards are not financially worthwhile for truckers in the long term. To start with, loadboards are highly competitive, particularly for the most popular routes, which means you'll be forced to charge low per-mile rates. Now the trucking company must become very vigilant and ensure the load they're pulling will end up being profitable. The second reason using a loadboard is not viable in the long term is that your company doesn't get to grow relationships with shippers. This means you'll always be working with new customers, which can be a time-consuming process.

 

The best strategy for owner operators is to only use a loadboard as a starting point, but persist with making sales calls so that eventually you'll start building relationships with direct shippers. Statistics show that trucking companies with shipping relationships are earning approximately $20,000 per truck/per month; whereas trucking companies who rely on loadboards are earning approximately $10,000 per truck/per month. That's a big difference! As you can see from these figures, building good and lasting relationships with shippers can double your revenue. Therefore, the best way to grow your trucking business is to develop solid relationships with shippers.

 

The 3rd Step: The Day-To-Day Running of Your Trucking Company

 

All too often we see small fleet owners and owner-operators struggling with the day-to-day running of their trucking company. There's a lot of paperwork and related coordination that's involved in moving loads and running a trucking office can be very exacting and tedious. But, it's a necessary task and it's an important one.

 

If you're determined to grow your trucking company, it's critical that you employ both time-saving and money-saving processes. Managing a small trucking fleet is entirely different to managing a single truck operation. We strongly suggest you approach experienced truckers for advice and, providing you're not in competition with them, you'll generally find that small fleet owners are more than happy to share their expertise with you.

 

Managing Cash Flow

 

Managing cash flow can be a serious issue for trucking companies. It's fairly common for new truckers to experience cash flow problems when they first get into the trucking business, and the reason for this is very simple. Cash flow problems occur because most shippers settle their accounts in 30 days, 60 days, and some even wait 90 days. In the meantime, however, you've got your drivers to pay, fuel to purchase, machinery to repair, payroll to meet, and other necessities to take care of. The delay in receiving payments due to you can cause serious problems for any business that doesn't have a large cash reserve. Simply speaking, you run out of money, and without money your company will be stuck. Until such time as your shippers pay your invoices there'll be no more loads, no mechanical repairs, no meeting payroll, and so on.

 

How to Resolve Your Cash Flow Problems

 

Fortunately, there's a very simple answer to the question of cash flow problems. Today, many trucking companies are resolving their cash flow issues by factoring their freight bills. Freight factoring has become a popular way of financing new trucking companies because factoring provides trucking companies with an advance on their slow paying invoices. The result - no more cash flow problems! Now, instead of having to wait 30, 60, even 90 days to get paid, you'll be paid by the factoring company once the load has been delivered.

 

Receiving upfront payment on invoices gives trucking companies the money they so desperately need to cover the day-to-day running costs of their business, with money left over to grow their business. You'll also find that fuel advances are often offered by many factoring companies. This is an add-on feature which provides the trucking company with funding when they collect a load. These funds come in very handy for paying fuel costs and other delivery expenses.

 

 

 

 

 

Carlsbad Factoring Companies Articles

Invoice Factoring; The Best Way to Grow a Temp Staffing Agency

 

When temp agencies are struggling with cash flow problems they typically have two options; the first option is to apply for a business loan from a bank or other lender and hope they achieve a favorable result. Their second option is to use invoice factoring, so in this post we're going to discuss why invoice factoring could be their best choice.

 

Many businesses in many varied industries are discovering that invoice factoring is the ideal way of addressing cash flow issues, and this is also true for temp staffing agencies. In fact, it may be even more true for temp staffing agencies because these agencies don't receive payment from clients until such time as their job vacancy has been filled and the selected applicant has completed a period of work. It's not surprising, then, that temp staffing agencies often struggle with cash flow issues!

 

How Factoring Can Help Temp Staffing Agencies With Cash Flow

 

Temp staffing agencies are required to use their own finances to pay for the necessary advertising in order to place their job candidates. The client is only invoiced once the temp agency has located the perfect applicant and that person has actually worked, which can involve a long period of time before being paid. And when they are paid, they're often paid on a per-hour basis, determined by the number of hours the successful applicant has worked. In the meantime, the temp staffing agency still has its own financial obligations, like rent, payroll, advertising costs, office supplies, and so on. All these expenses must be paid by their due date, which can place an agency in a short-term (sometimes long-term) financial crisis.

 

Temp Staffing Agencies Must Meet Their Own Financial Responsibilities

 

Like any other business, temp staffing agencies can't postpone their own financial obligations, so they need access to money. Rent must be paid, utilities must be paid, and their employees need to be paid on a regular basis. All business offices require supplies and money must be available to advertise job openings, so it's understandable that waiting to be approved for a bank loan may not be a practical or even feasible option. These temp staffing agencies need access to money, and the sooner the better. That's why we suggest that invoice factoring may be the ideal solution for resolving a temp staffing agency's cash flow problem.

 

How Factoring Works for Temp Staffing Agencies

 

When any business decides to negotiate an invoice factoring program to generate instant cash, the business may, in many cases, secure up to 92% of the total value of their invoices within 24 hours! Note that if this is the first time the temp staffing agency has worked with a factor it could take between four and seven days to establish a factoring program. Either way, the agency's cash flow problems will be over, and they can proceed to conduct and grow their business.

 

Many temp staffing agencies are affected by cash flow problems, sometimes only occasionally, but we strongly suggest all agencies learn about factoring and how it works, just in case the need for immediate cash should arise. Invoice factoring has become a very popular financing option for many businesses, particularly those who need an urgent cash injection. Most times, money will be advanced within 24 hours once the agency has established a relationship with a factoring company.

 

Invoice Factoring is NOT a Loan!

 

Another bonus of invoice factoring is that it's not a loan. Basically, all the temp staffing agency is doing is accessing money that's already owed and payable to them. Factoring simply provides a means for the agency to access this money when it's most needed

 

Now, temp staffing agencies don't need to approach banks and other traditional lending authorities, hoping and praying they qualify for a loan. All that's required is for the agency to provide the factoring company with copies of the invoices they wish to sell, together with time sheets for each employee. Then, within 24 hours the agency will receive a cash deposit into their bank account. No more cash crisis! The temp staffing agency will now have funds to meet their regular financial obligations without the need to take on any further debt.

 

 

 

 

 

Carlsbad Factoring Companies 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 straightforward 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.

 

 

 

 

 

Carlsbad Factoring Companies Articles

Freight Bill Factoring: The Best Way to Achieve Your Business Goals

 

Freight bill factoring is not a secret, but many businesses are still unaware of the benefits available to them by factoring their business invoices.

 

If you're planning on starting your own trucking business, or perhaps you already own a trucking business, you may well have heard of freight bill factoring. Many trucking companies confirm that freight bill factoring has been entirely responsible for helping them achieve their overall business goals. So, let's discuss freight bill factoring and how can it help you grow your business.

 

How Freight Bill Factoring Assists Trucking Companies

 

It was recently reported that freight bill factoring has become the financial backbone of the trucking industry, and that's not a surprising statement because factoring provides financing capital that businesses would not otherwise be able to access. The freight bill factoring process is a very simple one: your Bill of Ladings is purchased by a factoring company at a discounted rate. The trucking company receives immediate funds and, because the money received is not a loan, the trucking company is free to use these funds as they see fit. No more cash flow problems!

 

Is Freight Bill Factoring a New Financing Concept?

 

No, it's not new. In fact, freight bill factoring has been around for a long, long time. Almost every civilization engaged in commerce has used some type of factoring. Businesses actively engaged in factoring during North America's colonial period when they made cash advances against accounts receivables to enable the business to carry on with their commercial operations. Of course, factoring has become quite advanced over the years and is now more focused on financial management, collections, and credit worthiness; however, the basic idea of purchasing accounts receivables remains the same today.

 

Today, factoring companies have a lot more to offer than just funding: they now have factoring specialists who assist their clients by evaluating their customer's credit worthiness, defining credit limits, and managing their accounts receivables collections in a professional manner.

 

Right across North America we're seeing all forms of factoring companies servicing business sectors and industries of all types. It's interesting to note that, today, many large financial corporations have their own in-house factoring divisions; however, factoring companies are typically independently-owned enterprises.

 

Commercial Banks Are No Longer Supportive of Small Business

 

Commercial banks today are operating under very strict regulations with constantly changing lending criteria, thus making it very difficult for business owners to apply for and be accepted for a bank loan. Their inflexibility has left small and medium-sized businesses out on a limb, searching for alternative financing sources. Fortunately, factoring provides these businesses with the financing solutions they're looking for.

 

Freight bill factoring offers a workable solution for these businesses when conventional financing methods are simply not available. And now that banks and other lending institutions have become less friendly to small business owners, factoring as a financing remedy is looking much more attractive.

 

Interesting statistics show that the volume of factoring around the globe has now exceeded the trillion-dollar mark, with factoring companies operating right around the world. In the last four years alone, there's been an increase in factoring transactions by 60%.

 

Factoring companies provide businesses with the working capital they need to operate and grow their businesses and, because factoring is not a loan, there really are no disadvantages to factoring.

 

 

 

 

 

 

Carlsbad Factoring Companies Articles

How Factoring Saved A Staffing Agency

 

The Bellosa Temporary & Permanent Hiring Agency has been experiencing a major uptick in business since the unemployment crisis began. The unemployed and underemployed workers have been keeping the phones ringing. The staffing agency is also fielding a lot of calls from employers too, looking for just the right hire. Company President and Vice President, Laurie Bell and Ted Stevens, have not experienced a boom in business since they first opened the doors in 2009, during the recession. They had an idea then that this would be a profitable venture.

 

The mantra that Laurie and Ted live by is that there "s always going to be people searching for work and of course employers will always be on the lookout for good workers. This is especially true in healthcare staffing, the industry they specialize in. This seemed to be a safe bet for them as they embarked on this venture, but with any small business, the only way to keep the doors open is to keep pressing forward and out perform the competition.

 

In a relatively short period of time Laurie and Ted had built a nice sized business, they were able to hit the ground running with some brilliant marketing programs and a number of contracts from insiders. They grew rapidly, the timing couldn "t have been better and they were very lucky in this aspect. By the fall of 2011 Laurie and Ted had weathered some ups and downs but they did have some solid clients like a few big insurance companies and a university hospital close by. These clients always paid their invoices on time. But they did start to notice a decrease in accounts receivables from some smaller clients such as rehab centers and private practices.

 

As winter approached they recalled previous winters and holiday seasons and realized that accounts receivables usually did slow down during this time. Laurie and Ted made the decision to delay their late payments until after the New Year. This plan didn "t really appeal to them as it "s no way to start a New Year, but they seemed to have no other options.

 

When New Year "s had come and gone they realized that their Accounts Receivables had gone from 30 days past due to 60 days past due. Before meeting with their accountant Scott, they "d decided something had to be done, but they didn "t know what.

 

Sitting in the conference room with Scott they listened as pulled all the figures up on his iPad saying,“Okay you two, I "ve been looking over the files you sent over and I can certainly see why you "re worried about your late A/Rs but there may be a way to fix this. Do either of you know what factoring is?” Scott inquired.

 

Laurie and Ted looked at each other quizzically, and then Laurie said “I think it rings a bell, but I "m not really sure. Can you explain it?”

 

Scott began laying out the details, “You are sitting on a pile of invoices that are past due. The more time that goes by without them being paid, the bigger the bind this puts your business in. It makes it very difficult for you to grow, much less hire anyone new. If you don "t have enough cash coming in . ”

 

Ted interrupted with, “Then it could make it difficult to take on any new business because we wouldn "t be able to hire the additional personnel we need and meet our weekly payroll. We need an inflow of cash and we really can "t wait. If we have to wait any longer on these invoices we "ll be in trouble.”

 

Scott jumped in saying, “And this is precisely why I wanted to discuss factoring with you. The factoring company will purchase the invoices you are sitting on that are up to 3 months late, which gives you the cash you need now.” He then showed him a chart on a piece of paper he placed in front of them.

 

Laurie began to carefully scrutinize it asking, “Is this the fee schedule?”

 

Scott answered, “Yes it "s all right there. The factoring company makes 1% to 3% of the total amount of each invoice they purchase.”

 

“That "s sounds like a good deal to me”, Ted said.

 

The three of them sat there and talked this over for a while and then Laurie and Ted made the decision to go forward realizing this was the best way to keep them afloat. They knew if they couldn "t accommodate all the new clients they were acquiring the competition would get them and they would go down, they could just not afford to turn any business away.

 

They now needed to fill out an application and submit it to the factoring company and they also needed to show them a few back invoices, undergo a credit check for their company. Credit checks would also need to be done on the companies owing the debts that the factoring company would be purchasing.

 

It didn "t take long for Bellosa "s credit to be approved and the creditors " as well. Before long the factoring company purchased the overdue invoices and Laurie and Ted got the influx of cash they needed to cover things and allow them to continue growing their business.

 

The next time Laurie and Ted met with their accountant Scott, there were smiles all around.Scott said, “I "ve taken a look at your books so I know that factoring was the right solution for you.”

 

“It worked perfectly”, Laurie stated and went on to say, “The tiny amount we paid out for this influx of cash was certainly worth it.”

 

Ted chimed in with, “Without a doubt! Whatever the fees were we made back and more since we were now able to hire more personnel so we could take on more business. It worked out for us and for them I would say!”

 

“That "s what "s great about factoring!” Scott exclaimed with a look of satisfaction on his face.

 

 

 

 

Carlsbad Factoring Companies 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://accountsreceivablefactors.org
and at Receivables Factoring at fremontchessclub.org

Call Us Today at: 1-866-593-2195

 

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