If you own a trucking company, you know that it can be a very profitable business.
However, you also know that trucking companies are very cash hungry. You need
money to pay for the equipment, to pay your drivers and for fuel. The challenge
comes from the fact that freight bills can take up to 60 days to get paid. Unless
you have a lot of cash in the bank, this can be a problem.
Speaking
of banks, going to your banker for a business loan or line of credit will
not help much either. Bankers will only lend money to companies that have a lot
of assets, have been in business for three years and can provide audited financial
statements. Of course, if you had lots of assets you wouldnt need a banker.
Freight
bill
factoring, also known as
freight factoring, can provide you with immediate financing for your slow paying
freight bills. So, if you have quite a few invoices that are paying slowly,
factoring can help you.
The factoring arrangement is very simple. The
factoring company advances a large portion of the money owed for your freight
bills the moment you invoice your customer. They wait to get paid while you get
immediate use of the money.
As opposed to bank financing, freight
bill factoring is easy to qualify for and available to small and large trucking
companies alike. Most factoring companies have two main requirements. The first
one is that you work with reliable clients and freight brokers. The second one
is that your firm has at least two trucks. Its easier than a bank, isnt it?
If
you own a trucking company that is growing, be sure to consider
freight factoring.
About Commercial Capital LLC We can provide your trucking company with freight bill
factoring, freight factoring and business financing. Marco Terry can be reached
at (866) 730 1922
Copyright (C) 2006 Commercial Capital LLC - Article
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