Factoring: A Low Stress SolutionThe success or failure of any business ultimately depends on one thing, money. Whether or not a business is lucrative depends on many factors, but since 1993 hundreds of companies have turned to Interstate Capital to help their overall bottom line. Interstate Capital is a leader in small business factoring. Our management team members are experts in factoring solutions for wholesale distributors, staffing services, machine shops, and oilfield service companies. Our team experts have the skills and experience necessary to help any business find the factoring needed to provide growth and efficiency. How can factoring services help your business? Consider the standard service of operation for many companies. Many businesses today offer their complete services prior to payment. In many instances, companies offer a 30 to 60 day grace period to collect payment in full. This grace period is great for business and often leaves customers with a higher sense of satisfaction. Unfortunately, this grace period can cause unnecessary financial difficulty and strain to the businesses providing services. This is where factoring services come in handy. Factoring is a financial service in which a business sells its invoices to a third party (Interstate Capital) for a discounted rate. These services eliminate the need for a company to wait to be financially compensated for their services.
Not the Same as a Standard Business Loan
Factoring advantages -Factoring is different from a standard business loan. Its an upfront settlement of your receivables before the due date. Factoring presents a lot of advantages over standard business loans. Its straightforward to get and the process of obtaining the advance payment does not take very long. Also, it doesnT impact a company’s finance position and rather supplements its company operations.
A number of business owners feel that factoring can be costly for them. But that is untrue. If you research prices for great receivables funding, then you could get very competitive fees depending on your month-to-month factored volume as well as the track record of your existing clients.
Why Freight Bill Factoring is so Helpful To Truckers
One of the most appropriate alternatives that is becoming more and more well-known among vehicle organizations is known as truck factoring or freight bill factoring. This process lets a truck company receive payment against their own future bills within a couple of days. This approach removes the standard delay associated with a typical Net 30 billing arrangement.
Transportation factoring enables the truck or van company owners to sell off their account receivables to a factoring firm that will purchase their bills for just a nominal charge. Theyll be willing to wait around for the repayment from your clients. This is how it functions:
1. The vehicle company gives services to its buyer and charges them.
2. The vehicle firm provides the end user the agreed time frame for the payment of the invoice.
3. The truck company offers their invoices to the factoring company and receives up to 90% to 97% of the expenses.
4. The invoice factoring provider would then wait for the remaining pay out from customers of the vehicle company.
5. Once the factoring company obtains the payment, itll pay off the remaining amount to the vehicle firm and bill the company a certain fraction of the bills.
Transportation factoring fees might range from 1% to 5% per four weeks. The prices will be based on the reputation of the vehicle company’s clients as well as the number of transactions. Any truck firm may get this service by working with a good factoring service after providing all the necessary information. Normally, factoring can prove to be way less expensive than working capital loans. If factoring services seem like they might be a good fit for your business, you can learn more about the process at the following website: