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5 Reasons Transportation Factoring is Worth it

july5In your transportation business, you are constantly faced with outgoing charges, with little coming in. Because you don’t get paid until 30 to 45 business days to collect on your invoices, your business can suffer from poor cash flow. No matter the size of your business, you can’t stop borrowing money for permits, payroll and, of course fuel. With transportation factoring, you will never have to borrow another dime from a bank. You will get the cash from your unpaid invoices directly in your pocket. Why is this worthwhile for your business? Here are 5 reasons why transportation factoring is worth it.

1. Cash In Your Pocket

With transportation, you will have the opportunity to have cash in your pocket. Instead of waiting for your invoices to be paid for and processed, you will get the money in your pocket before your client receives their goods. Your unpaid invoice will be purchased by us to give you up to 96% of the total in your pocket. This will allow you to have cash for materials, payroll, and especially fuel. Nothing is more important to your business than fuel. Make sure you can always have it right when you need it with factoring.

2. Take On More Business

Now that you have cash in your pocket, you are able to take on more jobs at a time. You have the funds you need right away so that you don’t have to wait another minute to take on a new customer. You will never have to be embarrassed about not being able to take on more because of cash flow problems. Because you are taking on more business, your transportation company will be able to grow larger than you once were limited to.

3. Reduced Credit Risk

Transportation factoring is a simple way to get the financing you need, without any opportunity to lower your business’s credit score. Because the factoring company purchases your invoices, they now take on 100% of the risk of late payments.

Also, a factoring company will get you the amount of financing based on each individual invoice. This way, you will not be convinced by a bank to take on more financial responsibility than you can afford. You are only responsible for the amount that your business is bringing in, making it easier on your business.

4. Increase Inventory

When you have cash in your pocket, you can stock up on inventory. Our transportation clients have started factoring larger invoices. This way, you will have more cash in your pocket. They save that cash and watch the market for sales on materials needed, and then buy in bulk. This will help combat slow times in your business.

5. Improve Overall Business Condition

Nearly all of our clients were in pretty bad shape before factoring. Transportation factoring enables you business to reduce the strains caused by tight cash flow. You will be able to keep up with suppliers and creditors, establish payment terms with suppliers, meet regular payroll obligations, and more. Factoring can help your business catch up and then grow larger than ever thought imaginable.

If you are just discovering the benefits of factoring, you can start to plan how to create a better business plan.

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About the Author:

Robert Bernfeld started in the commercial finance industry in 1974. His early years included positions with Aetna Business Credit and Foothill Group. During the next thirty five years. Mr. Bernfeld established both equipment leasing and accounts receivable factoring companies. He partnered in founding Business Facilitators, Inc. in 1999. Mr Bernfeld graduated from the University of California, Riverside in 1974 and received his Juris Doctorate from Loyola University School of Law in 1977.

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