Truck|truck-infosource.com
Aug
07
Filed Under (Finance) by truck
Kris Koonar asked:
Factoring is a simple and inexpensive tool which helps sort out the cash flow pressure caused due to non-paying or slow paying customers. It is a way to get immediate cash when your trucking company is in need. By giving your invoices and accounts receivables to the factoring companies you may even get up to 96% of the face amount in cash. The credit risk lies upon the truck factoring company who takes up the risk, depending upon the creditworthiness of the amount receivable.
Selecting a truck factoring company
Choosing the appropriate company which suits the needs of the organization is highly relevant to ensure smooth cash flow. The lowest cost is not the only criteria for selecting a factoring company. If they have a good track record and are specialists in the truck factoring business, they should be given consideration.
Check the track record of the truck factoring company
Check if the factoring company has a proven track record in the industry for the level of service you require. If the company has been in business for long, it would have seen many business cycles which can form a basis for proof of its strength in handling tough situations. You can have these things clarified from the company representatives or get references about them and the financial conditions handled. Most important, ask for references from the company’s existent clients as well.
If the company is a specialist in the truck factoring industry
You need to check if the company specializes in the truck factoring business. This is because in such a case, the truck factoring company is aware of the freight brokers and the shippers. They will have hands-on experience in dealing with such companies. This helps in saving your money that is put on the credit reports.
Does the company have a collection department?
You may check out if the truck factoring company has a collection department. Most of the companies may not have a collection department and the job is mostly done by the accounts representative. Having a separate department for collection is of help as the same person may not be able to do the two jobs perfectly.
Does the company have a credit department?
Similar to a collection department, a credit department that looks into credit related matters should also be useful. A credit team who takes care of the entire credit needs of the customer is better than one which does not have a credit department. The companies may expose you to inappropriate levels of risk by not having a credit department.
Is the company size suited for your trucking business?
There are companies of various sizes, large and small, giving the truck factoring services. A company which is small enough to provide personalized services as well big enough to provide financial stability may be ideal for you. A company which is very small may not be enough to satisfy your financial needs effectively. They may even prove to be insufficient to purchase all the receivables.
Is the company using technology?
A truck factoring company which is updated with the latest technological advancements is useful. A company which allows credit quotes via Internet can help in saving a lot of your time and money. With proper details about the company as well as timely online credit decisions you can speed up and maintain all your cash needs.
Such factors may be given consideration when you are selecting a factoring company. With such details, you will be able to get the maximum possible benefit of the factoring to help you with your cash needs.
MYLES
Factoring is a simple and inexpensive tool which helps sort out the cash flow pressure caused due to non-paying or slow paying customers. It is a way to get immediate cash when your trucking company is in need. By giving your invoices and accounts receivables to the factoring companies you may even get up to 96% of the face amount in cash. The credit risk lies upon the truck factoring company who takes up the risk, depending upon the creditworthiness of the amount receivable.
Selecting a truck factoring company
Choosing the appropriate company which suits the needs of the organization is highly relevant to ensure smooth cash flow. The lowest cost is not the only criteria for selecting a factoring company. If they have a good track record and are specialists in the truck factoring business, they should be given consideration.
Check the track record of the truck factoring company
Check if the factoring company has a proven track record in the industry for the level of service you require. If the company has been in business for long, it would have seen many business cycles which can form a basis for proof of its strength in handling tough situations. You can have these things clarified from the company representatives or get references about them and the financial conditions handled. Most important, ask for references from the company’s existent clients as well.
If the company is a specialist in the truck factoring industry
You need to check if the company specializes in the truck factoring business. This is because in such a case, the truck factoring company is aware of the freight brokers and the shippers. They will have hands-on experience in dealing with such companies. This helps in saving your money that is put on the credit reports.
Does the company have a collection department?
You may check out if the truck factoring company has a collection department. Most of the companies may not have a collection department and the job is mostly done by the accounts representative. Having a separate department for collection is of help as the same person may not be able to do the two jobs perfectly.
Does the company have a credit department?
Similar to a collection department, a credit department that looks into credit related matters should also be useful. A credit team who takes care of the entire credit needs of the customer is better than one which does not have a credit department. The companies may expose you to inappropriate levels of risk by not having a credit department.
Is the company size suited for your trucking business?
There are companies of various sizes, large and small, giving the truck factoring services. A company which is small enough to provide personalized services as well big enough to provide financial stability may be ideal for you. A company which is very small may not be enough to satisfy your financial needs effectively. They may even prove to be insufficient to purchase all the receivables.
Is the company using technology?
A truck factoring company which is updated with the latest technological advancements is useful. A company which allows credit quotes via Internet can help in saving a lot of your time and money. With proper details about the company as well as timely online credit decisions you can speed up and maintain all your cash needs.
Such factors may be given consideration when you are selecting a factoring company. With such details, you will be able to get the maximum possible benefit of the factoring to help you with your cash needs.
MYLES
Apr
21
Filed Under (Finance) by truck
Kris Koonar asked:
Truck factoring is a business that has caught on and is also one that is very beneficial to all truck owners. It is different from a bank in terms of rate of interest and disbursement time. Believe it or not, but most of the freight factoring companies do disburse 90% of the amount within 24 hours to 48 hours only. This is really great for the truck owners, who normally face a crunch for money. And that is usually due to the credit line with their customers or clients. Normally, it is advisable to check with known people or colleagues about any freight factoring company before signing up. This is important for the safety of your business.
Please cross check and confirm all that you need to know about a particular vendor in advance. Not everyone can be trusted, even though there are plenty of genuine factoring companies out there who have very good customer care back up. This is necessary as they are the ones that collect payments from your customer and your customer is ‘Boss’. You wouldn’t want your relations with your customers or clients to be strained, right? It is the factoring company that gives you business and keeps your trucks on the road. Hence, you need to be rest assured that it remains that way. You cannot have a demanding or rude factoring agent. So do ask around and get as much essential information as you can.
If they do have provision for a short term contract, then go for it. Just in case you are not satisfied, you can always discontinue your contract and look elsewhere. But long term agreements tie you down and keep you in an arrangement that is detrimental to the success of your trucking business. And nobody wants that to happen. Your business is your baby and you wouldn’t want some joker ruining everything for her, right!
So choose one that is good for your business and also has a positive impact on the growth aspect. And having a great vendor is better than going to the bank as the amount of cash you receive is against your invoices (sale of assets) and hence it is not a loan. It is your own money, just being given to you earlier. This money in turn helps you to pay for fuel, salaries, and other expenses that may crop up. It is a perfect ‘arrangement’ if only the vendor is the right one.
Most contracts last a year, after which they are renewable unless you would like to give sufficient notice and discontinue the same. Most truck factoring companies do not enlist small trucking companies and hence, it is a little more difficult to find a company if you have a small business. But don’t lose heart there are quite a few companies that do extend credit. If you have a bad payment record, it is possible that you might get rejected for that. So please ensure that you have a great financial track.
JAMEL
Truck factoring is a business that has caught on and is also one that is very beneficial to all truck owners. It is different from a bank in terms of rate of interest and disbursement time. Believe it or not, but most of the freight factoring companies do disburse 90% of the amount within 24 hours to 48 hours only. This is really great for the truck owners, who normally face a crunch for money. And that is usually due to the credit line with their customers or clients. Normally, it is advisable to check with known people or colleagues about any freight factoring company before signing up. This is important for the safety of your business.
Please cross check and confirm all that you need to know about a particular vendor in advance. Not everyone can be trusted, even though there are plenty of genuine factoring companies out there who have very good customer care back up. This is necessary as they are the ones that collect payments from your customer and your customer is ‘Boss’. You wouldn’t want your relations with your customers or clients to be strained, right? It is the factoring company that gives you business and keeps your trucks on the road. Hence, you need to be rest assured that it remains that way. You cannot have a demanding or rude factoring agent. So do ask around and get as much essential information as you can.
If they do have provision for a short term contract, then go for it. Just in case you are not satisfied, you can always discontinue your contract and look elsewhere. But long term agreements tie you down and keep you in an arrangement that is detrimental to the success of your trucking business. And nobody wants that to happen. Your business is your baby and you wouldn’t want some joker ruining everything for her, right!
So choose one that is good for your business and also has a positive impact on the growth aspect. And having a great vendor is better than going to the bank as the amount of cash you receive is against your invoices (sale of assets) and hence it is not a loan. It is your own money, just being given to you earlier. This money in turn helps you to pay for fuel, salaries, and other expenses that may crop up. It is a perfect ‘arrangement’ if only the vendor is the right one.
Most contracts last a year, after which they are renewable unless you would like to give sufficient notice and discontinue the same. Most truck factoring companies do not enlist small trucking companies and hence, it is a little more difficult to find a company if you have a small business. But don’t lose heart there are quite a few companies that do extend credit. If you have a bad payment record, it is possible that you might get rejected for that. So please ensure that you have a great financial track.
JAMEL
Apr
19
Filed Under (Finance) by truck
Kris Koonar asked:
Getting finance for a dump truck is similar to getting finance for anything else. You have to undergo the same steps to find the right program to suit your needs. Whichever type of truck, dump truck, semi truck or heavy-duty truck you want to buy- there is a loan program for each. There are many other options available for financing.
The first place one would normally checkout is the local bank. Mostly the criteria would be to have a good credit score at the personal level and other documentation required. The previous year’ s income tax returns may be needed along with the current financial statements. If it is a new business just starting off, it also should have a credit score of 680 or higher. Such businesses are considered high-risk areas and the companies should be able to meet the higher lending standards. Most of these banks as well as the financial organizations offer loan programs for the purchase of or lease of dump trucks.
When the company that requires finance for the purchase of dump truck takes up a loan program, the ownership title is transferred at the end of the loan repayment period. However, the documentation required initially to acquire a loan is a lot and hence, many companies drop the idea. When opting for the loan option, the organization has to be careful and enquire whether the loans extended are only for new trucks or also converted trucks. Most often there is lot of paperwork involved in this. However, now such companies are trying to design a system which would involve only using the applications to provide loans. The dump truck would be the collateral in this case for the loan. In most cases the credit score required is 575.
One alternative is opting for the partial finance, where part of the amount is given as loan and you put down part of the amount and finance it accordingly. These loans are easier to avail of and you may get better rates and terms of payments.
Another option that these companies have is the dealer’s financing and inventory program. The lending company displays an inventory he has and the financing agreements. This kind of financing is useful for the large as well as the new start up companies. This provides an excellent opportunity to the companies to access great deals to the buy the appropriate dump trucks, as per their specific requirements.
One can also opt for the equipment leasing option. It is a contract for a longer period with a take-over option. The dump truck is owned by the leasing company till the period of rent, while the company uses the dump truck. The truck is the security itself. In leasing, the first and last payments are usually about 20% of the truck cost amount as down payment. This is preferred than the loan method as the initial expenditure is lower. Generally, credit history of larger periods like 2 to 3 years is not required as is the case with the loan method. The advantage of leasing is also the tax benefit.
When you are on the lookout for financing your dump truck purchase you need to consider things like the initial payment, the monthly payments, collateral required and any buyout clauses. You may even consult a broker regarding the benefits of dump truck financing. Each type will have its own pros and cons and you need to consider all these factors before selecting the correct one.
WARREN
Getting finance for a dump truck is similar to getting finance for anything else. You have to undergo the same steps to find the right program to suit your needs. Whichever type of truck, dump truck, semi truck or heavy-duty truck you want to buy- there is a loan program for each. There are many other options available for financing.
The first place one would normally checkout is the local bank. Mostly the criteria would be to have a good credit score at the personal level and other documentation required. The previous year’ s income tax returns may be needed along with the current financial statements. If it is a new business just starting off, it also should have a credit score of 680 or higher. Such businesses are considered high-risk areas and the companies should be able to meet the higher lending standards. Most of these banks as well as the financial organizations offer loan programs for the purchase of or lease of dump trucks.
When the company that requires finance for the purchase of dump truck takes up a loan program, the ownership title is transferred at the end of the loan repayment period. However, the documentation required initially to acquire a loan is a lot and hence, many companies drop the idea. When opting for the loan option, the organization has to be careful and enquire whether the loans extended are only for new trucks or also converted trucks. Most often there is lot of paperwork involved in this. However, now such companies are trying to design a system which would involve only using the applications to provide loans. The dump truck would be the collateral in this case for the loan. In most cases the credit score required is 575.
One alternative is opting for the partial finance, where part of the amount is given as loan and you put down part of the amount and finance it accordingly. These loans are easier to avail of and you may get better rates and terms of payments.
Another option that these companies have is the dealer’s financing and inventory program. The lending company displays an inventory he has and the financing agreements. This kind of financing is useful for the large as well as the new start up companies. This provides an excellent opportunity to the companies to access great deals to the buy the appropriate dump trucks, as per their specific requirements.
One can also opt for the equipment leasing option. It is a contract for a longer period with a take-over option. The dump truck is owned by the leasing company till the period of rent, while the company uses the dump truck. The truck is the security itself. In leasing, the first and last payments are usually about 20% of the truck cost amount as down payment. This is preferred than the loan method as the initial expenditure is lower. Generally, credit history of larger periods like 2 to 3 years is not required as is the case with the loan method. The advantage of leasing is also the tax benefit.
When you are on the lookout for financing your dump truck purchase you need to consider things like the initial payment, the monthly payments, collateral required and any buyout clauses. You may even consult a broker regarding the benefits of dump truck financing. Each type will have its own pros and cons and you need to consider all these factors before selecting the correct one.
WARREN
Apr
11
Filed Under (Finance) by truck
Steven Hedley asked:
Vehicles that weigh more that 4 tons are termed HGV, which stands for Heavy Goods Vehicles. Another term used for HGV is LGV. These vehicles are used to transport livestock, bulky goods and pallets to different parts of the world (or in the same country). As these vehicles are expensive and also carry large loads that are expensive, it is vital for them to have insurance coverage; this insurance is classified as HGV insurance. It is necessary also because it is a requirement of law that you should have insurance for the vehicle that you are driving on the road.
In the UK, there are about ten to twelve HGVs stolen every day - along with the goods that they carry. So HGV insurance is formulated to protect both the vehicle and the goods against theft or any other unforeseen accident. Along with protection for the owners’ investment in the form of the vehicle and the goods, the livelihood of the driver is also safeguarded within the HGV insurance policy.
In the market, the most important types of coverage that usually come with the insurance of the vehicle are goods in transit coverage, public liability coverage and employer’s liability coverage.
The goods in transit coverage is sometimes also known as haulage exchange, and it covers goods during their transportation against being stolen, damaged by fire and accidents, and vandalism. Public liability coverage protects the owner of the business from any damages done to the public. Employer’s liability provides protection against any damages that occur due to some accident other than road accidents.
It is important that the owner of the vehicle should gain knowledge of rates in the local as well as global markets. As a result of this you may be able to get very good rates, along with some promotional offers. Many companies also provide introductory discounts of a certain percentage for the coverage.
The type of lorry insurance that you purchase depends upon the nature of your business - that is, whether you are hauling goods for yourself or for some other customer. It also depends on your business needs and requirements and the budget that you possess. The cover that you get also depends upon the kinds of locations you visit and the driver you have and the experience he has.
Many reasonable packages are specifically devised with the intent of providing maximum coverage at an affordable cost. Almost all insurance policies, no matter how cheap, provide protection for all the entities mentioned above. The selection of a new vehicle and appointment of a qualified driver also help in keeping your insurance costs down.
Other than the legal obligation of having an HGV insured, there are also some other important reasons for having truck insurance. The knowledge of having the goods in transit insured gives a sense of safety to the customers and they feel comfortable in doing business with you. The greatest advantage of getting insurance is that you are saved from the legal hassle as the insurance company handles the vehicle related legal matters.
IRVIN
Vehicles that weigh more that 4 tons are termed HGV, which stands for Heavy Goods Vehicles. Another term used for HGV is LGV. These vehicles are used to transport livestock, bulky goods and pallets to different parts of the world (or in the same country). As these vehicles are expensive and also carry large loads that are expensive, it is vital for them to have insurance coverage; this insurance is classified as HGV insurance. It is necessary also because it is a requirement of law that you should have insurance for the vehicle that you are driving on the road.
In the UK, there are about ten to twelve HGVs stolen every day - along with the goods that they carry. So HGV insurance is formulated to protect both the vehicle and the goods against theft or any other unforeseen accident. Along with protection for the owners’ investment in the form of the vehicle and the goods, the livelihood of the driver is also safeguarded within the HGV insurance policy.
In the market, the most important types of coverage that usually come with the insurance of the vehicle are goods in transit coverage, public liability coverage and employer’s liability coverage.
The goods in transit coverage is sometimes also known as haulage exchange, and it covers goods during their transportation against being stolen, damaged by fire and accidents, and vandalism. Public liability coverage protects the owner of the business from any damages done to the public. Employer’s liability provides protection against any damages that occur due to some accident other than road accidents.
It is important that the owner of the vehicle should gain knowledge of rates in the local as well as global markets. As a result of this you may be able to get very good rates, along with some promotional offers. Many companies also provide introductory discounts of a certain percentage for the coverage.
The type of lorry insurance that you purchase depends upon the nature of your business - that is, whether you are hauling goods for yourself or for some other customer. It also depends on your business needs and requirements and the budget that you possess. The cover that you get also depends upon the kinds of locations you visit and the driver you have and the experience he has.
Many reasonable packages are specifically devised with the intent of providing maximum coverage at an affordable cost. Almost all insurance policies, no matter how cheap, provide protection for all the entities mentioned above. The selection of a new vehicle and appointment of a qualified driver also help in keeping your insurance costs down.
Other than the legal obligation of having an HGV insured, there are also some other important reasons for having truck insurance. The knowledge of having the goods in transit insured gives a sense of safety to the customers and they feel comfortable in doing business with you. The greatest advantage of getting insurance is that you are saved from the legal hassle as the insurance company handles the vehicle related legal matters.
IRVIN
Oct
10
Filed Under (Finance) by truck
Kris Koonar asked:
Factoring is a competent strategy through which the capital needs of any business may be achieved. The process of factoring utilizes the invoice of a company as a security against the provision of an immediate loan to that particular company. Invoice factoring is a business method through which the firm’s receivables or invoices may be secured by another company, which would facilitate instant cash that would have otherwise been accessible only after a certain specific period. Factoring thus is a relatively efficient and simple process as it just uses the invoices for a loan and does not necessitate the presence of any collateral or guarantee.
Truck factoring refers to out-and-out purchase by the truck invoice factoring firm, the invoices of the trucking and transportation firms. Through truck invoice factoring, small or big, all types of establishments sell off their invoices and in return get financial support that enables the firms to sustain an even cash flow. The ready liquidity offered by truck factoring acts as a respite to the trucking firms where cash payments are received only after a stipulated time period; thus hindering the smooth functioning of the firm due to deficit cash.
It is advisable to look at the larger picture while figuring out truck factoring. Even though the fee for factoring may be high, the advantages are plenty. Truck invoice factoring firms take into account certain measures to determine the service fee and purchase the invoice like, total business volume, credit limits of existing clientele and the credit history of the customer, track record of the firm and accounts receivable reports. The truck invoice factoring firm then negotiates the fee as per the value of the invoice, this could range anywhere between 2 to 5% of the invoice face value.
Once the negotiation is completed, the truck-factoring firm releases the advance that is part of money paid up immediately for purchasing the invoice. This could range between 60 to 95% of the invoice face value. The remaining amount is cleared when the firm’s customer repays the invoice. In this way, truck factoring brings in that ready cash flow.
Truck factoring is necessary, since by using this business process you can reap in many benefits. It enables you obtain ready cash fast, in just about a couple of days time, thereby saving time for concentrating on your business rather than finding out ways to sort out the collection process for tackling cash flow issues. There are truck invoice factoring firms, which offer professional services that take care of your credit checking and collections. This provides you with streaming liquidity.
Ready money enables the trucking firm to benefit from bulk procurement discounts as the procuring or buying power also goes up. Regular cash flow gives you sufficient cash for marketing, expansion by increasing production and sale. It also helps in taking care of your payroll and taxes. Thus, truck factoring gives an enhanced control over the complete business.
Truck factoring is definitely advantageous as it enhances your financial statement and gives a detailed portfolio of your accounts receivable. Also it prevents the truck companies from falling into a debt trap with the ready cash flow. Thus truck factoring is necessary, as it saves time and money spent on recovering payments from customers and helping truck firms to focus on business development.
JULIUS
Factoring is a competent strategy through which the capital needs of any business may be achieved. The process of factoring utilizes the invoice of a company as a security against the provision of an immediate loan to that particular company. Invoice factoring is a business method through which the firm’s receivables or invoices may be secured by another company, which would facilitate instant cash that would have otherwise been accessible only after a certain specific period. Factoring thus is a relatively efficient and simple process as it just uses the invoices for a loan and does not necessitate the presence of any collateral or guarantee.
Truck factoring refers to out-and-out purchase by the truck invoice factoring firm, the invoices of the trucking and transportation firms. Through truck invoice factoring, small or big, all types of establishments sell off their invoices and in return get financial support that enables the firms to sustain an even cash flow. The ready liquidity offered by truck factoring acts as a respite to the trucking firms where cash payments are received only after a stipulated time period; thus hindering the smooth functioning of the firm due to deficit cash.
It is advisable to look at the larger picture while figuring out truck factoring. Even though the fee for factoring may be high, the advantages are plenty. Truck invoice factoring firms take into account certain measures to determine the service fee and purchase the invoice like, total business volume, credit limits of existing clientele and the credit history of the customer, track record of the firm and accounts receivable reports. The truck invoice factoring firm then negotiates the fee as per the value of the invoice, this could range anywhere between 2 to 5% of the invoice face value.
Once the negotiation is completed, the truck-factoring firm releases the advance that is part of money paid up immediately for purchasing the invoice. This could range between 60 to 95% of the invoice face value. The remaining amount is cleared when the firm’s customer repays the invoice. In this way, truck factoring brings in that ready cash flow.
Truck factoring is necessary, since by using this business process you can reap in many benefits. It enables you obtain ready cash fast, in just about a couple of days time, thereby saving time for concentrating on your business rather than finding out ways to sort out the collection process for tackling cash flow issues. There are truck invoice factoring firms, which offer professional services that take care of your credit checking and collections. This provides you with streaming liquidity.
Ready money enables the trucking firm to benefit from bulk procurement discounts as the procuring or buying power also goes up. Regular cash flow gives you sufficient cash for marketing, expansion by increasing production and sale. It also helps in taking care of your payroll and taxes. Thus, truck factoring gives an enhanced control over the complete business.
Truck factoring is definitely advantageous as it enhances your financial statement and gives a detailed portfolio of your accounts receivable. Also it prevents the truck companies from falling into a debt trap with the ready cash flow. Thus truck factoring is necessary, as it saves time and money spent on recovering payments from customers and helping truck firms to focus on business development.
JULIUS
Jul
11
Filed Under (Finance) by truck
Kris Koonar asked:
In case of the trucking companies, big as well as small, there are situations when the cash needs are high and the customers are not paying up on time or amounts are stuck in a credit period. Trucking companies need regular financing for the daily needs like truck maintenance, wages and gas and so on. However, as they are stuck up with delayed payment or credit payment, they have a tough cash flow. For this, one of the best finance options is that of the truck factoring. Truck factoring is nothing but purchasing of the invoices of the trucking companies by the truck factoring companies and paying a certain percentage of the amount to the trucking companies.
The advantage of such factoring for the transport companies is that they get finance or cash when they require it and the bills or invoices are collected by the factoring companies later, on the invoice due date. Moreover, the trucking companies need not be stuck up with the traditional banks for finance. When the company is new it hardly gets finance easily from the banks that rely on the creditworthiness of the customer before financing.
Being new, these companies can hardly show anything. Thus getting finance becomes very difficult and this could be very demanding on them and slow down their growth. The additional advantage is that the factoring companies may not check the creditworthiness of the trucking company, but are more bothered about the credit. The decision may be dependent only on these factors. The added advantage, for the trucking companies may be seen as having to deal with reliable companies with good ratings, government agencies and so on.
The process of getting finance is also easy and relatively quicker. It is a simpler and easier process for the trucking company to get the funds. These companies take the risk of credit collection upon themselves. This frees you from the worry of collections and follow ups and other related matters. Around 60% to 96% amount of the value of the invoice may be received by you, and when the entire bill amount is collected the remaining is paid after deducting some service fee of around 4% or so, you get the remaining amount. This is a finance given and not a loan.
Thus, a new debt is not added up and nor is any collateral required. Moreover it has a better effect on the balance sheet as your accounts receivable are lesser. The trucking companies can use these services to get working capital needed by them for various purposes. A timely availability of funds allows the company to move ahead with expansions and improved services. The amount may be available in even less than four hours. The collection process is also a systematic one thus reducing the collection cost.
With the collection responsibility being undertaken by the factoring company, the trucking company may concentrate on other activities. Moreover they do not have to deal with daily arrangement of funds. You also have a chance to improve the credit rating. With the timely availability of funds you can pay off your vendors on time. This enables you to avail of any further credit needs. You may concentrate on other activities like marketing, sales and other activities for the growth of the organization.
Factoring is very useful for upcoming companies as well as established organizations. Making optimal use of the services, the company can grow even if you do not get finance from the other financial institutions. It helps you to take timely advantage of the opportunities that pop up.
STEVE
In case of the trucking companies, big as well as small, there are situations when the cash needs are high and the customers are not paying up on time or amounts are stuck in a credit period. Trucking companies need regular financing for the daily needs like truck maintenance, wages and gas and so on. However, as they are stuck up with delayed payment or credit payment, they have a tough cash flow. For this, one of the best finance options is that of the truck factoring. Truck factoring is nothing but purchasing of the invoices of the trucking companies by the truck factoring companies and paying a certain percentage of the amount to the trucking companies.
The advantage of such factoring for the transport companies is that they get finance or cash when they require it and the bills or invoices are collected by the factoring companies later, on the invoice due date. Moreover, the trucking companies need not be stuck up with the traditional banks for finance. When the company is new it hardly gets finance easily from the banks that rely on the creditworthiness of the customer before financing.
Being new, these companies can hardly show anything. Thus getting finance becomes very difficult and this could be very demanding on them and slow down their growth. The additional advantage is that the factoring companies may not check the creditworthiness of the trucking company, but are more bothered about the credit. The decision may be dependent only on these factors. The added advantage, for the trucking companies may be seen as having to deal with reliable companies with good ratings, government agencies and so on.
The process of getting finance is also easy and relatively quicker. It is a simpler and easier process for the trucking company to get the funds. These companies take the risk of credit collection upon themselves. This frees you from the worry of collections and follow ups and other related matters. Around 60% to 96% amount of the value of the invoice may be received by you, and when the entire bill amount is collected the remaining is paid after deducting some service fee of around 4% or so, you get the remaining amount. This is a finance given and not a loan.
Thus, a new debt is not added up and nor is any collateral required. Moreover it has a better effect on the balance sheet as your accounts receivable are lesser. The trucking companies can use these services to get working capital needed by them for various purposes. A timely availability of funds allows the company to move ahead with expansions and improved services. The amount may be available in even less than four hours. The collection process is also a systematic one thus reducing the collection cost.
With the collection responsibility being undertaken by the factoring company, the trucking company may concentrate on other activities. Moreover they do not have to deal with daily arrangement of funds. You also have a chance to improve the credit rating. With the timely availability of funds you can pay off your vendors on time. This enables you to avail of any further credit needs. You may concentrate on other activities like marketing, sales and other activities for the growth of the organization.
Factoring is very useful for upcoming companies as well as established organizations. Making optimal use of the services, the company can grow even if you do not get finance from the other financial institutions. It helps you to take timely advantage of the opportunities that pop up.
STEVE
Jun
10
Filed Under (Finance) by truck
Joe Trzepla asked:
The trucking industry is a vital component of the national economy. For this reason, a great deal of research goes into developing new accident prevention technologies. In the past, accident prevention usually meant the reduction of damages if an accident were to take place. Today, smart systems are being developed to keep drivers safe on the road.
The Next Generation in Stability Control
Electronic Stability Control (ESC) has become an integral part of trucking safety. ESC is the system that selectively applies brakes to one or more wheels when the truck begins to lose control. ESC II is currently being developed to further decrease loss of vehicle control. This is accomplished through a combination of slight steering input, as well as throttle and braking control. Tests are being conducted to expand these mechanisms to include rear wheel steering control through active multi-link suspension systems.
Pre-Collision Systems
Pre-Collision Systems have been installed in many of the more expensive car models and can be adapted for use in trucks. If a collision is imminent, the system senses the approaching cars and other obstacles and activates preventative measures to try to stop or minimize the collision and to protect the driver. Measures taken may be full activation of brakes and activation of safety devices. Some systems even include video cameras to act as a second pair of eyes for the driver.
Adaptive Cruise Control
In addition to regulating speed, this system uses radar to maintain safe traveling distances between vehicles. As the truck approaches another vehicle, brakes and throttle are adjusted accordingly.
Lane Departure Warning
Cameras are installed in the truck to detect the stripes denoting lanes or road margins. If the truck begins to cross these lines, a chime and warning light are activated. In testing, this system was very effective on highways in alerting drowsy drivers that they are not paying attention to the road.
Brake Assist
This is a mechanism that measures the pressure applied to the brakes. If a rapid hard thrust is applied, as when a driver is trying to avoid a collision, the maximum braking capability is increased adding greater braking power.
Blind Spot Detection
This system uses cameras to observe a trucks blind spots. If the driver attempts to change lanes while a vehicle is in the trucks blind spots, a warning is given to the driver.
Night Vision
Infrared technology can be applied to increase a drivers vision ability at night. Drivers have reported many night vision systems as being confusing, but better systems are being developed.
Rollover Mitigation
Sensors augment stability control in order to detect when the truck is beginning to tip. Stability control then applies brakes in an effort to prevent the rollover. If this fails safety systems, such as airbags, are activated.
Active Head Restraints
During a collision, head restraints move forward to brace the head in an effort to prevent whiplash.
Voice Recognition
As every driver knows, attempting to fumble with gear and gadgets can reduce the ability of a driver to control a truck. For this reason implementing voice recognition systems for control of radios, climate control, cell phones, etc. is seen as a way to greatly increase driver safety.
Intelligent Networks
Systems are being developed that allow vehicles to communicate with each other. This would operate in a similar fashion to drivers further down the road informing others of ice or accidents. All vehicles would report to each other a variety of factors including road conditions, weather, obstructions, and so on.
NICKY
The trucking industry is a vital component of the national economy. For this reason, a great deal of research goes into developing new accident prevention technologies. In the past, accident prevention usually meant the reduction of damages if an accident were to take place. Today, smart systems are being developed to keep drivers safe on the road.
The Next Generation in Stability Control
Electronic Stability Control (ESC) has become an integral part of trucking safety. ESC is the system that selectively applies brakes to one or more wheels when the truck begins to lose control. ESC II is currently being developed to further decrease loss of vehicle control. This is accomplished through a combination of slight steering input, as well as throttle and braking control. Tests are being conducted to expand these mechanisms to include rear wheel steering control through active multi-link suspension systems.
Pre-Collision Systems
Pre-Collision Systems have been installed in many of the more expensive car models and can be adapted for use in trucks. If a collision is imminent, the system senses the approaching cars and other obstacles and activates preventative measures to try to stop or minimize the collision and to protect the driver. Measures taken may be full activation of brakes and activation of safety devices. Some systems even include video cameras to act as a second pair of eyes for the driver.
Adaptive Cruise Control
In addition to regulating speed, this system uses radar to maintain safe traveling distances between vehicles. As the truck approaches another vehicle, brakes and throttle are adjusted accordingly.
Lane Departure Warning
Cameras are installed in the truck to detect the stripes denoting lanes or road margins. If the truck begins to cross these lines, a chime and warning light are activated. In testing, this system was very effective on highways in alerting drowsy drivers that they are not paying attention to the road.
Brake Assist
This is a mechanism that measures the pressure applied to the brakes. If a rapid hard thrust is applied, as when a driver is trying to avoid a collision, the maximum braking capability is increased adding greater braking power.
Blind Spot Detection
This system uses cameras to observe a trucks blind spots. If the driver attempts to change lanes while a vehicle is in the trucks blind spots, a warning is given to the driver.
Night Vision
Infrared technology can be applied to increase a drivers vision ability at night. Drivers have reported many night vision systems as being confusing, but better systems are being developed.
Rollover Mitigation
Sensors augment stability control in order to detect when the truck is beginning to tip. Stability control then applies brakes in an effort to prevent the rollover. If this fails safety systems, such as airbags, are activated.
Active Head Restraints
During a collision, head restraints move forward to brace the head in an effort to prevent whiplash.
Voice Recognition
As every driver knows, attempting to fumble with gear and gadgets can reduce the ability of a driver to control a truck. For this reason implementing voice recognition systems for control of radios, climate control, cell phones, etc. is seen as a way to greatly increase driver safety.
Intelligent Networks
Systems are being developed that allow vehicles to communicate with each other. This would operate in a similar fashion to drivers further down the road informing others of ice or accidents. All vehicles would report to each other a variety of factors including road conditions, weather, obstructions, and so on.
NICKY
Jan
22
Filed Under (Finance) by truck
Kris Koonar asked:
In this article we look at how there are so many services available to guide you on how to go about truck factoring.
Truck factoring is a great arrangement, especially for the owner of the vehicle. It is a relaxing arrangement and reduces the amount of stress and tension that normally would leave any trucker worried. The flow of money is constant as long as they have assured business. For any person who runs his own business, finance is always the most strained factor to content with. There are bills, and bills and bills. So truck factoring companies are more beneficial that banks and even their interest rates are on the lower side compared to banks or other financial institutions. It increases your ability to haul additional load because of the credit facility offered by them to customers. Most customers are very happy with the arrangement, where in they do not have to make the payment upfront.
There are some considerations that can guide you in making the right decision. Always find the right kind of load that meets the credit standards of the factoring company. Even the customer or client you choose should be credible. There are many customers who are bad paymasters and hence this affects your relationship with the factoring company. Ensure that they are listed with the factoring company and if not, then it would take a few hours to get them listed. Most factoring companies require your original invoices or bills. And there are two methods of payment. One is card and the other is cash. It is better to use the card as you can keep a track of the expenses and control the outflow to a certain extent.
This is one of the best options when it comes to maintaining a steady cash flow and also having time on your hands to attend to more important matters, like the maintenance of the fleet of vehicles. And if you also drive your own trucks then you need a break as you can get physically exhausted. Spare yourself the agony and give the company the headache of going after payments. Factoring companies are a boon to truck and freight companies as they were started with a reason and that reason is very valid. Even their interest rates are better compared to banks. Depending on the credibility of the customer, it could be anything from 1.5 to 5%. Their quick disbursement and no need for guarantors is another crowd puller, oops truck puller.
Please ensure that before you decide to do business with a factoring company, you should conduct a little background check on them. You should consult friends or other freight owners, so that you do not go into a loss and get cheated. Also do not go in for a long term contracts, so that if you are unhappy, you can leave anytime. Never get cornered with anything. Always remember, as much as you need them, they need you too. It sure works both ways. Be smart and build up your cash balance so that some day you won’t need the factoring service anymore.
HAYDEN
In this article we look at how there are so many services available to guide you on how to go about truck factoring.
Truck factoring is a great arrangement, especially for the owner of the vehicle. It is a relaxing arrangement and reduces the amount of stress and tension that normally would leave any trucker worried. The flow of money is constant as long as they have assured business. For any person who runs his own business, finance is always the most strained factor to content with. There are bills, and bills and bills. So truck factoring companies are more beneficial that banks and even their interest rates are on the lower side compared to banks or other financial institutions. It increases your ability to haul additional load because of the credit facility offered by them to customers. Most customers are very happy with the arrangement, where in they do not have to make the payment upfront.
There are some considerations that can guide you in making the right decision. Always find the right kind of load that meets the credit standards of the factoring company. Even the customer or client you choose should be credible. There are many customers who are bad paymasters and hence this affects your relationship with the factoring company. Ensure that they are listed with the factoring company and if not, then it would take a few hours to get them listed. Most factoring companies require your original invoices or bills. And there are two methods of payment. One is card and the other is cash. It is better to use the card as you can keep a track of the expenses and control the outflow to a certain extent.
This is one of the best options when it comes to maintaining a steady cash flow and also having time on your hands to attend to more important matters, like the maintenance of the fleet of vehicles. And if you also drive your own trucks then you need a break as you can get physically exhausted. Spare yourself the agony and give the company the headache of going after payments. Factoring companies are a boon to truck and freight companies as they were started with a reason and that reason is very valid. Even their interest rates are better compared to banks. Depending on the credibility of the customer, it could be anything from 1.5 to 5%. Their quick disbursement and no need for guarantors is another crowd puller, oops truck puller.
Please ensure that before you decide to do business with a factoring company, you should conduct a little background check on them. You should consult friends or other freight owners, so that you do not go into a loss and get cheated. Also do not go in for a long term contracts, so that if you are unhappy, you can leave anytime. Never get cornered with anything. Always remember, as much as you need them, they need you too. It sure works both ways. Be smart and build up your cash balance so that some day you won’t need the factoring service anymore.
HAYDEN
Sep
21
Filed Under (Finance) by truck
Kris Koonar asked:
In this article we offer answers and advice to both, the trucker and the factoring company, on how truck factoring services could benefit them.
At the outset, for someone who has a trucking business, it is not always a smooth ride. It is quite a tough business to run and risky too, sometimes. And then if they have to approach a factoring company, then there are questions raised. Every person wants to know the risks involved before they jump into an agreement with a stranger. It is only natural to want be sure before you decide on the best factoring company for you. Factoring means that the company gives you credit by purchasing your invoices or receivables and taking the said payment from the customer directly.
Chasing invoices is a tiresome and lengthy process for any trucker, so they taking care of it, it works well for you. The only thing that is important is that the customer you have should meet their credit standards. There is also the agreement factor. Normally, it is made for a year and then renewed. But it is better if you opt for the short term contracts. So that in case you are unhappy with the way they function, it is easier for you to opt out of this professional arrangement and look for a new factoring company.
The factoring fee could be anything from 5% to 7%. But it is still lower than what a bank would charge you. If you have a larger volume of load, there are factoring companies that give a discount or reduce the rate of interest, if it is a recurring benefit to them. The other option is that the interest remains the same, but on the overall amount you get a rebate or the extra money is credited to you. It could really work very well for you.
Secondly, if you want to get into truck factoring, it is a brilliant idea and also could be a very financially beneficial to you. It is not difficult to get into factoring. You just need to do a little advertising so you could find the loads that you are looking for. Meet the right sources and ask around, it could help. Also, online a lot of professionals have instruction manuals and kits to help you set up the business.
Please remember that a trucker will only come to you if he is assured that he will have a constant flow of cash against his invoices, to meet with his expenses. You need to guarantee that. And that means you need to be financially sound and stable if you want to get into this business. Since it is difficult to get loans from the banks because of the credit line problems, it is easier for them to come to you. You must check out whether their freight customers are credible or not. That is important for you. After all you are in the business for the money, so ensure you do not take any unwanted risks.
NUMBERS
In this article we offer answers and advice to both, the trucker and the factoring company, on how truck factoring services could benefit them.
At the outset, for someone who has a trucking business, it is not always a smooth ride. It is quite a tough business to run and risky too, sometimes. And then if they have to approach a factoring company, then there are questions raised. Every person wants to know the risks involved before they jump into an agreement with a stranger. It is only natural to want be sure before you decide on the best factoring company for you. Factoring means that the company gives you credit by purchasing your invoices or receivables and taking the said payment from the customer directly.
Chasing invoices is a tiresome and lengthy process for any trucker, so they taking care of it, it works well for you. The only thing that is important is that the customer you have should meet their credit standards. There is also the agreement factor. Normally, it is made for a year and then renewed. But it is better if you opt for the short term contracts. So that in case you are unhappy with the way they function, it is easier for you to opt out of this professional arrangement and look for a new factoring company.
The factoring fee could be anything from 5% to 7%. But it is still lower than what a bank would charge you. If you have a larger volume of load, there are factoring companies that give a discount or reduce the rate of interest, if it is a recurring benefit to them. The other option is that the interest remains the same, but on the overall amount you get a rebate or the extra money is credited to you. It could really work very well for you.
Secondly, if you want to get into truck factoring, it is a brilliant idea and also could be a very financially beneficial to you. It is not difficult to get into factoring. You just need to do a little advertising so you could find the loads that you are looking for. Meet the right sources and ask around, it could help. Also, online a lot of professionals have instruction manuals and kits to help you set up the business.
Please remember that a trucker will only come to you if he is assured that he will have a constant flow of cash against his invoices, to meet with his expenses. You need to guarantee that. And that means you need to be financially sound and stable if you want to get into this business. Since it is difficult to get loans from the banks because of the credit line problems, it is easier for them to come to you. You must check out whether their freight customers are credible or not. That is important for you. After all you are in the business for the money, so ensure you do not take any unwanted risks.
NUMBERS
