subject: Why Choose Freight Factoring [print this page] The trucking and freight businesses are among the most cash strapped businesses there is in the transportation industry. The blame can be due with the fact that most clients of freight and trucking companies refuse to settle their payments until 90 days after. This can be a long time of waiting but this does not mean the business has to temporarily shut down its operation, halt any maintenance, and lay off employees. The business has to keep going but the problem arises with the lack of money. One way of getting this bills, salaries, and maintenance paid and settles is through a bank loan. Or you can resort to a relative new mode of financing your business freight factoring.
Freight factoring versus borrowing money
Borrowing money is probably one of the oldest and most popular form of getting a stable and reliable financing for your business. Most idea-rich but cash-strapped entrepreneurs resort to obtaining bank assistance or going for a loan to finance their business. A loan is particularly helpful if you will invest on buying equipment and facility. But this does not work well when you use it on something that will not earn any return for your business, like paying for bills and past loans. Banks dont usually approve applications with this reason behind. Likewise, most bank loans these days come with a fairly unreasonable interest rate. So much more, businesses with no solid profitability over the last three years will not have their loan applications approved. These intricacies of getting a bank loan dishearten startup businesses that is why they look for some alternative ways to get a solid and stable business financing.
Meanwhile, freight factoring offers easy terms and fast cash to meet your business day to day needs. You dont have to show any proof of your business profitability or even wait for weeks or even months to get your money. In freight factoring, its not your credit ratings that gets under scrutiny. As long as you have your invoice and you deal with a credible business with good payment background, your application to sell your invoice gets approved in no time. What is even better with freight factoring is that the task of collecting your bills no longer rests on your shoulder. Once you sell your invoice to the factoring firm, all the obligations relating to collecting your bills is left on the hands of the freight factoring company.
