Why Factor?

It is the American dream of many to own their own business. To build something for yourself and your children from your own talent and sweat can be a compelling desire. Unfortunately, starting a business is expensive, and it is very difficult to save enough money to get the doors open.

In the case of a trucking company, you need capital for the purchase and maintenance of equipment. You need money to pay for fuel, insurance, licensing, taxes, load boards, and telephones, etc. You may have to pay wages to drivers and others, as well as related employment and workers compensation taxes. Unfortunately, you have to pay many of these costs and expenses before you receive your first check from your customer, making it more difficult to start your business.

Think of factoring as providing seed money for your business. By being paid immediately for the services you render, you have more money available to pay your bills as they occur. Expansion also becomes easier because it requires less capital. Let's say you want to add a truck to your fleet. While you still may need to come up with a down payment for the truck and money for related licensing and insurance, you know that by factoring your receivables, you will have money available to pay for the trucks operations immediately upon delivery of the freight you contracted to haul. It only takes a few days after the new truck enters operation before it is generating cash flow.

Providing initial capital to start or expand your business is a primary and compelling reason why you should consider factoring your receivables.

Can Factoring Improve My Credit?

Yes, you can potentially improve your credit by factoring your receivables. However, factors are not lenders....

How Can I Improve My Business Image?

There is an old saying that a new car is mainly about money and a clean car is mainly about character.....

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