Benefits Of Factoring Service for Trucking and More
Over the past ten years, a new section of the economy has come forth and is now dominating the world of transportation and goods. Right now, e-commerce is taking the United States and the globe by storm. As a result, it is time for businesses to invest in transportation factoring companies or a factoring service for trucking.
Across the United States, a staggering number of 12 million trucks and other vessels help move goods from one destination to another. These methods of transportation are vital to the lives of many Americans and yet, they are often overlooked. Therefore, the true value of factoring service for trucking is not understood. However, anyone that that works in the transportation industry has an understanding of what is a factoring company?
The Federal Motor Carrier Safety Administration gathers data in regards to transportation workers and more. Their information suggests that there are an impressive 6 million commercial motor vehicle drivers working in the United States. Therefore, these people are going to need a factoring service for trucking to be paid on time. Here is why:
Trucking Companies Rely On Invoices To Pay Employees
To understand the value of a factoring service for trucking, you have to understand what an invoice is for companies. Simply put, an invoice is how a truck driver is paid upon delivering a product. However, a study has revealed that more than half of all invoices are paid late. This is a serious problem for transportation employers.
Factoring for an invoice is a type of accounts receivable financing. this financing process helps to convert invoices that are due within 90 days into immediate cash for the business. As a result, businesses can pay their workers on time without worrying about invoices being late. After all, one late invoice can alienate an entire workforce. So do not take any chances on small business invoice factoring, get professional help today.
Invoice problems hurt the present and future of businesses. Failure to pay current employees causes dissension and unhappiness, some workers may even quit as well. therefore, there is no room for error when it comes to paying an invoice. Plus, unpaid workers can spread the word of your business and this will prevent future employees from wanting to work for you. get the best factoring service for trucking to help your business today.
A Factoring Service for Trucking Companies Helps With Cash Flow
Across the country, small businesses are without a doubt the backbone of the United States. While larger sized companies are prevalent, there are fewer companies of that size when compared to a smaller sized business. As a matter of fact, data shows that there are over 28 million small businesses located all throughout the United States.
According to a United States Bank study, 82% of businesses that fail do so because of cash flow problems. Cash flow problems come from late payments and more. For instance, invoices that are not paid on time cause cash flow problems. Due to these cash flow issues, businesses are unable to pay employees on time. As previously mentioned, this is a quick way to scare off and turn away workers.
Recent estimates reveal how much better small businesses are when invoices are paid on time. Estimates show that small businesses could potentially hire in over 2 million more workers if their invoices are paid on time. Nationwide, this decreases unemployment by an insane 27%. Therefore, businesses across the country should be encouraged to invest their time and efforts into hiring a great factoring service for trucking.
Every year there are businesses that collapse because they do not get paid on time. However, all of this can be avoided by just investing in a great factoring service for trucking for your business. Do not waste time struggling with invoices when this problem can be taken care of by professionals and experts.