How Many of the Products That You Purchase Are Shipped to You from Around the Country?
Being successful today is a challenge. In fact, as companies of all size deal with the health and economic challenges of the Coronavirus there are many kinds of companies that are struggling to fill the gap between the expenses they are incurring and the payments they hope to receive. Even the sharp increase in the number of deliveries a company has to make and the number of drivers they need to employ, as well as the trucks they need to purchase, requires an initial substantial investment. And while the payments will eventually come in for those increased shipping deliveries, it is important to note that many times the expenses are realized weeks, and sometimes months, before payments are made.
Fortunately with the use of digital billing systems and collection payments that do not need to rely on the pace of snail mail there are ways to lessen the gap between the time a company has to make investments in equipment, fuel, and employee salaries and when customers remit their payments. There are many times, however, when businesses of all size rely on the use of freight factoring services to get their hands on the capital they need.
Business Freight Factoring Services Play an Important Role in Many Industries
Most consumers know what it is like to be short of money when it comes time to pay a bill. Working with banks, credit cards, and dipping into savings accounts, however, can sometimes be the solution for many individuals and families. When a company needs to spend money to make money, though, it is important to note that the amount of cash that is needed can be a real challenge. With thorough research and the right kind of advance business capital factoring and other kinds of freight factoring services, many businesses are able to not only survive, but thrive, during challenging economic times. Consider some of these facts and figures about the many ways that the top factoring companies for freight brokers can provide very specific kinds of freight factoring services for their clients, while at the same time playing a major role in the overall transpiration industry in this country:
- Approximately 5.9 million commercial motor vehicle drivers operate in the U.S., according to the Federal Motor Carrier Safety Administration. Many of these drivers would not be getting the on time payments they demand if it were not for the implementation of invoice and load factoring companies.
- The factor advances most of the invoice amount—usually 70% to 90%—after checking out the credit-worthiness of the billed customer. When the bill is paid, the factor remits the balance, minus a transaction, or factoring, fee, according to the Wall Street Journal.
- Sending paper invoices is 57% more expensive than sending an electronic invoice, so it should come as no surprise that many businesss need to transition to the electronic approach to save both time and money.
- With more than 28 million small businesses in the U.S, it should also come as no surprise that bankruptcies in the U.S. increased to 25,227 companies in the second quarter of 2016, from 24,797 companies in the first quarter of 2016.
- Invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 90 days into immediate cash for your small business.
- Fortunately, factoring companies can help small businesses bridge invoice payment gaps with upfront payments up to 90% of the original invoice.
As many as Nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network today. And while consumers are all too familiar with the immediate needs that they have and their desires for the on tie delivery of the products they desire, they likely do not understand all of the logistics, both literal and economic, that need to occur for the groceries that we buy and the products that we order to be distributed. In fact, behind the purchase of any canned goods at the grocery store that you purchase is likely a long list of possible freight factoring services and other details that buyers rarely take into consideration.