Is Your Company Looking for a Financial Resource to Navigate the Challenges of the Pandemic?
Keeping the economy moving is the focus of both economists and politicians as the nation continues to deal with the Covid 19 pandemic. At the heart of the economy, of course, is the trucking industry. No store can sell its products without regular deliveries, and hospitals and government agencies cannot run without the regular delivery of other kinds of consumable products.
The first few weeks of the pandemic provided a perfect example of how everything comes to a complete stop when the trucking industry is interrupted. As the economy started rolling again, however, there were many companies that found themselves in more need of both drivers and trucks and tractor trailers. In an effort to make sure that they are able to get the needed personnel and equipment it is often important to make sure that there are plenty of available financial resources. If your company is looking for a way to get ON THE ROAD during both the worst and best of times, the services of factoring financing companies may be necessary:
- On any given day, at least part of the nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network. Every one of these moving parts, however, requires funding for maintenance and repair. And when you add in the amount of money that is needed for purchasing new equipment and hiring more drivers, you begin to see just how much capital is needed.
- Nearly all companies require the financial backing from a number of sources. Invoice factoring, as an example, is a type of accounts receivable financing that converts outstanding invoices due within 90 days into immediate cash for your small business.
- The use of services provided by local and international factoring associations offer a number of options for businesses of all size.
- Having access to the resources provided by transportation factoring companies offer one of the most valuable options.
- Every business that looks into the options of factoring financing has to consider the amount of money that they need, as well as the interest, or factoring fees.
- Research indicates that sending paper invoices is 57% more expensive than sending an electronic invoice. This means that there are many times when the move to a digital system pays for the cost of upgrading computer and software systems.
- Over 5.9 million commercial motor vehicle drivers operate in the U.S., according to the Federal Motor Carrier Safety Administration. Many of these drivers rely on the stability provided by financial resources from factoring financing services.
- According to the Wall Street Journal, the company known as the factor advances most of the invoice amount, typically 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, also known as the factoring. fee.”
- Discovering the options that are offered by factoring financing companies means that many businesses are able to navigate even the most uncertain times of the pandemic.
Finding a balance between keeping people safe and healthy while also navigating the continuation of the economy is often a challenge, but when a business has additional resources like those offered by factoring companies, businesses of all size are able to be more effective. Even before the pandemic, bankruptcies in the U.S. increased to 25,227 companies in the second quarter of 2016. This was a significant move from the 24,797 companies in the first quarter of 2016. Experts, rightfully so, are very concerned about the threat of the pandemic. As more and more businesses are threatened with the challenges of Covid 19, it certainly should come as no surprise that there are more and more businesses that will be looking for outside capital to remain successful. Keeping the economy moving is an important part of the solutions that economists and politicians face. And while there are no easy answers, it is important to explore all of the financial options that are available. Deciding which of the available services is the best fit is an important part of figuring out how to make a business succeed. Are you looking for your next needed financial resource.