Small businesses account for 99.7% of all companies in the U.S. Most of them have a very high chance of dying off within the first 5 years. One of the most significant contributors to this failure is access to capital. Bad debts and cash crunches squeeze the life of small companies in need of ready cash flow. Commercial factoring companies now offer advance business capital factoring which has proved to be an important source of fast funding.
As a freight broker, the influx of cash offers a way to keep your business afloat while sourcing for more clients. The factoring process provides a return on investment by avoiding bad debts and an easier way to secure funding.
What do you expect when you sign up for advance business capital factoring?
Greater Focus On Your Business Growth
Business factoring services allow you to be concerned more about your business goals. You will not have to worry about bad debts or even being late in paying your rent. Factoring allows you to accommodate additional long term clients who have longer payment schedules. Whether they operate on net 60 or net 90, you can supply them without the worry of experiencing cash struggles.
Advance business capital factoring also provides back-office services that will help run your business effectively. Some of these services include credit checks, automated payment processes, financial reports, and credit management. You can remain focused on expanding your business and attracting new clients.
Ready Cash Flow
An invoice advance provides access to an immediate source of funds. Factoring companies are majorly concerned with your client’s worthiness before buying your invoices at a discount. The quick source of funds will help in the effective running of your business. You may use the money for:
- Payroll funding.
- Paying overhead expenses such as rent.
- Hire new employees.
- Acquire new equipment.
Are your slow-paying customers grinding your business to a halt? Advanced Business capital factoring will help provide a ready source of cash even with a bad credit history.
Outsource Your Debt Collection
Most people hate collecting on invoices. According to research done by The Entrepreneur, 79% of business owners admitted to late payments on their invoices. Pilling up on the late payments lead to bad debts that cripple small businesses. With 60% of invoices being paid late, you may benefit from capital credit factoring services on debt collection.
The factoring company picks up the role of requesting payment from your clients. When they pay, the company credits the remaining amount to your dedicated account after deducting their fee. The outsourcing of invoice collection prevents your business from sinking into bankruptcy.
Enjoy a Variety of Services
Trucking Factoring service is more than quick access to money. Top transportation factoring companies offer a variety of additional services that may help streamline your business. Some of these services include:
- Small business insurance coverage.
- DAT load boards.
- Debt collection.
- Equipment Financing.
- Small business factoring.
- Discounted fuels.
These other value-added services may help you grow and expand your business. Besides the influx of capital, your business will adapt to larger orders and new clients through these affordable services.
Hassle-Free Financing Option
Sourcing a loan from traditional banks can be quite hectic. You will require a stellar personal credit score and collateral to access the loan. Even when you meet all the requirements, you may have to wait for months before the money is processed. This can be bad for business, especially when you urgently need to pay your employees.
Invoice factoring is more straightforward and with fewer bureaucracies. For most business factoring companies, only the client’s creditworthiness is of value. You don’t have to worry about your bad credit score.
Starting a freight business may require a lot of work. However, advance business capital factoring can smoothen your cash flow, provide stability and additional facilities that will help your tracking business stand on its feet. Turn your unpaid invoices into fast cash today.