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What Truckers Like About Top Trucking Companies

Though often overlooked, the trucking industry is essential to the health belonging to the US economy. Think about it: without truck drivers delivering goods, interstate commerce would grind to a screeching, tire-burning halt.

Unique Challenges

Despite the importance of trucking companies, the way the system is structured often leaves them within a shaky financial position. Truck companies submit invoices for services rendered, and then often wait 30-90 days for payment on the accounts receivables.

For a bigger company with large cash reserves, waiting to be paid would not be a problem. But for small to mid-size companies operating on a good budget, it might stop an option. Expenses regarding payroll and gas calculate in the time between payment, and not paying your drivers is never a good business repeat. Add to that rising fuel costs, delays due to traffic congestion, driver shortages and new regulations, and is actually not a recipe for financial hardship.

Therefore, trucking companies often have to show to outside backing. The following are some methods trucking companies to consider:

Asset-Based Lending

Also known as factoring, this options refers to difficult . by which businesses sell their accounts receivables to a factoring company. Approval for factoring centered on the creditworthiness of the trucking company’s customers.

At the time of the sale, the client gets 80-90% of this cash back immediately from the bills. The remainder of the balance comes after customer repayment, less a portion fee that typically ranges from 1-5%.
This choices best for B2B companies that cannot afford to wait for payment, and also the cost is usually 4-5% monthly with annual fee typically between 18-30%.

Bank Loans

Though tough to come by, bank loans are these cheapest associated with financing. The money process involves an application and analysis of the company’s creditworthiness and financial history. Small companies especially possess a be refused for loans, although exceptions do be available.

After approval, fund disbursement usually takes about 30-90 days achieve a trucking company’s bank account. This form of funding ideal for for trucking outfits by using a great credit ratings and don’t want the money immediately.

Cash-Advances

Cash advances take place when a small-business receives funding sum from a lender. Business pays the lending company back with percentages of that monthly card receipts until the loan (plus a predetermined rate) is repaid. Tend to be two legal limits to the rates, and so they also cannot be changed retroactively. The benefit to cash advances is immediate cash- is certainly the fastest method for obtaining cash without in order to a loan shark.

This financing method ideal for trucking companies who need immediate cash for a short amount of time and have limited financing options. Zox pro training system is usually 20% and up.

Lease-Back

A trucking company may choose to sell property, plant, and/or equipment, and simultaneously leases it back for earnings.

It ideal for for trucking companies with valuable plant or equipment assets that are underutilized, along with the cost is monthly lease payments as well as the depreciation and tax burdens of machines.

Choices, Choices

Every trucking company is unique, however it is almost them to search out funding solutions that meet their individual needs. Being informed on all options is initial step toward finding a fitting cash flow solution.

4 Global Corp

12963 W Okeechobee Rd suite 4, Hialeah Gardens, FL 33018

(305) 912-9444

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