What Truckers Like About Top Trucking Companies

What Truckers Like About Top Trucking Companies

Though often overlooked, the trucking industry is critical to the health of 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 tight budget, it might halt an option. Expenses such as payroll and gas provide in the time between payment, and not paying your drivers is never a good business put into practice. 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 flip to outside funding. The following are some strategies to 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 primarily based on the creditworthiness of the trucking company’s customers.

At the time period of the sale, customer gets 80-90% of your cash back immediately from the receipts. The remainder of the balance comes after customer repayment, less a share fee that typically ranges from 1-5%.
This choices are best for B2B firms that cannot afford to wait for payment, and the cost is often 4-5% monthly with a healthy annual rate typically between 18-30%.

Bank Loans

Though in order to come by, bank loans are these cheapest form of financing. The borrowed funds process involves an application and overview of the company’s creditworthiness and financial reports. Small companies especially are more likely to be denied for loans, although exceptions do be available.

After approval, fund disbursement usually takes about 30-90 days to reach a trucking company’s life’s savings. This form of funding is the for trucking outfits with a great credit ratings and don’t want the money immediately.

Cash-Advances

Cash advances take place when an organization receives a loan sum from our lender. The corporate pays the lender back with percentages regarding their monthly card receipts until the loan (plus a predetermined rate) is repaid. There are a bunch legal limits to the rates, and also cannot be changed retroactively. The help cash advances is immediate cash- the time the fastest method for obtaining cash without gonna be a loan shark.

This financing method is the for trucking companies who require immediate cash for a much smaller amount of one’s time and have limited financing options. Will not find is usually 20% or older.

Lease-Back

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

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

Choices, Choices

Every trucking company is unique, and it is almost them to discover funding solutions that meet their individual needs. Being informed on all the choices is initial step toward finding a sufficient cash flow solution.

4 Global Corp

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

(305) 912-9444

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