In the United States, there are various companies that aid in the movement of the country. To be specific, transportation. In fact, around 12 million trucks, locomotives, vessels, rail cars, and other mobiles transport goods to and from certain destinations. If the United States didn’t have the transportation of goods, the American people would not be able to successfully obtain their products. Although this is a common fact, there is one that is not very common. Some transportation companies are considered small businesses. After all, there are almost 28 million small businesses within the United States alone. If you work for a transportation small business, such as a truck company, a broker company, and more; here is information you should know about small business factoring.
Small Business Factoring
To begin, a discussion on what small business factoring is, must be had. After all, it is standard within this realm of business. Small business factoring, by definition is a process, a tool, or an assistance that helps small businesses in terms of finances. For example, some small businesses, and those who work for small businesses may notice a decline in work or cliental during a specific time. However, this lack of business and a busy work period is not ideal when individuals need to pay various bills. In addition, they need a way to create a life, correct? Well, this is where small business factoring comes in.
Small business factoring has the ability to give small businesses an invoice loan, or an invoice advanced loan. What is an invoice advance loan? An invoice advanced loan is given to you once you complete a job. This loan is essentially a sum of monetary gain that is then transferred into your account. You can utilize this money to pay your bills, continue your business, or save it for family members. All in all, an invoice advanced loan helps you when work and money may be tight. It’s similar to financial assistance.
The Benefits: Invoice Advanced Loan
Why get an invoice advance loan? There are benefits to having an invoice advanced loan when considering small business factoring. One benefit is that you will see an influx or increase in the cash you receive. This is certainly beneficial if you have been struggling financially. Another benefit is that you get this monetary gain in a short amount of time. Therefore, you do not have to wait weeks and weeks for money to come through. You can have this money almost immediately, which will certainly help with bills or anything you may have to pay. You can say goodbye to your financial troubles for a bit.
Although there are many benefits, the last two worth discussing are it’s easy to do, and there are no consequences. To be specific, it’s easy to apply for an invoice advanced loan and you will not be turned away. Lastly, no one will use anything against you.
Transportation Factoring
Now, since you’re in the transportation industry, your invoice can be quite different from simply completing a job and getting money from a client. For transportation factoring, you can sell what is known as an unpaid trucking invoice. When you sell your unpaid trucking invoice to another company, or your company does, you’ll obviously receive cash. Although it is not the entire amount, there is only a small fee; which is certainly doable. This process is pleasant, simple, and works best if you have a handful of trustworthy clients.
The Benefits: Unpaid Trucking Invoice
Similar to an invoice advanced loan for small business factoring, there are benefits to selling unpaid trucking invoices. The first benefit, and the one many enjoy, is the fact that you’ll get your cash pretty quickly. Typically, you’ll see your cash within 24 hours of a sale. In addition, if you participate in factoring, you have the ability to keep it moving and growing as you continue your business. This growth can help you in the long run, because you can get more sales! Transportation factoring is also quite flexible; the last benefit. You do not have to participate in it all the time, only when you really need to!