New to Factoring?

For those who aren't familiar with factoring, it is basically a fast way to get cash to run your business.

Factoring is Not a Loan

When you send your customers an invoice, they usually have 30 days to pay you back. Factoring companies will give you the bulk of the cash up front, sometimes within 24 hours, and collect the payments from your customers themselves. Once the invoices are paid in full, you’ll get the balance left over, minus a small fee.


Factoring Doesn't Require Debt

Sounds simple enough – fast cash for your business – no loans, no debt.

So how do you go about choosing the best factoring company?

Not all of them are created equal. Not all of them will give you the same level of service you need to help grow your business.

Everyone claims they have the simplest rate structure in the industry, no long-term contracts, same day funding, no up-front fees, no monthly minimums or maximums, etc., etc., etc.

We also offer these same benefits, but we GO THE EXTRA MILE FOR YOU that other factoring companies don’t.

Here’s Why We Are The Factoring Company You Need For Your Business

No other factoring company matches our level of superior service and offerings.


As you can see, we simply have more to offer you.

Other factoring companies don’t even compare.

And Not All Factoring Companies Can Say This:

More than half of our new business comes through client referrals.

Some of the benefits you receive with factoring are:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Information for the city of

Portland is the largest city by population in the U.S. state of Oregon, near the couence of the Willamette and Columbia rivers. According to the 2010 Census, it had a population of 583,776, estimated to have reached 609,456 in 2013, making it the 29th most populous city in the United States and the third most populous city in the Pacific Northwest region, after Seattle, Washington, and Vancouver, British Columbia, Canada. Approximately 2,314,554 people live in the Portland metropolitan area (MSA), the 19th most populous MSA in the United States.Portland was incorporated in 1851 and is the county seat of Multnomah County. The city has a commission based government headed by a mayor and four other commissioners as well as Metro, a distinctive regional government.

 

The city is noted for its superior land use planning and investment in light rail. Because of its public transportation networks and efficient land use planning, Portland has been recognized as one of the most environmentally conscious cities in the world.Located in the Marine west coast climate region, Portland has a climate marked by both warm, dry summers and wet, cool to chilly winter days. This climate is ideal for growing roses. For more than a century, Portland has been known as the "City of Roses", with many rose gardens most prominently the International Rose Test Garden. The city is also known for its abundant outdoor activities, liberal political values, and beer and coffee enthusiasm. Portland is home to a large number of independent microbreweries, microdistilleries and food carts that contribute to the unofficial slogan "Keep Portland Weird".[Portland's location is beneficial for several industries. Relatively low energy cost, accessible resources, north south and east west Interstates, international air terminals, large marine shipping facilities, and both west coast intercontinental railroads are all economic advantages.

 

The US consulting firm Mercer, in a 2009 assessment "conducted to help governments and major companies place employees on international assignments", ranked Portland 42nd worldwide in quality of living; the survey factored in political stability, personal freedom, sanitation, crime, housing, the natural environment, recreation, banking facilities, availability of consumer goods, education, and public services including transportation.Since the 1990s, companies that have moved their world, North American, or U.S. headquarters to Portland include and athletic and footwear manufacturer The metro area is home to more than 1,200 technology companies. This high density of technology companies has led to the nickname Silicon Forest being used to describe the Portland area, a reference to the abundance of trees in the region and to the Silicon Valley region in Northern California.

 

The Silicon Forest is home to facilities for hardware makers such as (China's largest footwear manufacturer), is one of two Fortune 500 companies headquartered in Oregon, the other being. Other manufacturing companies based in Portland include Companies. Star Trucks builds their trucks in the city.considered respectively the industry leaders in multitools and motorcycle riding wear, are also based in Portland.The steel industry's history in Portland predates World War II. By the 1950s, the steel industry became the city's number one industry for employment. The steel industry thrives in the region, with SIndustries, a prominent steel company, shipping a record 1.15 billion tons of scrap metal to Asia during 2003. Other heavy industry companies include E.Portland is the largest shipper of wheat in the United States, and is the second largest port for wheat in the world. The marine terminals alone handle over 13 million tons of cargo per year, and the port is home to one of the largest commercial dry docks in the country. The Port of Portland is the third largest export tonnage port on the west coast of the U.S., and being located about 80 miles (130 km) upriver, it is the largest fresh water port

 

 

Information for the state of Oregon

Oregon's major sources of farm income are greenhouse products, wheat, cattle (huge herds graze on the plateaus E of the Cascades), and dairy items. Hay, wheat, pears, and onions are important, and the state is one of the nation's leading producers of snap beans, peppermint, sweet cherries (orchards are particularly numerous in the N Willamette Valley), broccoli, and strawberries. Oregon has developed an important and growing wine industry since 1980. Oregon has retained its title as the nation's foremost lumber state, producing more than 5 billion board feet a year. Other major products are food, paper and paper items, machinery, and fabricated metals. Printing and publishing are important businesses.

 

In recent decades Oregon (now sometimes called "Silicon Forest") has become home to many computer and electronic companies; growth in this sector has offset job losses in the timber industry. Oregon's river resources are one of its greatest assets. Its salmon-fishing industry, centered around Astoria, is one of the world's largest; other catches are tuna and crabs. Although mining is still underdeveloped, Oregon leads the nation in the production of nickel. Oregon's beautiful ocean beaches, lakes, and mountains make tourism another important industry. Major attractions are the Oregon Caves National Monument, Lewis and Clark National and State Historical Parks, and McLoughlin House National Historic Site.

 

We relieve your headaches and stress of collecting on accounts receivables.  

The majority of factoring companies purchase invoices and advance cash within 24 hours, although the terms and nature of factoring can differ between industries and different financial service providers. -Factoring Companies In Oregon

 

 

CASH FOR COMPANIES. TELL US WHAT YOU WANT  

Factoring Companies In Oregon Articles

Factoring in the Future of a Trucking Business: A Story

 

John Thompson let the phone ring on his desk. He let his morning coffee cool and left his cigarette to ash itself in the tray, because he is trying to make the biggest decision ever for his trucking company. Thompson Trucking Company was at a turning point of growth and John had to decide if signing with a factoring company was the right way forward.

 

John's father had started as an owner-operator and had grown Thompson Trucking Company into a fifteen trailer fleet over forty years. There had been some hard times when it seemed everything was going to go under and even John's mother strapped herself into a cab to make hauls. His father had lived long enough to witness the price of hires drop during the recession and watch the eruption of fuel prices afterwards. Now the company was solely in John's hands and he wanted to live to see it in better shape for his sons.

 

To move Thompson Trucking Company ahead into the future, he needed a steady cash flow but there was just not enough money to go around. His employees needed to be paid. They had families and household bills too. Some of the refrigerated trailers were in need of repairs and he felt to stay competitive it was also a good idea to invest in specialized haulers to be ready for the constant requests he was getting for loads of new energy and agriculture equipment. Every time he had to turn down a request, Thompson Trucking looked weak in a very strong market.

 

His father would have told him to wait and to take his time adding on new technology. John allowed himself a good hard chuckle. His father had been against placing GPS units in the cabs. He would say, "Why do you need the voice of some woman to tell you to get off at an exit that has been the same exit that has been there for years?" Also his father had the habit of teasing all the drivers he caught switching into automatic even though driving in automatic was much more efficient though not manly in his father's eyes. His father days were long gone and technology was actually an important improvement for the business such as having Qualcomm to cut down on fruitless time communicating on the phone for bills of lading.

 

John believed a successful man is always thinking of his next step. What would be the next step for Thompson Trucking? And how would he be able to afford it? Funding was all tied up in the mortgage for the office and garage and in the fuel bills. He just finished paying off the small bank loan for installing satellite radio in the trucks for the guys.

 

But was factoring the answer? There was a lot he didn't understand about the process. It sounded a lot like ninth grade algebra which just didn't feel like it belonged as part of the trucking business. Factoring companies buy your invoices and manage your accounts receivable for a certain percentage of the invoiced amount. The factoring company gives the trucking business its payment right away which allows the business to have continuous cash flow so it can pay employees, buy fuel, and make repairs for upcoming hauls. Without the assistance of factoring, you have to wait for customers to send you the payment which is often 30 days late. In those 30 days, a trucking company can't pay its bills and employees in invoices.

 

Now it was time for John to do his homework. John had heard that there were companies that charged for same day money transfers and would only advance a percentage of the money owed to your company while holding the rest in a private account if they didn't get their bill payment within 60 or so days. Plus it was worse still if the customer didn't pay up at all because then the factoring company would take it right out of the money supposed to be coming to you! Through the grapevine, he'd also heard about how some companies suddenly slipped you onto a sliding scale of percentages even if you had already signed a lengthy contract for maybe 3% or 7% so there you are with 10% coming as a cost to you out of the freight bill. His friend Ronnie who had a trucking business in Missouri, was run nearly into the ground by a factoring company that charged him the full freight bill on top of the factoring fees. Well, what was the point of going to a factoring company if there was shady business like that going on?

 

But it turned out to be quite easy. All the factoring companies he researched were open about their business practices and very friendly on the phone when he called. Their customer service actually knew things about their company and spoke in nice clear English so he could understand what was being explained. He didn't mind signing an exclusive contract. He liked the idea of a long term commitment so he knew he wouldn't have to bother going back and forth to different companies and wasting time filing more forms. Nobody charged him for credit checks and they offered him a fuel advance on the pick-up of the load. Many companies offered a non-recourse factoring program that suited him just fine. Also he was happy to hear how much he was offered in terms of percentages on the freight bills. It was good money.

 

It was really refreshing dealing with the factoring people. They were more personable than those loan managers at the bank. It seemed as though those bank people spoke another language, but these factoring guys knew the trucking business and spoke to him like a client, not like a beggar for a handout. The factoring companies didn't worry over his credit and the debt troubles his father had had in the past of the company. Factoring was based on the credit of his customers and on their reliability which worked well for John because he and his father had built up good strong relationships over decades with their list of clients. So he knew they would understand when the factoring company contacted them for the invoices. His clients wouldn't think poorly of Thompson Trucking and the factoring companies appeared capable of handling the accounts receivable in the same polite manner that his father had used over the years.

 

John stepped out of his office to let his secretary know to expect the arrival of the factoring contract shortly. He felt exhilarated by the new possibilities that would make the future of the company fun again and put the stress of the difficult times behind him. With the capabilities of this new cash flow, John could actually expand Thompson Trucking Company further across the country and perhaps even go international into Canada. His heart felt full knowing his sons wouldn't have to worry about money because of the right decisions he had made for their trucking business.

 

 

 

We relieve your headaches and stress of collecting on accounts receivables.

 

 

Factoring Companies In Oregon Articles

About Invoice Factoring and How to Choose the Best Invoice Factoring Company for Your Business

 

Most people have heard of invoice factoring, but knowing exactly how it works and how to choose the right factoring company for your business can be difficult to ascertain. We've put together this brief guide to help you understand invoice factoring and to provide you with enough information to help you make the right choice for your business.Most business-to-business (B2B)companies find it very frustrating when forced to wait for customers to pay their accounts. When payment terms are over-extended, businesses of all sizes can find themselves dealing with cash flow problems. For some customers it's industry standard to offer long payment terms, but there are other customers who demand longer payment terms simply because they can. This is where invoice factoring steps in to assist businesses.

 

So, how does invoice factoring work? Invoice factoring is a method of keeping a business's cash flow steady without the business being forced to take on debt or sell equity.

 

In this article we'll look at how the factoring process works, the benefits it offers to businesses, and we'll also determine which businesses qualify for factoring.

 

Explaining Invoice FactoringInvoice factoring is when Accounts Receivable are purchased at a discount price. Today, invoice factoring is one of the most popular financing methods, helping thousands of businesses grow and expand. In fact, you may be interested to know that the history of the United States began with invoice factoring! Apparently, the Pilgrims used invoice factors in London to finance their voyage to Plymouth on the Mayflower. And once colonies had been established, invoice factoring remained a popular financing method among New World traders and merchants. So, as you can see, business owners have been using invoice factoring for thousands of years. Today, Invoice factoring is still considered the safest way of obtaining the funds a business needs to grow and expand.

 

Basically, invoice factoring converts a business's current unpaid invoices into immediate cash; solving cash flow problems caused by net payment terms of 30, 60, and even 90 days. Without reliable cash flow a business will fail to thrive because inevitably it will fall behind on rent or payroll and miss out on great opportunities to expand the business. Invoice factoring allows management to concentrate on growth by eliminating the frustrations of unpaid accounts.

 

The process of invoice financing is the selling of Accounts Receivable to a reputable factoring company. Invoices, which could well be outstanding for up to 4 months, are purchased by the factoring company for up to 98% of their face value.

 

The three participants involved in a factoring transaction include -

 

-The business who issues the invoice;

 

-The customer, or account debtor, who owes payment on the invoice; and

 

-The financing company, or factor, who purchases the invoice and provides immediate cash.

 

I've Heard Invoice Factoring Called Other Things - What Is the Proper Terminology?

 

It's true, the term Invoice Factoring is used interchangeably with other terms like AR Factoring, Accounts Receivable Financing, Receivables Financing, Invoice Financing, AR Financing, and Receivables Factoring; so just keep in mind that all these terms refer to the same type of funding.

 

How Invoice Factoring Works

 

Once a customer receives a product or service from a business, they receive an invoice. With invoice factoring, the business can now "sell" this invoice to their chosen factoring company. In return, the business will receive a cash advance, somewhere between 70% and 90% of the value of the invoice. Now that the business has cash in-hand they're free to cover payroll and rent, take on new work, buy new equipment, invest in new technology, and even be on the receiving end of early-pay discounts from suppliers. Once the invoice has been paid to the factoring company the business will receive the remainder of the funds, less the agreed-upon factoring fee, which is typically based on the value and term of the invoice.

 

Invoice factoring results in a win-win-win situation for all three parties: the business concerned receives immediate cash on the invoice submitted, the customer enjoys favorable payment terms, and the invoice factoring company earns their fee.

 

Comparing Invoice Factoring with Traditional Bank Financing

 

The difference between invoice factoring and bank financing is that invoice factoring is not a debt, and it's this fact most businesses find appealing. As a business, you sell your Accounts Receivable to the factor and you receive a cash advance - that's all there is to it. It's up to you what you do with the funds because no debt means no restrictions.

 

An added benefit of invoice factoring is that it's the credit quality of the business's customers that are evaluated, which suits not-yet profitable or early-stage businesses selling to the government or established companies, yet still trying to establish themselves. The factoring rate businesses pay factoring companies is much more attractive than alternative financing arrangements that don't take into account the credit worthiness of a business's customers.

 

Other benefits of invoice factoring include a quick and simple application process, a higher approval rate when compared with banks and other forms of financing, and a quicker time to funding. When it comes to the size of funding, factoring companies are very comparable with banks in-so-much-as they can fund up to $10 million credit lines. The streamlined approach to invoice factoring provides businesses with much needed cash in-hand so the business can grow and prosper, meet all its financial obligations in a timely manner, still have cash to invest in up-to-date equipment, source new and bigger clients, and receive discounts for bulk buys or early payment.

 

Applying for Invoice Factoring is a Relatively Simple Process

 

Most businesses are familiar with the stress of applying for a bank loan, but applying for invoice factoring is a very simple process: it takes less paperwork and certainly much less time, and is not as stressful as trying to raise equity. Invoice factoring involves a very simple application process, eliminating the stress and unnecessary hurdles placed on small businesses trying to access finance.

 

Because invoice factoring provides quick access to funding, businesses find themselves in a position to take advantage of great opportunities, like expansion and accepting large orders. For many businesses who have been denied access to bank finance, being accepted for invoice factoring allows the business to continue growing and expanding. Once you've been accepted for invoice factoring, the factoring company is basically underwriting your customers to the same extent that they're underwriting your business. Of course, another bonus is that funds received from factoring your invoices can increase your available bank credit.

 

As your chosen factoring company, we're here to help collect on your receivables, but only if you ask us to. Following your direction, our account managers will politely but firmly chase up outstanding invoices. If your decision is that you prefer we don't speak with your customers under any circumstances, we accept that too. Invoice payments are directed to a specific account created under your company's name.

 

How Much Cash Will I Receive Immediately?

 

The amount of cash you'll receive immediately is an agreed-upon percentage of the face value of your invoices. Industry advance rates typically vary from between 70% and 90% of the face value of an invoice, which means that if you're owed $10,000, depending on the agreed-upon advance rate, you can expect to receive an immediate payment of between $7,000 and $9,000.

 

The remaining amount of between $1,000 and $3,000, less the factoring company's fee, will be forwarded to you once your customer has paid their invoice.

 

How Much Do Invoice Factoring Companies Charge?

 

Depending on the face value of the invoice, factoring fees typically range from between 1% and 5% per month; however, our own factoring fees range from between 1% and 3% per month. Transparency is vitally important when considering factoring fees, and businesses should be aware that invoice factoring companies who make it difficult to determine their all-inclusive fees are companies to be avoided at all cost. This lack of transparency is designed to confuse customers and they use this confusion to their advantage.

 

If you're unsure about the information you've received on invoice factoring you must proceed very cautiously, or alternatively, try a different factoring company. The information you receive must be clear and concise, leaving no room for doubt or confusion on your part. Another aspect of invoice factoring that you should be aware of is that there are invoice factoring companies out there who advertise rates of 1% (and even lower)which may sound very attractive; however, they make up for these low fees with a range of hidden charges.

 

One sneaky way these companies attract customers is to charge a low monthly factoring fee, but you'll be charged for two months if the invoice should go over by just one day.We charge invoice factoring fees on a daily basis, which means that however many days outstanding the invoice may be, this number of days will be used to calculate the fee chargeable. By this we mean that you won't be charged an extra month of fees simply because your invoice was outstanding for 31 days instead of 30.

 

Please Explain How Invoice Factoring Can Help Grow My Business

 

Today, businesses are choosing invoice factoring over merchant cash advances or bank term loans simply because it's the lowest risk option there is. The fact is, the sale has been completed and the invoice confirmed, so the only thing remaining is for the customer to pay the invoice. Provided you have confidence that your customer will pay your invoice in a timely manner there's nothing to worry about. However, with a bank loan, monthly interest payments can devastate small businesses, start-ups, and even large businesses. And, with bank loans, they either amortize or the total amount is due at the end of a specific period. This kind of debt stress can be devastating for business owners, who are often placed in the position of deciding whether to make bank interest payments, pay rent, or make payroll.

 

With invoice factoring, because you receive cash in-hand for your invoices, there's no stress, and you're free to grow your business in whatever way you see fit. For many businesses the only negative has always been waiting to receive payment on invoices, so now there'll be no more waiting and you'll have cash in-hand to meet your own financial obligations.

 

What Kind of Businesses Qualify for Invoice Factoring

 

Fortunately, it's actually quite easy to apply for and be approved for invoice factoring. With banks and other lenders, profitability, annual revenue, and credit scores can be obstacles to being approved for finance, but these factors typically don't apply with invoice factoring companies.

 

There are three things that invoice factoring companies are usually looking for -

 

-The business must have government or other business customers;

 

 

-Business invoices must be unpledged to other loans and be due and payable within 90 days. This means that you can't have another loan where you're claiming the same invoice as collateral; however, if you do have another loan it must be subordinated (rank after)the invoice factoring company's claim to your accounts receivable;-There should be no history of serious legal or tax issues connected to your business. Note that some factoring companies use a "time in business" or minimum credit score to approve or deny applications; however, we do not.

 

How Can I Choose the Right Invoice Factoring Company for My Business?

 

You've made the decision that invoice factoring may be a good fit for your business, so what should you do next? There are so many invoice factoring companies out there to choose from, so how do you determine which one is the right fit for you? The answer to this question is - very carefully! You need to know exactly what you're looking for. To start with, you're looking for an invoice factoring company that offers more than just funding. There are many factors out there claiming to be the most technologically advanced, the fastest, and the easiest to use, but be cautious. You need to receive good customer service from your factor and be very wary of high fees. Some factoring companies are forced to charge higher fees in order to cover the losses they experience because they underwrite poor quality clients.

 

Excellent Customer Service is a Must!

 

It's very important that a good working relationship be established between the invoice factoring company and the business because, without it, businesses can be left confused as to why their credit facility has been reduced or why certain invoices have been rejected. Great customer service and a personal touch is vitally important when it comes to invoice factoring. If your questions are not being answered in an honest and open fashion, or your calls and emails are not being responded to in a timely manner, then find another factoring company.

 

 

 

 

 

 

Factoring Companies In Oregon Articles

Business Is Booming but Your Company's Cash Strapped!

 

A business needs good cash flow for many reasons, and many businesses have learned the hard way that business can be booming but they can still suffer from cash flow problems. There are many scenarios where a business might urgently require access to cash: it could be due to the sudden growth or expansion of a business, a major transaction may need to be expanded, perhaps there's a need to purchase equipment or even to employ more personnel.

 

Interestingly, research shows that many businesses (both small and medium-size) fail, not because business is bad, but because they experience difficulties when trying to meet short-term financial responsibilities. So how can a growing and profitable business get into serious financial trouble, or even go broke? It seems so contradictory, but on closer examination you'll see that it's not surprising at all.

 

Many Businesses Experience a Cash Flow Dilemma

 

It's so easy for a business to get into a situation where they have a cash flow problem: you only need one or two larger accounts to default on payment, or to take an additional 60 or 90 days to pay, and now you've got a cash flow problem!

 

Traditionally, business owners have depended on conventional lending sources for a business Line of Credit, and this often includes short-term Bridging Finance. But there are also many people in business who've used their personal credit cards for business-related expenses. Once business owners have exhausted traditional means of funding, the process of acquiring extended financing can become a time-consuming, trying, and often impossible task.

 

Factoring

 

Fortunately, today, we have a viable and effective alternative for business owners to get through cash strapped periods, particularly during periods of expansion and business growth. This innovative form of financing is known as Factoring; it's also sometimes referred to as Asset Based Lending or Accounts Receivable Financing.

 

Factoring has become a workable and realistic solution for many businesses, particularly when cash flow is uncertain and threatens the viability, or even survival, of the business.

 

How Does Factoring Work?

 

Basically, when a business has credit-worthy accounts receivables, the factoring process provides the business with an instant cash injection on those receivables. So, sometimes, when a lender says 'no' to a business, a factoring company may say 'yes', thus offering the much needed cash injection that so many businesses require to move forward.

 

Factoring companies understand the financial needs of their trucking clients and react very quickly to provide them with the professional, personalized, hands-on attention that they require. Freight Bill Factoring is actually a very simple process: it provides a business with instant cash flow in order to satisfy its cash needs, which in turn enables the business to grow and prosper.

 

It works like this! Your company has quality accounts receivables, and needs a cash boost. A factoring company may purchase just one, or a group of your receivables, and in return will immediately give you up to 100% (less fees applicable) of the face value of these accounts. Once the customer invoice has been paid in full the balance is forwarded on. Yes, factoring costs more than other means of lending, but factoring clients believe the benefits far outweigh the costs.

 

The Benefits of Factoring

 

Possibly the greatest benefit of factoring is the short turnaround time, because factoring companies don't have a lengthy loan approval process, unlike banks and other lenders. This means that, with factoring, trucking business owners can have money in-hand by the end of the same working day!

 

In order to receive approval as a factoring customer, a trucking business must first-of-all be a reputable trucking business, and secondly, it must have credit-worthy customers. Once a business has been approved for factoring, funding will be provided on the same day. It's important to note, also, that ongoing financing is only limited by the amount of receivables available for purchase.

 

In the last decade we've seen factoring grow very quickly, and today it's become a financially feasible alternative for many trucking companies. Many trucking companies have stated that Freight Bill Factoring has made it possible for them to process orders and undertake loads from brokers that would otherwise have been impossible because of a lack of financing. Freight Bill Factoring is here to stay, and it clearly has a place in today's business environment. Because of factoring, a trucking company can expand its customer base, increase loads, and even survive a seasonal slump. Thanks to Freight Bill Factoring, many businesses have been able to expand and grow, and easily survive in what has become a very competitive industry.

 

 

 

 

 

Factoring Companies In Oregon Articles

Medical and Healthcare Invoice Factoring

 

Don't Wait to Be Reimbursed - You Can Receive Payment Today!

 

Anyone in the healthcare profession is painfully aware that third-party payers like Medicaid, Medicare, HMOs, Workers Compensation, and other private insurers, can take what appears to be an unnecessary long time to settle your accounts. But there's good news, because with 'factoring' there'll be no more long waiting periods to receive payment on your medical receivables. For anyone in the healthcare profession who provides any type of medical services, factoring is here to assist with cash-flow.

 

Is There a Difference between Medical Factoring and Healthcare Factoring?

 

There actually is a difference between these two types of factoring, even though we hear many people using these two phrases interchangeably. Basically, when there is no third-party payer involved, then healthcare factoring applies, and if a third-party payer is involved, then medical invoice factoring companies are used.

 

Healthcare and medical receivables factoring is available for the following services -

 

- Hospitals

 

- Group and Sole Practitioners

 

- Laboratories

 

- Physical Therapy and Rehabilitation Facilities

 

- Chiropractors

 

- Nursing Homes

 

- Durable Medical Equipment (DME)

 

- Medical Staffing Companies

 

- Medical Billing Services

 

- Medical Supply Companies

 

- Medical Coding Services

 

- Ambulance Providers

 

- Medical Transportation

 

- Medical Transcription Services

 

- Medical and Non-Medical Home Healthcare Providers

 

- Imaging Facilities Providing CT Scans, X-Rays, MRIs, and so on; and

 

- Many More!

 

Factoring for Healthcare Receivables

 

We typically associate healthcare receivables with customers who are not reliant on third-party payers. This includes sectors involved with medical staffing, medical supplies, medical transcription, medical coding and billing, and so on. Basically, it means that vendors who use healthcare factoring receive the benefits of an unlimited line-of-credit, all based on the services they provide.

 

 

You can see below that factoring healthcare receivables is a very simple process -

 

 

- As the healthcare vendor, you still invoice your customer for work you've completed. Some of the more common customers will include medical offices, nursing homes, hospitals, and so on.

 

- The next step is for the vendor to forward a copy of the invoice to the healthcare factoring company. Your factor will handle the collection of payment on your behalf.

 

- The factoring company will deposit an amount of money in the range of up to 85% of the gross value of the invoice into the vendors bank account within 24 hours, or less.

 

- The remaining (approximately) 15% will be held by the factor until such time as the account has been paid in full by the customer.

 

- Once the invoice has been paid in full by the customer, the factor will release the remaining 15%, less the agreed-upon fees, back to you, the vendor.

 

Factoring for Medical Receivables

 

Regardless of whether your business bills Medicaid, Medicare, Blue Cross/Blue Shield, a third-party insurance company, or HMOs, we have the perfect factoring solution for you.

 

The benefit to you of factoring your medical claims is that you'll receive upfront capital. It's the factor who will seek payment of your invoice.You can see below that factoring medical claims is a very simple process -

 

 

- As the provider, you'll continue submitting your claim to the third-party payer.

 

- At the same time, you'll submit a copy of the paperwork to your factoring company.

 

- The factoring company will deposit an amount of money in the range of up to 85% of the net collectable value into the vendors bank account within 24 hours, or less.

 

- Once the third-party payer pays your claim in full, the factor will release the remaining 15% (approximately), less the small agreed-upon factoring fee.

 

 

 

 

Factoring Companies In Oregon Articles

"How a Factoring Company Saved This Owner of a Trucking Company Business"

 

Transportation industry plays a vital role in the economic scene. As people's lives become more and more sophisticated as time goes by, making the most out of the limited resources is the concern of all. Say for example the proper use of land to get optimum profit and convenience or what is known as the zoning. It is defined as the process of planning for land use to allocate certain kinds of structures in certain areas. This method separates the manufacturing sites from the sources of its raw materials, the employees and employers to their respective offices. This made the transportation industry play a vital role in the economic scene. It is a primary necessity for businesses of any size and of any type. It does not just transport raw materials to the manufacturers but also bring finished products into our every door.

 

Investing in a business which plays a vital role in the current economic scene is a thing that every investor should not think twice about. But business does not work that easy. The big question is, how you are going to survive the most challenging phase of establishing a business - the start. Starting a business requires a capital. If you now have enough money for capital, you can now start your business and since you are investing in a very promising type of business, finding customers is not a problem. The problem is, what if you found bad ones. Even if your customers are also managing a business and expecting cashflow, which does not guarantee that they would pay you up to date because some businesses are just ill-managed. For the business to survive, the most important thing that you would be doing is funding your operational cost - make payrolls, fuel, maintenance - it should rely on cashflow, but since things like mentioned above is very common, some business owners would resort for a loan. But that does not solve the problem of getting your receivables paid on time. As a business owner, you cannot afford the time it takes to collect the receivables, while trying to make your business grow.

 

Mr. Paul, an owner of a small trucking company experienced the same kinds of problems and shared how he managed to survive. "I just released my head from the stress of how am I going to get my receivables, and focused on making the business grow"¦"

 

Mr. Paul just got his retirement fee from a big trucking company for almost forty years and was thinking on how to double his money in the shortest time possible. Seeing a small trucking company as a business of great potential and is a business that he knows. When he was still driving a truck, he was fascinated by how much money the company is making. He has also never experienced a delay in his salary. When he decided to invest his retirement fee in establishing a small trucking company, everything was just according to what he expected. He started with a single truck from his home. He started with just a few clients, the ones he knew already and never missed one deadline and kept freight damage as minimal as possible. Because of his outstanding services he started to get referrals and had more work than he can handle. From then, he started to expand, bought more trucks, hired more personnel. Using the knowledge he acquired from the company that he had served for a very long time, and dedication to his work, his little business grew in a rate that he had never imagined. The business is now requiring a more strategic plan and when Mr. Paul thought that everything was going very well, he encountered problems that he failed to foresee.

 

He had customers that made him wait for weeks or even months before paying. Since his little business is rapidly growing, his operational cost is also growing . This is a problem that he never knew and never observed in his entire career as a driver of a trucking company since he was never in an administration role. He was at the verge of breaking down, his business is losing money, growing too fast, not big enough has to rely cashflow to keep up to his fast growing business. He had to make his payroll, pay his suppliers, maintenance and fill his orders. Mr. Paul thought of going to bank and apply for a loan but was denied. "Maybe because I had a bad personal credit...haha"

 

Mr. Paul thought of declaring bankruptcy because of the stress that he never imagined he will be handling. He had to think of how to manage his business and at the same time, how will he keep the business alive by thinking of a solution on how is he going to deal with his receivables.

 

"You know that time, I, I, I just don't know what to do... I felt that as the business kept growing and growing, I become more and more incompetent. Then suddenly, a hero came along... Just at the nick of time. "

 

Then a close friend of his introduced him to a factoring company and everything turned out just fine. So what is this factoring company then? What does it do? How did it save Mr. Paul's business?

 

Well, this is how it works, Mr. Paul sells his invoices or receivables to a factoring company at a discount and not in an amount where he can no longer make a profit. The factoring company will then be the one collecting the invoices of Mr. Paul's business from his customers. Say for example, Paul still has 100 dollars to collect from one of his customers. He then sells it to the factoring company at a lesser price, say 90 dollars. The factoring company will now be the one who is going to get the 100 dollars collectible from Paul's customer.

 

The factoring company immediately gave Mr. Paul the cashflow he needed. He now has instant customer credit checks. He can rest well and likes doing business with companies that pay their bills on time. Save him from the stress of thinking how to deal with his collectibles, thus saving time and money. He can now focus on growing his business and keeping his customers happy. Increase his sales and cashflow.

 

The Factoring Company not just saved Mr. Paul's start-up business but made it a big company now. It has helped Mr. Paul's business, why don't you let it help yours?

 

 

 

 

 

Factoring Companies In Oregon Articles

Medical Factoring: Healthcare Professionals Choose Medical Factoring As Their Preferred Financing Option

 

Healthcare professionals are finding that business loans and commercial lines-of-credit are becoming more difficult to qualify for, so today we're seeing more healthcare professionals looking to medical factoring to alleviate cash flow problems. All types of medical and healthcare practices can benefit greatly by choosing to factor their receivables and thus receive immediate cash payments.

 

In the past, healthcare has typically been a resilient industry, but today we see this industry facing financial challenges that leave practices struggling to meet their own financial commitments. Cash flow was virtually a non-issue for medical facilities, professionals, and their suppliers, but today with Medicaid, Medicare, and private insurance companies working with strict reimbursement guidelines, professionals are forced to wait much longer than they previously waited to receive payment on their invoices. In addition, complicated documentation and billing requirements are resulting in fewer dollars and longer waiting periods.

 

Financial Difficulties Experienced by Healthcare Professionals

 

The above issues are creating serious problems for a large number of medical providers who not only must wait longer to get paid less money, but who are also forced to deal with growing operating expenses, including salaries and other benefits. Operating under these unsure conditions means that the viability of these businesses is being threatened and it's become almost impossible for them to pursue new growth opportunities. Today, a medical practitioner operating a relatively small practice could have receivables of up to $1 million tied up!

 

Any business that's confronted with cash flow problems will typically look to banks or other lenders for a loan. Offering the business a loan or line-of-credit can certainly be very helpful in the short term, but unfortunately neither of these products are an ideal financing solution because neither will permanently solve the real problem.

 

A business loan may be ideal for fixed capital purchases, but it's no solution at all for handling recurring business expenses. A line-of-credit can certainly be very helpful, but because it will have a credit limit and a fixed term it won't provide a renewable source of business capital. Once the credit limit has been reached or the term of the line-of-credit expires, the lender may either increase the credit limit or perhaps not renew it at all. It's a sad fact that, today, many healthcare professionals are finding themselves in this unfortunate situation.

 

Finding the Ideal Medical Financing Solution

 

The perfect financing solution would be one that's flexible and one that would provide a steady and reliable source of working capital. It would grow with the healthcare business, without the need to re-apply or having to approach a bank for an increase in the credit limit. In short, this perfect financing solution would provide working capital to finance both the current and future growth of the business. So, is there such a solution? Fortunately, yes there is! It's called medical factoring.

 

Explaining Medical Factoring

 

Medical factoring is a receivables factoring program designed exclusively for medical invoices. Because factoring medical receivables can be quite challenging, many factoring companies today are specializing only in the healthcare industry. It does require a certain amount of expertise to manage the medical claims process; plus, it becomes even more challenging when many healthcare receivables are either reduced or denied altogether by insurance providers.

 

What Types of Business Can Use Medical Factoring?

 

Many business owners are surprised to learn that factoring in general has been around for a long time. Medical service providers, in particular, seem to be completely unaware of the existence of factoring. The truth is that invoice factoring has become one of the most flexible and powerful business financing tools available today.

 

Many healthcare providers can benefit greatly from choosing medical factoring. Below we've listed just some of the healthcare service providers who can achieve huge benefits from a medical factoring program.

 

- Hospitals

 

- Medical Centers

 

- Physicians: Both Specialists and General Practitioners

 

- Outpatient Clinics and Facilities

 

- Medical Staffing Services

 

- Medical Labs

 

- Dialysis Facilities

 

- Home Healthcare Providers

 

- Physical Therapy Clinics and Groups

 

- Rehabilitation Centers

 

- Medical Equipment Providers

 

- Medical Labs, and

 

- Many More

 

What Are the Benefits of Factoring Medical Receivables

 

The benefits to healthcare professionals are very similar to the benefits enjoyed by many businesses in many other industries. They include -

 

- Faster (almost immediate) payment;

 

- Increased percentage of billings collected;

 

- Consistent cash flow;

 

- Access to debt-free working capital;

 

- Stress-free outsourced accounting and collection; and

 

- Being able to improve your business credit.

 

Medical Practices Can Depend on Factoring for Reliable Cash Flow

 

Medical factoring is an excellent financing alternative for medical practices because practices receive consistent and flexible financing which is directly tied to their insurance claims. This means that the financing will increase as more claims are filed. It's highly desirable for all medical practices to achieve a scalable and reliable cash flow, thus ensuring sufficient liquid business capital to cover operating expenses.

 

And with medical supply companies the situation is very similar. Depending on the volume of sales these companies can achieve fast and predictable business financing by signing up for a medical factoring program. And, as sales continue to grow so does the amount of financing, providing the much-needed working capital required to both grow and maintain business operations.

 

Medical Receivables Factoring for Smaller Medical Offices

 

Medical factoring is especially beneficial for smaller medical offices. Office overheads and staffing expenses can be dramatically reduced because the factoring company will take control of the more tedious and time-consuming administrative work involved in collections and processing claims. This frees up remaining staff members to concentrate on delivering excellent medical care. If you're a small medical practice and you have good growth prospects but a slow cash flow, receivables factoring could well be the ideal tool to assist in financing the growth of your business. You'll find that many factoring companies have minimums, and there are factoring companies prepared to finance a medical office billing just $50,000 per month.

 

Explaining How Medical Factoring Works

 

In simple terms, if a healthcare business is dependent on third-party payors, those payments will be accelerated with medical factoring. Within just days of the initial billing, the majority of the amount billed will be deposited directly to the business's bank account. The instant rewards are a dramatic shortening of the collection cycle and the elimination of cash flow problems for the business concerned.

 

Importantly, receivables factoring is not a loan, so there are no credit or financial requirements; there will be no impact to your balance sheet and there are no arbitrary limits. Medical factoring is the ideal financing tool for business growth because you can factor as much billing as your business is capable of generating.

 

How Long before My Business Is Accepted for Factoring?

 

With medical factoring there are no lengthy delays, certainly not like when applying for bank finance! A medical factoring program will usually take around two weeks to set up. This timeframe allows the factor to determine the stability of the medical practice and to ensure the reliability of its third-party payors. Then, once a medical factoring program is in operation, the financing will be predictable and constant. Once claims have been submitted to the medical factoring company, claims are typically funded within 48 hours.

 

The process of medical factoring is very simple, as follows -

 

 

- Your medical practice periodically submits billings to Medicaid, Medicare, and insurance companies. At the same time, copies of these billings should be forwarded to your factor.

 

- Within 48 hours of receiving a copy of these billings, the factor will deposit an advance of up to 85% of net collectables into your bank account. The balance will be held by the factor until such time as the account has been paid in full.

 

- Once the factoring company has received payment in full, the balance of the billings - less the agreed-upon factoring fee - will be remitted to you.

 

Medical Factoring Fees

 

Medical factoring fees vary depending upon the size and types of claims generated by the medical practice. It's not known why medical factoring today is not as widely known as it is in other industries; however, interest in this type of financing is now becoming more popular and widespread as business owners are beginning to understand the many financial and other benefits of medical factoring.

 

Medical factoring in the healthcare industry is fast becoming a widely accepted tool to resolve shortfalls in working capital financing and as a long-term solution for patient accounting support and medical financing. It's certainly a tool that healthcare businesses should give careful consideration to because cash flow problems can stall growth and prosperity in businesses of all sizes and types.

 

 

 

 

Factoring Companies In Oregon Articles

Factoring

 

Invoice factoring
trucking factoring companies
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As the owner of your own business, you may be more than aware already of the difficulty in making sure that cash flow issues do not become a problem down the line. After all, the worst thing that can possibly happen for your business is to find yourself embroiled in a long and difficult situation that leaves you forever trying to find two pennies to rub together.

 

For any business in this situation, the problem can come for waiting for work to clear up and actually be paid into your account. Invoices, cheques and the like can take some time to actually processed which can leave you with short-term cash flow issues. Thankfully, there are options out there for businesses to look into - and one of these is factoring companies.

 

Factoring companies will, in exchange for your invoices, provide you with the cash today so that you don't need to worry about the waiting period that could make paying the bills and getting materials more difficult. With this type of setup, invoice factoring can become incredibly useful for many businesses who need to get out of a cash trap which they have found themselves in.

 

Because, depending on the size of the job, it can take up to 60 days for some businesses to get paid then it's important to cover your own back and not leave yourself short in that day. after all, how many businesses have two months revenue just lying there to cover all the losses until they get paid?

 

This is especially true of trucking companies. They tend to deal with lots of invoices which means a significant amount of running around and donkey work for the business owner themselves. Trying to get paid in time can become an incredible hassle and this is why you get specific trucking factoring companies who are happy to help out truckers specifically.

 

As we all know, trucking is an incredibly large industry with many companies out there employing hundreds of drivers. Unfortunately, many of these drivers can spend night in the cold or hungry as they are still waiting for work from six weeks ago to actually pay them. When this is the situation for a trucking company, turning to factoring companies for assistance might be the best choice left.

 

This means that a trucking company can pay the wages of the staff, keep all the vans topped up with fuel and continue to scale, grow and expand without always waiting for the never-never with money which is taking forever to arrive coming in. businesses running without a factoring model put in place are leaving themselves in significant risk, as competitors cash out fast and continue to expand.

 

There's genuinely nothing to be worried about when it comes to using a Factoring company - they aren't like a payday loan firm or somebody who is going to leave you with a huge pile of debt to apy back. Although you are technically borrowing a loan, so long as you only ever give them genuine invoices from work you have already finished you are merely speeding up the payment process.

 

In the United States, where trucking companies thrive, factoring companies are not considered borrowing in any capacity. This confidential agreement then allows both parties to profit and enjoy a comfortable future - it gives the factoring company a guaranteed asset of income to add to the list and it gives the trucking firm a wad of cash that they worked hard to earn.

 

The trucking company will usually need to pick up the invoice and cash it in still, and then make the payments back to the factoring company. Because it's a confidential agreement, and it can look bad for a business to be involved in this type of short-term finance even though it's perfectly legal and a very common practice, it's usually in the hands of the company to get the money for the factor.

 

This is an extremely old business type and has been used for many years by many different types of work - but none more so than truckers. While you may miss out on a small part of the money , something like 15% depending on who you work with, it means that you are getting the money today and can actually start putting some food on the table.

 

After all, an IOU or an invoice is not going to be you fed and washed, is it? For trucking companies when the money can be good one day and gone the next, it's up to the drivers to work sensibly and to ensure they are leaving themselves with a significant amount of time and finance to get through the week until they are paid again.

 

So the next time your trucking business is having some short-term cash flow issues and you are spending too much time chasing up slow paying clients, why not start considering to use factoring businesses as a way to change your motive and give yourself a more comfortable future in the eyes of your trucking staff and your bank balance?

 

 

 

 

 

Factoring Companies In Oregon Articles

Medical and Healthcare Factoring

 

Receive Payment Today! No Waiting Weeks for Reimbursement!

 

It's certainly no secret that Medicaid, Medicare, HMOs, Workers' Compensation, and other private insurers can take a LONG time to pay your invoices! But now there's good news for healthcare professionals! Now you don't have to wait weeks, sometimes months, to collect on your medical receivables. If you're a healthcare professional and you provide medical or healthcare-related services of any type, we're here to help you!

 

The Difference between Healthcare Factoring and Medical Factoring

 

Healthcare factoring and medical factoring are phrases that are often used interchangeably, probably understandably, but there is a difference between these two. The difference is that healthcare factoring applies when there's no third party payer involved, while a medical factoring company is used when there is a third-party payer involved.

 

Healthcare Factoring and Medical Receivables Factoring are available for the following healthcare providers -

 

- Group and Sole Practitioners
- Physical Therapy and Rehabilitation Facilities
- Hospitals
- Chiropractors
- Laboratories
- Durable Medical Equipment
- Medical Coding Services
- Medical Billing Services
- Medical Supply Companies
- Medical Staffing Companies
- Medical Transportation
- Medical Transcription Services
- Ambulance Providers
- Nursing Homes
- Imaging Facilities, such as providers of X-Rays, MRIs, CT Scans, and so on
- Home Healthcare Providers - both Medical and Non-Medical,
- And more!
Healthcare Receivables Factoring

 

Generally, healthcare receivables are associated with customers who are not third-party payers. Some common healthcare sectors include medical staffing companies, medical transcription services, medical billing and coding services, and medical supply companies. When these vendors utilize healthcare factoring they're free to enjoy the benefits of an almost unlimited line of credit - all based on the services they've provided. A simple explanation of factoring healthcare receivables is as follows-

 

- When work has been completed, the healthcare vendor will invoice their customer.
- These customers may include nursing homes, hospitals, medical offices, and so on.
- Next, the vendor will forward a copy of the billing documentation to the healthcare factoring company.
- Within 24 hours, sometimes even less, the factoring company will deposit money into the vendors bank account. The amount deposited will generally be around 85% of the gross value of the invoice.
- The factoring company handles collections on behalf of the vendor, and will retain 15% while awaiting payment.
- Once the invoice has been paid in full, the factor will release the 15% - less their factoring fee - back to the vendor.

 

Medical Receivables Factoring

 

- Regardless of whether you're billing Medicaid, Medicare, HMOs, Blue Cross/Blue Shield, or third-party insurance companies, we have the perfect factoring solution for you. When you start factoring your medical claims you'll achieve instant benefits by receiving upfront capital; while the factor may have to wait months for your customers to settle their accounts. A simple explanation of factoring medical claims is as follows-

 

- The healthcare provider submits claims to the third-party payer, as usual.
- A copy of completed paperwork is then submitted to the factoring company.
- Within 24 hours, sometimes even less, the factoring company will deposit money directly into the medical provider's bank account: the amount deposited will typically be around 85% of the net collectable value.
- Once the claim has been paid in full by the third-party payer, the factoring company will release the remaining 15% - less their factoring fee.

 

 

 

 

Factoring Companies In Oregon Articles

The Advantages of Trucking Factoring for Trucking Companies

 

Around the country, many owners of small trucking companies are running into the same problems when trying to expand their business. While the trucking business can be quite lucrative, it can take many weeks or even months to finally get paid on hauling invoices. This puts trucking companies in a real bind by having to play catch-up while trying to pay bills and salaries of their drivers.

 

We caught up with Jason Kind, an owner of a small trucking business that he created just a few years ago. Like many trucking owners, Jason was trying to expand his company to meet the needs of his clients, but was running into money issues that were holding him back. We asked him about his situation, the challenges he faced and how Trucking factoring played a real role in helping his company to expand without being burdened by paying back high interest loans.

 

Jason, it's good to have you with us.

 

Jason Kind: "Thanks, I appreciate being here."

 

Tell me a little about your trucking company and how it got started.

 

JK: "I had been driving trucks for years when in 2011 I decided to start my own trucking business. I went through the loan process, purchased a couple of trucks and got started. At first, it was really exciting because I had made a few connections as a driver and I picked up some early business. It seemed like everything was starting to snowball as I was getting requests from other businesses, but I was running into a cash problem."

 

It seems rather strange that being successful was causing you to be short on cash?

 

JK: "I know. You see in the trucking business we charge invoices which means that it could take weeks or even months before the cash would roll in. A typical invoice takes anywhere from 45 to 60 days before the payment comes through. Here I was getting offers from other businesses and I didn't have the cash on hand to buy trucks and hire drivers."

 

So, what did you do?

 

JK: I'll admit I was at my wit's end because I thought by the time I had the cash to expand that the interest would dry up first. I didn't want to take out another loan because I would just be putting off that debt until later and I had nothing to sell or any additional way to make more money. It was around that time when I heard from one of my friends in the trucking business about Trucking factoring."

 

What exactly is Trucking factoring?

 

JK: "Well, Trucking factoring is a way for trucking companies like mine to get paid quickly for the loads we are hauling. Instead of having to wait weeks or even months sometimes to get paid for hauling, Trucking factoring lets us get money right away for the work that we've done."

 

How does Trucking factoring work?

 

JK: "Well, there are companies out there who are willing to purchase the invoices that trucking companies like mine get when we perform a job. I managed to find a good, reputable company that actually purchases the invoices we get after performing a job along with other bills that we charge in our business. In return, they pay us cash that I not only use to cover my payroll, fuel costs and expenses, but I was able to put back enough money to purchase another truck a lot more quickly than if I had simply waited for the invoices to be paid."

 

It seems like you stumbled on a pretty good deal when it comes to Trucking factoring. Are there any other benefits that you've enjoyed by using this service?

 

JK: You bet, because the invoices act as the means to pay the company. It is not a loan where I have to pay back any money. The Trucking factoring company simply takes a very small percentage off each invoice or bill as their fee and I get the rest in cash right away. It's really worked out for me because not only was I able to get the cash needed to expand my business I was able to pay off my original loan a lot more quickly as well.

 

In fact, I was able to leap onto new business offers more quickly because the Trucking factoring allowed me to start purchasing new trucks and hire drivers months before I could even consider doing that simply waiting on the invoices.

 

This Trucking factoring sounds almost too good to be true, surely there must be a catch somewhere?

 

JK: I'll admit, I was a little skeptical at first, but it's all pretty straightforward. The Trucking factoring company I use didn't even charge me a sign up fee nor did they sign me to any long term contract. I just took a few minutes with them to set everything up and when I turn in an invoice, they pay me cash right on the spot.

 

You said you didn't have to sign any long term contracts. Are there a minimum number of invoices or amounts that you have to turn in each month?

 

JK: Actually, no. When I first started with them I was turning in practically all of my invoices so I could generate some cash up front. Now, when I need some cash to pay off bills or make quick purchases, I go to the company with my invoices. Some months I've turned in quite a few invoices, other months not so much.

 

It really sounds like you found a great deal in Trucking factoring?

 

JK: You bet. I have even used their fuel advances and discount cards to help me save money which really helped out in the first year of my business. I've had other trucking owners call me up and ask me how I was able to expand my company as fast as I did. I tell them all the same thing, if you have invoices, then Trucking factoring is the way to get fast cash without having to take out loans or put yourself in a deeper hole.

 

Jason's business continues to grow and Trucking factoring was a big reason why he was able to expand so rapidly. If your trucking business is short of needed cash with invoices that have yet to be paid, then you should consider Trucking factoring as a way to put money into your hands right away.

 

 

 

 

 

 

Factoring Companies In Oregon Articles

Explaining 'Factoring'

 

A 'Factor' is a third party commercial financial company who purchases the Accounts Receivable from businesses: this transaction is known as 'Factoring'. Factoring exists so that businesses can receive a quick injection of cash, as opposed to waiting the 60 or 90 days for customers to pay their invoices. Factoring is also known as Accounts Receivable Financing, and Invoice Factoring.

 

The majority of factoring companies purchase invoices and advance money to the business within 24 hours; however, the nature and terms of factoring can (and do) differ among financial service providers and industries. Depending on your customers' credit histories, your industry, and other specific criteria, the advance rate on your invoices can range from 80% to as high as 95%. The factoring company not only collects on your invoices; it also offers back office support to your business.Once the factoring company has collected on your customer's invoice,you'll be paid the balance of the invoice - less the factor's fee for assuming the risk. The primary benefit of factoring is that businesses no longer need to wait anywhere between one and three months for a customer to pay their accounts: they now have access to cash in hand so they can operate and grow their business.The Advantages of Factoring

 

There are a few reasons why factoring has become an invaluable financial tool for many businesses, including start ups. As mentioned above, the main benefit is that businesses can now receive a quick boost to their cash flow because factoring companies, in general, will provide cash on accounts receivable within 24 hours. This resolves the problems businesses experience with short term cash flow, and in many ways this injection of cash can help to grow a business. Besides handling your customer collections, factoring companies can also evaluate your customers' payment and credit histories.Other benefits of factoring include:

 

' It can be customized to a business's needs and managed to ensure that capital is available when it's needed;
' It's not based on your own business or credit history: it's based on the quality of your customers' credit;
' It's not based on your company's net worth: it provides a line of credit based on sales;
' There's no limit to the amount of financing, unlike conventional bank loans;
' This financing will not show up as a debt on your balance sheet, because it's not a loan.
Who Uses Factoring?

 

Companies of all different sizes, including start ups, use factoring; and today factoring has become common business practice across many industries. Factoring is now widely used in the transportation industry, including manufacturing, textiles, trucking, oilfield services, wholesale and distribution, and staffing agencies. Interestingly, factoring receivables is practiced in many countries around the world and has a long history of success.

 

Can I Factor? My Company's New, with No Financial History

 

Yes, you can! In fact, factoring has become an excellent tool for start up companies because no company credit history or balance sheet is required. It's not really your company's finances that the factoring company is concerned with; they'll base their financing on your customers' payment histories and credit scores.

 

What Percentage of My Invoices Should I Factor?

 

The answer to this question really depends on the unique needs of your business. Some companies only factor invoices for customers who typically take a long time to pay, while others factor all their invoices. The receivables that a company can factor range anywhere from a few thousand dollars to millions of dollars each and every month.

 

What's the Difference between Factoring and a Bank Loan?

 

' The difference between factoring and a bank loan is that you're not assuming any debt with factoring because it's not a loan;
' With factoring, there's no emphasis on your balance sheet - it's all on your customer's invoices;
' In addition, a bank loan is typically one lump sum, whereas factoring provides a steady flow of funds;
' Factoring companies can also help improve your company's balance sheet by assisting with your credit and collection functions;
' A bank loan adds to your debt, whereas factoring converts receivables (an asset) into cash (another asset);
' And of course, bank loans can be very difficult to get because they're limited by your balance sheet.
How Do You Start the Factoring Process?

 

The factoring process can be very simple to set up. The customer will be asked to complete a short application form, and may be required to follow up with other reports and documents.

 

Recourse and Non Recourse Factoring: What's the Difference?

 

' With Recourse factoring the client is ultimately responsibility for the payment of the invoice; whereas
' With Non Recourse factoring, the factoring company accepts responsibility for the risk of collecting the invoice.It's important to note that some factoring companies over offer both types of factoring - recourse and non recourse.

 

What Are the Contract Terms and Fees Applicable with Factoring?

 

There are different fee structures with different factoring companies: some factors charge an overall factoring fee which is determined by the creditworthiness of your customers and the monthly volume of invoices; while others charge additional fees to cover shipping, money transfers, and other costs associated with doing business. Before signing with any factoring company make sure you understand the fees and terms applicable to your contract. Also note that most factoring contacts are renewed annually.

 

Do I Need Credit Insurance on Debtors?

 

Insurance is not typically required, but in specific circumstances it may be.

 

 

 

 

 

Factoring Companies In Oregon Articles

The Basics of Trucking Factoring

 

Whether you're the owner of a 50-truck fleet or an independent owner/operator, we all know that controlling your cash flow is vitally important to growing your business. Perhaps like many business owners you've become pretty clever at making creative use of your credit cards, because it's certainly preferable to going to your banker and begging for a business Line of Credit! Fortunately, there is another viable option for owner-operator businesses and small trucking fleets. The answer to the age-old cash flow problem is Freight Bill Factoring!

 

If Freight Bill Factoring is an unfamiliar term to you, then here's a brief explanation:

 

Freight Bill Factoring is the simple process of assigning your unpaid freight invoices to a third-party company (factoring company) for an amount that's less than you would receive if you were to bill your customer direct. The bonus of Freight Bill Factoring is that it enables you to get paid almost immediately upon completion of a run, thus giving you access to much-needed cash required for the day-to-day running of your business operations.

 

Here's a step-by-step explanation of how Freight Bill Factoring, or Trucking Factoring, works :

 

Once you've booked a load, you immediately email or fax details about the load, your customer, and your rate confirmation to the factoring company;
The factoring company will quickly respond by advising if that particular customer has been approved for load factoring;
You pull the load;
When the load has been delivered, you email or fax your load-related documents, including the Bills of Lading, to the factoring company;
Within 24 hours the factoring company will make a direct deposit into your Comdata account or your bank account for the amount of approved charges: this could be anywhere between 60 and 90% of your billing;
Once the invoice has been paid by your customer, you'll receive the balance.
It's true that Freight Bill Factoring is not for everyone, but it is an ideal way of accessing the cash you need to provide stability to your trucking business and keep your wheels turning whilst you wait for your customers to pay their accounts.

 

Obviously, the best option for any business is to invoice your customers directly and wait to receive payment, but unfortunately many customers are painfully slow when it comes to paying their invoices. If you're experiencing a cash flow problem, then working with a factoring company could well provide the financial cushion you need to keep your trucks on the road. It's up to you to do your own research and determine whether factoring makes sense for your business. We trust that the information we're providing here will provide you with enough knowledge to help you make a wise decision.

 

The Cost of Freight Bill Factoring

 

As explained above, there's a cost involved with Freight Bill Factoring, and it's up to you as the business owner to determine whether it's worth the cost. The cost of Trucking Factoring can vary from as little as 1.5% up to around 5% of the line haul revenue.

 

You also need to be aware that there could be a number of fees, charges, and other expenses if you employ the services of a Freight Bill Factoring company. Generally, when you've assigned your Bills of Lading to a Trucking Factoring company, you'll receive an immediate advance of between 60 and 90% of the anticipated revenue: of course, this figure will depend upon the factoring company you use. Once your customer has paid their invoice, the balance will be remitted to you.

 

It's also important to note that all Freight Factoring companies are not equal, so here are some key questions a business owner should ask when considering hiring the services of a Trucking Factoring company:

 

Recourse or Non-Recourse: Which Freight Factoring Service Do You Provide?

 

You may not be familiar with these terms, but you need to be, because the ramifications of not understanding these terms could seriously affect the profitability of your business.

 

Recourse Factoring means that, should your customer fail to pay the factoring company, the factoring service can come back to you for reimbursement; while

 

Non-Recourse Factoring means that you have your money whether the invoice does or doesn't get paid.

 

Will You Bill My Customer for All Future Loads or Can Factoring Be Done on a Load-by-Load Basis?

 

Let's say you have a temporary cash shortfall problem that you're trying to resolve by hiring the services of a Freight Factoring company: many businesses require that the factor handle all future collections owed to you by that specific customer. However, depending upon the customer, this may not be the path you wish to take. You should be aware, though, that some factoring companies are very rigid with this requirement.

 

There are Freight Bill Factoring services out there that allow you to choose on a load-by-load basis as to whether you'd like them to handle the collection on your behalf or whether you prefer to deal with the process of billing and payments yourself. And these services generally let you decide whether you want to receive payment when the invoice is actually paid or whether you want immediate payment. This can be very useful for small businesses because it can save a lot of time by allowing you to use the Freight Factoring service as a kind of de-facto billing service.

 

Is There a Price Difference If the Factoring Company Bills a Customer for All Loads Pulled?

 

Some Freight Factoring companies require that all billings originate through them, while others allow you to decide on an invoice-by-invoice basis whether you want the factoring company to do it, or whether you'd prefer to bill your customer yourself. If you choose to use their services on a spot-usage basis and choose not to have a certain invoice factored, you'll probably still have to pay the $15-$20 billing charge. You'd then receive payment once the customer has settled their account.

 

Are Extra Fees Payable for Additional Services?

 

It's not usual for a freight factoring company to automatically pay your customer's invoices: they need assurance that your customer is a reliable, good-paying customer, so they'll typically require a credit check to ensure they'll be paid. Most Freight Factoring companies will arrange for a customer's credit check on your behalf, and this credit check could incur a nominal fee. On the other hand, there are factoring companies out there that are happy to provide you with access to a list of customers that are already pre-approved - these are companies that currently meet the factor's credit requirements. This can be very useful information to a trucking company, particularly if you need to know the credit rating of a prospective customer prior to booking a load.

 

How Much of the Freight Bill Do You Advance; and Do You Require a Deposit?

 

It's very rare that a Freight Factoring service will advance 100% of your freight invoice, and that's just one of the reasons why it's imperative that you take the time to do your own research and find out what your chosen factoring company's policy is. You also need to know if this will change from load to load or if the same policy applies to all your customers and all freight bills. p> 

Regarding deposits, some freight factoring services do require deposits, while others don't. Again, before you finalize any contract with a Trucking Freight Factoring company, be very sure that you know exactly what you're signing up for. p> 

 

 

 

You Can Find More Information at  https://commercialbusinessloan.org
and at http://receivablefactoringcompanies.org

Call Us Today at: 1-866-593-2195

 

Watch our Factoring Company Video below to see how we work for you.

 

 


 

Get MONEY NOW for your outstanding receivables.

 

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