Back in June, I posted the top 10 Smartphone apps for truckers to use while on the road. Those apps listed are still great and relevant, but there are some new apps in the marketplace that help truck drivers get where they need to be. Not only are these apps helpful to the trucker who utilizes them, they are also free! Below are the top 5 free trucker apps that you may find beneficial: Read the rest of this entry »
Are you looking for quick ways to increase your company’s revenue? It’s common to think that in order to make more money, you need to sell more. While increasing sales is definitely a smart long-term strategy, you do have other options to quickly boost your bottom line.
Here are 6 simple tips you can put into practice right away:
When building a business, it’s easy to fall into financial traps that end up putting you in a whirlwind of debt, obstacles, and frustration. However, with the proper planning and a few key tips, those traps are easy to avoid. Read on to get the top 5 financial mistakes you don’t want to make, and ways to avoid them: Read the rest of this entry »
We love truckers. Seriously, we do. Not only are they genuinely awesome people, they’re a humble necessity, working behind-the-scenes to keep us all thriving. Without the hard working people in the trucking industry, we would lack many of things we take for granted.
We thought it would be interesting to illustrate just how important truckers are to our economy. Have you ever wondered what would happen if the trucking industry ceased to exist? Read the rest of this entry »
Business owners have so many things to deal with on a daily basis, including ensuring their business is lucrative and thriving. A strong cash flow is a huge contributor to business success, and invoice factoring can be a great way to access the working capital needed to grow a business. Read the rest of this entry »
When most people hear the term “factoring,” they immediately associate it with a mathematical practice. But did you know factoring is also an effective business financial solution that gives companies fast cash for their invoices?
Factoring is a relatively simple process that delivers the healthy cash flow you need to cover immediate business expenses and keep your business running. Though the term “factoring” is not quite as well known as “bank loan,” thousands of people are finding it to be exactly what their company needs to take their business to the next level.
Factoring is a financial transaction where a business sells a third party, called a factor, their accounts receivable. The factor advances a large percentage of the invoice amount to the client, usually within 24 hours. By factoring, a business can: Read the rest of this entry »
Managing finances and ensuring the profitability of your company are usually the top priorities you face as a business owner. Sometimes it can prove to be a real challenge when you’re balancing all the aspects of your business. Continue reading to find 5 simple tips to help improve your company’s cash flow:
Are you in need of more cash for your business? Are you thinking of getting a bank loan in order to get upfront funds? Before you drop by a bank branch and explore the idea of a traditional bank loan, consider a lesser-known way of gaining upfront cash: freight factoring (also known as invoice factoring or freight bill factoring).
Factoring is simply an easy process that quickly turns your invoices into cash, which allows you to gain the funds you need for fuel and other immediate operating expenses. While factoring may not be a well-known freight financing method to some, it has helped thousands of trucking companies grow their businesses and thrive, even during typically slow seasons. Read the rest of this entry »
Are you just breaking into the trucking industry? With so many trucking types and jobs to choose from, it may be difficult to choose what’s right for you. In this blog, we’ll explore some options and break down the common types of trucking jobs that are available. Read the rest of this entry »
Freight Capital’s offices will be closed on Labor Day, Monday, September 3rd in observance of the federal banking holiday. Non-essential federal government offices and banks are closed in observance of the national day of rest on the first Monday in September.
To avoid funding delays, Freight Capital clients should contact Client Services at 1-800-720-4918 for funding options before the holiday. Advances and fuel card fundings are available up 8pm Monday-Friday and up to 3pm on Saturday.
Labor Day History
Labor Day serves as a day to recognize the social and economic achievements of American workers. It was first celebrated as a federal holiday on Monday, September 5th, 1894. It also symbolizes the end of summer and is welcomed by workers as a day off work between Independence Day and Thanksgiving holidays.
Contact Client Services Before the Holiday
An experienced Client Service Representative is available to assist clients Read the rest of this entry »
Freight Capital’s offices will be closed in observance of the upcoming federal banking holiday on Columbus Day, Monday, October, 8th. To avoid funding delays, Freight Capital clients should contact Client Services at 1-800-720-4918 for funding options before the holiday.
An experienced Client Services Representative is available to assist carriers during our extended business hours, Monday-Friday 6:00am – 9:00pm and Saturday 7:00am – 3:30pm PST, before and after the holiday.
Why Columbus Day is Observed
Columbus Day is traditionally observed on the second Monday in October, recognizing the arrival of Christopher Columbus to the Americas. Columbus sailed from Europe to the Americas landing in the Bahamas, not on the mainland, on October 12, 1492. He is often portrayed as the first European to sail to the Americas and the official discoverer of the New World. He also made three additional voyages and was credited with discovering the South American mainland. Most notably, Columbus was one of the first officially sanctioned ocean voyagers to conclude the world was round and bigger than everyone at the time thought. Read the rest of this entry »
This year, the National Truck Drivers Appreciation Week celebrates September 16-22. Throughout the country, this week is viewed as an opportunity to recognize and thank the hardworking drivers who deliver goods to every corner of the country. The slogan “Trucks Bring It” was coined by the American Trucking Association and adopted as the motto for the transportation industry to remind everyone that practically everything is delivered on a truck.
This year Freight Capital hosts special gift-giving booths at two truck stops in Southern California as well as one in Memphis, Arkansas. In cooperation with the truck stop vendors, Freight Capital’s gifting teams are handing out treats, bottled water and small, useful gifts throughout the day.
”Everyone at Freight Capital is acutely aware of the sacrifice and determination it takes to be a professional truck driver today. It is a physically demanding job and at times takes them away from their families for long periods of time,” says John Downing, President of Freight Capital. “We don’t get out of the office very often, so we want to make the most of that time to personally thank every driver we can.”
Freight Capital employees gathered last week and hosted the most successful National Driver Appreciation Week ever!
The answer is plain as day: we measure it by how many drivers we personally thank, shake hands with, chat with about their life on the road, share a cold drink and give away useful, practical items that drivers love to get!
By the numbers: we hosted 3 locations with more than 60 employees and gave away 4,200 bags of treats, 1100 bottles of water, 2100 useful gifts, 150 loadboard certificates (generously donated by 123loadboard, worth over $75,000) and shook hands with more than 6,000 truck drivers from all over the country.
We didn’t want to miss out on appreciating our Clients either! We send out thousands of emails to our Clients who we couldn’t count on seeing at the truck stops and held a raffle for 7 Samsung Galaxy Tablets (one for each day of the week) that are made for helping busy Clients keep connected to friends, family and the office when they are on the road. We made some Clients very happy last week judging from the shouts and cheers.
And we had a darn good time doing it too! We met some of the nicest people that drive for a living and really enjoyed being able to tell them how much we appreciate them bringing the good stuff to every corner of the country. It surprised many of them that Freight Capital would go to such lengths to thank drivers that aren’t even their Clients, but we’ve been doing it for 6 years and we’re not going to stop!
If you were driving through California on Friday, October 5th, you probably felt the painful (and familiar) sting of another gas price spike at the pump. The cause? It was a perfect storm.
The gist is that California Chevron Corp’s refinery in Richmond was shut down after a fire earlier in the summer, two Phillips 66 plants were shut down to conduct planned maintenance, another Chevron pipeline was closed in mid-September, there was a power outage at Exxon Mobil Corp in Torrance on Monday, and refiner Tesoro Corp unexpectedly cut off some retailers.
To top it off, many California refineries are already switching to a seasonal “Winter blend” of gasoline, effectively dropping production of the “Summer blend,” further straining supplies in the Golden State.
The word on the street is that California is not running out of gasoline, closed stations are reopening, and prices are stabilizing, but tell that to truckers, commuters, and tourists who were squeezed today in the West’s biggest cities:
In Los Angeles, the average price climbed 19 cents to $4.539
In San Francisco, the average price climbed 16 cents to $4.596
Perhaps it’s time we say goodbye to this tumultuous Friday and focus on having a good weekend, but if you want to read more, click over to this article.
Have you ever wanted an app for your iPhone or iPad that keeps you updated on truck stops, fuel prices, weigh scales, weather, & more? Made with the busy carrier in mind, the Trucker Tools app, now owned by Overdrive magazine, helps you find what you need when you need it. And it’s free!
Some of the top features are:
- Latest & Lowest Diesel Prices
- Nearest Truck Stops
- Weigh Scale Status
- Real-Time Traffic Info
- Turn-By-Turn Directions
- Coupons, Sales, & Promotions
- Routing & Fuel Optimizer
- Real-Time Weather Conditions
- Message Boards (Chat and Connect 24/7)
- Help with Cargo Insurance, Permits, IFTA, DOT, & More
With the TT app, you can also find essentials like overnight parking and truck washes, as well as creature comforts like Wal-Marts, UPS stores, and rest areas.
The reviews for this FREE app are pretty darn good…try it out and let us know what you think!
Did you see the post a while back from the Today’s Trucking Web site about the 50 Best Trucking Songs of All Time?
They included “Convoy,” “I’ve Been Everywhere,” and “Eastbound and Down,” and created a YouTube playlist that will jump to the next song, so you can click here to listen to over two hours of tunes!
Here’s the complete list…
1. Six Days on the Road
2. Bud the Spud
3. Teddy Bear
4. Roll on 18 Wheeler
6. I’ve Been Everywhere
7. 18 Wheels and a Dozen Roses
8. Girl on the Billboard
9. Eastbound and Down
10. Give me 40 Acres
12. Me and Bobby McGee
13. On the Road Again
14. Drivers’ Paradise
15. Truck Drivers Sweetheart
16. 40 Miles of Bad Road
17. Giddy Up Go
18. How Fast Them Trucks Can Go
19. The Bandit
20. Thank God for the Radio
21. Big Wheels in the Moonlight
22. Truck Driving Queen
23. I’m a Truck
24. Truck Got Stuck
25. Truck Driving Man
26. Roll Truck Roll
27. Teddy Bear’s Last Ride
28. Momma Knows the Highway
29. Long Long Texas Road
30. 500 Miles
31. Phantom 309
32. Truck Drivin’ Son of A Gun
33. Diesel on my Tail
34. Little Pink Mack
35. A Tombstone Every Mile
36. Looking at the World through a Windshield
37. Freightliner Fever
38. Endless Black Ribbon
39. Giddy Up and Go Answer
40. Truck Driver’s Prayer
41. Long Lonesome Road
42. I’m a Roadhammer
43. 18 Wheels
44. Keep On Truckin’
45. Happy Journey
46. Man Behind the Wheel
47. Truck Drivin’ Buddy
48. Truck driver’s blues
50. Rubber Duck
But is there a song missing from the list that you think is a must? Personally, I would have liked to see Wagon Wheel by Old Crow Medicine Show on there!
Or do I hear a “more Johnny Cash!” chant forming? I can agree with that, too.
FMCSA has issued a Regional Emergency Declaration for Commercial Motor Vehicles providing emergency relief to those impacted by Hurricane Sandy.
Use of this declaration is limited to those providing emergency relief. The declaration exempts these carriers from Parts 390-399 of the Federal Motor Carrier Safety Regulations but does NOT exempt them from the provisions of Parts 382 and 383 (drug/alcohol & CDL requirements). Drivers utilizing the exemption should keep a copy of the declaration in their possession when operating.
Meanwhile, governors of the following states have also declared States of Emergency: Connecticut, Maine, Massachusetts, New York, New Jersey, Maryland, Pennsylvania, Virginia, North Carolina. The Mayor of the District of Columbia (DC) declared a State of Emergency on October 26, 2012. Additional emergency declarations have been posted on FMCSA’s Web site at http://www.fmcsa.dot.gov/about/alerts/hurricane-sandy-2012.aspx#state.
Widespread power outages and vast road closures are expected.
Freight Capital wants all carriers to be particularly cautious over the next few days. Your safety is most important, so when in doubt, pull over in as safe a place as you can find and wait it out. Check out FMCSA’s website for up to date alerts on road conditions.
November 11 was chosen to commemorate the ending of the “Great War” (World War I). An unknown soldier was buried in the highest place of honor in both England and France on November 11, 1918, celebrating the ending of World War I hostilities at 11 a.m. (the 11th hour of the 11th day of the 11th month). This day became known internationally as Armistice Day. In 1921, the United States of America followed this honored tradition by laying to rest an unknown World War I American soldier in Arlington National Cemetery where it remains a revered place. At exactly 11 a.m., each November 11th, a color guard, made up of members from each of the military branches, renders honors to America’s war dead during a heart-moving ceremony at the Tomb of the Unknowns.
Everyone thought that World War I was the “War to end all wars.” Had this been true, the solemn day might still be called Armistice Day. It wasn’t until 1954, President Eisenhower signed a bill proclaiming November 11 as Veterans Day, and called upon Americans everywhere to rededicate themselves to the cause of peace.
Veterans Day falls on Sunday this year and serves as an annual reminder that freedom comes with a cost to those who serve with selfless bravery and honor.
Please note: Many banks are closed on Monday, November 12 in observance of Veterans Day. Freight Capital offices will be open and funding through express codes and to the fuel card from 8am-5pm PST. FedEx/UPS are delivering packages. To avoid any gaps in funding, please contact the Client Services Group at 1-800-720-4918 for options before the weekend. Drive safe!
Freight Capital will pause this holiday and close on Thursday, November 22 to celebrate Thanksgiving Day festivities. The company will reopen at 6am-3:30pm on Friday as well as Saturday 7am-3:30pm PST.
To avoid a delay in funding, please call 1-800-720-4918 for options before the holiday. We will return to regular hours Monday, November 26, 6am-9pm Monday-Friday and 7am-3:30pm PST Saturday.
We are very thankful for our Clients and wish all Carriers a safe and happy holiday. We hope that you too find your way home and have plenty to be thankful for. Happy Thanksgiving.
Heard about this portable calf compression device that helps promote blood circulation to the leg?
If anyone tries this out, let us know what you think!
Trucker Charity is starting their 5th Annual Christmas Drive to raise funds to help other truckers in need during the holiday season. Trucker Charity’s main focus is on getting drivers safe, get them fed, and get them home when they find themselves stranded, out of money and out of luck.
You can help and this year, they have this retro little pedal car all tricked out up for raffle. You get 5 tickets for $10 and you can make your donation right on the website: www.truckercharity.org.
The winner will be drawn December 19th so give a little and you could win this very cool little car for a little trucker in your life. The pedal car was generously donated by Jon Orlowski Jr of FreedomAirFilters.com. And painted by Dent Specialists in Madison, NE. Ifixdents.com.
We’ve all had a dark time in our lives, so if your luck has been good lately, now would be the time to play it forward. This non-profit organization, almost fully staffed with volunteers, ensures your donation will go to a truly needy fellow trucker.
Freight Capital will be open for business until 3pm on Christmas Eve, December 24 and New Years Eve, December 31. The office will be closed for business on Christmas Day and New Years Day. Regular hours will resume on December 26 and January 2nd, 2013! If you need to know about available options, please call 1-800-720-4918 for funding options before the holiday.
Whew, what a year! As it comes to a close, we are often drawn to think about the people who have impacted our lives. We want to wish all Carriers, whether they are our Clients or not, a happy and safe holiday season. Take care out there!
Drivers have been out in full force since Thanksgiving, delivering packages to excited families in the crazy lead up to Christmas. The peak shipping day was Thursday, December 20th, with an estimated 28 million packages delivered; UPS alone delivered an estimated 300 packages per second!
If you truck the Pennsylvania Turnpike, get ready for change…and to give up more pocket change?
On Sunday, January 6th, the toll rates are going to increase by 2% for E-ZPass customers and 10% for cash customers. For example, drivers operating Class 7 trucks will pay nearly $145 to go between the Warrendale toll plaza in Allegheny County and the Delaware River Bridge in Bucks County, compared with $107 in 2008.
Some drivers are going to take alternative routes and some are going to take the financial hit. You can read more about these tolls and their impact here.
Studies indicate that drivers look at digital billboards longer than other signs. Makes sense…and isn’t that the point of them?
A study by Virginia Tech in 2006 indicated that taking your eyes off the road for more than two seconds greatly increases the risk of a crash and that nearly 80% of all crashes involved driver distraction within 3 seconds of the crash. A new study by the Swedish Transport Administration indicates that digital billboards attract and hold the gazes of drivers for far longer.
More than a dozen cities in the US have banned digital billboards, but the debate rages on…
You can read more about this issue here!
Freight Capital will observe Martin Luther King Jr., Day Monday, January 21st, and there will be limited fundings. We will fund to Fuel Cards and Express Codes only from 6am-5pm PST. We will resume regular hours Tuesday, January 22.
In advance of the holiday, take advantage of our extended holiday hours below:
Monday 6am-9pm PST (advances until 8pm PST)
Tuesday 6am-9pm PST (advances until 8pm PST)
Wednesday 6am-9pm PST (advances until 8pm PST)
Thursday 6am-9pm PST (advances until 8pm PST)
Friday 6am-9pm PST (advances until 8pm PST)
Saturday 7am-3:30pm PST (advances until 3pm PST)
Please contact Client Services at (800) 720-4918 if you have any questions.
Do you truck with your dog?
Certain cities have BSL (breed specific laws) that could get you in hot water, so check out the list!
Do you know where the largest truckstop in the world is located?
On I-80 (exit 284) in Iowa, this facility boasts all of the necessities, but also features a movie theater, church, game room, a 30,000 square foot Super Truck Showroom, an embroidery/engraving shop, a chiropractor, and more!
Get the scoop here!
Freight Capital will observe Presidents Day Monday, February 18th, and there will be limited fundings.We will fund to Fuel Cards and Express Codes only from 6am-5pm PST. We will resume regular hours Tuesday, February 19th.
To avoid any delay in funding, please take advantage of our extended hours before the holiday:
Monday-Friday 6am-9pm PST (advances until 8pm PST) and Saturday 7am-3:30pm PST (advances until 3pm PST.)
Please contact Client Services at (800) 720-4918 if you have any questions.
Freight Capital is proud of not only being the industry leader in freight factoring services, but also to be named San Diego’s Best Place to Work!
Take a look at this video, written and directed by our very own William Jenkins and Greg Gines, and see why we love what we do.
Freight Capital has been the leader in freight bill factoring since 2007. For more information about our products and services, please visit us at www.FreightCapital.com.
In 2012, we interviewed Larry Posey, owner of Nixa Trucking, Inc. about his experience working with Freight Capital. Posey has been a Freight Capital Client since 2010 and told us “I’ll never use another factoring company.” Here’s what he had to say:
Describe your experience with Freight Capital
Forty-seven years in this business and I can say this is the best factoring company out there. Not only does Freight Capital get me paid quickly, I work with a team that is 100% dedicated to me and my business. Veronica, my Account Manager at Freight Capital, is one of the finest people I’ve ever done business with.
How is Freight Capital different from other factoring companies?
With Freight Capital I have a committed team that gives a hoot about my company. You just don’t get that kind of service at other factoring companies.
Besides factoring, what other tools do you find valuable?
I love ARMOR, the online account management website. It tells you everything you need to know about your customers and payment status and it’s available 24/7.
ARMOR makes credit checking really easy and convenient for us too. We check the load and if it turns out the customer has bad credit, we can put the load on COD (Cash on Delivery) before we deliver and this protects our business. Now we won’t accept a new load unless we check credit first.
I also love the Aging Report. I can go in to ARMOR and in 30 seconds I can see how long invoices have been opened and when I might get paid. Everything I need is right there.
What are your key challenges in the trucking business?
Major challenges in this industry include operating expenses, driver retention, compliance, insurance and regulations. By far my biggest expense is fuel. I’d say 35-40% of my revenue goes to fuel. These are real issues in the trucking business so cash flow is critical. It’s important that I have a trusted financial partner I can count on. Freight Capital pays me in 24 hours so I don’t have to worry when I’m going to see my next paycheck.
Stay tuned for the second half of the Larry Posey interview.
To learn more about the products and services Freight Capital offers, visit www.FreightCapital.com or give us a call at 800-775-0391.
Do you know how factoring your invoices can help your business? Simply put, factoring is a process where a company purchases your invoices then pays you a percentage of that invoice quickly, allowing you to use the advanced funds to meet your fuel demands or other overhead business expenses.
What should you look for when choosing a factoring company?
When deciding on a factoring company, it’s important to remember — not all factoring companies are alike! Choose a reputable and ethical company that understands your business and accommodates your specific needs.
To help you narrow your search, we’ve pulled together the top 5 tips to consider when choosing a factoring company:
1. Flexibility – Can you factor only the invoices you choose?
Some factoring companies require a minimum number of invoices or a minimum volume each month. Be sure to ask about this upfront because there may be instances where you only want to factor your slow paying customers. It’s best to choose a factoring company that allows flexibility so you can pick and choose the invoices you want to factor.
2. Industry Knowledge – Does your factoring company understand the trucking business?
It’s important to choose a freight factoring company that understands the demands you face in the trucking industry. Does a local or national Trucking Association endorse your factoring company? Your factoring company should know the ins and outs of your business and offer flexible solutions and discount programs tailored to your needs.
3. Fuel Cards – Is the factoring company offering a FREE fuel card?
Fuel is the most significant expense in trucking and your factoring company should provide you with a FREE fuel card. Choose a factoring company that has a fuel card so you can save every time you fill up.
4. Customer Service – Is your factoring representative going to be available when you need them?
It’s imperative to choose a factoring company that provides 24 hour online account access so you can see exactly where your funds are in the factoring process. If a factoring company can’t provide online access to your account, they may be lacking critical tools to support your business. Ask the company upfront how you can access your account, and ask for their hours of operation. Are they open evenings and on Saturdays? You don’t work 9-5, and neither should your factoring company.
5. Recourse vs. Non Recourse – Does the factoring company offer a Non-Recourse Agreement?
There are two major types of accounts receivable factoring- recourse and non-recourse. Factoring with recourse means the client must buy back an invoice from the factoring company if the invoice is not paid within a certain number of days. Alternatively, non-recourse factoring means the factoring company incurs all the risk for non-payment of an invoice. Does the factoring company offer non-recourse agreements for certain invoices? You may want that extra protection and peace-of-mind that a non-recourse agreement can offer, so it’s important to choose a factoring company that will work with your individual needs.
We hope you’ve enjoyed these tips and feel more confident about picking a freight factoring company! Check back on our blog for more tips and tricks to help you grow your business with factoring.
If you’re new to factoring, you might come across terms that you’re not familiar with. It’s important that your factoring company explains how factoring works and what each term means. To make it easier to understand the process, we’ve pulled together a list of common factoring terms and definitions that we think you’ll find helpful.
A process where a factoring company purchases your company’s invoices then pays you a percentage of that invoice quickly
Factor assumes credit risk on invoices that aren’t collected within a certain number of days
Customer assumes credit risk on invoices that aren’t collected within a certain number of days
FMA (Factoring Master Agreement):
A document explaining terms and conditions of the factoring agreement
BOL (Bill of Lading):
A document used in the transportation of goods issued by the carrier
Proof of Delivery (POD):
A document that shows goods were received
The portion of the invoice that the factor has not yet advanced to the client. Carrier receives most of the reserve amount once the invoice is paid
A financial term measuring liquidity available in a business
Money owed to a business by its clients
An entity that owes a debt to another entity
An upfront lend of a certain amount of money
An intermediary between a shipper and a carrier
Party responsible for initiating a shipment
Party that transports goods
Uniform Commercial Code (UCC):
The Uniform Commercial Code is a set of standardized legal guidelines defining how sales and commercial transactions are to be carried out in the U.S.
We hope you find these definitions useful when considering or discussing factoring services. If you’d like additional information about factoring or how it works, contact one of our knowledgeable factoring consultants and they’ll walk you through the process. Continue to check back on our blog for more factoring tips and info!
Factoring is simply a cash flow solution that turns your invoices into quick cash. It is extremely common to use factoring services in the freight industry, as companies are then able to use the advanced funds for fuel needs and overhead business costs instead of having to wait 30, 60 or even 90 days for a payment.
Factoring works like this:
1. The carrier sends the invoice to the factoring company
2. The factoring company pays a large portion of that invoice quickly, while keeping a small percentage in a reserve account
3. The debtor sends the invoice amount to the factoring company
4. The carrier receives the rest of the invoice amount that was in the reserve account minus a small factoring fee
That’s it! It’s a relatively simple process that allows carriers and brokers to increase their working capital while allowing them to focus on growing their business.
There are usually two major types of accounts receivable factoring that companies can choose from: Recourse factoring and non-recourse factoring. Recourse means the customer assumes the risk on invoices that aren’t collected within a certain number of days. Non-recourse factoring means the factoring company takes the risk on invoices that aren’t paid within a certain number of days.
To learn more about factoring, watch our video on the subject by clicking here.
Think factoring services are exactly what your company needs? Check out our top 5 tips for choosing a freight factoring company by clicking here. Continue to check back on our blog for more factoring tips and info!
Freight factoring is a proven cash flow solution that has helped countless trucking companies succeed in business. So how exactly is freight factoring helping those companies, and how can it help you?
Factoring works like this:
You send an unpaid invoice to the factoring company to be paid
The factoring company pays you the majority of that invoice quickly, while keeping a small percentage in a reserve account
The debtor sends the invoice amount to the factoring company
You receive the rest of the invoice amount that was in the reserve account, minus a small factoring fee
Invoice factoring is a cost effective solution that allows trucking companies to have a predictable, steady stream of income. In addition to getting you paid quickly, most factoring companies also provide back office support such as billing, customer credit checking, and collections at no additional charge. This allows you to focus on driving more loads while your factoring company handles your accounts receivables.
When searching for a freight factoring service, it’s important to find a company that is reputable and offers additional resources that can help your business succeed. (If you’re looking for a factoring company, click here to get 5 helpful tips on choosing a company that’s right for you and your business!)
Once you find a freight factoring company that matches your needs, you’ll want to make sure you really benefit from the relationship. Here are some tips on how you can get the most out of your factoring service:
Factor only the invoices you need.
Don’t get stuck with a factoring company that forces you to factor a minimum volume each month! Ideally, you pick and choose which customers you want to factor. If your customer pays quickly, it doesn’t make sense to factor on that load. However, if you have a customer that typically pays in 60-90 days, you may want to send that invoice to your factoring company and get paid in 24 hours.
Take advantage of referral programs.
Does your factoring company have a referral program? Some factoring companies offer their customers up to $100 for each referral and commissions on top of that. Always ask your factoring company about their referral perks and take advantage of their incentives.
Utilize additional services offered.
Learn about all the additional services your freight factoring company offers to its customers. Do they have free credit checking that you can easily perform on your customers? Do they include memberships to places that will help grow your business? Do they offer a free fuel discount card? Perks like these can put more money back in your pocket.
Take advantage of your factoring consultant’s experience and knowledge.
Ask questions! Give feedback! Take the time to develop a relationship with your factoring consultant. They should have extensive industry knowledge and be able to advise you on your factoring needs.
We hope you find these tips helpful! If you’d like to speak with a factoring consultant and hear about the perks Freight Capital can offer your business, call 800-775-0391. We are here to help! Continue to check back on our blog for more freight factoring tips and info!
With a tough lending climate, companies of all types are turning to factoring to gain access to a steady cash flow for their business. Sometimes it can be difficult to stay afloat when you’re dealing with daily business expenses and demands. Or maybe your company’s business is steady but you’re still looking for a way to increase cash flow for seasonal demand. Businesses of all success levels can benefit from factoring services.
Traditional bank loans can take months to complete, and sometimes you need cash NOW. This is where invoice factoring services can come in handy. In fact, businesses find factoring to be an effective financial solution. In addition to getting funds quickly and easily, there are several other benefits of factoring, including:
No debt created. Unlike traditional ABLs (Asset Based Lending), factoring does not create debt because it is not a loan. Since a factoring company is purchasing your invoices and paying you on those, it creates a more attractive balance sheet and strengthens your financial circumstances.
Start-ups qualify. You have to jump through a lot of large and difficult hoops to qualify for a bank loan as a start-up company. Some banks won’t even lend to start-ups. Since factoring is based on invoices, start-ups can easily qualify, allowing you to get to business quickly and easily.
Save money and time on invoice processing. Once you begin factoring your invoices, your factoring company starts handling most of the invoicing work, which saves your company money and helps increase productivity.
- Factoring is flexible. When you factor, you control which customers you want to factor, allowing you to secure operating cash that is flexible and meets your business needs.
Industry knowledge and savings programs. Factoring companies generally have specific industry knowledge and understand the needs and challenges of your business. They can also provide helpful services and programs that help you save money on business expenses.
Quick, painless account setup. It generally takes a few days and minimal paperwork to set up a factoring account. You’re not going to have to wait weeks for an underwriting process to see your money!
Professional collection services. Factoring companies understand the importance of professionalism in business relationships. They treat all your debtors as if they are your biggest and best customers, ensuring your business relationship remains secure.
Improve your credit. With factoring, the increased working capital provides you the means to pay your bills and vendors on time, which positively affects your credit score.
Need more reasons to factor? Contact one of our friendly factoring consultants for a no-obligation chat. Continue to check back to our blog for more factoring tips and info!
If you’re a truck driver who’s just starting out, there might be a learning curve when it comes to understanding the ins and outs of the trucking industry. Below, we give you some tips and information to help guide you down the path of becoming a skilled truck driver.
Register with the FMCSA
Companies that operate commercial vehicles in interstate commerce must register with the FMCSA (Federal Motor Carrier Safety Administration) and have a USDOT (Department of Transportation) number. The USDOT Number is unique to your company and is utilized when monitoring your company’s safety information. You will also need to register for an interstate operating authority or an MC (Motor Carrier) number. The operating authority dictates the type of cargo a company can carry. You can register and find additional information here.
Obtain the Proper License
Before you begin a career as a truck driver, you must obtain a CDL (Commercial Drivers License) issued by the state in which you currently reside. You must complete state-required training and testing to demonstrate that you meet the requirements and qualifications to drive heavy vehicles.
CDLs break down into three classes:
Class A: Includes tractor-trailers, truck and trailer combinations, and tractor-trailer busses. Class A license holders can also operate vehicles listed in class B.
Class B: Includes straight trucks, large busses, segmented busses, trucks towing vehicles with GVWR (Gross Combination Weight Rating) of 10,000 pounds or less. Class B license holders can also operate vehicles listed in class C.
Class C: Any vehicle that is not included in classes A or B that carries hazardous materials or is designed to carry 16 or more occupants, including the driver.
To locate a driving school and testing site, click here.
There are several ways to find jobs in the trucking industry:
Browse listings in trade specific publications. Several trucking magazines, such as Landline and Overdrive, have special sections that list current freight jobs.
Utilize online freight matching services. Sign up with online freight matching services, like 123loadboard.com, to find loads. There are also several trucking forums, such as The Trucker’s Report, that offer great resources for trucking professionals including jobs specifically for new drivers.
Be active on social media sites. Connect and network with fellow truck drivers and brokers by using sites like Facebook, Twitter, and LinkedIn.
Lease on with a company. If you’re not ready to go completely on your own, you can always lease on with a company and drive their loads.
Manage your Finances
Keeping a positive and steady cash flow can often be a challenge in the trucking business. Though trucking can be a lucrative career path, there are many operating expenses that come with the job. Manage your cash flow by paying close attention to your balance sheet and by budgeting your expenses. You can also gain access to a steady cash flow by utilizing a freight factoring service. Invoice factoring is a common financial tool used in the trucking industry that helps you gain early access to your working capital.
Be Safety Conscious
The safety of yourself, other drivers, and your cargo is your number one priority while out on the road. Be sure to join your local trucking association to stay up-to-date on all state and federal regulations, and stay safe with these simple tips:
Always pre-inspect your vehicle before making the long haul
Double check to make sure your cargo is secure
Frequently check for vehicles in your blind spot
Take advantage of your driving height and anticipate braking situations
Always stay alert and be aware of others on the road
Take care of yourself by getting plenty of sleep, eating well, and staying fit
Need additional tips or have further questions about the trucking industry? Our seasoned factoring consultants can help. Feel free to contact them with any questions you may have. Continue to check back on our blog for more trucking tips and info!
If you’re looking to add capital to your trucking business, you generally have a couple options: You could take out a loan from the bank or you could factor your invoices with a factoring company. While both are excellent sources of capital, there are major differences between the two. Most people are familiar with bank loans and the lengthy process it takes to get approved and to actually see your money. With factoring, you can typically see your funds within 2 days, and the approval process is quite simple. Check out our infographic below that outlines of some of the differences:
If your business does not qualify for a bank loan, then freight factoring could be a good alternative to help sustain your business and keep you moving. Want to learn more about factoring? Contact one of our knowledgeable factoring consultants!
Continue to check our blog for more tips and information on how you can improve your company’s cash flow!
If you’re a truck owner-operator, finding loads is one of your main priorities. It’s imperative to increase your loaded miles in order to maximize your profits and mileage. A great way to find loads is by utilizing online freight matching services or load boards. There are dozens of freight matching sites to choose from, but the trick is to find one that matches your needs so you’re not wasting time and money. Read the rest of this entry »
Do you carry a smart phone or tablet with you on the road? There are several apps on the market that can truly help with planning, productivity, and budgets, but with so many to choose from, it may be difficult to find ones that are most useful. We’ve developed a list of 10 essential apps for truck owner-operators: Read the rest of this entry »
Fuel is the largest operating expense in the trucking industry. A typical commercial truck will use 20,500 gallons of fuel and can easily consume more than $70,000 of diesel fuel per year.
With diesel prices on the rise and no major price drops forecasted, its imperative to maximize efficiencies and keep fuel costs to a minimum. If you’re a truck driver or fleet owner, you’re probably looking for every opportunity to save on fuel. Below, we give you the top 10 ways to improve your fuel economy: Read the rest of this entry »
Invoice factoring is simply a cash flow solution that turns invoices into quick cash without adding any additional debt. Common in several industries, invoice factoring allows companies to use the cash to pay for upfront costs, rather than waiting 30, 60, or even 90 days for a payment. Many companies rely on factoring to access the working capital they need to grow their business. Read the rest of this entry »
What is factoring and how can it help your business? Quite simply, factoring turns your invoices into quick cash. Utilized by businesses in many industries, this quick and easy cash flow solution allows companies to access crucial working capital and pay upfront expenses without having to wait 30, 60 or even 90 days for a payment on their invoice. Read the rest of this entry »