«

»

Video

Incentives Trucking Companies Use To bring In Drivers

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

Unique Challenges

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

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

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

Asset-Based Lending

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

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

Bank Loans

Though in order to find come by, bank loans are these cheapest way of financing. Mortgage process involves an application and athleanx workout review the company’s creditworthiness and financial history. Small companies especially will usually be thrown to the wolves for loans, although exceptions do be available.

After approval, fund disbursement usually takes about 30-90 days to reach a trucking company’s financial institution. This form of funding ideal for for trucking outfits by using a great credit report . and don’t require the money immediately.

Cash-Advances

Cash advances take place when a company receives funding sum from our lender. The company pays the lender back with percentages of that monthly card receipts prior to loan (plus a predetermined rate) is repaid. Undoubtedly are a legal limits to the rates, and they will cannot be changed retroactively. The benefit to cash advances is immediate cash- can be the fastest method for obtaining cash without gonna be a loan shark.

This financing method is best for trucking companies who need immediate cash for a short amount of one’s time and have limited financing options. Cost of is usually 20% and up.

Lease-Back

A trucking company could sell property, plant, and/or equipment, and simultaneously leases it back for cash money.

It ideal for trucking companies with valuable plant or equipment assets that are underutilized, and the cost is monthly lease payments in addition to depreciation and tax burdens of equipment.

Choices, Choices

Every trucking company is unique, however it is almost them to locate funding solutions that meet their individual needs. Being informed on all your options is one step toward finding a worthwhile cash flow solution.

4 Global Corp

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

(305) 912-9444

https://g.page/4global