As an attempt to reduce the number of annual motor vehicle accidents involving trucks, regulators are issuing a speed cap for trucks and buses weighing over 26,000 pounds. The new cap would limit speeds to 60, 65, or 68 mph on the highway. Regulators argue that the cap would reduce mortalities caused by accidents between trucks and cars because the impact of crashes would be less severe if trucks are moving slower.
On the other hand, however, truck drivers argue that the number of accidents would actually increase. Many times, if a slow moving truck merges into the left lane, faster cars rear end the truck because they cannot slow down fast enough. So, if the trucks are forced to move slower, rear endings would just become more popular. Other truckers argue that the regulation only benefits larger trucking companies at the expense of independent drivers, who need to cover more ground daily.
The National Highway Traffic Safety Administration reported that almost 500 lives would be saved with the addition of this speed cap. The rule will become effective Nov. 7.
Truck factoring is a business that has caught on and is also one that is very beneficial to all truck owners. It is different from a bank regarding the rate of interest and disbursement time. Believe it or not, but most of the freight factoring companies do disburse 90% of the amount within 24 hours to 48 hours only. This is great for the truck owners, who face a crunch for money. And that is usually due to the credit line with their customers or clients. Normally, it is advisable to check with known people or colleagues about any freight factoring company before signing up. This is essential for the safety of your business.
Cross check and confirm all that you need to know about a particular vendor in advance. Not everyone can be trusted, even though there are plenty of genuine factoring companies out there who have excellent customer care back up. This is necessary as they are the ones that collect payments from your customer and your customer is ‘Boss’. You wouldn’t want your relations with your customers or clients to be strained, right? It is the factoring company that gives you business and keeps your trucks on the road. Hence, you need to be rest assured that it remains that way. You cannot have a demanding or rude factoring agent. So do ask around and get as much essential information as you can.
If they do have provision for a short term contract, then go for it. Just in case you are not satisfied, you can always discontinue your contract and look elsewhere. But long term agreements tie you down and keep you in an arrangement that is detrimental to the success of your trucking business. And nobody wants that to happen. Your business is your baby, and you wouldn’t want some joker ruining everything for her, right.
So choose one that is right for your business and also has a positive impact on the growth aspect. And having a great vendor is better than going to the bank as the amount of cash you receive is against your invoices (sale of assets) and hence, it is not a loan. It is your money, just being given to you earlier. These funds, in turn, helps you to pay for fuel, salaries, and other expenses that may crop up. It is a perfect ‘arrangement’ if only the vendor is the right one.
Most contracts last a year, after which they are renewable unless you would like to give sufficient notice and discontinue the same. Most truck factoring companies do not enlist small trucking companies, and hence, it is a little harder to find a company if you have a small business. But don’t lose heart there are quite a few companies that do extend credit. If you have a bad payment record, it is possible that you might get rejected for that. So ensure that you have an excellent financial track.
When you have a small or middle sized business serving commercial and government customers it usually means waiting for up to two months for getting paid against your freight invoices. All big companies and the government as well, are very slow in making payments, making it a challenge to work for them. Slow paying clients lead to problems with payments that you have to make immediately. Payments have to be made to suppliers; payrolls have to be met and recurring expenses like fuel expenses, repair and maintenance costs of vehicles, tire purchases and the like have to be taken care of without delay.
Therefore, it is true that the biggest problem in the transporting business is slow paying clients. Due to them there results from a paucity of liquid funds required to meet regular expenditure for successfully running your business. If you do not have enough cash reserves to cushion this financial pressure, you need to look around for alternate means to secure necessary funds so that you can keep running your business and remain solvent.
A bank loan may seem to be a solution but it is difficult to obtain. Even if you manage to get one, you will remain under pressure until you clear off the loan. Moreover, the loan is just a one-time solution and as your business grows, your financial needs are going to increase once again bringing about a situation where you will need more funds.
Freight factoring in such a situation offers an ideal solution. As you factor your freight invoices, you get access to required funds for paying off your employees, suppliers, taxes and to cover essential recurring expenses like fuel, vehicle maintenance and repair, tire purchasing and many other important things. Freight factoring, which is factoring of receivables, principally assumes that your invoices are valuable assets fit for financing. For a small fee, usually between 1.5 and 3% per month, a factoring company, within twenty-four hours of your forwarding the invoices to them, advances you up to 97% of the invoice value.
The actual amount depends on the specific terms of the factoring agreement you enter into and eliminates most of your financial worries related to your immediate business expenses while the factor waits to be paid by your client. Most factors break their fee into ten-day payments, to make it more attractive. For example, a 3% per month fee would be just 1% for every ten days the invoice remains outstanding. Additionally, if your factoring agreement has a non-recourse invoice factoring clause, the factoring company also covers the risk of non-payment in case your client becomes insolvent or closes down the business.
Freight invoice factoring is important in business because it a viable financing tool for growing businesses, providing them with a solution to accelerate slow payments and free up cash flow. However, for factoring to work successfully for you, your business must have a commercial or government clientele and provide you with at least a 12 percent or higher profit margin. Freight factoring can help you where you are forced to turn away orders on account of limited cash flow and also help you to avoid the risk of missing key payments like payroll, suppliers, and rent, etc. due to cash flow problems.
One of the main challenges that novice business home owners can way to reward to terms subsequent to is that generally it’s vital to sacrifice one situation within the sudden term, hence as to achieve a protracted term upshot. unfortunately, this is often one salient side of matter that a lot of novices don’t quite control to induce to grips following, plus the tip result’s that they miss the colossal image thus which means that they limit potential buildup of their business when than some narrow-minded selections.
A pining example of this may be noted in report to the non-recourse factoring resolving encouragement suppliers. On a superficial level, a non-recourse factoring resolving help is totally tempting to the issue owner, by virtue of the every portion of fact that the issue owner needn’t situation themselves as soon as the inadvertent or unintended that debt can compulsion to be paid by them. This is often so real; but, there’s membership to the complexity than meets the attention.
Although the matter owner could setting that they compulsion managed to mass the following finish of the accord, the attainable response of the situation is that the resolving agency that’s providing the non-recourse factoring agency can recoup their losses in every second ways in which. The resolving agency could impose added rigorous conditions going as regards for the compensation of cash, similarly because the result for default the a share of the corporate that hires them.
The resolving company could build up its costs, and or levy combination rates for accounts that stay unpaid by the corporate that hires them for the stock method. The degrade cost schedule charged by the corporate perhaps accustomed dupe foolish situation home owners World Health Organization square perform connection breathing just very approximately caustic corners than prices.
Therefore, whereas non-recourse factoring invoice resolving could appear just taking into account the best style of resolving accessible, a careful review of all the accessible choices to the put on owner is for that excuse as. After all, unmovable the totally fact that the resolving agency can already examine and audit the shoppers to determine their trustworthiness auxiliary promptly, this implies that the risks of debt in fact arising square skirmish out least.
It is imperative that an impediment owner educates themselves around the various strategies of resolving, related to recourse factoring resolving. With recourse factoring resolving, the inadvertent of debt (bad debt is that the term utilized in issue to discuss bearing in mind debts that square accomplish summative unrecoverable) lies when the issue owner World Health Organization hires the facilities of the resolving agency. Therefore, even though the resolving agency can concede full and unconditional answers for the accretion method, they superiority the proper to effectively return behind the matter owner appropriately as to recover the maintenance that they’ as regards speaking really owed.
Upon hearing this, it might appear that the bulk of cause problems house owners are going to be rather unsure and apprehensive almost in fact ever relying upon this technique of business finance, And would a lot of rather realize an alternate supply of cash. After every, as soon as the shortcoming to see or predict that customers can in approach of fact prove to be unhealthy debtors, this implies that the business owner is effectively vary themselves at a portion of risk.
However, recourse factoring resolving isn’t each and every one single one unhealthy. By virtue of the every single one fact that the resolving agency has the reassurance that the business that hires them can be of the same mind the outstanding cash that’s owed within the matter that a client doesn’t pay, this implies that the resolving agency can supply a humble press on schedule.
Having a truck delivery business is not always as easy as it might seem, because it’s something that deserves a lot of attention and care in dealing with everything. It’s important to apply the right management techniques to deal with your business, as this is a major part of it.
The trick to this, however, is to make sure that your clients actually pay their invoices, as you don’t want to be left with unpaid bills. The flow of money is essential in this kind of business, as you need to have money for paying for daily costs of the trucking fleet, like gas, insurance and any repair that is needed for maintenance.
Because of this, it’s important to keep in mind some details – first of all, the money is very essential in making sure that this business is profitable, and secondly – if you have clients who don’t pay their bills, you need to find out about a service that can definitely help you out – the freight factoring services.
Let’s see how you can contract this type of service to be good and profitable for your further development.
Looking online is the first step that you’ll have to take for contracting this type of service, as they will definitely advertise for what they are offering. The most important thing is to get a few companies so that you have from where to choose. Being able to do this will allow you more freedom in choice, as there are enough of freight factoring companies that are offering their services, and you need to choose what suits your needs most.
When you start doing this, take a paper and note down the details. What it matters first is the contact information – they have to have a phone number, an email address and a physical location. Those who don’t have the last requirement – the physical location – you can skip them without problems, as it might be a ghost company.
If it’s a trusted company and also one that respects its clients, they will have a review page in their site. The reviews will tell you the personal opinion of other clients, so you’ll see if they respect their obligations or not. People have the tendency to say what’s in their mind, and if that experience was negative, they will make sure that others also know about it.
As you certainly know by now, this kind of service is paid in percents. This means that they will get a percent of the whole bill, and it’s definitely worth it as you will receive your money almost instantly, without having to wait for your clients to pay.
The percent can vary from company to company, and you need to set this out straight from the start. Just think how much money you could lose if the bills are not paid on time, and what this loss mean compared to the price you’ll have to pay for the freight factoring service.
When you’ve taken enough details on your paper, start calling them. This is a good exercise to see how they treat their possible clients, as the same kind of treatment will your clients receive when they’ll be sought out for paying the bill.
The initial contact will tell you a lot about their experience in dealing with customers and how they answer the question. Note down everything so that you can make a comparison later.
Don’t forget that any business is closed with a contract, so once you’ve found a company that offers the price that you agree with, sign a written agreement. You can start out with a 6 months period and see how the things are going. If you are satisfied, you could close a longer contract – if not, you could be dealing with someone else, once you find the right company for your needs.