Factoring Blog Posts

trucking apps

Triumph’s Guide to the Top 5 Trucking Apps

Technology drives the transportation and logistics industry. This isn’t news to truckers. Smart phones have changed how freight gets moved.  

Trucks are now integrated mobile offices. By using apps and other mobile technology, transportation companies want to streamline the entire load delivery process. 

Depending on your setup and technology, you can post your truck, accept a load, deliver the load, submit your load paperwork to your broker or factoring company and get paid — all from your truck and your mobile device. 

There are now dozens — if not hundreds — of apps designed for truckers. You need access to load boards? There’s an app. Want to know what truck stops take your fuel card? App. How about a fitness app that uses your truck as a gym? App.   

With billions of investment dollars being pumped into the transportation industry, you can bet that more apps and integrations are coming. That’s a good thing for truckers. But it’s up to you to figure out which ones make the most sense for your business.   

So how do you know which ones to add? Before downloading any app, there a few things to consider: 

  • Cost: Apps range in cost from free, premium and free versions with in-app purchases. Most apps you’d use for your trucking business are likely to be free. For example, many large brokers have their own free app to make it easier for carriers to find and book loads. 
  • Benefits: Don’t hit that download button unless you’re sure it’s something that will actually help you or your business. It’s not just the cost of the app; it’s the space and access it requires on your phone. 
  • Size and Speed: Some apps can take up a lot of valuable real estate on your phone. If you don’t have a lot of space, you may want to hold off on downloading bloated apps that can slow down your phone and zap battery life. 

When it comes to running a trucking company, technology should be a part of your everyday operations. To better help you decide which apps you need, we’ve put together a short list of the top apps for truckers. 

What are the best apps for truckers? 

#1: An App for Your ELD 

This is obvious and No.1. for a reason: Electronic Logging Devices (ELDs) are required to track the hours you spend driving. This app isn’t a nice-to-have. This is a legal requirement. All ELD providers will have an app to download to help you manage your HOS. Because it is connected straight to your vehicle, you get other important information, like vehicle diagnostics and help calculating IFTA taxes across 

#2: A TMS App 

Choosing the right transportation management system (TMS) is a must for growing trucking companies. A TMS can help you manage nearly every aspect of your transportation business: finding loads, invoicing, driver pay, reporting tools, GPS driver tracking and more. 

Like ELDs, there are several providers. Picking one can be a challenge, but there a couple things to consider: 

  • Is it mobile-friendly? 
  • Does it have integrations with other products or services you use? 
  • Can it grow with you as you bring on more trucks? 
  • If you factor your invoices, does it have a seamless connection so you can get paid quickly? 

If you’ve never used a TMS before, AscendTMS offers a free version that comes loaded with more than 30 features and two user licenses. (Tip: Triumph Business Capital clients get a free year of the premium version). 

#3: A Load Board App 

If you’re an owner-operator who relies on running the spot market, you use load boards to find freight. 

Load boards are great sources for finding freight because they show you loads from brokers all over the country. You put in your starting point, your destination, and you’re instantly shown loads matching your criteria. Load boards have come a long way since the days of paper notecards pinned to a bulletin board inside a truck stop. 

What to consider in a load board app: 

  • How many loads are posted daily? 
  • What broker information is provided?: Days to pay, company reviews, etc. 
  • Do they provide spot and contract rate information? 
  • Do they have integrations or partnerships with other companies? 

Load boards should be part of your freight-finding strategy. Many owner-operators run the spot market exclusively, and others use load boards to add on to their contract work. Having the app on your phone guarantees that you can search for freight at a moment’s notice. 

Click here for free 30-day trial to the DAT load board. 

#4: A Payment Platform 

When your payments are delayed, you may not be able to accept loads, buy fuel, etc. Whether you’re getting paid by a broker or a factoring company, you need to be able to send load paperwork for approval in order to get paid. 

Some factoring companies offer companion apps that work similar to their desktop versions.  These apps usually have additional features that can you help you make quicker and smarter decisions about your business. 

If you work with a factoring company, be sure to ask if their app has these features: 

  • Take scan-like quality photos of all load documents 
  • Submit straight to broker or factoring company – NO EMAIL REQUIRED.  
  • Select payment type or split payments. 
  • Broker credit checks 
  • Fuel advances 

To learn more about a payment platform for your business, check out Triumph’s Cash4Truckers mobile app. 

#5: Camscanner 

Camscanner might be one of the most popular trucking apps out there and for good reason. 

Even with all this technology, trucking depends on paper — a lot of paper. And as a trucker, you have to keep track of all of it. Most brokers and factoring companies accept copies or scans of load documents. 

That means you can use an app like Camscanner to take photos of your load documents that you can then submit to your broker or factoring company for payment. Camscanner has a lot of built-in filters and features that help clean up paperwork. Clean paperwork leads to less rejections or disputes. Translation: you get paid faster when the paperwork looks good. 

It isn’t easy to be an owner-operator, but the five key apps we’ve listed here will provide you with useful information, guidance and even funding to make the job easier. 

Ready to learn how Triumph Business Capital can help you with your trucking business? Click here to read about our services and get a quote. 

 

Factoring

Triumph Business Capital Guide to Oil and Gas Financing and Factoring

Every industry has its challenges, but the oil and gas industry is arguably one of the most difficult for a variety of reasons.

Like any business, oil and gas companies face a mix of financial and operational roadblocks that can hurt production. More than that, oil and gas companies are constantly challenged to adapt to changing demands in the market, like different requirements for hauling frac sand, for example.

Hypergrowth and changes in demand or production can leave businesses scrambling for a way to finance their day-to-day operations, let alone taking on larger contracts that will require investments in equipment and staffing.

The ebbs and flows of oil and gas companies requires a scalable, reliable solution that matches need with speed: when business is thriving, you need money to quickly accommodate; when business slags a bit, you need money to ensure that you can meet weekly obligations like payroll.

Let’s look at a few ways that invoice factoring helps oil and gas companies overcome some of these hurdles.

Challenges for Oil and Gas Companies

Oil and gas companies face significant challenges that are unique to their industry. These include:

  • Pricing fluctuations: These can lead to intense ups and downs in terms of both workloads and income – periods of hyper growth can be just as challenging as slow times.
  • Competition: This requires careful cost control and maneuvering to avoid being elbowed out by other companies in the sector.
  • Equipment issues: Companies to pay for routine maintenance and find ways to extend the life of existing equipment as well as buying new equipment as needed and as the industry changes.
  • Regulatory compliance: Adhering to environmental standards and controls, safety standards, and more are fundamental for oil and gas companies. These are not to be taken lightly and do require significant setup and fees to ensure proper compliance.
  • Hiring and staffing: Hypergrowth can lead to an immediate need for new workers, including truck drivers. These drivers, many times, do need to have additional training or specialization, so being able to locate them and hire them quickly can always be a challenge. 
  • Traditional lender restrictions: Banks often base loans and lines of credit on a company’s expected income. As we’ve mentioned, the oil and gas industry can be up-and-down, making projections difficult at best. Worst still, some lenders place concentration limits and enforce financial covenants on business owners, potentially restraining a company’s ability to work with certain clients or use their money as they see fit.

What these all have in common is the need for a reliable cash flow solution that grows as you grow and meets your long-term vision, in addition to your day-to-day needs. Remember: loans can take days and weeks and even months to acquire. As a business owner, your responsibility is to your operations and staff. You don’t have time for long documents, site visits, etc. You need capital.

How Can Oil and Gas Factoring Help?

Triumph Business Capital is a specialist in oil and gas company factoring. We’ve got a dedicated team of specialists who understand the unique challenges of the industry.

Our invoice factoring services provide significant benefits to oil and gas companies, including:

  • Reliable, consistent cash flow based on your account receivables to ensure you have the working capital you need.
  • The flexibility to factor what you want, when you want – giving you the power to control your costs and get the cash necessary to run your business.
  • Fair evaluations of payments based on our understanding that a company’s ability to pay is more important than how quickly they pay.
  • Cash without debt – invoice factoring involves the sale of your invoice, not a loan. That means you can get the money you need without adding debt.

Arguably the biggest benefit of all is that factoring companies like Triumph Business Capital have different standards than banks. While you might struggle to qualify for a bank loan or line of credit, factoring is available as a viable alternative.

Beyond Financing

In addition to offering cash advances against your invoices, Triumph Business Capital provides an array of back office services to help your business grow. For example:

  • We provide credit checks and evaluations to help you make smart choices about extending credit to new customers.
  • We make routine collection calls to ensure your invoices are paid.
  • We provide 24/7 access to our online portal, so you can request funding, submit invoices and check the status of an account at any time.

We provide the capital. You focus on your work.

Apply for Oil and Gas Factoring

Ready to get started? Click here to read about our oil and gas factoring services and fill out an application.

Oil and gas factoring and financing are there to provide cash flow when business is slow and fuel your growth opportunities when business is booming.

If you’re wondering whether invoice factoring is right for your energy business, Triumph Business Capital is here to help. We’ve got the expertise to understand your needs and the tools to provide you with the consistent cash flow and support you need.

 

Invoice factoring

How Factoring Can Help Get Young Businesses Off the Ground

Starting a business requires a leap of faith. Even when you know you’ve got the skills and know-how to be a success, there are many ways that your budding venture can go wrong.

Arguably, the toughest part for any entrepreneur is securing the funds to gain traction and grow despite having secured contracts with clients.

What’s worse for new businesses than to have to turn away paying opportunities because they don’t have the capital to finance their operations, hire new people or invest in new equipment? Most young businesses can’t afford to turn away paying customers. They also can’t afford for word to get around that they can’t take on bigger projects.

For start-ups and young businesses, there is a chicken-or-the-egg dilemma when it comes to qualifying for lines of credit or getting approved for a loan. Banks want to see history and a strong client base. But business owners can’t always build a decent portfolio without the capital to take on more clients.

For this reason, invoice factoring can be a way for new business owners to turn those early invoices into real working capital to get their businesses off the ground.

Young Businesses Need Capital: Factoring Provides It

You know the saying, “you need to spend money to make money”? Ask a business owner if this is true. Rarely, can a young business survive without consistent working capital.

In fact, a lack of sufficient capital is the second-most common reason that new businesses fail. New business owners often borrow money from friends and family to help support their dreams. Or, they go into considerable personal debt in order to finance those early stages.

Either way, you have somebody looking over your shoulder and expecting to be paid back. That’s a lot of pressure when you’re just starting out.

Invoice factoring provides working capital and predictable cash flow your new business needs. Unlike banks, factoring companies provide funding by purchasing your outstanding invoices. That means that if you’ve got invoices, you have access to an immediate source of funding. The best part is that you’re getting an advance on your money. So not only do you get your money, you get it without the debt.

As a start-up, you understand that it’s all about speed, and that’s the foundation of factoring. Once your application is approved, you can get funding in as quickly as 24 hours after you submit your invoices. You can use those funds for anything that you’d like, restriction-free. Use it for payroll, to pay rent or to invest in new equipment.

Young Businesses Need Support: Factoring Provides It

Business owners often find themselves wearing many hats in the course of a day. How often does a business owner say, “If only I had someone helping me with X, I can really focus on Y?”.

Factoring companies provide more than funding for businesses. They take some of the most time-consuming tasks out of the owner’s hands, like checking customer credit and collecting on outstanding invoices. These jobs can take hours of your valuable time and often require additional staff to manage them. Different from a traditional loan, you get a team of back office support staff at no additional charge. These and other value-added services are included in your factoring fee. Be sure to talk to your factoring company about what other services they provide.

Young Businesses Need Protection from Bad Debt: Factoring Provides It

For a new business, extending credit to a customer who doesn’t pay can be harmful at best and devastating at worst. It’s important to screen your customers’ credit. A factoring company will do this for you before you take on new business so you can be assured that the client has the funds to pay.

This saves you time upfront so you don’t start projects for clients who can’t pay, and it also means that the factoring company can work with you to advance you funds when you complete the work.

Young Businesses Must Avoid Taking on Debt: Factoring Won’t Add to Your Debt

One of the biggest reasons that factoring is ideal for young businesses is that it provides the money you need without adding to your debt.

Factoring isn’t a loan – it’s a purchase of your invoice. The factoring company buys your invoice, takes out a nominal factoring fee, and issues any remaining monies when the client pays. That’s it. End of transaction. No debt to keep track of or payments to make.

That means there’s no need to list your factoring balance as debt. There are no interest rates or hidden fees either. In other words, factoring provides you with the predictable cash flow you need without adding to your debt.

Young Businesses Need to Grow: Factoring Helps

Growth opportunities don’t come along every day, but when they do, you’ve got to take advantage of them. New companies sometimes struggle to accept large orders or attract new customers because they don’t have the financial stability needed to do so.

Invoice factoring provides a solution by smoothing out cash flow and making it possible for business owners to pursue growth opportunities in the moment.

Learn more how Triumph Business Capital helps entrepreneurs get their businesses off the ground.

Starting a business requires a lot of hard work – and some help. While it can be difficult to get a young business off the ground, factoring can provide you with the stability, working capital, and overall assistance you need to make your new business a success.

Is factoring for you? Click here to find out how Triumph Business Capital can help your young business get off the ground.

Click here to learn how we can help your business thrive.

 

Factoring

How Factoring Can Get Your Business Through the Rough Patches

Every business has rough patches — times when money is tight, and you’re wondering how you’ll make ends meet.

As of 2019, more than half of all start-up businesses will fail within four years. A lack of money is the no. 2 reason that businesses fail. A lack of money can also lead to other issues, including:

  • Not being able to plan for the future
  • No money for ads or marketing to sell your services
  • Underestimating the competition

The good news is that invoice factoring can help provide small businesses with the working capital they need to stay afloat. Here’s what you need to know:

Invoice Factoring Provides Predictable Cash Flow

Unpredictable cash flow has hindered many small businesses. Without steady income, it can be difficult to maintain daily business operations, like:

  • Meeting payroll
  • Paying routine overhead expenses (rent, for example)
  • Buying raw materials
  • Hiring new employees
  • Updating software and hardware

Your company needs money to survive. When you choose invoice factoring, you won’t need to wait for customers to pay you. You’ll get cash when you issue your invoices, and that will relieve you of the burden of unpredictable cash flow.

Invoice Factoring Frees up Your Time

As a business owner, you know that when times are tough, you need to focus your energy where it’s most needed. Invoice factoring can help you do that.

Factoring companies provides business owners with the steady cash flow and back-office services they need, including:

  • Credit checks and approvals
  • Invoice collections
  • Payment processing
  • Financial reporting
  • Client portals for account management

With these essential tasks off your plate, you’ll be able to focus on providing top-notch customer service, attracting new business and (**hopefully**) growing your company.

Invoice Factoring is Available Even if Your Business Credit Isn’t Great

What if you’ve been struggling for a while and your business credit score has taken a hit? The good news is that invoice factoring is an option for you.

Invoice factoring companies have less stringent credit requirements than banks and credit unions. You don’t need to have a perfect business credit score (or personal credit score). Factoring companies purchase your outstanding invoices and collect from your clients. That means your clients’ credit score is more important than yours.

So even if your business has hit a rough patch, we can help you by providing the cash flow you need to get back on track.

Invoice Factoring Can Improve the Financial Health of Your Business

Most factoring companies provide credit and collection services as part of the agreements they have with their clients. That’s because we understand that business owners are focused on providing their products or services to their clients — not necessarily on chasing months’ old invoices.

  • Stop worrying about slow-paying customers
  • Work with clients with longer payment terms
  • Improve your AR
  • Make financial plans and investments based on expected income

Overall, these things combine to improve the overall financial health of your business, making it easier for you to achieve your growth goals.

The Rough Times Don’t Need to Bring You Down

Keeping a business afloat during a rough patch can be difficult. Partnering with a factoring company like Triumph Business Capital can remove the stress.

Click here to learn how we can help your business thrive.

 

What is invoice factoring?

Learn the Lingo: Common Terms Related to Invoice Factoring

Every small business owner knows that cash flow is the life blood of a company. With it, you can purchase raw materials and inventory, pay your overhead expenses and keep up with payroll. Without it, you may find yourself unable to fill orders or meet your financial commitments.

For these reasons, business owners seek out sources of funding that can help them meet their business obligations AND provide a consistent influx of capital to drive innovation and ultimately growth.

One method of financing that you may have heard about is a merchant cash advance, or MCA. On the surface, it sounds like it might be similar to invoice factoring – but is it? Let’s look at some of the biggest differences between the two.

1. Invoice Factoring is Less Risky Than a Merchant Cash Advance

There’s always some risk involved in financing a business. For the lender, the risk is that the business may miss payments or, in the worst-case scenario, fail to pay back their debt. And, for the business owner, the risk comes in the form of fees and interest.

When it comes to risk, there’s a big difference between invoice factoring and MCAs. Factoring advances money based on an existing invoice. The money that your customer owes for the product or service is advanced to you through the sale of your invoice to the factoring company.

By contrast, MCAs give you money based on an estimate of future sales. If your sales fall short, you’ll still need to repay the money. More than that, MCAs usually require access to your bank accounts so they can take out the funds automatically. If you’re already experiencing cash flow issues, this can make it worse.

2. Merchant Cash Advances Can Be More Expensive Than Factoring

You probably already know that a risky form of financing is likely to cost more than one that carries a low risk. So, it should come as no surprise that MCA loans can be far costlier than invoice factoring.

Factoring fees are a percentage of the invoice. There’s a basic fee that applies to each invoice factored as spelled out in your contract. If an invoice remains unpaid past the initial payment term between you and your client, you may be charged back the advanced amount.

MCA fees can be significantly higher than factoring fees. The fee is typically between 20% and 50% of the amount borrowed. Even if your sales match the predictions, you’ll still end up paying back significantly more than your initial advance.

Something else to consider, MCAs are considered commercial transactions, so they are not subject to the same federal regulations that banks are. While a 20-50% advance fee might be common, APRs can exceed 300%. Plus, the payment structure is already determined at the time of the advance, so you can’t pay it off early to stop the interest from accruing.

3. Invoice Factoring Maximizes Cash Flow and Merchant Cash Advances Don’t

Invoice factoring is a product that’s designed to help small business owners maximize their cash flow. That’s because it advances money against invoices that have already been fulfilled. When you factor an invoice, you get money immediately – often the same day – which you can then use to buy materials, invest in your company or make payroll.

By contrast, MCAs are speculative. They provide you with a lump sum, but if you use that money to pay off existing debts, you may find yourself caught in a vicious cycle of requiring another cash advance to pay off the first with the meter running on the second.

With factoring, you know your cost and fees upfront, and because it’s the sale of your invoice, there is no debt or interest to worry about.  It’s not a loan.

4. Invoice Factoring Includes Back Office Services, MCAs Don’t

When you get an MCA, all you’re getting is money. One of the most important differences between an MCA and factoring is your factoring fee includes some time and potentially money-saving back office services that can help your business grow.

For example, factoring companies typically provide services that include billing and invoice collection. It can be quite expensive to pay someone to make collection calls on your outstanding invoices. Experienced factoring account executives work as an extension of your team and on your behalf.

Conclusion

Overall, invoice factoring can be a less expensive and more comprehensive financing option than a merchant cash advance. If you would like to speak to us about how invoice factoring can help your company grow, contact Triumph today.

Triumph’s ChiTown Showdown Features Talented Teams; A Day of Fun

CHICAGO — Nearly a dozen high-spirited and talented teams vied for the inaugural Triumph Business Capital ChiTown Showdown Soccer Tournament title on Aug. 3 in Chicago.

At day’s end, FC Bodrost, representing VIB Trans, was crowned tournament champion, outlasting 10 other teams. In addition to title of tournament champions, they claimed the tournament’s top prize — a 40-person suite at an upcoming Chicago Bulls game.

“Most importantly, we want to thank all of the teams for coming out to our first soccer tournament,” said Branislava Jovicic, Regional Manager for Triumph’s Chicago office. “The level of competition was so high throughout the day. It was a lot of fun to watch, and we are already looking at ways to make it even better next year.”

In all, the 11 teams played 25 games. The event was held at the Chicago Fire Pitch, a facility affiliated with the Chicago Fire MLS Franchise.


Check out more than 200 photos from the tournament below!

 

On behalf of Triumph Business Capital, we’d like to thank all of the teams that participated:

  • FC Bodrost
  • U.F.C.
  • A2B Cargo
  • Impact
  • Freight Bull
  • DD Logistics
  • St. Mark of Orlando
  • Vikings
  • Cargo Runner
  • Wider
  • Freight One Inc.

 

  • FC Bodrost Wins Inaugural Tournament

  • Congratulations to our Semi-Finalists

     

    Unique Freight Carriers (UFC)

    UFC

     

    A2B Cargo

     

    Freight One

     

    Photos from Tournament

     

Invoice factoring versus merchant cash advance

4 Key Differences Between Invoice Factoring and Merchant Cash Advance

Every small business owner knows that cash flow is the life blood of a company. With it, you can purchase raw materials and inventory, pay your overhead expenses and keep up with payroll. Without it, you may find yourself unable to fill orders or meet your financial commitments.

For these reasons, business owners seek out sources of funding that can help them meet their business obligations AND provide a consistent influx of capital to drive innovation and ultimately growth.

One method of financing that you may have heard about is a merchant cash advance, or MCA. On the surface, it sounds like it might be similar to invoice factoring – but is it? Let’s look at some of the biggest differences between the two.

1. Invoice Factoring is Less Risky Than a Merchant Cash Advance

There’s always some risk involved in financing a business. For the lender, the risk is that the business may miss payments or, in the worst-case scenario, fail to pay back their debt. And, for the business owner, the risk comes in the form of fees and interest.

When it comes to risk, there’s a big difference between invoice factoring and MCAs. Factoring advances money based on an existing invoice. The money that your customer owes for the product or service is advanced to you through the sale of your invoice to the factoring company.

By contrast, MCAs give you money based on an estimate of future sales. If your sales fall short, you’ll still need to repay the money. More than that, MCAs usually require access to your bank accounts so they can take out the funds automatically. If you’re already experiencing cash flow issues, this can make it worse.

2. Merchant Cash Advances Can Be More Expensive Than Factoring

You probably already know that a risky form of financing is likely to cost more than one that carries a low risk. So, it should come as no surprise that MCA loans can be far costlier than invoice factoring.

Factoring fees are a percentage of the invoice. There’s a basic fee that applies to each invoice factored as spelled out in your contract. If an invoice remains unpaid past the initial payment term between you and your client, you may be charged back the advanced amount.

MCA fees can be significantly higher than factoring fees. The fee is typically between 20% and 50% of the amount borrowed. Even if your sales match the predictions, you’ll still end up paying back significantly more than your initial advance.

Something else to consider, MCAs are considered commercial transactions, so they are not subject to the same federal regulations that banks are. While a 20-50% advance fee might be common, APRs can exceed 300%. Plus, the payment structure is already determined at the time of the advance, so you can’t pay it off early to stop the interest from accruing.

3. Invoice Factoring Maximizes Cash Flow and Merchant Cash Advances Don’t

Invoice factoring is a product that’s designed to help small business owners maximize their cash flow. That’s because it advances money against invoices that have already been fulfilled. When you factor an invoice, you get money immediately – often the same day – which you can then use to buy materials, invest in your company or make payroll.

By contrast, MCAs are speculative. They provide you with a lump sum, but if you use that money to pay off existing debts, you may find yourself caught in a vicious cycle of requiring another cash advance to pay off the first with the meter running on the second.

With factoring, you know your cost and fees upfront, and because it’s the sale of your invoice, there is no debt or interest to worry about.  It’s not a loan.

4. Invoice Factoring Includes Back Office Services, MCAs Don’t

When you get an MCA, all you’re getting is money. One of the most important differences between an MCA and factoring is your factoring fee includes some time and potentially money-saving back office services that can help your business grow.

For example, factoring companies typically provide services that include billing and invoice collection. It can be quite expensive to pay someone to make collection calls on your outstanding invoices. Experienced factoring account executives work as an extension of your team and on your behalf.

Conclusion

Overall, invoice factoring can be a less expensive and more comprehensive financing option than a merchant cash advance. If you would like to speak to us about how invoice factoring can help your company grow, contact Triumph today.

How Can Your Small Business Pick Up Momentum This Year?

Small businesses are the life’s blood of the US economy. According to the SBA, there are 30.2 million small businesses in the United States as of the end of 2018.

Every business has its own challenges and goals in 2019. We’re already at the end of  2nd quarter, and you may have some momentum as you look forward to the end of the year – but there’s always room for improvement. Here are a few tips to help your small business pick up financial momentum this year.

Analyze Last Year’s Numbers

A good place to start is with last year’s numbers. Reviewing them can help you understand where your business succeeded and where your strategies may have fallen short. How did your first quarter compare to last year’s? How are the projections shaping up for Q2?

You should plan to look at your income, budget, expenditures and net profits. If your projections for last year were off, take a second look at the potential reasons, and try to brainstorm some new ideas to carry out later this year.

It also helps to take another look at any of last year’s sales reports. They may contain further insight into your business’s volumes and revenues. Make note of anything you may have overlooked during your initial analysis of the numbers.

Make Projections

Once you’ve thoroughly analyzed your numbers from last year, you can use what you’ve learned to create more accurate projections for the third and fourth quarters of the year.

For the rest of the year, make sure to request numbers from your sales team frequently and do some more in-depth research into the market to further refine your projections. From this information, you can develop new promotional strategies to try later in the year.

Finally, be sure to think carefully about which products or services are already performing the best so far this year as well as those that may need a new sales strategy.

Craft a Budget

Next, adjust your business’s budget for the third and fourth quarters of the year, taking what you’ve just learned into consideration. You may find opportunities to reduce your operating costs and increase your profits.

Specifically, you should plan to:

  • Project your company’s sales and expenses for the third and fourth quarters of the year, working with your management team as needed; and
  • Review the master budget, which should reflect the adjustments you make to your projections, cash reserve estimates and credit availability.
  • Update your cash flow statement, balance sheet, profit and loss statement and debt.

Keeping everything up-to-date will help you manage your cash flow more effectively while giving your small business the opportunity to grow.

Re-Examine Your Estimated Year-End Profit

Finally, you should review your year-end profit projection. If it no longer seems realistic, you may need to cut your costs, reduce your debt, or ramp up your marketing efforts to make more sales to meet your goals.

If you do find that your business is running into cash flow and financial issues, you may want to consider partnering with an invoice factoring company. Factoring provides near-immediate cash flow and can provide you with the capital you need to maintain your momentum for the rest of 2019.

For more information about small business invoice factoring services, click here to contact Triumph Business Capital.


Invoice Factoring

Dos and Don’ts to Keep in Mind When Choosing the Right Factoring Company

As a small business owner, you know that staying on top of cash flow can be a challenge. Without adequate cash flow, you may be unable to meet your financial obligations and, as a result, your growth can stall.

As we’ve discussed in previous blog posts, partnering with an invoice factoring company can help small businesses even out their cash flow. In fact, factoring companies can help small businesses bridge invoice payment gaps, from completing a project or service through payment.

However, as is the case with any financial service, not all providers have the same quality and results, and it takes time and research to determine which company will help best meet your small business’s financial goals. Here are just a few dos and don’ts to remember when looking for an invoice factoring company.

DO: Consider online features and overall ease of access.

Accessibility is a major feature for many of today’s factoring clients. It makes sense. It is essential for your business to be able to access vital information about your account as needed. You also need the ability to get in touch with customer service in case an issue arises.

In many cases, the way your factoring company communicates with you speaks volumes about how your own clients perceive your business, so take time to ask the right questions about online features and overall accessibility. Ideally, you should be able to:

  • Access your account online at any time of day
  • Get reports and other information easily and quickly

If you’re concerned about accessibility, ask about a factoring company’s client portal and any additional technology that can make submitting invoices and getting paid as easy as possible.

DON’T: Neglect to determine whether recourse or non-recourse factoring is ideal for your needs.

Recourse and non-recourse factoring are different processes. Non-recourse is typically the safer option for businesses because it offers some protection if your client declares bankruptcy. Smaller operations tend to be the best fit for non-recourse as many lack the size and cash flow to handle non-payment from a client.

You should ask about the comparative rates for recourse and non-recourse factoring, as well as the details of how recourse factoring works.

DO: Look at value-added services and affiliations

There are several hundreds of factoring companies, and all offer the same basic promise: to give you your money as fast as possible. But many factoring companies also provide a variety of additional services that can help your day-to-day business operations. For example, invoice factoring companies will typically offer collections services on your outstanding invoices. This means that in addition to getting an influx of cash, you also don’t have to spend time chasing down your clients hoping they pay.

Another service factoring companies provide are credit checks on potential clients. Do you ever worry whether or not a prospective client has the funds to pay you? When you work with a factoring company, they will perform a basic credit check to ensure the client is likely to pay you.  Now you can accept that job or contract with confidence.

Be sure to ask about any other partnerships or offers a factoring company might have with other businesses. Many times, you can get discounts or free trials to helpful business tools or resources just by signing up.

With so many companies, it can be tricky to do a true apples-to-apples comparison. Don’t be afraid to ask questions if you’re unsure how a company’s contract works.

DON’T: Rush the process or make a hasty decision.

Finally, don’t rush the process of choosing a factoring company as your partner. Take a couple of days to see which company has the best potential to help your business. You’re signing a contract, so you’ll be on the hook for what it says. Take time to review any language, and make sure you know the expectations.

Ultimately, it’s up to you to be vigilant in your search to find a provider that will work alongside your business every step of the way to help you achieve financial efficiency and consistent cash flow. For more information contact Triumph Business Capital.


Invoice factoring for entrepreneurs

What Entrepreneurs Should Know About Invoice Factoring

You’ve launched a business, built a team, and attracted a base of clients who love what you do. In other words, you’ve become a real-deal entrepreneur. So now what? If you want your company to continue to grow, you’ll need to finance your business for both the short term and the long haul.

To get the business funds you need, you’ll need to consider the most common financing solutions, such as lines of credits and loans. Both can be viable options, but you may not be aware of another finance solution for entrepreneurs — invoice factoring.

Here’s what entrepreneurs should know about invoice factoring.

Bank Guidelines are Strict

Bank loans are difficult to secure because banks are conservative about lending. To be approved for a loan,  you need to have an impressive credit score. Additionally, banks rarely finance entrepreneurs and startups, as they don’t have long, established track records.

The reality is that not every business is going to require large sums of financing. For this reason, it may not be worth it for entrepreneurs to take out a loan. Instead, they may choose an option that will give them quick cash without high interest rates and minimizes debt.

Underwriting a bank loan or line of credit is a potentially lengthy process. You may need to wait weeks to hear back. By contrast, the approval process for invoice factoring is quick and easy. The requirements aren’t as strict. If you’ve been unable to secure financing from a bank, you may want to consider invoice factoring to get the capital you need.

Most invoice factoring companies will approve you for factoring within 1-5 business days and can provide funds shortly after that.

Factoring Can Improve Vendor Relationships

Factoring accommodates growing businesses because your funding grows with your sales. Additionally, factoring doesn’t negatively impact your credit score – in fact, it can even improve it! A good business credit score builds trust with customers and vendors alike.

With business factoring services, you won’t have to decline a large order because you’ll have the funds you need to keep up with the demand for your products or services. The consistency of funds rolling in ensures that you’re better prepared to pay vendors for services in a timely manner.

Ultimately, your vendors aren’t preoccupied with how you choose to finance your business operations. They care about getting paid quickly and consistently. Invoice factoring provides the flexibility and capital to make on-time payments, which keeps vendors happy and ready to take on the next project for you.

Invoice Factoring Will Help You in the Early Days

A lot of small businesses have a cash flow deficit when they first launch. Nobody aims to start off with little cash, but the initial cash you have will be spent quickly. It isn’t uncommon for business owners to find themselves in a financial predicament even when they’ve done everything right.

Think about all the costs associated with new ventures: new technology, payroll, supplies and other costs that’ll keep your business running day in and day out. On top of that, you’re sure to encounter unplanned expenses, and these will only cause your business to run less efficiently if you don’t have the money to cover emergency expenses.

The good news is that invoice factoring will give you easy access to the funds needed to operate your business. When you factor invoices, you’ll get funding – usually in two days or less – while you’re waiting for your customers to pay.

Once your cash flow is sorted out, you’ll have the capital you need to invest in exciting marketing efforts, inventory and other growth opportunities.

Invoice Factoring Can Be Combined with Other Financing

One of the best things about invoice factoring is that it doesn’t need to be a stand-alone financing option. If you’ve got investors or savings that you’re putting into your business, there’s nothing preventing you from factoring your invoices as well.

Invoice factoring is easy to obtain, and it doesn’t build bad debt. Often, you can choose which invoices to factor and when to factor them, making it one of the most flexible funding options available for small businesses.

In some cases, you can even pair business factoring services with other lending, provided that the loan doesn’t interfere with your factoring agreement. For example, many companies that factor also take out equipment loans. When you combine invoice factoring with other finance options, you’ll never experience cash flow gaps.

It might be tempting to focus on venture capital or angel financing, but you’ll be competing with other businesses for those funds. Instead, explore the various funding options out there to ensure you can cover your day-to-day expenses. As an entrepreneur, it’s up to you to determine the best financing solutions for your company.

You Don’t Have to Run Your Business Alone

Entrepreneurs wear many hats, and many are stretched thin as a result. Invoice factoring allows you to focus on your products and services. When you work with a factoring company, you can relax knowing that a team of professionals is managing your accounts receivable, credit and collections. Factoring companies are there for you, providing you with a flexible funding solution that best suits your needs, leaving you free to service your customers and grow your business.

Owning your own business is fulfilling. Partnering with the right factoring company can help you pursue your business goals in both the long- and short-term.

At Triumph Business Capital, we combine industry-leading innovation with experience to help our clients grow. We’ll work with you to arrive at a financing solution that meets your needs. To contact us and talk about how we can help your company, please click here to talk to a factoring specialist.


INFOGRAPHIC: Invoice factoring for entrepreneurs
Invoice factoring

Invoice Factoring: A Beginner’s FAQ

There are more than 30 million small businesses in the United States, and no two are exactly the same. However, there are some problems that are common to many small businesses and one of those is money management.

If you have issues with cash flow or financial management, it can negatively impact your business in multiple ways if you don’t address them quickly. They can impact your sales, your growth and your profits.

Invoice factoring is a form of financing that can help by providing near-instant cash flow for your outstanding invoices. Factoring services have helped countless businesses get back on their feet and achieve their goals.

We’ve created this quick and easy FAQ to help you learn more about the invoice factoring process and whether it’s right for your business.

What is an invoice advance?

An invoice advance is the general term for the money given to you ahead of time (or in advance) by an invoice factoring company. The advance is what provides your business with the near-immediate influx of capital that it needs to stay afloat and continue to grow.

The advance will be repaid to the factoring company when they collect your invoice. The factoring fees are deducted during this process.

What determines if a business qualifies for business factoring services?

Businesses invoice factoring services are available to a variety of businesses with all different types of financial situations. Approval is largely based on your customers’ credit worthiness. For this reason, invoice factoring isn’t limited to a particular industry or size of business. If you have credit-worthy clients, you can work with an invoice factoring company.

Even businesses that have a significant volume of accounts receivable work with invoice factoring companies for their working capital solutions.

Is invoice factoring only an option when a business is in serious financial trouble?

Invoice factoring can be used as a flexible cash flow solution for businesses of all financial situations.

Some young businesses use invoice factoring services because they don’t have enough credit to qualify for traditional forms of financing. Other businesses work with invoice factoring companies because they enjoy the predictability of payment. When you know when you’re going to get paid, you can make decisions faster, pay vendors faster and spend less time following up with clients for payment.

Factoring can also help those who want to avoid potential cash flow issues in the future. For this reason, invoice factoring services are readily available for any business that wants to take control and gain financial freedom and flexibility.

How quickly can you get a cash advance after submitting invoices for factoring?

The factoring process is designed to be quick and seamless. When you submit invoices, the factoring company will verify them. Verification can include reviewing a purchase order, tracking a shipment, or communicating directly with your customer. In many cases, you’ll be able to get a cash advance the same day you submit the invoice for factoring.

Ultimately, you may be surprised at the wide range of benefits that financing factoring can provide. If you want to learn more about what invoice factoring can do for your business, contact Triumph Business Capital.


Invoice factoring for startups infographic

4 Crucial Resources Needed to Start a Small Business

Starting your own business requires dedication, planning and resources. You might be committed to starting your own company. You have a business idea, and you can’t wait to act on it. But what do you need to launch your business and turn it into a success? Here are four resources needed to start a small business and keep it going year after year.

Business Resource #1: Capital  

The first basic business resource is simple—you need money to start your business and keep it afloat. There are costs associated with building your company from the ground up, including things like: 

  • Rent 
  • Office supplies 
  • Raw materials 
  • Employee wages 
  • License and permit fees 

You don’t want to run out of money and give up on your business idea, and yet that’s what happens to many entrepreneurs. Sixty percent of failed businesses said they closed their doors mainly from cash flow problems. 

To avoid becoming a part of this statistic, you need capital to cover your operating expenses until your business becomes profitable, at which point, ideally, your business will be self-sustaining.   

You have multiple options to get the money you need. One option is to dip into your personal savings or seek help from family and friends. If that’s not an option, however, you’ll need to explore other resources. For example, you could apply for a loan or line of credit, but most lenders require an established credit historysomething that new businesses don’t have. In this case, invoice factoring is a perfectly suitable option for small businesses 

Numerous invoice factoring, also known as invoice funding companiesare eager to provide you with the money you need for immediate operating expenses. When it comes to capital, every small business has different needs, so don’t be afraid to carefully weigh all your financing options.  

Business Resource #2: A Dependable Team 

You might be tempted to go it alone, but if you want to get your company off the ground, you’ll need a team to back you up. Recruiting a team of motivated people who share your values will free you up to focus on scaling your business. That’s why a dependable team is a basic business resource no entrepreneur can do without.  

Having a team will help you focus on the big picture while ensuring you have the help you need to deal with daily responsibilities. Keep in mind that you don’t need to hire all the help you need. Outsourcing can be an option as well, especially when you’re just starting out. The key is to seek out people who have the skills, experience and passion to help you bring your vision to life. 

As you build your team, keep an open mind and use multiple resources. You can find potential employees and contractors through employment search engines, social media, staffing agencies and university career centers. Be sure to post your available jobs on job boards and on your website.   

Casting a wide net ensures you’ll be able to choose from a diverse pool of candidates and select people who exceed your expectations. And remember, you can always hire a recruiter to take this task off your shoulders.  

Business Resource #3: Suitable Workspace 

It’s common for entrepreneurs to run start-up businesses out of their homes. If that’s what you’re doing, the third business resource you should consider is a designated workspace. Whether you need an office or a store, it’s important to purchase or rent a separate space that’ll create a positive first impression.  

Virtual offices have their benefits, but clients, customers, and even future employees look for legitimacy in small businesses. A physical location shows that you’ve invested in your business for the long haul. It can also help you achieve your business goals by bringing your team together under one roof.  

When you’re searching for a space, don’t forget to consider the potential for expansion—your company will need ample room to grow. Your team will thrive in a clean, comfortable and safe setting where they can operate at their best. With a physical location, you’ll probably notice improved accountability, collaboration and productivity among your team members.  

An exciting office or store can also be an excellent recruitment tool. People want to work in attractive, inspiring spaces where they can feel proud of what they do. So, if you haven’t already, think about investing in a defined company workspace. 

Business Resource #4: Know-How  

The truth is, an idea isn’t enough to make your business succeed—you need a plan backed by thorough research. Education should be central to your company, and new business owners can always benefit from learning more about their competition, audience, industry and product or service development.   

Professional development is very important too, as great leadership is crucial to any growing business. Ongoing education will give you the knowledge and training you need to make your business a success. Here are some ways to brush up on your business knowledge: 

  • Read books and publications that are relevant to your business and follow online publications and websites. Others in your field are sharing their expertise, and you can benefit from their experiences and knowledge. 
  • Attend classes, conferences, retreats and seminars whenever it’s feasible. They can provide fascinating insights into new business trends and training to help you grow your company. 
  • Look into organizations such as the Small Business Administration, the National Federation for Independent Businesses (NFIB), SCORE and the U.S. Chamber of Commerce. These associations provide mentoring for new and established small business owners. 
  • Ask your mentors or industry experts you admire for business advice. They can help you identify areas that need improvement and offer possible solutions. Additionally, professionals with decades of experience under their belts can tell you about mistakes they’ve made in the past, so you can avoid them as you grow your company.  

When small business owners reference books and seek help from mentors and other successful people in their industries, they can feel better prepared to run their businesses. 

Preparation is the Key to Success  

Starting and maintaining a company is all about preparation. The four resources we’ve listed here represent the tools and assistance you need to turn your start-up from idea to reality.   

Invoice factoring for startups infographic

Are you ready to learn how Triumph Business Capital can provide you with the capital you need to build your small business? Click here to contact us!  

We have a winning team that’s ready to support you and your business. You have an expansive list of invoice funding companies to choose from, but at Triumph Business Capital, we’re committed to small businesses. In fact, over the years, we’ve assisted over 7,000 small- to mid-size businesses!  


freight factoring services

Triumph’s Guide to Freight Factoring Services

There are many financial issues freight company owners must manage on a regular basis. The rising costs of trucks and equipment are in direct conflict with long waits for shipping payments, and it’s a combination that can create gaps in cash flow. 

Cash flow issues are one of the most common reasons why businesses fail. For many owner-operators and fleet owners, working with a freight factoring service can be a solution to slow-paying clients or for transportation companies looking for help with their invoicing and collections process.    

What is freight factoring? 

Freight factoring is a type of accounts receivable financing where transportation factoring companies advance you money for your outstanding invoices, giving you the cash flow you need to cover your expenses. 

Freight factoring services will usually pay between 80% to 95% of the value of your invoice up front and pay you the remaining balance (minus fees) once your customer pays their invoice. Freight factoring is beneficial to many businesses, but especially freight companies that need immediate payments to keep their trucks on the road and operations moving. These advances can be used to make truck payments, pay insurance premiums, buy new tires and fuel and ultimately pay yourself.  

How does freight factoring work? 

Freight factoring, which is also called transportation factoring, can help you get a handle on your credit and business finances. Here’s an overview of how freight factoring typically works: 

  1. You submit a freight factoring application for freight factoring services. When the application is approved, you’ll be issued a factoring agreement. This agreement will tell you all the specifics in the contract and what your fees will be. 
  1. Your freight factoring service will determine the creditworthiness of your customers. If your customers have good credit, those invoices will be approved for factoring. 
  1. You’ll send invoices to your freight factoring serviceand they’ll advance a percentage of your invoice’s value. The factoring company will work to collect the amount from your client.  
  1. When your client pays your invoice, your freight factoring service will deduct the factoring fee and return any reserves, if any, back to you.

How do I know if freight factoring is right for my company? 

Freight factoring is a common accounts receivable solution for companies that depend on steady cash flow instead of sweating over outstanding invoices. But your business can still benefit from freight factoring services when your cash flow is good. 

Here are a few questions to ask yourself if you’re wondering if using freight factoring services is the best financial option for you:  

  • Are slow-paying clients having a big impact on your ability to pay your vendors? 
  • Is your business credit score suffering because your clients are slow to pay? 
  • Are you spending valuable time making collection calls to slow-paying or late-paying clients? 
  • Are you confident that a broker or shipper will pay you when you take a load? 
  • Is your poor cash flow negatively impacting your business and your ability to grow your company? 
  • Are you unable to grow your company because you lack the capital to invest in your growth? 

If you found yourself answering yes to even one of the questions listed above, it may be worth your time to consider freight factoring servicesFreight factoring services let you spend more of your time on your business and less time struggling to collect from slow-paying customers. 

Even when your cash flow is steady, you don’t need to worry about how you’re going to pay your employees and vendors. You can feel confident in your finances, your business credit score and your ability to expand your business when you’re ready.  

Looking for freight factoring services for your business?

There are more than 30 million small businesses in the United States. Unfortunately, many small businesses fail within their first few years because of cash flow problems. Freight factoring companies like Triumph Business Capital can help.

Triumph Business Capital offers freight factoring services and small business invoice factoring to help you get your cash flow back on track and help with the tedious and time-consuming tasks of calling clients and trying collect on past invoices. To learn more about our freight factoring services and how business factoring services can work for you, contact Triumph Business Capital today.


Invoice factoring

Invoice Factoring: 6 Ways it Can Boost Your Business

Small business owners sometimes struggle with managing cash flow and finding the working capital to grow their companies. Invoice factoring is a form of accounts receivable financing that provides you with a cash advance on your invoices that are due within the next 90 days.

Is factoring right for your small business? Here are seven benefits of working with commercial factoring companies.

1. Invoice Factoring Streamlines Your Cash Flow

When you sell your invoices to an invoice factoring company, you get immediate cash in return for your invoices. You won’t need to wait for your clients to pay their invoices – and that gives you the power to buy raw materials, fill orders and expand your business.

Cash flow problems are responsible for approximately 82% of all business failures in the US, so this benefit is an important one. It’s also worth noting that invoice factoring provides financing without debt. It’s not a loan, and it won’t add to the liabilities on your balance sheet.

2. Small Business Factoring Promotes Better Credit Control

Another big advantage of invoice factoring is that it takes the burden of credit control away from you, saving you time and money. You can be confident about accepting terms with your clients because you won’t need to wait for payments from them.

Your factoring company will handle every aspect of credit control for the invoices you factor, including checking your clients’ credit, collecting outstanding amounts, and providing you with detailed reports of every transaction. It can cost you a lot to handle these things yourself, and when you work with a factoring company, these back-office services are included in your fees.

3. Invoice Factoring Can Fund Your Company’s Growth

If you’re like most business owners, you have a vision for where you want your company to be next year and, hopefully, in five years. You want to grow your company, and you need the working capital to make that happen.

Invoice factoring can provide you with the capital you need to expand your marketing, take on new clients and fill large orders with ease.

4. Factoring Is Affordable

Invoice factoring is affordable when compared with some other forms of business financing. You won’t pay an interest rate. Instead, you’ll pay a factoring fee, which is a transaction fee based on the amounts of the invoices you factor.

Your factoring fee is something you’ll negotiate with your factoring company and is part of your contract. You’ll know in advance what you’ll pay for each invoice, and, in many cases, you can decide which invoices to factor.

5. It’s Easier to Qualify for Factoring

When you apply for a bank loan or line of credit, your business credit score and personal credit score play a big role in whether you qualify. For many small business owners, it can be difficult to get the capital they need if their business or personal credit score does not qualify.

By and large, invoice factoring uses credit of your customers as the basis of the qualification criteria when approving invoices. This means invoice factoring companies aren’t just looking at your credit they are looking at the credit of your clients. As long as your customers have good credit you should be able to factor the invoices.

6. No Restrictions on Spending

The money your factoring company advances to you is yours to spend as you see fit. There are no restrictions on your spending. With factoring, you’ll retain complete authority over any decisions regarding how you use the cash you receive. That’s in direct contrast with the rules for business loans, where you’re obligated to spend the funds on the specific needs for which the money was borrowed.

When your small business is in need of a cash infusion, the services of commercial factoring companies can provide immediate funds to boost your business. These services can also provide improved credit control, affordable financing, and other value-added benefits.

To speak with one of our factoring experts at Triumph Business Capital and see if factoring is right for your business, please click here now.


Cash flow

3 Expert Tips to Keep Your Business’s Cash Flow Consistent

Consistent and predictable business cash flow is a must if you want your business to grow and succeed. In fact, 82% of all business failures are linked to poor cash flow management. That’s a statistic you can’t afford to ignore.  

Fortunately, there are some practical steps you can take to even out your cash flow and ultimately, increase your profits. Here are three things you can do right now to increase your cash flow and get your business on the right track. 

Business Cash Flow Solution #1: Offer Prompt Payment Incentives 

One vastly underestimated and a potentially effective strategy of ensuring that you have consistent cash flow for your business is to incentivize your customers to pay you in advance or on time. The most common way to incentivize rapid payments is to offer your customers a small discount if they pay quickly.  

For example, you might change your terms to 1%/10 Net 30, which means that the customer is entitled to take a 1% discount if they pay the invoice within 10 days, and the full net amount of the invoice if they pay in 30 days. 

Offering a discount may speed up your cash flow. However, it’s best to offer discounts to reliable customers who mostly pay on time. If you offer it to everyone, you may find that people pay late and still take the discount. 

If you’re careful about offering discounts, you can even improve your business cash flow and reduce the amount of time you spend collecting invoices, too.

Business Cash Flow Solution #2: Align Vendor Terms with Client Terms 

The second thing you can do to even out your cash flow is to compare the terms you have with your vendors and the terms you have with your customers. If they don’t match, you may be setting yourself up for serious cash flow problems every month. 

For example, if your invoices have Net 30 termsand your vendors require you to pay on receipt, it means your cash flow is perpetually out of sync.  

Not every vendor will agree to change their terms, but it’s worth your time to ask. Even bringing the terms a little closer together – for example, getting 10 days to pay instead of paying on receipt – can help you even things out. 

If your vendors won’t change their terms, you’ll have to figure out how to keep the cash flowing without being delinquent on your payments. Some vendors offer a grace period. You can take advantage of that time to give yourself some breathing room. And, of course, you can use this solution and offer incentives to your clients – a combination that can bring your due dates closer together.

Business Cash Flow Solution #3: Consider Invoice Factoring Companies 

Finally, invoice funding, also known as invoice factoring, can provide you with even cash flow and may act as a good safety net, even if your business’s cash flow is relatively consistent. Invoice factoring companies provide companies with cash advances for their unpaid invoices and can minimize the risk of long-term or significant business cash flow problems.  

If you’re unsure whether factoring is right for your company, you should talk to a factoring specialist to discuss your business cash flow needs. 

Ultimately, it’s up to you to get creative and find the right ways to keep business cash flow consistent. For more information about the best invoice factoring services, click here to contact Triumph Business Capital now. 

Cashflow backbone of small business

Cash Flow Is the Backbone of Your Small Business

The majority of small businesses fail within the first five years. Cash flow was cited as one of the main causes among 60% of failed small businesses.

Although every business has its financial peaks and valleys, small businesses are especially susceptible to gaps in cash flow because of their limited capital. Cash flow was listed as one of the top five challenges faced by small businesses for this very reason.

But how do small businesses end up with gaps in cash flow in the first place? There are various reasons, such as overspending early on and being too passive when it comes to clients with late payments.

In some cases, a small business’ financial schedule just doesn’t line up with their invoices. Maybe payroll is due next week, but one of your clients’ payments isn’t due until two weeks from now. You need that payment to make payroll.

To bridge these cash flow gaps, some small businesses choose to take out a loan from a bank. But one out of every five small business owners has experienced difficulty borrowing money from traditional lenders such as banks.

Not only is taking out a bank loan difficult but it can also drive you into debt. Loans have interest rates, after all. And if you’re having cash flow issues already, falling behind on debt might be too costly a risk to take.

Fortunately, you don’t need a bank to bridge your cash flow gaps. Business invoice factoring is an accounts receivable financing option commonly used by small businesses.

With invoice factoring, you can receive payment on your invoices immediately instead of waiting 30-plus days to get paid.

Approximately 33% of small businesses said they would use a balanced cash flow to buy more inventory and equipment. Another 28% said they would use their cash flow to expand. Either way, a balanced cash flow gives you the peace of mind to run your small business without the fear of failure holding you back.

Cashflow backbone of small business

Reducing operating costs

6 Key Strategies to Reduce Business Operating Costs

Every business wants to increase its profits, but those profits are especially crucial to small businesses. Even the smallest reduction in expenses or increase in revenue can have a major impact on your profitability.

The good news is you don’t need to completely overhaul your company to start seeing savings. With a few key strategies, you can start to see an improvement in your business practices and a drop in costs.

One of the best ways you can increase revenue is by reducing your operating costs. But how do you reduce business operating costs without lowering the quality of your work?

How can I reduce my operating costs?

 Operating costs are one of the biggest business expenses aside from payroll and rent. Check out the following seven tips you can use to reduce your own costs and add to your company’s profits.

  1. Outsource business tasks. Many small businesses outsource certain tasks or operations to companies that specialize in areas like marketing, accounting and bookkeeping, data entry and IT support and development.

    One reason businesses turn to outsourcing solutions is the total time-saving involved. You don’t have to recruit, onboard, setup payroll, etc. Best of all, you can focus on what you’re best at, and let experienced professionals support your efforts with what their best at.

You also don’t have to worry about paying for each individual employee. When you outsource, you have access to an entire team of experienced professionals for a flat fee.

  1. Streamline your accounts receivable. Outsourcing is also key when it comes to your accounts receivable process as well. Invoice funding, or invoice factoring, can save you the time and frustration that can come from collecting your outstanding invoices from your customers. Invoice funding is a type of accounts receivable financing that converts your company’s outstanding invoices that are due within 90 days into immediate cash for your business. Invoice funding also fills in the cash flow gaps that can happen when your small business is growing. These gaps can be stressful and taking out a bank loan may not align with your short- and long-term growth objectives.
  2. Negotiate your subscription rates. Offer to pay a monthly or annual fee to your suppliers for a reduced rate on the supplies you regularly use. By asking for a subscription rate, you show your suppliers that you’re prepared to shop around for the best prices. It also shows that you’re not afraid to leave that supplier if it means getting a better deal somewhere else.

A lot of subscription-based SaaS software also provides savings when you choose an annual versus a month-to-month option. In the long run, these savings can add up across your different providers.

  1. Think about going second-hand with your office furniture. You might feel the need to replace the old office chairs and desks you have in your workplace. But worn out furniture doesn’t need to be replaced with brand new furniture. Oftentimes, second-hand furniture from local office supply stores or thrift stores can be almost-new. You can also make repairs to your worn-out furniture itself with re-upholstering and other DIYs. Plus, it provides character to your office space.
  2. Consider selling your leftover supplies. Your first instinct as a small business is to recycle your leftover cardboard, paper, and metal. But other small businesses or entrepreneurs in your area may need those materials. You can take advantage of that by selling your leftover materials rather than recycling them. You can also find other ways where you can use your recyclable waste for your own business and products.
  3. Reduce your travel expenses. Virtual meetings are becoming increasingly popular as businesses go digital. You can use virtual meetings as a way to save time and money on travel. Consider using virtual meetings as a way to replace staff meetings if you have staff distributed across many locations. You can also watch live video feeds of business events when necessary rather than traveling to the events yourself.

Interested in invoice funding for your business?

There are more than six ways to improve your bottom line and streamline your processes. But invoice funding, also known as invoice factoring, can help improve your cash flow immediately.

When you work with Triumph Business Capital, you can worry less about when your clients pay you and more on providing a great customer experience.

To learn more about our how small business invoice factoring works, contact Triumph Business Capital today.


Industries that benefit from invoice factoring

6 Industries That Can Benefit the Most from Invoice Factoring

It can be stressful and frustrating when your business experiences cash flow fluctuations. These fluctuations are often the result of payment gaps in your accounts receivable. Simply put: you’re not getting your funds fast enough after completing your service or projects.

This is where business factoring comes in. Factoring services help businesses like yours bridge those cash flow gaps with upfront cash advances — usually 90% or more of the original invoice amount.

Many businesses benefit from accounts receivable financing option. It provides business owners with flexibility, whether a short-term funding solution or a long-term financing option for managing cash flow.

If you’ve never heard of factoring before, we’ve compiled a list of industries that can benefit the most from invoice factoring.

The transportation industry

About 12 million trucks, vessels, rail cars, and trains move goods across the transportation network. Freight invoice factoring can help a wide variety of transportation businesses, including owner-operators, large fleets and freight brokers.

Freight invoice factoring is a simple solution for freight companies to increase their cash flow and better predict when payments will come in. Bank loans require good or established credit. They might be a non-starter for owner-operators or fleet owners just getting started, or others who might have hit a rough patch.

Freight invoice factoring gives you the ability to have your invoices advanced to you without putting your company in debt. You can use freight invoice factoring to help you pay your drivers, pay for gas and repairs and even buy new trucks.

Best of all, it’s your own money you’re using. It’s just been advanced to you. There’s no debt you need to worry about.

The apparel industry

The apparel industry is a tough nut to crack for a small business. Not only are you competing with other boutiques, but you’re also up against other e-commerce online stores that typically get paid at the time of purchase. In order to remain competitive, it’s crucial to maintain a steady cash flow to keep your company’s operations going.

Cash flow peaks and valleys happen throughout the season for every business. But if your apparel company business doesn’t maintain traction, it can lead you to wonder if you need to stop taking on more orders. Every business owner knows that you need money just to fulfill existing orders. You have to pay your staff, rent and other fixed costs.

With invoice factoring, you don’t have to stop taking orders. When you use apparel invoice factoring, you can get you paid on previous orders quickly, so you have the capital to update your equipment, make your payroll and stock up on inventory. A steady cash flow means steady business and means customers receive their orders on time.

The staffing industry

Staffing industries have slightly different challenges than other industries — promising to pay contract-based workers on behalf of your client. You don’t pay, the contractor doesn’t work and your client’s operations stall.

The good news is that staffing invoice factoring can solve the payroll issues, in addition to the costs of sourcing, recruitment and hiring. With a consistent funding source in place, you can more confidently bid on larger projects and advertise your services.

The manufacturing industry

Even the biggest manufacturing companies have issues with inconsistent cash flow. And when manufacturing businesses are low on cash because they’re waiting on money from their invoices it can make it impossible to accomplish even simple goals.

It’s all too easy to consider taking out a major bank loan to pay for these expenses instead of waiting for the money from your invoices to arrive. But this can drive your business into debt, which no company wants.

Manufacturing invoice factoring can help you avoid debt and gain the working capital you need to meet payroll on time, buy new equipment, repair equipment parts and more.

The technology industry

The technology industry is another highly competitive industry for small businesses. Technology companies face a saturated and competitive market for their services. The pace of business and the need for quick updates and upgrades to your company’s hardware and software requires access to capital.

More than that, technology companies are always trying to hold on to their best talent. Invoice factoring for technology companies can help mitigate potential payroll issues and keep your team intact.

Remember, with invoice factoring, you can fund your business through your own unpaid invoices instead of taking out a bank loan.

Bank loans often have high interest rates that can come back to bite you later. But with invoice factoring, you’re using your own capital. It’s just being advanced to you so you can use it when you need it.

Ready to get started with invoice factoring for your business?

Triumph Business Capital has been helping small businesses improve their cash flow since 2004.

To learn more about invoice factoring services for your business, contact Triumph today for a consultation.


Invoice funding

Exploring Some Large Volume Industries That Benefit from Invoice Factoring Services

We’ve discussed the benefits of invoice factoring in previous blog posts. From improving cash flow to providing stability, small businesses of all types and sizes — even trucking companies, — use and benefit from factoring companies to help their enterprises grow.

Factoring companies specialize in helping small businesses drastically cut down wait times on payment, meaning that you can avoid waiting for 60, 90, or even 180 days for customer payments. But which businesses can make the best use of these services? Here are just a few large volume industries that can benefit from the assistance of invoice factoring services.

Staffing Firms Industry

Staffing agencies frequently use invoice factoring services for one main reason: they need to pay their employees regularly. But if their clients aren’t paying quickly enough, invoice funding or factoring services can step in and make sure the company’s hard-working employees get their paycheck.

Access to immediate working capital is critical for a staffing company needing to make payroll on a weekly basis and still be able to take on new clients efficiently without worrying about being able to spend resources on finding and hiring new people.

In staffing, it’s pretty simple: no money for payroll, no people and ultimately loss of contract.

Many staffing companies can end up failing or having serious financial issues simply because of slow payments. Partnering with a factoring company and using strategic invoice funding ensures your people get paid, and you keep the contracts.

Professional Services Firms

Various professional firms also take advantage of invoice factoring options because of high-budget projects that take time to pay off. For example, law firms and architecture firms’ services usually range in the thousands of dollars, which may take months for businesses or corporations to pay off. These firms need capital to run efficiently and promote growth. Invoice funding can be an alternative to a traditional bank loan.

Manufacturing Industry

Finally, businesses focused on manufacturing can invoice factoring services for various reasons. Many times, the equipment they need for everyday operations becomes damaged, stalling production until it can be repaired. Repair costs can be expensive because of the highly-specialized equipment needed for production, and invoice funding can provide immediate capital to keep operations running. Without the funding required to stay on top of production costs, including unforeseen disruptions from breakdowns, the manufacturer risks missing deadlines and potentially losing out on anticipated money.

Get Started Today with Triumph Business Capital

While there are a wide variety of businesses that can benefit from invoice funding services, these are just a few examples of industries that may need it most. For more information about invoice factoring and funding services, contact Triumph Business Capital.



Invoice funding

Don’t Sign an Invoice Factoring Contract Without Asking These Questions

As we’ve discussed in previous blog posts, invoice factoring is a type of accounts receivable financing that converts outstanding invoices — due within 90 days — into immediate cash for your small business.


But before you sign any type of contract or agreement for an invoice advance loan, it’s essential to ask the right questions to understand what services you’re getting for your money. If you’ve signed any contract before, you know that it doesn’t matter what was discussed; what matters are the terms you agreed to when signing at the bottom.

As a business owner, you sign a lot of documents, and it’s common to breeze past the fine print and take the sales person’s word for it. With that in mind, we’ve collected a few important questions to ask your invoice factoring company before signing a contract.

How long has the invoice factoring company been in business?

If a company has been around for a while, you can typically trust that they’re not going to close shop and disappear with your money. And when you’re trusting your invoicing and collections to a third party, it’s important to partner with a company that has the necessary experience, structure and team to handle your business.

Remember: invoice factoring companies become an extension of your business and work on your behalf to invoice and collect from your clients. This relationship requires professionalism, respect and a high-level understanding of different industries. These skills are not learned in a day of training. They are part of a company culture that puts an emphasis on customer-first service.

It’s important to mention that years in business don’t always translate to success. But if a company has been around for a while, you know that it’s survived economic downturns in the past and can likely weather ones in the future as well.

How are the fees structured?
Each and every funding company structures their fees and finances differently, so it’s absolutely vital to make sure you understand every word of the contract when it comes to the way your business will be charged and paid.

Invoice factoring companies offer different funding products based on industry, size and growth goals. Some things that might affect your factoring fees:

  • Length of contract
    • It shouldn’t be surprising to learn that the longer you sign up for a service, the less your fees will be. Invoice factoring is no different. Most companies offer month-to-month, 6-month and year-long contracts. If you’ve never used an invoice factoring service before, it might make sense to start with a month-to-month and then upgrade to a longer-term deal and save some money.

  • Type of product
    • Invoice factoring has different options for different business types, but the two most common are recourse and non-recourse. Recourse factoring tends to be cheaper because the client assumes the risk of non-payment. For example, if your client fails to pay back the agreed upon amount because they went bankrupt, the factoring company will charge that back to you. Recourse is a great program if you have established clients who pay on time.

For startups and less established businesses, a non-recourse agreement might make more sense. In this arrangement, the factoring company takes on all the risk of non-payment if the business goes bankrupt. So even if your client doesn’t pay, the factoring company will not charge back the unpaid invoice. The fees associated with this product might be a little bit more, but it also provides you with more confidence and peace of mind.

Regardless of product or type, you need to know how the fees are structured. When you get your contract, read it again and again until you come away confident knowing what it says. Once you sign, you’re not likely to be able to make changes.

According to the Wall Street Journal, “The factor advances most of the invoice amount … after checking out the credit-worthiness of the billed customer. When the bill is paid, the factor remits the balance, minus a transaction (or factoring) fee.”

Again, each company is different, so take all the time you need to ensure you understand your financial obligations.

Are they committed to excellence? 

You work hard to make a name for yourself and to set your business apart from your competition. Wouldn’t you want to work with an invoice factoring company that has the same goals?

The fact is, industries change. Business models should be constantly reevaluated and tweaked to better serve the customer.  In today’s world, you need a business partner that exercises a high degree of flexibility and is able and willing to adapt with the times.  Look for a factor that’s a pioneer in their space and is constantly looking to add more value to your business.

Can the invoice factoring company help to grow your business?

The answer to this should almost always be ‘yes.’ At a minimum, an invoice factoring company should be providing your small business with the immediate cash flow it needs to grow and evolve to reach its full potential.

Many factoring companies have industry partnerships and referral partners that offer products and services that can you can take advantage of at a discount. Be sure to ask the factoring company if they have existing relationships with other businesses that you can leverage for your business.

All of this boils down to the factoring company taking an interest in your business’s long-term success.

Ask yourself, “Do they care about my business? Or, do they just want my money?” Every company has to make money. Otherwise, they cease to exist and can’t help anyone. But, if they’re committed to the success of your business, they’ll take the approach that if you don’t succeed, they won’t succeed either. Choose a factor that is knowledgeable and passionate about your industry and theirs. In return, they’ll be passionate about your business.


Get Started with Triumph Business Capital

Ultimately, keeping these questions in mind can help you scope out the best invoice factoring business and contract. For more information about invoice factoring or invoice funding, contact Triumph Business Capital.

invoice-factoring-complete-guide-to-government-contract

Our Complete Guide to Government Invoice Factoring

Cash is essential to any business, and there’s a debt-free commercial finance option that ensures that you receive it quickly. It’s a dependable, low-risk alternative when compared to a line of credit or a loan, and you certainly won’t have to spend weeks applying for it. We’re talking about government invoice factoring.

We’ve created a comprehensive guide that illustrates the benefits of factoring government invoices, as well as a sample of the types of companies that should consider government contract factoring.

What Are the Benefits of Government Contracts?

Government contracts provide steady, profitable work to contractors. These contracts can also last for years. Once you’ve successfully navigated the procurement process, you have a better sense for how to seek out other government contracts in the future.

And as a contractor, when you have one government contract, you can easily acquire more, and having the government as your customer is potentially a huge opportunity for stable business growth. You shouldn’t have to turn down these opportunities because of financing challenges. Steady working capital ensures that you can bid on new projects confidently. You don’t want to have to go back to the government during the project and tell them that you have no funding to continue the contract.

Even as a government contractor, you may face similar issues that other business owners face — stagnant cash flow trapped in your accounts receivables. If you’re a contractor or subcontractor who doesn’t want to wait a long time for payment, you may want to consider government contract factoring before you experience any cash flow problems and avoid signaling any hiccups that could disrupt the contract.

What Exactly is Government Contract Factoring?

Government contract factoring can make it possible for small- and medium-sized companies to do business with the government. You’ll receive an advance depending on the value of your contract with a government agency, even if you’re completing projects upfront. This bridges any cash flow gaps between when you finish the work and when the government actually pays.

The government invoice factoring process works similarly to other industries served by invoice factoring. A factoring company like Triumph Business Capital will take a look at your unpaid invoices and buy invoices at a discounted rate, and we’ll offer you a cash advance. However, from industry to industry, there are differences. For instance, in government contract factoring, sold invoices need to be collected from the government instead of private or public companies. Of course, the U.S. federal government is the largest debtor in America, so it’s going to function differently than smaller entities.

What Are Some Advantages of Government Contract Factoring Agreements?

Whether you have a fixed price contract or labor-hour contract, you still have the opportunity to factor your invoices. It’s an extremely flexible solution that you can use as you need to. Plus, it doesn’t matter the type of contract you have. With factoring, you can have a consistent base of working capital.

Here’s what you can expect from government invoice factoring: a third-party factoring company provides you with the necessary working capital to make investments or pay employees and vendors. The remainder of the money is held in a reserve account until the government pays the invoice. Once the government agency pays, you’ll receive the rest of the cash (minus any agreed upon factoring fees). In fact, you’re paid up to 80% or 90% of the invoice quickly after you apply and submit your invoice and its approved.

Instead of waiting for a traditional loan, you can resolve cash flow issues with factoring now if you have outstanding invoices. What’s also important to remember is that if you’re a new business, or a business with a low credit score, you may not even be able to qualify for a bank loan or line of credit. Government contract factoring takes a broader picture view, one that takes into account your clients’ credit and likeliness to pay.

Some Issues Government Contractors Will Experience

One of the greatest disadvantages of government jobs is that they don’t guarantee payment when you need it most. While the government always pays their companies, they aren’t in any hurry to take care of your invoice. Many things can affect invoice payment: elections, government shutdowns, holidays, and other occasions can slow payment. Fortunately, you don’t have to wait one, two, or even three months for payment. Instead, the factoring company will pay you first, and then collect payment from the government. Should the government leave your contract unpaid, your business is protected by the Contract Disputes Act of 1978.

Government contracts are competitive and hard to obtain. They can take months to secure, and a larger company can afford to underbid the smaller, less established ones. Even if you’re awarded the contract, there’s no guarantee that you’ll have the initial or ongoing financing needed to start and maintain it.

With invoice factoring, your financing is tied to your invoices, not the terms of the government contract. That means if you have an invoice for completed work or services, you can factor that invoice and receive immediate payment to continue business operations or investments in equipment or personnel.

Which Businesses Should Consider Government Contract Factoring?

Factoring works for a variety of different projects and industries. Here’s a sample of the types of industries that use invoice factoring to help fund their businesses:

  • IT
  • Oil and Gas
  • Cleaning & Janitorial
  • Manufacturing
  • Security
  • Staffing
  • Transportation

In considering invoice factoring as a government contract funding solution, you should make sure to satisfy the following:

  • Unpaid invoices or anticipate longer than comfortable payment terms
  • Municipal, local, state, or federal debtors that owe you money and have good credit
  • Invoices that the debtor (in this case, the government) accepted for the completed products or services

Not all factoring companies will offer government invoice factoring, but you don’t have to worry when you work with a factor that specializes in handling government contracts. Triumph Business Capital works with businesses of all sizes and handles their government contracts. We follow the guidelines surrounding the Federal Assignment of Claims Act (FACA), ensuring that the entire invoice factoring follows all required laws and mandates.

Whether you’re just starting out with government contracts or you’re an established business working on fulfillment, you can benefit from invoice factoring to help bridge the gaps from completion to payment.

Our professionals have extensive knowledge of government contracts, and we look forward to providing our clients with the best solutions for their businesses. Contact us today to learn more about how we help government contractors get working capital.

benefits-of-invoice-factoring

Invoice-factoring-what-you-need-to-know

Invoice Factoring 101: What You Need to Know

Knowing more about your invoicing process is essential to helping your business thrive

An illustrated image the details the invoice factoring process.

Invoice factoring 101

What is invoice factoring? 
Invoice factoring can be particularly useful for small businesses looking to keep their cash flow moving and their resources consistent. Invoice factoring helps B2B companies boost their cash flow based on their outstanding invoices. This means immediate access to your money without having to wait for payment from clients, which could leave you waiting for 90+ days.  
 
How does invoice factoring work? 
Invoice factoring is the process of providing you working capital through the selling of your accounts receivables. You get your money immediately — AND DEBT-FREE — at a discount. According to the Wall Street Journal: “The factor advances most of the invoice amount … after checking out the creditworthiness of the billed customer. When the bill is paid, the factor remits the balance, minus a transaction fee.” Invoice factoring provides immediate access to the majority of funds that your customer owes you, allowing you to keep your business operating as normal. This is especially helpful with businesses struggling with slow-paying clients. 
 
What does “factor rate” or “factoring fee” mean? 
When a factoring company advances you money based on your outstanding invoices, it will charge a small fee. The percentage of these funds that goes to the factoring company is what’s known as the factor rate or the factoring fee.  
 
For example, if a factor rate on a $10,000 advance is 3%, the company would take $300 as a fee. Remember, this is debt-free capital that you can use to make investments, purchase equipment or pay your staff. Usually, the rates will range between 1% and 5% depending on various criteria. Invoice factoring can be a useful service for small and large businesses alike looking to keep their cash flow consistent.  

Work with an established factoring company

Triumph Business capital is a recognized industry leader. For nearly 15 years, we’ve partnered with small to medium-sized businesses to simplify and strengthen their operations. Getting started with an invoice factoring company is easier than you might think. Our team of experts is here to walk you through the application process, contact Triumph Business Capital.

Invoice factoring application

What Small Businesses Should Know About the Invoice Factoring Application Process

Working with commercial invoice factoring companies has numerous benefits and can provide near immediate cash flow for your business. In fact, factoring companies can help small businesses bridge invoice payment gaps with upfront payments, providing nearly all of the original invoice amount. That money is then immediately available for you to use to fund your business operations — make payroll, invest in new equipment, pay vendors, etc.

But as is the case with other types of commercial financial solutions, applying for invoice factoring services requires a certain level of thoroughness and attention to detail. The more you know before, the faster the process will be. Ultimately, that means quicker access to working capital for your business.

Here’s what businesses need to know about the invoice factoring application process.

Know Your Company’s Financial History & Business Setup

Before you meet with any specialists or submit any applications, it helps to have a solid understanding of your company’s financial history. Some questions you might be asked:

  • What type of work do you do?
  • How many current clients do you have?
  • What is your monthly revenue average?
  • How much do you have in outstanding invoices?
  • Do you have any liens or judgments against your business?

Be prepared to answer these questions and provide documentation to support them.

Meet with an Invoice Funding Specialist

Before you submit your official application, you’ll likely be required to consult with an invoice factoring services specialist about the options that are best for you based on your business’ financial history and needs.

There are a few different types of factoring services available, and in addition to determining whether your business is eligible, a specialist can determine the best type based on business your needs.

Your rate is going to be based on the information that you provide during these conversations, so it’s critical that you’re upfront about any potential red flags like bankruptcies or tax liens. They’ll come up on a routine credit check anyways. Remember: when you’re applying for invoice factoring services, more goes into the approval process than your credit history. Past issues may not disqualify you from getting the funds you need.

Understand the Contract and Commitment

Finally, be aware of the specific terms of the factoring agreement that’s offered to you. Some factoring companies require you to submit a minimum amount in invoices each month. If you don’t meet that amount, you may be charged a fee.

Also, remember that you’re selling your invoices to a factoring company, which then collects that outstanding amount from your client based on the terms of your contract. If your client doesn’t pay that amount by the contract date, you may be charged back by the factoring company.

These and any other fees should be listed clearly in your contract. Read your contract to make sure that it matches everything discussed. Then, read your contract again. Once you sign your contract, you have little to no chance of making changes. Make sure you know what you’re signing.

Work with an established factoring company

Ultimately, getting started with a small business invoice factoring company is easier than you might think, but only if you have a good understanding of your company’s past and present financial situation.

For more information about commercial factoring companies, contact Triumph Business Capital.

Bad debit

How to Know if Your Small Business Has ‘Bad Debt’

Economies are unpredictable and demand for certain products or services ebbs and flows depending on any number of reasons.

Bankruptcies in the U.S. increased to 25,227 companies in the second quarter of 2016 alone. It’s important to stay on top of corporate finances, especially in the early stages of business development and avoid ‘bad debt.’ Bad debt is money that you can’t recover — a client doesn’t pay you for work you’ve done, for example.

Even a small amount of bad debt can build up and slowly chip away at your business’s financial security. With that in mind, here are just a few of the top signs indicating your business may have ‘bad debt.’

Unreturned Messages

It’s one thing for you to get a client’s voicemail once in a while, but if they seem to be avoiding your calls left and right, consider it a red flag. If business owners had the funds or a plan to pay, they would speak to you directly to avoid misunderstandings and stop the phone calls.

We all know business owners get busy, and sometimes reaching out to them by email might be more helpful. If you still can’t get a response, it may be time to send the account to collections, or if the financial situation is urgent, consider working with an invoice factoring company, which specializes in advancing you the money and working with your client to collect payment.

Repeated Excuses

Flexibility is a necessary trait for all business owners. If a client forgets to pay once, or is a day or two late, you can be a little bit more forgiving.

But if you notice that the same client is late or fails to pay, it could be a sign of something deeper. While you might think you’re being helpful by extending time for your clients to pay, but you could be jeopardizing your business if it drags on, and if it’s frequent.

Remember — you run a business. You need money for your business and to pay yourself. In order to maintain credibility and minimize time between invoicing and collection, you need to be firm on your payment terms. If a client consistently misses payment deadlines, it might be best to send that for collections and move on from that client.

Change of Company Ownership

This is a sign that only applies to corporate clients, but it’s worth mentioning. If a company undergoes a change in ownership or upper management, they may know nothing about the company’s past debt and therefore feel no obligation to honor it. In other cases, the company takes on the debt with the purchase. Either way, look out for this red flag when it comes to past debt.

While dealing with bad debt is never easy, you should know that you have options that can help. Invoice funding, or invoice factoring as it’s also known, is designed to provide fast cash flow to your business. For more information about hiring invoice funding companies for small business invoice factoring services, contact Triumph Business Capital.

 

Invoice payments

Tired of Late Invoice Payments? These Strategies Can Help

It may sound shocking, but it’s true: Nearly 60 percent of invoices are paid late. Considering the fact that small businesses (defined as businesses with fewer than 500 employees) account for 99.7 percent of all business in the United States, late invoices are often a sign of a bigger financial issue. Invoice payment and collections are often the most challenging part of a small business owner’s day-to-day operations. You’ve done the job, and now you need to get paid. Some clients are slow to pay, and other larger companies have established payment terms of 30 days or more.

You can’t run a business on a promise to pay. You need capital just to keep your business going. How many times have you said, “If I could get paid for that job or service today, I could do X, Y or Z.”

Sometimes X is paying your team, and Y is buying a new piece of equipment that’s going to help your business become more efficient. You’re trapped and so is the money tied up in your unpaid invoices.

Late invoice payments can be problematic for small businesses in need of immediate financing. Often, small business owners sabotage their own success and growth by not having clear expectations about their payment terms. They are excited about having the business, but don’t hold their clients accountable for paying on time.

There is, however, a wide range of solutions available that can help your business collect the money it receives. Here are just a few proven strategies that can reduce late invoices for your business.

Set Rigid and Non-Negotiable Deadlines

While you don’t want your business to come off as overly demanding or money-hungry, your customers need to realize that you need cash flow to stay afloat. Ask yourself: “Would my client wait an indefinite amount of time for payment from its clients?”. Of course not and neither should you.

Start by being very clear about the way you communicate invoice policies to your clients. Use deliberate language that portrays to the customer that you’re a reputable business that relies on customers to pay their invoices on time. The policies and due dates should be non-negotiable, and instead of giving them a number of days to pay (30, 60, 90), give them one solid date to serve as a rigid deadline before they incur a penalty. All of this should be spelled out clearly in your terms.

Automate the invoice payment process

The best way to manage your invoices and enforce your invoice payment policies is to automate the process. As soon as you’ve completed the work, submit your invoice. Then, allow whatever app or service send regular reminders as the due date approaches. It’s also helpful to include gentle email reminders that they will incur a late fee penalty if they pay late. Again, allow the technology to handle that for you. Many services will automatically update the invoice to reflect the late payment into the total.

Using technology gives you a consistent paper trail to reference if you’re client is slow to pay, and it allows you to focus on other areas of business without having to waste time on a phone call or updating an invoice.

Consider Small Business Factoring Solutions

If your business has tried the method listed above and is still having some trouble getting customers to pay their invoices on time, consider small business invoice factoring as a solution to cash flow issues. Invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 30 to 90 days into immediate cash for your small business.

A graphic that says 82 percent of businesses fail because of a cash flow problem sits on top of a picture of two business people speaking.

 

Knowing how to stay diligent in keeping up with invoice payments can help your business stay on top of finances. For more information about factoring company, freight or invoice funding companies, contact Triumph Business Capital to discuss how small business factoring can help with your invoice payments.

 

Small business cash flow problems

Exploring Common Small Business Cash Flow Problems (And Their Best Solutions)

Small businesses (defined as businesses with fewer than 500 employees) account for 99.7 percent of all business in the United States, making them a fundamental part of the economy. But anyone who’s ever owned a small business can tell you that it’s not always easy to stay afloat when it comes to competition and cash flow. Bankruptcies in the U.S. increased from 24,000 to more than 25,000 between the first two quarters alone in 2016, so if your business is struggling to make financial ends meet, we have some suggestions for improving your small business cash flow.

There are several viable solutions that can help you stay afloat, even if you’ve hit some momentary bumps or you’re dealing with clients who are taking weeks and months to pay. Here are some of the most common cash flow problems small businesses face as well as how to best resolve them.

Lack of Funding

Many small businesses experience a lack of funding at some point or another, but it can stem from several causes — not enough business, clients not paying, spending more than you’re making.

One solution — if you have the credit — is to apply for a small business line of credit, which is similar to how a typical credit card works.

In a small business line of credit, you pay interest on your outstanding balance only, rather than the total line of credit. Your available credit increases and becomes available for borrowing once you pay down your balance, just like a credit card.

As mentioned, you typically need to have a high enough credit score to get approved for a business line of credit. For this reason, new businesses can struggle to gain momentum early on because they don’t have sufficient business and credit history.

Generating new business is difficult if you’re a startup or a young company with no industry reputation to leverage. You’re competing against other companies with years of experience on you, and you have no easy way to get your name in front of potential clients without having money to spend on advertising, which can be costly. And because you’re unestablished, you can’t turn to banks.

Most companies hit rough patches, and their credit can take a hit if they don’t have the funds to pay their bills because clients aren’t paying on time. This limits the amount of funding options available for small business owners.

Poor or no credit history is one reason why many small business owners are turning to small business invoice factoring to increase their cash flow. Invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 30, 60, or 90 days to improve your small business cash flow.

Unlike a bank loan, invoice factoring doesn’t hold your credit history against you. Instead, factoring companies look at the credit of your clients when determining whether you qualify. This could be a solution for small businesses looking for capital without using banks.

Late Invoices

Nearly 60 percent of invoices are paid late, causing a potential chain reaction through your business and your personal lives. If clients pay late, you pay your bills late, your credit suffers, and the snowball continues.

Many small business owners do not have the savings necessary to float payroll, vendor payments and other business operations for weeks or even months. Your clients may have existing terms that make it difficult for you to predict when you can pay your people or your bills.

Small business invoice factoring can help here, too. If you have unpaid invoices in hand, the factoring company will fund you most of that total, minus a small fee, and then work with your client on payment. As a result, you get your money, and you get back the time you’re losing trying to collect from your client.

Ultimately, understanding these common small business cash flow problems and solutions can help you make the right decisions for your financial needs. For more information about hiring top factoring companies, contact Triumph Business Capital.

 

invoice-factoring-top-load-board

Top Tips For Choosing the Right Load Boards

According to the Federal Motor Carrier Safety Administration, approximately 5.9 million commercial motor vehicle drivers operate in the United States, and many of them frequently take advantage of load boards as well as load factoring companies, also known as invoice factoring or freight bill factoring companies. Factoring companies can help you improve your cash flow by paying you when you deliver a load. Most load boards allow you to search for loads based on your specific truck information — type of trailer, starting point and destination, etc. If you’re looking for spot freight, you should be hitting the load boards and posting your truck daily.

Here are just a few top tips to help you choose the right load boards.

Browse a wide variety of load boards.

This should come as no surprise, but when browsing load boards, failing to browse a wide enough variety can cause you to miss out on some that may have been a perfect match. Load boards come in countless types, all with different features and offerings. Take the time to analyze your personal needs and explore a wide variety of load boards before choosing the ones that are best for you.

Some offer different levels of subscription and provide a lot of information about the broker or shipper posting the load as well, such as average days to pay, and what the average for that load and lane is.

Look for reviews online.

This may seem like common knowledge, but many people tend to overlook this crucial step. The fact is, looking for load board reviews online essentially means that others have done the legwork for you, and it drastically reduces the risk of choosing a load board you’ll be dissatisfied with.

Take the time to scour the internet to find the most accurate and up-to-date reviews. What are other people saying about how a particular load board helped them? And of course, try to avoid reviews that are on the load board’s website itself. These are more likely to be biased or filtered for positivity.

Are you a member of a trucking group online? Throw out your question there. You’ll get no shortage of reviews straight from people who use these load boards every day.

Know which information to give out (and which to protect).

It’s important to keep your own privacy protected during your search for the right load board. This means you shouldn’t give out too much information too soon. If a load board is asking for more information than is truly necessary to help you get started, it may be a red flag.

Look for load board integrations/partnerships that can help your business.

Many of the leading load boards have partnerships with other industry leaders that can help your business.

DAT, the largest load board in the country, has an exclusive integration with Triumph Business Capital. Right from the load board, you can see if a load is pre-approved for invoice or freight bill factoring if it has a green check mark next to it. That check mark provides you peace of mind that if you accept that load, and you factor with Triumph, you will get paid on that load guaranteed. Triumph will also run credit checks on brokers or shippers you’re thinking of taking a load for.

Ultimately, these tips can help you single out the load boards that best match your specific needs. For more information about freight bill factoring or hiring a factoring service for trucking, contact Triumph Business Capital.

 

business credit scores

3 Ways Invoice Factoring Will Affect (Help!) Your Credit Score

Your business credit score is something that can have a huge impact on how you’re perceived by your customers, competitors, and potential lenders and investors. The higher your score is, the more credible and trustworthy you’ll seem.

Invoice factoring is a form of business financing that can impact your credit score. At Triumph Business Capital, we get questions from business owners who are concerned that factoring their invoices will have a negative impact on their credit score – and yet the opposite is true. Here are three positive ways that invoice factoring can affect your credit score.

#1: Get Business Capital without Lowering Your Credit Score

If you apply for a business loan or line of credit, the inquiry itself – even if you aren’t approved – can have a negative impact on your credit score.

Factoring is different because it provides an ongoing source of capital by advancing money on your invoices. As soon as you complete work or ship an order to a client, you can factor the invoice and get your money immediately.

That cash flow doesn’t require a check of your business credit score. In other words, factoring your invoices can give you the money you need to grow your business without your credit score taking a hit.

In turn, invoice factoring can increase the chances that down the line, you’ll be able to qualify for additional financing.

#2: Pay Your Bills on Time – or Early

The single biggest factor in determining your business credit score is the timeliness of the payments you make to your creditors and vendors. It’s common for small and medium-sized businesses to wait until they get paid to make good on their bills. The problem with this approach is that it inevitably leads to delinquency – and ultimately, to a credit score hit.

Factoring your invoices provides you with the day-to-day cash flow you need to pay your bills on time. You may even be able to pay them early, increasing your credit score and making it easy for your business to qualify for credit terms with your suppliers – or even to raise your credit limits, so you can accept and fulfill large orders to grow your business.

#3: Increase Your Credibility with Customers and Lenders

A solid credit score increases your credibility. Anyone who’s considering doing business with you, whether it’s a supplier, a vendor, a customer, or a lender, will likely check your business credit score to see how you run your business. A high score, while not the only consideration, helps secure their trust.

Another way of looking at it is that a low credit score is very likely to have a negative impact on your business. Factoring your invoices provides the financial stability you need to increase your score and build financial credibility over time.

Get business credit help from Triumph Business Capital

You don’t need to worry that factoring invoices will hurt your company’s credit score and credibility. In fact, the regular cash flow and financial stability that invoice factoring provides can help you increase your score, attract new customers, build credibility, and grow your business.

To learn more about Triumph’s factoring services, contact a representative today. We help thousands of business owners from different industries get the working capital and business credit help they need to grow their businesses.

Invoice factoring for staffing companies

Here’s How Invoice Factoring Services Can Help Expand Your Staffing Agency

Invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 30, 60, or 90 days into immediate cash for your small business. While invoice funding companies work with businesses in many industry sectors, staffing agencies are looking to invoice factoring services for help with payroll funding. According to a U.S. Bank study, 82 percent of businesses fail because of cash flow problems. Understanding the unique range of benefits that invoice factoring services can provide for your staffing agency can help you make the best financial decisions. Here are just a few ways small business factoring can help your staffing agency grow.

Staffing agencies have unique payroll funding challenges

Even though small businesses (defined as businesses with fewer than 500 employees) account for 99.7% of all business in the United States, staffing agencies have a business model that’s different than most.

Before placing a candidate with a client, the agency has to a) market its services effectively, b) pay for advertisements to find personnel and c) ensure it has enough money to make payroll. Your client is trusting that you will be able to both run your day-to-day operations and most importantly pay that person.

The client doesn’t receive the actual bill for the staffing agency’s services until the employee has worked and submitted a timecard. This process can take weeks and even months before a staffing agency will see its first payment. Established business or not, few companies can afford to wait weeks and months for payment, not when getting people paid is their primary priority.

Invoice factoring can help staffing agencies reduce turnover.

It’s been estimated that if all invoices were paid on time, U.S. small businesses could collectively hire 2.1 million more employees, which would reduce unemployment by 27 percent. This is particularly relevant for staffing companies. As businesses have the capacity to hire more staff, staffing agencies can provide the necessary contingent labor force to meet the swells in demand.

But it also means greater pressure on the staffing agency to find long-term payroll funding solutions. If you can’t pay your employees, they’ll move on to the next gig, and your client is left hanging, and you’re looking for another person AND trying to solve your payroll problems.

Remember: keep your employees, keep the contract.

If you’re looking to hear more about how invoice funding can help your business, contact Triumph Business Capital today. We work with thousands of business owners every day, providing them the working capital to make payroll and grow their business operations. We can help you, too.

 

2019 Guide to the Best Freight Broker Industry Events

2019 Guide to Freight Broker Industry Events

In an industry that is constantly changing, it’s essential for freight brokers to stay informed, connected and visible in the transportation community. We have gathered the best freight brokers events. These events give insight into market trends, access to demo the latest freight technology, education from freight industry leaders and network with logistic professionals.

FEBRUARY 25-26, 2019

FreightWaves F3 Future of Freight Festival Chattanooga, TN In its inaugural year, The F3: Future of Freight Festival, is an immersive, two-day innovation festival committed to bringing the best and brightest in the freight industry together for collaboration and entertainment in the Silicon Valley of Freight. Choose from a multitude of interactive tracks with experts in data technology, visibility, telematics, supply-chain, SaaS, software, autonomous vehicle systems, and driver engagement to shape and inform the future of freight—all while taking in some of the best music the region has to offer. More info: freightwaves.com/f3-festival

MARCH 26-28, 2019

Descartes Evolution 2019 Naples, FL  Evolution is the premier event that gathers together Descartes customers and business partners from around the world. Network with each other, meet the Descartes product management team, provide input and feedback on Descartes’ product direction, and to learn more about opportunities for improving operations through the growing portfolio of Descartes solutions. More info: descartes.com/usergroup

APRIL 10-13, 2019

TIA 2019 Capital Ideas Conference & Exhibition Universal Orlando, FL TIA gathers over 1300 of the North America’s brokerage-based logistics professionals in one place. At TIA 2019, you will experience the latest industry technology, discuss best practices with your peers, and attend unbeatable 3PS educational sessions. With 10 unique networking activities, you are sure to forge new partnerships and renew old friendships. More info: cvent.com/events/tia-2019-capital-ideas-conference-exhibition

MAY 5-7, 2019

Veloctiy 2019 MercuryGate User Conference Las Vegas, NV Discover what’s new and next for transportation management at The MercuryGate User Conference – Velocity 2019. MercuryGate will introduce product plans, listen to user feedback, share industry insight, and exchanging new ideas and best practices. Join hundreds of the world’s leading shippers, logistics providers, industry experts, and MercuryGate software experts as they discuss new innovations and take on challenges of today and prepare for tomorrow. Early-bird pricing ends February 1 More info: velocity.mercurygate.com

MAY 6-8, 2019

FreightWaves Transparency19 Atlanta, GA Transparency19 is designed to keep you on the cusp of the latest innovations that are transforming freight today. Meet the decision-makers behind the biggest brands and startups who are trailblazing through high-impact technology and solution development across all industry segments, including shippers, carriers, 3PLs, supply chain management, manufacturing and investors. You’ll hear from expert speakers, watch live product demos from emerging and leading freight technology companies, and network with hundreds of your industry peers in a revolutionary format. More info: freightwaves.com/transparency19

JUNE 10-12, 2019

3PL & Supply Chain Summit, Mastering the Digital Supply Chain Atlanta, GA Supply Chain Summit: Atlanta 2019 will address the most important challenges to ensure that you are equipped to transform your supply chain today for tomorrow’s challenges. You will learn forward-thinking strategies to meet short, medium, and long-term goals and strategies for seamless operations, managing costs, and delivering to customer expectations. More info: events.eft.com/3pl

AUGUST 25-27

McLeod Software User Conference Denver, CO Learn best practices from McLeod customers who share their experience at the annual user conference. Enjoy over 14 hours of networking with 1,000+ attendees and over 300 members of the McLeod software team. Attendees will learn about the latest products and future technologies impacting the future of trucking. More info: mcleodsoftware.com/user-conference

SEPTEMBER 10-12

FTR Transportation Conference 2019 Indianapolis, Indiana  The FTR Transportation Conference is recognized for delivering the most complete and comprehensive outlook on freight transportation in North America. Attendees receive in-depth information from industry leaders on all the surface freight transport modes.  FTR brings together all aspects of the freight transportation world into one educational event. More info: ftrconference.com

SEPTEMBER 15-18

In.sight User Conference + Expo 2019 Houston, TX In.sight, hosted by Trimble, offers service providers and fleet operations professionals more than three days of valuable content.  Notable speakers and networking opportunities and hands-on experience with new technology solutions to help reach new levels of organizational performance and safety. More than 2,000 industry professionals will attend. This year’s event will feature hundreds of educational sessions, notable speakers, customer awards and extensive networking opportunities. More info: insightuserconference.com

OCTOBER 5-9, 2019

MCE 2019, ATA Management Conference & Exhibition San Diego, CA The American Trucking Associations’ (ATA) Management Conference & Exhibition (MCE) brings together trucking executives from across the country. This is a can’t-miss event of the year that highlights economic, regulatory, and business trends focused on driving the success of fleets today and in the future. Every year, more than 2,500 of trucking’s top decision-makers come to MCE. More info: mce.trucking.org

OCTOBER 9-11

DAT User Conference Austin, TX  See the latest and greatest products from DAT, plus hands-on labs filled with tips and tricks that you can take home and put into action immediately.  Industry insiders and thought leaders will share their expertise regarding the latest trends and the future of the freight industry, with eye-opening keynotes and sessions designed for anyone in the brokerage industry. More info: dat.com/company/news-events/user-conference-2019

Transportation Company Invoice Factoring Tips

Choosing a Factoring Company for your Trucking Business?

Nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network. Commercial transportation requires a great amount of attention to detail, which is just one reason so many professionals have been relying on services from transportation factoring companies and other types of small business factoring. Invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 30, 60 or 90 days into immediate cash for your small business, and if you feel as though it could be a good fit for your business needs, it’s important to find the right provider for you.

Remember that not all invoice factoring companies offer the same services or programs, so it’s important to find the right company that meets your current needs before signing the contract.

Ask: What’s included in the invoice factoring fee?

It’s easy to assume that the invoice factoring company with the lowest fees wins. But, as an owner-operator, you know that just because something is cheaper, it doesn’t mean it’s better. You have to consider and understand what’s the behind the cost.

Some invoice factoring companies offer promotional discounts or have minimum requirements you have to meet each month to qualify for the lower fee. It’s important that before signing an invoice factoring contract that you read and then re-read your agreement to understand how it’s structured. Like most business contracts, there’s not a lot you can do once you’ve signed it.

Also, ask your factoring company what other back office solutions they help you with. Most factoring companies include additional services included in their fees. So, unlike a bank loan, you’re getting more than just money. You’re getting a team of trained professionals who work with brokers and shippers every day and understand the transportation business. That means that instead of being tied up on calls with brokers asking about payment on a load from three weeks ago, you’ve already been paid on that load, and your factoring company works on your behalf with the broker to make sure it’s paid.

According to a U.S. Bank study, 82 percent of businesses fail because of cash flow problems. Trucking companies can’t afford to be waiting for their money. You can’t afford to wait on payments from multiple brokers who might take 30 to 60 days to pay. Invoice factoring companies make sure that you’re paid and provides additional support with your clients.

Look at the business invoice factoring company’s reviews and overall reputation.

In addition to comparing rates and services, it’s also essential to try to access some direct feedback from satisfied (or not so satisfied) clients. This can give you a more realistic idea of what it’s like to communicate with and conduct business with the provider. If possible, try to find reviews and feedback that’s not directly from the company website — these are more likely to be filtered for positivity.

CAUTION: Not all reviews are going to give you the complete picture. You know as a business owner that public reviews can be misleading or not give all the details of a problem. Also, look at the total amount of reviews. If a company only has a handful of reviews, it may not give you a good sense of the company’s service and professionalism.

Reviews can be helpful, but also ask other drivers in the industry. Those referrals will probably give you a fairer review of their company.

Don’t wait until it’s too late

How big of a deal are late payments? It’s been estimated that if all invoices were paid on time, U.S. small businesses could collectively hire 2.1 million more employees, which would reduce unemployment by 27 percent.

What could you invest in your trucking business if you knew you were going to get paid within one to days instead of waiting a month or more? The right business factoring services can help you with your cash flow that will help your present and future business plans.

If you’re looking for invoice factoring services for your trucking business, contact Triumph Business Capital today. We’ve helped thousands of owner-operators get the money they need for their business. We can help you, too.

 

Freight bill factoring

Freight Bill Factoring: How Can it Make Your Transportation Company More Efficient?

Nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network. Every load has a lot of paperwork – rate confirmations, BOLs, lumpers, detention. You get it. It’s a lot of paper for one load. So how can owner-operators manage all that paperwork, submit your invoices while calling to find the next load or driving to the next pickup?

The freight invoice process can be frustrating for any transportation company. But there’s a solution: freight bill factoring. Investing in invoice factoring services can help make your trucking business more efficient and improve operations for your entire business. Here are just a few ways transportation factoring companies can improve efficiency.

Quick funding and approval process

Invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 30 to 90 days into immediate cash for your small business. If your transportation company has a sudden change that could cause cash flow problems, freight bill factoring can provide income in as little as 24-48 hours. Getting approved for invoice factoring is a relatively fast process that can be completed in as little as 2 to 3 business days. If you just started your trucking company or you have bad credit or no credit history, invoice factoring for truckers might be the right solution for you.

Money to grow your trucking business

As mentioned, invoice factoring services are intended to provide immediate cash flow to your business. According to the Federal Motor Carrier Safety Administration, approximately 5.9 million commercial motor vehicle drivers operate in the United State. Depending on the size of your company, this cash flow can help you meet your daily expenses and expand your business: new truck, more drivers, etc. Keep in mind that nearly 60 percent of invoices are paid late. Without these types of services available, your business growth could be limited or even stay stagnant as a result of cash flow problems.

Invoice factoring is a service, not just money

It’s important to look at freight bill factoring as more than just immediate money. Most invoice factoring companies charge a small percentage of the total invoice as their fee. But when you sign up with a factoring company, they take over the invoicing and collections for you.  Be sure and check to see which factoring companies do or do not charge a fee for invoicing.  There are many reputable factoring companies who do not charge an invoicing fee.

As a business owner, you’re getting more than just your money. You’re getting a back-office team to support your business growth. Remember that when you’re considering factoring or securing a line of credit or other types of financing to grow your business.

Taking the time to understand how these services can optimize efficiency, revenue, and growth for your transportation company is the key to making the right financial decisions. For more information about freight bill factoring, contact Triumph Business Capital.

 

2019 Guide to the Biggest Trucking Industry Events

2019 Guide to Trucking Industry Events

MARCH 5-8, 2019

The Work Truck Show, Green Truck Summit, and Fleet Technical Congress
Indianapolis, IN

The must-attend event for the work truck industry. North America’s largest work truck event is your once-a-year chance to see all of the newest industry products.

More info: worktruckshow.com

 

MARCH 10-13, 2019

TCA (Truckload Carriers Association) Annual Convention
Las Vegas, NV

The premier networking and education event in the truckload industry, TCA’s Annual Convention, will be held March 10-13, 2019 at the Wynn Las Vegas Resort in Las Vegas, NV.

More info: truckload.org/events/annual-convention

 

MARCH 18-21, 2019

American Trucking Association – TMC Annual Meeting & Transportation Technology Exhibition 2019
Atlanta, GA

The Technology & Maintenance Council (TMC) Annual Meeting & Transportation Technology Exhibition is home to trucking’s leading fleet professionals, vehicle manufacturers, and component suppliers. TMC is North America’s premier technical conference for trucking, and it’s an event you simply must attend to stay current on industry practices.

Deadline to register: February 15, 2019.
More info: tmcannual.trucking.org

 

MARCH 28-30, 2019

Mid-America Trucking Show (MATS)
Louisville, Kentucky

The Mid-America Trucking Show is the largest annual heavy-duty trucking event in the world. The industry comes together to see what’s happening in trucking. You will see what’s new in technology, learn from experts, connect with peers, and gain insight into current issues. The Mid-America Trucking Show hosts all major truck, diesel engine and trailer manufacturers and representatives from all facets of the trucking industry from all over the world.

Deadline to pre-register: Feb 28, 2019.
More info: truckingshow.com

 

APRIL 14-16, 2019

The National Private Truck Council – NPTC Annual Education Management Conference and Exhibition
Cincinnati, OH

NPTC’s Annual Conference and Exhibition is the marquee national private truck fleet event of the year! With over 1,250 attendees and 165 exhibitors.

Deadlines: Early bird from Jan 14-Feb 1.
More info: nptc.org

 

APRIL 15-17, 2019

National Association Fleet Administrators – NAFA 2019 Institute & Expo
Louisville, KY

I&E is the largest gathering of fleet professionals. Designed for both new and veteran fleet managers to get what they need to succeed. You will network with fleet professionals, experience the latest services and products, receive cutting-edge training that will improve your employer’s bottom line, and hear from prominent speakers.

Deadline: Early Bird by Jan 31, 2019 to save $200.
More info: nafainstitute.org

 

JULY 11-13, 2019

Truckers Jamboree
Walcott, Iowa

The Truckers Jamboree is hosted every year at the Iowa 80 Truckstop, I-80 Exit 284, Walcott, Iowa. Since its inception in 1979, the Truckers Jamboree has been celebrating America’s truckers. In 2018, over 42,000 people attended. This event is a great place to learn about trucking. The Truckers Jamboree features antique truck displays, over 175 exhibits, Iowa Pork Chop Cookout, live country music, fireworks and Trucker Olympics.

FREE Admission and FREE parking.
More info: iowa80truckstop.com/trucker-jamboree/

 

AUGUST 22-24, 2019

GATS – Great American Trucking Show
Dallas, TX

The Great American Trucking Show is an interactive and all-encompassing public convention of trucking professionals. More than 500 exhibitors meet at GATS, representing truck, trailer, engine, component and parts manufacturers, among many others. GATS exist to create an interactive, energizing environment entirely focused on trucking’s improvement.

FREE if you register online. $10 if you register onsite.
More info: truckshow.com

 

AUGUST 14-17, 2019

ATA National Truck Driving Championship
Pittsburgh, PA

The National Truck Driving Championships is a competition of professional truck drivers hosted each year by American Trucking Associations.

The NTDC and affiliated state TDCs are considered the one of the industry’s largest and most effective safety programs. Known to many as the “Super Bowl of Safety,” these annual competitions inspire tens of thousands of drivers to operate accident-free for the right to compete.

More info: trucking.org/Driving_Championships.aspx

 

SEPTEMBER 15-18, 2019

PeopleNet and TMW – In.sight User Conference
Houston, TX

Looking to get more out of your TMS? PeopleNet & TMW Systems bring you a user conference & transportation industry expo to give vision & clarity to drive performance throughout your operation.

Registration opens in the Spring

More info: insightuserconference.com

 

SEPTEMBER 22-26, 2019

Commercial Vehicle Safety Alliance Annual Conference and Exhibition
Biloxi, MS

The Alliance’s premier meeting, the CVSA Annual Conference and Exhibition, provides the opportunity for government officials, enforcement and industry to gather together to affect meaningful changes to the overall culture of transportation safety throughout Canada, Mexico and the United States.

Registration opens June 2, 2019.
More info: cvsa.org/eventpage/events/cvsa-annual-conference-and-exhibition

 

SEPTEMBER 30-OCTOBER 2, 2019

Women in Trucking
Dallas, TX

Join transportation, logistics, and supply chain peers at the Accelerate! Conference & Expo. Discover how gender diversity can have a positive impact on your career and your company’s success. Learn from 60+ Educational Sessions on critical transportation issues and trends, along with perspectives of women in the industry. Network with your peers, providers, and other key transportation stakeholders.

More info: womenintrucking.org/accelerate-conference

 

OCTOBER 5-9, 2019

MCE 2019, ATA Management Conference & Exhibition
San Diego, CA

The American Trucking Associations’ (ATA) Management Conference & Exhibition (MCE) brings together trucking executives from across the country for the one can’t-miss event of the year that highlights economic, regulatory, and business trends focused on driving the success of fleets today and in the future. Every year, more than 2,500 of trucking’s top decision-makers come to MCE.

More info: mce.trucking.org

 

OCTOBER 31-NOVEMBER 1, 2019

National Association of Small Trucking Companies Annual Conference
Nashville, TN

The NASTC’s Annual Conference is dedicated to helping small trucking companies control their costs through managed purchasing, analysis, consultation, and advocacy. The conference levels the competitive playing field, allowing member companies to grow, prosper, and remain a significant force in the transportation industry.

Registration begins February 1, 2019.
More info: nastc.com/nastc-the-national-association-of-small-trucking-companies/annual-conference-2019

Trucker Owner Operator Tips

7 Tips to Help You Thrive as a Trucking Owner-Operator in 2019

As a trucking owner-operator, you know that running a successful business requires you to wear many hats. You’ve got to be thinking about everything from gas mileage to depreciation to cash flow.

The new year is here, and that means this is a good time to look to the year ahead and think about what you can do to make it your most successful year yet. We’ve put together a list of seven tips that can help you thrive as an owner-operator in 2019.

#1: Manage Your Fuel Costs

Regardless of what your truck is carrying, one of your biggest expenses is fuel. The mistake that many owner-operators make is confusing the lowest pump price with the lowest fuel cost. They’re not the same thing.

The reason, as you know, is that you must pay state taxes on the fuel you use as you drive through the state. When you buy gas, the pump price includes the base price per gallon plus that state’s taxes.

To save money on fuel, look for the lowest base prices and plan your fuel purchases to take advantage of them.

#2: Support Your Rates

Creating a budget as an owner-operator means estimating both your fixed and variable costs. You may need to justify your rates to potential clients. For that reason, it’s important to understand the trends both in the trucking industry in general and in your niche in particular.

One thing that can help is getting a handle on fuel prices. The US Department of Energy has a fuel price tracker that you can find here. You can also back up your prices by knowing the going rates for specific lanes and any other influencers that may impact your pricing.

You may even be using tools that already give you this information. DAT, for example, provides for its subscribers the 90-day average on loads, so you have a baseline to go off of when negotiating.

#3: Focus on Fuel-Efficient Driving

There’s a lot of debate among owner-operators about the most efficient way to run a business. One frequent topic of discussion is speed. Is it more efficient to drive fewer hours at a higher speed, or are you better off with a lower speed?

When it comes to fuel efficiency, you’ll get more miles per gallon of fuel if you drive steadily at 60 mph than you would if you took more breaks and drove at 70 mph. For example, if you paid $3.00 per gallon for gas:

  1. Driving 10,000 miles at 70 mph would yield an mpg of 5 miles and you’d pay $72,000 for fuel; and
  2. Driving 10,000 miles at 60 mph would yield an mpg of 5.5 miles and you’d pay only $65,000 for fuel.

In other words, you’d keep $7,000 in your pocket that you would have spent on fuel just by driving at a slightly slower speed.

#4: Use the Right Strategy for Buying Trucks

Buying a truck requires understanding the vehicle’s performance, mileage, and other factors. While you can certainly buy a new truck, there are some things that you should keep in mind if you do – and some compelling reasons to consider a used truck instead.

Let’s start with mileage. If you’re talking to a salesperson, remember that it’s in their best interest to paint a rosy picture of the truck’s MPG. It’s your job to have a realistic view of MPG based on:

  1. The load you’re carrying
  2. Road conditions
  3. Engine power

You should be buying a truck based on its efficiency, power and reliability. Don’t allow yourself to get distracted by bells and whistles that add to the price of the truck and take money out of your pocket.

Keep in mind, too, that there are some real benefits to buying used trucks instead of new ones. You already know that buying a new vehicle means taking a big depreciation hit. When you buy used, the previous owner absorbs most of the depreciation.

Matt Douthit, the founder of truck driver career site CDL 101, recommends looking for a truck with about 200,000 miles on it. You should pull the Electronic Control Module (ECM) report to see how the truck has performed in the past.

Whether you buy used or new, it’s essential to do research. Ask other owner-operators about the truck you’re considering and learn as much as you can about its likely performance before you buy it. That way you’ll have the best possible chance of ending up with a truck that’s efficient, reliable – and most importantly – profitable.

#5: Take Advantage of Downtime to Service Your Truck

Trucks require routine maintenance, and one of the biggest mistakes that owner-operators make is waiting until something is wrong before taking their rig into the shop. It’s inevitable that you’ll have some downtime in 2019. Those quiet periods are the ideal time to have your truck checked out and take care of needed repairs and maintenance.

You can also use your downtime to take care of other routine duties like creating and mailing invoices, calling on past due accounts, and tracking your company’s financial progress.

#6: Work Directly with Shippers When Possible

You probably have a list of brokers you work with, but if you’re not working with shippers directly, then you’re missing out on a money-making opportunity. If you can land a few direct clients, you can charge them a price that’s similar to what a broker would charge but keep the entire fee for yourself instead of paying a commission.

It will require a bit of strategic marketing to connect with direct shipping clients, but it can make a big difference in your net profit. It can be especially beneficial to connect with direct shippers if you specialize in a particular niche or type of load, since you’ll have less competition than you would otherwise.

#7: Set Yourself Apart from Other Owner-Operators

Our final piece of advice is to find a way to differentiate yourself from other owner-operators. For example, you might:

  1. Own a specialty trailer that’s only used for specific types of loads
  2. Have experience with handling hazardous or niche loads
  3. Hold special permits that allow you to do work that other owner-operators can’t

If any of these things apply to you, then you can use them to your advantage by seeking jobs that other owner-operators can’t accept. And, if they don’t apply to you, there’s an opportunity to spend part of 2019 doing what you can to buy new equipment, get some continuing education or acquire a specialty permit.

2019 Can Be Your Best Year Yet as a Trucking Owner-Operator

The seven tips we’ve outlined here can help make 2019 your most profitable and successful year to date as an owner-operator.

At Triumph Business Capital, we help thousands of owner-operators with their cash flow every single day. Our team of back office professionals helps support your trucking business by creating and mailing invoices, calling and collection on past due invoices, and giving you the tools to better track your company’s financial progress.

If you’re stuck waiting 30-plus days to get paid and looking for a team to support your business growth, contact Triumph Business Capital today.

Freight bill factoring

Triumph Business Capital’s Complete Guide to Freight Bill Factoring

Is cash flow an issue for your trucking business? If so, you should consider freight bill factoring. You need funds to pay expenses and grow your business, and you can’t always afford to wait 30, 60, or even 90 days for customers to pay. Fortunately, invoice factoring can help bridge the gap between when you dropped off a load, and when you get paid for it.  

To give you a better understanding of freight bill factoring, we’re breaking down everything you need to know, from the application process to the benefits and more. 

What is freight bill factoring? 

Freight bill factoring (also known as trucking factoring) is an accounts receivable financing solution that helps trucking company owners improve their cash flow. Essentially, you sell your invoices to a third-party factoring company and quickly receive your funds back (minus a small factoring fee) for your load, so you’re able to use it for day-to-day operations. With freight bill factoring, trucking companies can immediately access funds from slow-paying freight bills.  

Freight bill factoring is not a business loan. Instead, it’s a form of invoice factoring. Invoice factoring is both a short-term and long-term solution, and it’s a popular option for cash flow management. It’s an advance based on your invoices. With this advance, you’re able to pay your bills and expand your operations without borrowing funds or taking on new debt.  

How does freight bill factoring work? 

While trucking factoring involves a particular process, it’s actually very quick and simple. First, you’ll deliver your load as usual. After that, you’ll send a copy of your invoice to a factoring service after you confirm that you’ve delivered the load. If the invoice is approved, the factoring company will deposit money directly into your bank account in as little as 24 hours. After you receive payment, the factoring company will work with your client for payment.  

Before deciding on an agreement, it’s important to remember that there are different types of factoring programs with different terms and expectations. Make sure you ask about some of the benefits of each program, and how it might affect your business before signing.    

Non-recourse factoring ensures that even if your customers are slow to pay, you’ll be able to fill any cash flow gaps. This is because the factoring company assumes responsibility and protects your business from customer insolvency. That means if your customer goes bankrupt, the factoring company will not attempt to collect those unpaid invoices from you.   

While non-recourse factoring is a great option for small, independent owner-operators, larger companies will typically use recourse factoring because of their potential reserves to get them through any delays in payment. In a recourse agreement, the factoring company does not offer the same protection in the event your customer goes bankrupt. For that reason, recourse agreements tend to be less expensive, in terms of rate, because the trucking company is assuming the risk of nonpayment from insolvency. 

Recourse factoring is a great option if you know your customers will pay in a timely manner.  

Recourse and non-recourse factoring have their similarities and differences, so carefully decide which type of factoring will benefit your company. 

Invoice factoring helps with fuel advances and fuel cards 

While you’re on the road, you may need additional cash to cover costs. This is why, when business owners look for factoring companies, they often search for those that offer fuel advances and discount fuel cards. Once you pick up a load, you can receive money to pay for fuel and other expenses. If you want a fuel advance, all you need to do is send a request that includes rate confirmation and a bill of lading. Once the request is approved, you’ll receive the advance in as fast as one hour. 

When a factoring company provides you with a fuel advance, you won’t have to worry about negotiating an advance from a broker or shipper. This way, you can keep your trucks on the road and take on more loads with a predictable amount of money, even if you’re low on funds at first. When you begin to work with a factoring company, you’ll also be eligible for the fuel card program. A card gives drivers fuel rebates at major truck stop pumps across the country.  

Some invoice factoring will even let you split your payment across different payment methods. Say you were paid $1,000 for a load. You can choose to get paid $500 to your fuel card and have the other $500 go to your bank account. A fuel card also gives you the flexibility of transferring to a single or multiple bank accounts.   

Who can benefit from freight bill factoring? 

At times, companies must wait a while for brokers and shippers to pay. Meanwhile, those companies also need to pay for drivers, fuel, repairs, and other expenses as they wait. Freight factoring services are an ideal solution. It’s a convenient, flexible option for trucking companies of all sizes. However, factoring is especially beneficial for startup companies that lack large cash reserves.  

Whether you need to cover payroll, hire new drivers, or expand your fleet of trucks, payments from freight bill factoring are ideal. Also, if you need to improve your business credit, factoring is a great way to do so. You can quickly get paid for jobs, allowing you to pay off loans and pay your bills on time. 

In addition, if you want to focus on your business and take on additional projects, you should consider factoring. Triumph offers free back office support and collections, so you can turn your attention to booking loads and hauling freight. 

What are some of the benefits of factoring? 

  • The invoice factoring process may be cheaper than traditional loan interest rates. Furthermore, while a cash advance loan may be convenient for your business in the short term, it may not solve your working capital needs over time or grow with you as your business grows.  
  • There are options for every company’s requirements. There are invoice factoring agreements that have no-minimums, which means you can factor as little or as much as you want.  
  • You qualify for factoring based on your customers’ credit, not your own. This means that even if you don’t qualify for a loan, you may still qualify for invoice factoring. 
  • Some companies (like Triumph Business Capital) don’t require long-term contracts; you can factor on a month-to-month basis. But if factoring works for your business, you’re able to continue with it.  
  • You get a team of back office professionals who will support your trucking company with its invoices, help run credit checks on brokers and collect payments.  

How do I qualify for freight bill factoring? 

Whether you own a small or large fleet, your trucking business can qualify for invoice factoring. The qualification process is mostly about your customers; if their credit is strong, you’ll likely qualify. 

For more information regarding freight factoring services, contact Triumph’s experienced team of professionals. We’re a preferred partner, and a proud member of the International Factoring Association. We always make sure carriers receive payment on time, and we’ll positively maintain your relationships with your customers. Give us a call today!

freight factoring

Freight Factoring 101: How Does Freight Factoring Work?

Owning and managing a freight company isn’t easy. In the course of the day, you may wear many different hats: owner, manager, accountant, marketer, and human resources manager, to name a few. And when you’re juggling so many things, it’s easy to let something important slip through the cracks.

That’s where freight factoring comes in. It’s a financial service that helps streamline cash flow, leaving you free to handle other aspects of your business. But how does freight factoring work? Is it right for your company? Here’s what you need to know.

How Freight Factoring Works

Freight factoring, which is also sometimes called transportation factoring or trucking factoring, may be able to help you get a handle on your business finances and credit. Here’s a quick overview of how freight factoring works.

  1. You submit a factoring application. Once approved, we will issue a factoring agreement that lays out the specifics of your factoring contract, including your fees.
  2. We determine the creditworthiness of your customers and approve those that we will factor.
  3. You send us invoices to be factored. We advance you a percentage of the invoice’s value and work with your client to collect the amount owed.
  4. Your dedicated account executive will make collection calls as needed to collect your outstanding invoices.
  5. When the invoice is paid, we deduct our factoring fee, and return any reserves back to you.

The trucking factoring process is very simple. It’s designed to streamline cash flow for transportation companies, allowing them to pay their expenses and grow their businesses.

Are Back Office Solutions Part of Transportation Factoring?

One of the things that you may not know about freight factoring is that factoring companies offer additional back office services. It’s not just a cash advance product. For example, at Triumph Business Capital, we offer:

  1. Credit checks (including online credit checks)
  2. Invoicing and collections services
  3. Online reporting
  4. Data storage
  5. Fuel discounts
  6. Fuel advances
  7. Free trial to DAT load boards

We have worked with over 20,000 carriers, freight brokers and shippers. We understand the specific challenges associated with operating a trucking company, and we’re here to help.

Is Freight Factoring Right for Your Company?

We work with potential clients to see if freight factoring is right for them. When deciding if freight factoring is right for your business, you should start by asking yourself these questions:

  1. Do my customers take a long time to pay me?
  2. Is a lack of cash flow negatively impacting my ability to grow my business?
  3. Are slow paying customers impacting my ability to pay my vendors on time?
  4. Do I have issues related to my customers’ creditworthiness?
  5. Do I know the broker/shipper will pay me before I take a load?
  6. Am I spending valuable time making collection calls?

If you answered ‘yes’ to any of these questions, then there’s a good chance that factoring some or all of your invoices can help. Your time is valuable. By taking advantage of what factoring can offer in terms of cash flow and back office services, you can spend more time servicing your customers and expanding your business.

Conclusion

Factoring for the transportation industry is a specialized service that is designed to help owner-operators like you maximize their cash flow, reduce delinquencies and grow their businesses. To learn about our factoring services for transportation companies, contact us today for a free assessment.

invoice factoring seasonal

3 Ways Invoice Factoring Helps Businesses Over the Holidays

The holiday season is here, bringing days of celebration and fun. But, for many small business owners in the United States, it also brings some anxiety. How will they keep up with increased holiday orders, pay for inventory, and keep their businesses afloat?  

According to the Small Business Administration, there are more than 30 million small businesses in the US as of 2018. As a small business owner, you may struggle with a range of issues at the holidays. Here are three ways that invoice factoring can help you have the holiday season you deserve.  

#1: Providing Cash Flow

At Triumph Business Capital, one of our top concerns at the holidays is giving our clients access to the cash flow they need. Your sales may double or even triple at this time of year. To meet the increased demand for your products, you need cash on hand to pay for raw materials, inventory and maybe even employee overtime. 

Because we can advance money against your unpaid invoices, invoice factoring can keep the money flowing so you can keep up with those holiday orders. You won’t need to wait weeks (or even longer) to be paid. Each sale you make becomes part of a steady stream of cash that you can use. 

#2: Checking Customer Credit

For some small business owners, any order is a good order. But, at the holidays, it’s not uncommon for a big invoice to turn into a huge headache when it proves to be uncollectable when the season ends. And, in some cases, the headache of a collection problem can be warded off by simply checking the customer’s credit before you process their order.  

At Triumph Business Capital, our experienced account executives can review a potential customer’s credit for you. Or, you can use our online credit check to check it yourself. If a company has a history of serious delinquency, you can decide not to sell to them – or to sell only on a cash basis to avoid collection issues down the line. 

#3: Speeding up Collection of Invoices

Collecting invoices can be a time-consuming and frustrating process for business owners. At the holidays, it can be doubly difficult. It’s hard not to feel like a Grinch when you’re calling to collect money in the middle of the holiday season. 

Factoring your invoices gives you access to back office solutions that include professional collection services. At Triumph Business Capital, our professional account executives and their teams will make courteous and timely collection calls on your past due accounts. That way, you can focus on making holiday sales while we handle the rest. 

Conclusion 

The holiday season should be a time when you can focus on making sales and reaping the rewards of the hard work you’ve done all year. Factoring your invoices allows you to do that with the cash flow and additional services you need. 

Ready to find out how Triumph Business Capital can help your small business during the holiday season? Click here to learn more! 

 

invoice factoring

New to Invoice Factoring? Avoid These Common Mistakes

It’s been estimated that if all invoices were paid on time, U.S. small businesses could collectively hire 2.1 million more employees, which would reduce unemployment by 27 percent. That’s just one reason why more and more businesses are working with invoice and freight bill factoring services. But before you decide whether this service is right for your financial needs, it’s important to understand the process to avoid making some common mistakes.

Not reading over your invoice factoring services contract thoroughly. 

This is a mistake that can lead to discrepancies and overall dissatisfaction. But as is the case with any number of financial services, everything you need to know is clearly laid out in the contract — you just need to take the time to read every word. Otherwise, don’t be surprised if you incur additional fees or other consequences you weren’t aware of. Read every word and have a clear understanding of your contract before making it official with your signature.

Not being upfront with your clients about working with a factoring company

Most clients will have no problem working with a business that uses invoice and freight bill factoring services. After all, it shouldn’t affect any part of the quality of service they receive. You don’t want to keep them in the dark, especially because a factoring company representative will be contacting them about invoices and collections. Simply let them know that a third party will be handling your invoices and collections processes moving forward. You may even be able to provide better and faster service to your clients because you’ve outsourced these time-consuming tasks to another company.

Not considering invoice factoring as a solution to your cash flow problems

Small businesses (defined as businesses with fewer than 500 employees) account for 99.7% of all business in the United States. If your business is one of them, and you frequently have trouble getting your clients to pay their invoices on time, invoice factoring should be among the services you consider.

According to a U.S. Bank study, 82% of businesses that fail do so because of cash flow problems, and invoice factoring is one of the most efficient ways to get immediate and ongoing cash flow for your business without incurring debt.

Ultimately, avoiding these mistakes is the best way to optimize your business’s finances and cash flow. For more information about business invoice factoring, contact Triumph Business Capital.

invoice factoring benefits

Is Invoice Factoring Right For Your Business? Consider these three benefits.

Invoice factoring is a type of accounts receivable financing that converts outstanding invoices into immediate cash for your small business. There are many different types of invoice factoring, from small business factoring to trucking factoring services. Before you determine whether or not your business could benefit from factoring, it’s important to know the potential benefits to your business. Here are just a few pros and cons to consider when determining whether invoice factoring is right for your business.

1. Immediate cash flow to your business

The main goal of invoice factoring services is to provide immediate cash and income for your business. Nearly 60 percent of invoices are paid late, and without the proper cash flow, your business can seriously suffer to the point of closure. In fact, according to a U.S. Bank study, 82 percent of businesses that fail do so because of cash flow problems. Invoice funding companies can help you avoid falling behind on your expenses by paying you for the work you’ve already completed.

2. More than just a financial solution

Unlike other financing options, invoice factoring provides more than just financial relief. When you work with a factoring company, you also get a team of professionals that provide additional services that support your business. Some of these include: invoicing and collections services, free credit checks, reporting tools and online customer portals with 24/7 access.

So when considering a working capital solution, remember to look at more than just the fees. You need to weigh the potential savings of time and money that working with an invoice factoring company can provide you with their suite of back office services.
invoices paid late small business

3. Flexible cash flow solution

For many businesses, cash flow problems can be a short-term issue. Invoice factoring can help bridge the gaps caused by seasonal lulls or other unforeseen changes in your income.

Most invoice factoring companies offer different programs with different terms and contract lengths depending on your business’ needs. You can go month-to-month or sign up for a full year; some programs even let you pick which invoices you want to factor.

And because invoice factoring is not a loan, you’re not saddled with debt like you would incur with a line of credit.

Consider invoice factoring for your working capital needs

There are no shortage of small business funding options available to companies looking to boost their cash flow. Triumph Business Capital works with thousands of businesses every day by providing the funding and back office support they need to maintain and grow their businesses.

Ultimately, considering these pros and cons is the best way to determine whether or not invoice factoring is right for your business. For more information about invoice factoring services, contact Triumph Business Capital.

invoice funding

Have Bad Credit? Here’s How to Get Small Business Funding

We’ve discussed in recent posts how invoice factoring works: it’s a type of accounts receivable financing solution that converts outstanding invoices due within 90 days into immediate cash for your small business. And while many business owners assume that they need good credit to qualify for funding for their business, invoice factoring services can provide a unique and simple cash flow solution, even if you don’t have perfect credit. Here’s what you need to know about getting funding for your small business, even with a not-so-great credit history:

Have Bad Credit?

It can be incredibly tough for business owners with bad credit — or lack of credit — to gain traction, especially as they’re trying to get their businesses off the ground. Keep in mind that small businesses (defined as businesses with fewer than 500 employees) account for almost all business in the United States. Invoice factoring, for many types of small businesses, can help ensure adequate funding while they continue to grow their businesses.

Can Invoice Factoring Services Help Build Credit?

In short, yes. The Wall Street Journal reports that, “The factor advances most of the invoice amount — usually 70% to 90% — after checking out the credit-worthiness of the billed customer. When the bill is paid, the factor remits the balance.”

To be clear, building credit and establishing a higher score certainly takes time, but invoice factoring services can help build your credit. For example, by partnering with an invoice factoring company, you can pay down existing debts with the immediate cash flow, and you can also pay vendors and other expenses on time.

Plus, many invoice funding companies offer additional financial services, such as free credit checks, free background checks, online reporting with 24-hour access, invoice management and collections and more. Together, these comprehensive solutions can help you get your small business up and running regardless of your credit score.

As a business owner, you need to be proactive in improving your credit score. Working with an invoice factoring company can prevent you from falling behind by giving you immediate cash for work you’ve completed. That means on-time payments, which can, over time, lead to better credit.

Understanding how to establish credit for your business is the key to maximizing potential and growth. For more information about business factoring companies, contact Triumph Business Capital.

freight bill factoring

These Common Freight Factoring Mistakes Could Really Cost You

Invoice factoring is a type of accounts receivable financing that can help small businesses avoid wait times of up to 90-plus days for customer payments. And while it’s ideal for countless types of small businesses across many industry sectors, it’s particularly popular for freight and trucking companies. Nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network, and freight factoring services can help an owner-operator or freight broker’s day-to-day business operations in more ways than one. But before you choose a freight factoring company, it’s important to be aware of some common mistakes. Don’t let these mistakes affect your freight factoring decisions.

Not choosing the right type of factoring.

You may not be aware that there are two main different types of factoring: recourse and non-recourse factoring. The key difference between recourse and non-recourse is the amount of risk you’re willing to take on and how likely your clients are to pay.

In a non-recourse agreement, the factoring company takes on the risk and offers credit protection to you when your client fails to pay because they filed for bankruptcy. If you select non-recourse, you’ll have that added peace of mind if one of your clients goes out of business.

Recourse factoring, on the other hand, still provides the same factoring services but does not provide the protection to you in the event that a client goes bankrupt. That means, you’d still be financially and legally responsible for paying the amount back to the factoring company that was advanced to you. For this reason, recourse factoring fees tend to be less than in a non-recourse contract.

The decision between recourse and non-recourse comes down to your personal level of risk and trust that you have that your clients are going to pay on time.

Not choosing the right factoring company.

Choosing the wrong freight factoring services could cause more problems than it solves. According to the Federal Motor Carrier Safety Administration, approximately 5.9 million commercial motor vehicle drivers operate in the United States, and if the company you choose is inefficient or charges too much, you could just be digging yourself into a deeper hole. Make sure to consider all invoice funding companies, and ensure reputability in as many ways as possible. Getting a referral from another company or owner operator is another good way to find the right factoring company.

Some questions to ask:

  • How long has the company been in business?
  • Do they offer recourse and non-recourse contracts?
  • Do I need to factor all of my invoices or can I select which ones I submit?
  • Are there monthly minimums?
  • Can I go month-to-month or do I have to sign up for long-term agreements right away?

If invoice factoring sounds like the right solution for your business, contact Triumph Business Capital today to speak to one of our representatives about our freight invoice factoring services.

invoice financing, invoice funding

5 Mistakes That Invoice Funding Company Clients Should Avoid

Invoice factoring can go by many names: invoice financing, invoice funding and accounts receivable financing. Different names, but they all help small businesses receive the funds they need without waiting 30, 60 or 90 days to get paid from their customer.

In many cases, invoice factoring services can provide funding in as little as 24-48 hours. Thousands of businesses turn to invoice factoring companies, in large part, because of how easy it is to apply and get approved. But that doesn’t mean that a small business owner should just choose the first factoring company that pops up on a Google search. While most factoring companies offer the same basic service, there can be significant differences in the terms and cost. It’s important to avoid pitfalls that can leave you in a long-term, expensive contract.

Here are the most common mistakes your business should avoid when selecting and working with an invoice factoring company.

1. Not staying organized from the start

It’s important to submit error-free, easy-to-read paperwork. To do that, you have to stay organized. Include every expense as well as an explanation of each charge in your invoices, and proofread everything before sending the documents off. Sending duplicate invoices, sending them to the wrong place or department, or not sending them at all can quickly lead to larger problems down the road, such as becoming unqualified in the application process.

Businesses become, well, busy, so you don’t want to trust yourself to send an invoice later. All too often, waiting leads to forgetting. Keeping track of which documents you need to send and where they should go will save you a headache. Plus, it saves time for both you and the invoice factoring company. Don’t waste time by neglecting applications or filling them out haphazardly. Simply be sure you submit clear paperwork to avoid extra work or additional charges. Here’s a good rule of thumb: send invoices the moment you complete or deliver a project.

Your invoice factoring company will also work with you and provide you resources to help you submit clear and easy-to-read documentation. Remember — if your invoice factoring company can’t read your invoice, it can’t be processed, and you won’t get paid until the paperwork issue is resolved.

2. Failing to familiarize yourself with the factoring company

Borrowers should understand exactly what they’ve agreed to with their factors. What’s the contract length? What does the fine print say? Are there any additional fees your business should know about?

Beware of glossing over any of this information. You should thoroughly read your contract. It might look confusing if you’re not familiar with formal industry terms, but you need to make sure the proposal and the agreement match. You’re still going to be held responsible for everything in the agreement, whether you understand its terms or not. While a commercial factoring company should generally avoid ambiguous language, they should also be happy to explain their policies if you have any questions.

3. Withholding important information

Invoice factoring is a popular choice for businesses because of how quickly you can get signed up and approved. But the best way to guarantee a fast response is to be thorough and honest on your application. If you’re in a hurry, it’s easy to leave sections of your application blank or, worse, submit misinformation.

From the start, factoring companies need to assess your business. In order for them to provide you with the best possible quote, you need to provide them with a complete, detailed application. Failing to include information on your application can delay approval or it can be denied all together.

Be upfront about any previous bankruptcies or tax liens. They won’t automatically disqualify you, but they will come up on a routine credit check, so save time by letting the factoring company know what to expect.

4. Not using technology to speed up the process

Most factoring companies don’t require the original documents to issue payment. That means that your mobile device is probably one of the most important tools you have in getting funded quickly. If you’re away from your desk or on the road, you can easily snap photos of your documents and email them or load them to your factoring company’s client portal. This can help cut down on the delay between submission and funding.

Be sure to ask your factoring company what other technological resources they have to help you better manage your fundings and overall finances. Many provide reporting tools and other alerts and notifications that provide real-time status updates on your paperwork and payments.

5. Limiting your earning potential

Like most businesses, invoice factoring companies benefit from client referrals, and many will even compensate you for them. So just by submitting client referrals, you can gain some extra cash when a new client is funded.

The payment structure and schedule depend on the volume of business you’re referring, so ask your factoring company what type of programs they have for client referrals. With client referrals, you can boost your bottom line, while using invoice factoring to meet your monthly expenses.

Invoice factoring helps you build financial health

While invoice financing can help boost your cash flow, it’s important to remember that it’s one part of a coordinated strategy to maintain your business operations.

Working with an experienced company ensures that the invoice factoring process goes smoothly. Founded in 2004, Triumph Business Capital can help your business manage its capital. Over the years, our invoice funding company has helped over 7,000 small and mid-size businesses with their financial needs.

Freight, trucking, oil and gas, and business factoring services are simply a few of our offerings. If you need to remedy your business’ cash flow issues, we make the process easy. Our team can help you get the cash advances you need on your invoices. Choose us as your commercial factoring company—call today at 866-368-2482, and let us be your partner.

small business factoring

The Advantages of Small Business Factoring

Making it as a small business isn’t easy, no matter your industry. Rarely, can small businesses survive waiting 30+ days for payment, especially when their vendors are calling for their payment.

If you find yourself struggling to manage payroll, rent and other overhead costs while waiting for payment, you have options. Read on to learn about the advantages of small business factoring and find out what it can do for your company.

Get the funds you need immediately

Corporations enjoy constant streams of revenue and vast reserves of capital, so they can generally afford to wait 60 or 90 days for customer payments. That’s a luxury small business owners often can’t afford. An unexpected expense or a poor sales month can make covering your immediate costs difficult or even impossible. Your invoices might have the necessary funds to maintain positive cash flow, but what good is that if you won’t see the money for three months?

That’s where working with a factoring company can provide relief. When you send an invoice to a business factoring company, they’ll provide you with those funds trapped in your invoices, minus the discount of the factoring service . You’ll typically receive your funds within 24 to 48 hours. From there, you can make whatever payments are necessary to keep your small business on the right track. Plus, the invoice factoring company will handle all the paperwork and collections necessary, which means you’ve got one less headache to deal with.

A great option for startups

If your company just got off the ground, you may need cash a little sooner than your customers will be paying up. Without funds from past work, it can feel like you just have to constantly scrape by.

Unanticipated costs might threaten to destabilize your operation before it’s truly begun. Alternatively, you may encounter chances to expand your business and bring in new customers, only to realize you can’t take advantage of these opportunities because your bank account is empty.

Fortunately, a business factoring service can get the cash from your invoices immediately, giving you the funds you need to cover your initial expenses or expand your services. This allows you to get your company on its feet sooner—and you won’t have to saddle yourself with an early loan.

Smarter than a loan

If you’re new to factoring, you may be thinking to yourself, “Why shouldn’t I just get a loan instead?” That’s a good question. In fact, there are two reasons to choose small business factoring over a loan.

The first of these is your credit worthiness. If you don’t have a strong credit history, you may not be able to secure a loan. Even if you do obtain it, the high interest rate will cost you a great deal over time. Should your company go under, your obligation to repay the loan won’t disappear, and you could find yourself in a truly disastrous financial situation.

Second, you don’t pay business factoring companies directly. They instead examine your customers’ credit history to assess the risk of taking on your invoices. Generally, you won’t be turned away because of your past, and you won’t have to take on loans with large interest rates to keep your operations stable.

Even if you do have sufficient credit for a loan, you’ll have to deal with the associated debt and interest rates potentially for years to come. This can be a stressful experience, as well as an expensive one. Plus, taking a loan to stay afloat is a risky venture. If you’re already in a tight situation and trying to address an immediate need, tying yourself to potentially years of repayments may not be the best idea for your business.

Invoice factoring, meanwhile, provides flexibility for small businesses. Depending on your agreement, you can sign up for as little as one month, six months or a year. Because factoring companies offer funding based on your invoices, your risk of owing a large balance at the end of your contract decreases dramatically.

Reduce your risks with factoring

Regardless of what solution you ultimately choose for your business, it’s important to understand the differences, and the overall costs and benefits of each. If a customer doesn’t pay, you may have to repay the business factoring company the amount they advanced you for that invoice. However, there are a few elements that can lessen the potential risk.

First, as mentioned above, the factoring company will investigate your customers’ credit history before agreeing to do business with you. This means that, if you decide to factor your invoices, you can be confident that the factoring company has evaluated the likelihood of getting paid on time. If your regular customers are large, reputable corporations or federal or state governments, you probably don’t have much to worry about.

In other situations, it may be best to invest in non-recourse factoring. When you choose this option, the factoring company takes on more risk on your behalf. The actual terms of the agreement vary. Some companies will only let you off the hook if your customer declares bankruptcy. It’s always important to ask these questions when choosing the right factoring company for your business.

Factoring companies help thousands of businesses get the immediate funding they need. Before choosing a traditional bank loan or working with an invoice factoring company, you should do your research on what makes the most sense for your unique business situation.

Triumph Business Capital specializes in factoring, and we offer business factoring services tailored specifically to small businesses. We’ll work with you to find the best solutions that put cash in your hands, and we take on all the risk when you choose our non-recourse factoring option. With over a hundred experts on staff, we’ve got the knowledge and experience it takes to help small businesses optimize their cash flows. Give us a call today, and let us work with you to set your enterprise up for financial success.

invoice factoring myths

Don’t Fall for These Myths About Business Invoice Factoring

There are nearly 28 million small businesses in the U.S., and in today’s uncertain economic climate, many small businesses struggle to stay afloat as a result of insufficient funds. In fact, according to a U.S. Bank study, 82 percent of businesses that fail do so because of cash flow problems.

For many small businesses, however, invoice factoring can be a viable solution to their cash flow issues. Invoice factoring is a type of accounts receivable financing that converts outstanding invoices into immediate cash for your small business. Before choosing the right invoice factoring service for your business, it’s important to understand the facts. It’s also important to clear up the potential misconceptions about invoice factoring. Here are just a few invoice factoring myths you shouldn’t believe.

Myth 1: Business factoring services are expensive.

The most common misconception about invoice factoring services is – no surprise – related to the cost. Most charge a small percentage of the invoice total to provide your business with the immediate cash flow it needs to help meet your day-to-day expenses.

The reality is that no business can survive for long without a consistent stream of income.

Recent research suggests that nearly 60 percent of all invoices are paid late. Invoice factoring ensures that you’re not waiting for your money or wasting your time chasing down slow-paying clients.

Invoice factoring companies also provide additional services as part of your fee. These services – invoice creation and submission, collections, credit checks on your future clients — can be invaluable resources to busy small business owners who are wearing too many hats. Invoice factoring companies provide a team of back office professionals that keep your paperwork in check and make sure that you’re getting funded on the work you’ve completed.

When considering working capital solutions for your business’s cash flow issues, it’s important to keep in mind the additional benefits included in the factoring services and calculate the overall benefit to your business. Outsourcing your invoicing and collections processes can lead to savings in time and money, allowing you to dedicate more resources to growing your business.

Of course, the exact fee and costs associated with factoring depends on your specific business situation.

Myth 2: My customers will look negatively upon invoice factoring.

Some people think that businesses using invoice factoring might be having financial issues or may not be seen as dependable vendors. More than that, some business owners worry that a third party provider contacting your clients to follow up on payment may be seen as more of a collections service rather than an extension of your accounts receivable department.

But the reality is that thousands and thousands of businesses use this form of accounts receivable financing for their small business funding. Increasingly, invoice factoring is becoming more common across industries, as companies look to streamline their account receivables process.

Some providers can even provide a white label service in order to make it appear as though invoices are sent to and from your business instead of a third party.

Myth 3: Invoice factoring companies won’t work with businesses that aren’t ‘established.’

Whether you just started a company, or you’ve been in business for a long time, if you have an invoice, you can take advantage of business factoring services.

The reality is that most startups don’t have enough credit to qualify for traditional loans and financing. Conversely, invoice factoring looks at the credit history of your clients when deciding to purchase your outstanding invoices.

Finally, it’s important to note that all types of small- and medium-sized businesses can take advantage of invoice factoring services. Also, invoice factoring companies consider a wide range of criteria when reviewing your application and accounts receivables.

The best way to know if factoring is a great short- or long-term fit for your business is to be as straightforward and direct about your financial history and situation as possible.

Myth 4: All invoice factoring companies are the same.

It’s easy to assume that all invoice factoring companies offer the same services, charge the same rates and have the same contract terms. But in selecting a factoring company, it’s important to remember that there can be significant differences among providers.

For instance, depending on your agreement, many factoring companies require you to submit all of your invoices for funding and maintain monthly minimums (or be charged a fee). Not all factoring companies have these policies, so it’s important to ask and to read and then reread your contract to understand what you’re agreeing to and for how long.

Ultimately, it’s important to understand the facts about the services provided by an invoice factoring provider and the services that they provide before you decide on a working capital solution. If you’re ready to move forward or have questions about invoice factoring, contact Triumph Business Capital today for a free rate quote.

 

 

guide to freight factoring

Comprehensive Guide to Freight Invoice Factoring

When you’re on the road, you need to make sure you can afford to maintain your truck as well as your business. Cash flow is critical to truckers and trucking companies, which is why we have a solution —freight factoring services.

What exactly is freight factoring?

Freight invoice factoring allows trucking companies of all sizes to immediately receive cash from unpaid invoices. With money in hand, companies can pay for materials, employees and overhead costs. While invoice factoring used to be uncommon, it’s quickly become one of the most popular funding methods for trucking companies.

Trucking companies can choose from two types of factoring services —recourse and non-recourse factoring. While many companies offer both, there’s a significant difference between them.

  • Non-recourse factoring— Non-recourse factoring contracts protect you in the event that your clients don’t pay the factoring company. If your customers fail to pay their bills, you won’t be held financially responsible. In a non-recourse agreement, the invoice factoring company assumes the risk. The fees will generally be higher for non-recourse factoring, but it’s the better choice for trucking companies that cannot afford to take the risk if a debtor goes out of business.
  • Recourse factoring— In a recourse factoring arrangement, your company is ultimately responsible if the debtor does not pay the invoice. The fees associated with a recourse factoring contract are often less because you are sharing in the risk if the debtor fails to pay. To minimize the risk of non-payment from your customers, the invoice factoring company provides credit checks on your debtors (clients), allowing you to make better informed decisions prior to taking the load.

The process of freight factoring

The first step is easy, and you’re already doing it: deliver your load as you normally would. Then, you need to submit a copy of your freight bill, frequently referred to as a BOL (bill of lading), to an invoice factoring company. Most invoice factoring companies accept paperwork by email or FAX.

The best invoice factoring companies also offer the ability to upload paperwork through a web portal. Once received, the factoring company verifies the invoices and works with your customers to collect payment. You receive your money — typically same day — once the factoring company verifies that the load was delivered and to check to see if any fuel advances were taken. If you are on a recourse program, you will receive the agreed upon advance rate within 24 hours from the day the BOL was submitted. Finally, once the invoice is paid by your client, the reserve is released minus your factoring fee.

The benefits of freight factoring

What makes freight invoice factoring appealing is its many advantages over other financial solutions. Factoring is a great financing option because:

  • It’s easy to receive financing—Traditional loans and other long-term financing solutions are often harder to get. If you don’t have the best credit, invoice factoring might be the most viable option for you. Your customers are paying the invoice factoring company, so your customer’s credit is typically more relevant than yours.
  • Speeds up your operating cash flow—It’s no secret that carriers need to be paid, and they need to be paid what customers owe them. Unfortunately, this can take anywhere between 30 and 90 days. Invoice factoring allows freight brokers to provide advances to trucking companies on the same day. With all the work you’re doing, there’s no reason why there should be a waiting period standing between you and your hard-earned money. In addition to freight factoring services, you may even receive complimentary offerings, such as tire discounts or a fuel discount card from the factoring company with negotiated discounts at many participating retailers.
  • You’ll have money to spend on growing your business— Usually, it’s more difficult to take on more jobs if cash flow is tight, but freight invoice factoring alleviates this issue. It’ll be much easier to meet growing demand because you’ll be able to use the cash to hire more drivers or for other day-to-day expenses.
  • There’s no debt to repay— Invoice factoring helps you avoid taking on new debt. It isn’t a loan, so there’s no expectation to pay anything back. There are no interest rates or hidden fees—just a small, one-time payment taken from your load.

It’s essential to familiarize yourself with the invoice factoring process and its benefits, but there’s another piece of information you should keep in mind as you decide whether freight invoice factoring is right for you.

The application process for freight factoring services is pretty simple.  Most freight factoring services require you to complete an application providing basic information that pertains to your business entity.  Invoice factoring companies primarily are looking at the debtor’s credit (not your credit) since it is the debtor who will be paying the invoice.

The application paperwork is fairly straightforward, and factoring companies can approve your application for funding quickly. In fact, it generally takes only two to three days to receive approval.

Why you should use a freight factoring company

Provides you with immediate cash flow.

  1. We already mentioned the amount of time it may take to process payments, and emergencies can’t wait. This is why you should start out with an invoice factoring company as soon as possible.

Get access to funding even if you have bad or no credit.

  1. When you’re operating a newer business, you probably haven’t established a line of credit. Invoice factoring provides your business cash flow even if you have limited or poor credit history.

Saves you time and money on collections.

  1. For one thing, using an invoice factoring company can also help alleviate the stress associated with invoicing and collections. The invoice factoring company handles the general accounting responsibilities, such as collections and accounts receivable paperwork. By handing off your invoices and letting invoice factoring companies manage the back-office work, you can have peace of mind and the time to focus on other tasks.

Provides flexible contract terms.

  1. Invoice factoring companies offer flexibility. There are no long-term contracts, and you can submit as many unpaid invoices as you’d like. Once you’re approved, you can decide how often you’d like to use invoice factoring services to fund your business. Many invoice factoring providers do not have minimum requirements, meaning you can pick and choose which loads you’d like to factor.

Every business owner knows that there are going to be fluctuations in your business, so it’s important to prepare with the right financing option. You can use a factoring service when you need to, so you won’t be stuck on the road when you need the cash most.

Don’t miss out on opportunities to make money, and don’t let your invoices affect your company’s growth. Work with a partner who will give you a fair, honest and stress-free experience.

When it comes to invoice factoring companies, we stand out from the rest. Triumph Business Capital is dedicated to your unique needs. With over 100 knowledgeable team members, we can help you manage your business, get you the funding for your business and save you time and money.

Triumph Business Capital truly is a preferred source for freight factoring services. We’re able to pay carriers within 24 hours after a load has been delivered. If you want a steady flow of capital to help your business continue to grow, call us today and convert your accounts receivable into cash.

Trucking, Owner Operator

How to be a Successful Trucking Owner-Operator in 2018

The start of a new year is a great time to take stock of what you want to achieve and what it will take to reach your goals. We wish you great success as an owner-operator in 2018, and offer some practical do’s and don’ts as you rev up for the road ahead.

DON’T: Blame shippers or brokers for your rate, lane or anything else that isn’t working in your world. Rates and loads are driven by fuel costs, supply and demand, among other factors in the trucking industry. Too many drivers and owner-operators mistakenly believe that simply having a number of years of experience in trucking will be enough to be a highly profitable business owner. It takes good business skills, understanding of the trucking industry and logistics, keeping an eye on trends, and smart choices of brokers. If you find a broker or who is honest and certified by the TIA (important!), you have probably found a good broker.

DO: Familiarize yourself with how the industry works and what is currently happening. Use that knowledge to your advantage, and to set realistic expectations. Keep tabs on fuel pricing, supply and demand trends, and other influencers so you are well-informed in discussions with your broker and/or shippers about why you deserve the rate you do, going rates for specific lanes, etc. Be able look at your business and see what causes downturns and what helps conditions improve. You can further enhance key relationships in 2016 through your professionalism: treat everyone well and communicate effectively.

DON’T: Rely on salespeople for an accurate assessment of a truck’s fuel mileage. Their agenda is selling you the truck, and they will say or do what it takes. It’s in their best interests to convince you that a given truck delivers the best fuel mileage so they get the sale and their commission. The truck may get that MPG some of the time, but don’t count on it to be what you get all of the time. Also, don’t buy into the idea that you’ll get better mileage hauling light weights with a high-horsepower engine than with a smaller one. Fuel efficiency will vary based on the engine, load and conditions throughout the year.

DO: Become a fuel-efficient truck driver. Fuel economy plays a huge role in your success as an owner-operator. A single mile to the gallon in fuel economy can make or tank your bottom line. You may have heard other drivers say that you can’t make money if you’re driving just 60 mph, because you’re driving fewer miles each day. But driving 55-60 versus having idle time and driving 70 mph will make a dramatic difference, saving you thousands of dollars in fuel efficiency. At a fuel cost of $3.00 per gallon, let’s assume Driver 1 averages 70 mph for 10,000 miles, and gets 5.0 mpg. Driver 2 averages 60 mph for 10,000 miles, and gets 5.5 mph. At the end of the year, Driver 1 has shelled out $72,000 for fuel while Driver 2 has spent just $65,000, leaving $7,000 more in his pocket.

DON’T: Mistake your gross revenue for profits you can pocket. As an owner-operator, you have a number of expenses that come out of that revenue – fuel, permits, vehicle maintenance, truck payments, insurance, health care and insurance, other operating costs, taxes … Also, don’t assume that your truck warranty will cover all of your maintenance expenses or neglect repairs. It will cost you far less in time, money and headaches to get your rig into the shop when you have downtime than having it towed and out of commission because you got complacent or sidetracked. If you don’t sufficiently plan for the costs of operating your truck and business, you’re going to have a rough ride.

DO: Make sure you understand the costs of operating a truck and trailer and stay prepared financially. Basically, revenue per mile minus cost per mile equals gross revenue. Subtract taxes from that figure and you have your net profit. The Owner-Operator Independent Drivers Association (OOIDA) has a great article to help you calculate your fixed and variable costs per mile, which will help you determine how much money in profit you can make. Basic business accounting and book keeping skills are also very important to see success as an owner-operator. You can even take some online classes from the road to get the fundamentals. Of course, the other way to keep more money in your pocket is to control spending. If you need something, research and buy wisely. For “wants,” think long and hard about whether the immediate gratification will interfere in reaching your longer-term goals.

DON’T: Buy a slick, tricked-out, chromed-to-the-gills truck that will ultimately cost you more money in the long run. Focus on what’s best for your business instead of getting distracted by something shiny on the lot or at truck shows. It’s all about getting from point A to point B and having the most appropriate tool for making money in your business. Don’t treat it like a toy or feel compelled to buy more engine than you really need, because it’s just going to suck down more fuel.

DO: Buy a truck that is reliable. Matt Douthit, the voice of experience behind truck driver career site CDL 101, suggests purchasing a lightly used truck – target about 200,000 miles on the odometer. That way, someone else has taken the big depreciation hit, and all the little kinks are already worked out. You can also pull the Electronic Control Module (ECM) report to see how it’s performed, operating issues and actual fuel efficiency. If you go the used route, check out the warranty carefully. You can’t afford to get stuck with a lemon. Whether buying new or used, absolutely do your homework. If you’re purchasing a new one, see what the various diesel engine manufacturers say about fuel mileage, and ask owner-operators with similar trucks and engines about their experiences. Bottom line, you need a truck you can trust for reliability and longevity with good fuel efficiency and few repairs.

DON’T: Believe that work will always be there, and live and budget as if your costs and revenues will never change. Just because we will always need trucks to haul our goods across the country doesn’t mean we will always have work. You can’t view the road through rose-colored glasses and budget solely based on the best of times. The economy ebbs and flows, and so do our businesses. That’s why it’s important to look at yearlong averages and stand out from the pack.

DO: Work hard, do your job well, make smart decisions and build solid relationships with others who can help you in your career. Networking can connect you to the inside track on the best loads offered by multiple brokers and shippers. It’s also important to find and work your niche – a distinct segment of a market what makes you different from the big guys, gives you a profitable edge and keeps you busy.

For example, if you have a trailer used for hauling something unusual, or requiring special handling or specific permits, you improve your opportunity to make more money. Consider doing something that most people can’t; a business model based on lower freight volumes than will sustain a large company; and odd or niche freight, which pay much more than general freight. What can you focus on that most trucking companies do not do? This will help you better brand and market yourself because you will stand out in a small market, then you can build the business by building your reputation for honesty and reliability.

 

Let’s Talk About How to Get You Paid.

Take five minutes to learn more about how we help owner/operators increasing their cash flow.

Factoring Funding

What Every Freight Broker Should Know About Factoring

Invoice factoring has been around for thousands of years and can be traced to the 18th century B.C. Babylonian king, Hammurabi. Over the past 10 years, transportation intermediaries are directing more and more of their carrier payments to factoring companies ‐ anecdotally, we hear as much as 80%. At Triumph Business Capital, we’ve processed carrier payments for over 500 freight brokers, and our experience is consistent with those reports.

Why Now?

It starts with economics. Lots of new capital has flooded the commercial finance sector, and many new factoring companies have entered the transportation space. And, why not? The collectability of a freight bill is terrific. As a result of increasing competition, carriers are solicited daily with factoring offers of high advance rates (the percentage of the freight bill advanced at time the invoice is sold or “factored”) coupled with factoring fees that are a fraction of what they were 10 years ago. In fact, factoring fees are typically at or below the same pricing which many brokers charge for quick pay.

The quality of factoring services has improved as well. Many of the top factoring companies offer online credit services, fuel purchase programs, equipment and insurance financing and mobile technology applications. The factoring industry has come a long way, too.

Frequently Asked Questions

Q. What is the difference between recourse and non‐recourse factoring? And, how does it affect me?

A. Recourse means the factoring client is ultimately responsibility for the payment of the invoice. Non‐recourse factoring allows companies to sell their invoices in a style in which the factoring company assumes the credit risks. Often misunderstood, non‐payment for legitimate disputes (such as shortages, claims, late delivery, etc.) remain the responsibility of the client regardless of contract form. The style of a carrier’s factoring contract should have no impact on the freight broker.

 

Q. What is a Notice of Assignment and do Freight Brokers need to acknowledge them?

A. The Uniform Commercial Code (§ 9‐406) outlines the business and law underlying the invoice factoring industry. The ability to assign payment obligations (accounts) from the
broker (account debtor) to a factor (assignee) was a purposeful and intentional provision that the UCC drafters identified to provide businesses with opportunity to raise working
capital. Remember, the assignment of pay proceeds is separate and distinct from the assignment of services or other responsibilities in a legal contract (i.e., Broker‐Carrier
agreements). Payors cannot restrict the assignment of proceeds and are subject to double‐payment liability if they choose to ignore proper notification. Notice of
Assignments (NOA’s) can be presented by an invoice “stamp”, separate communication (letter) or both. Once you have been “effectively noticed” all payments must go to the
factoring company, whether the invoice has a stamp or not, and regardless of any claims by the carrier whether or not a particular invoice was factored. Never stop sending
payments to the factor until you receive a release letter, which the factoring company should be willing to provide

 

Q. What makes a Notice of Assignment binding? Is a signature required?

A. The effectiveness of an NOA is a question answered by case law, but the practical guidelines are simply and widely accepted. The account debtor is not required to
acknowledge the NOA with a signature and, even if there was a signature, it might not be clear as to whether the person signing the NOA had the proper authority to do so.
So, you don’t have to sign them – but that doesn’t really matter. Once an account debtor sends payment to the factoring company, it’s broadly understood that they did so based
upon receiving notice. (Why else would you send money to someone other than the carrier who hauled the freight?) If you pay a factoring company one time, then the NOA
is probably effective and you’re most likely bound by its terms. Now, you can refuse to use carriers that work with factoring companies, or even certain factoring companies,
but you can’t ignore a valid NOA once received.

 

Q. Am I obligated to pay a carrier’s factoring company if we haven’t received a Notice of Assignment.

A. Short answer is No. With more and more “online” or “cash advance” lenders entering the space, this question is more likely to come up than you may realize. A business may
grant a factor or lender a security interest in its accounts receivable, and perfect that security interest by filing a UCC financing statement. Security interests establish priority
among secured creditors, but do not impact payment remittance. It’s all about assignment and your receipt of effective notification of that assignment.

 

Q. Does the presence of a factoring company restrict our ability to offset future payments for claims?

A. Frankly, there’s a lot of “urban myth” surrounding this subject, but it ultimately depends on the broker‐carrier agreement. UCC § 9‐404 provides the factor (assignee) with certain
protections against claims and defenses – but only to the extent that the contract was silent on those provisions. Generally speaking, the broker’s obligation to the pay the
factor are identical to the contractual obligations for paying the carrier. As a practical (and ethical) matter, the factor is entitled to the same level of communication regarding
claims and setoffs that you would reasonably provide the carrier.

 

Q. What can be done about factoring companies which report slow payments and delinquencies to credit reporting agencies, regardless of how timely those payments are sent?

A. There are two primary reasons for unfair credit reporting: the U.S. Postal Service and bad factoring companies. Mail times are continuing to deteriorate, and payors using mail
service providers are likely experiencing additional delays. If you’re committed to mailing your payments, utilizing the “Intelligent Bar Code” will reduce USPS time and
processing errors. Alternatively, most reputable factoring companies will accept payment by ACH or wire, particularly if your TMS or accounting system can provide
reasonable instructions for correctly applying those payments.

 

Q. What about the “bad actors” in the factoring community, who are unreasonable, annoying and difficult to deal with?

A. The International Factoring Association (IFA) is an engaged trade organization which is elevating its constituency through education, best practices and advocacy. Over 450 IFA
members ascribe to a Code of Ethics and the organization actively responds to inquiries and disputes. You can contact the IFA at (800) 563‐1895 or info@factoring.org.


Let’s talk about how we help

Whether you’re a broker needing to make payments or a carrier looking to get paid, Triumph Business Capital can help you.

 

Invoice Funding

Making Sense Out of Carrier Payments

Freight brokers pay carriers – that’s what you do.  You do it for fuel advances and again when the load’s settled and billed. You pay when it’s due and sometimes you pay quick.  You pay by fuel card, by express check, by bank draft, by paper check.  And mostly you pay factoring companies – after they call to verify the load, again to check for advances and yet again to collect.  You’re ready to pay the trucks who’ve been with you forever, the one that showed last week and the one which may still call back.  You pay carriers – but is that what you do best?

New Technology, More Options

Large industrial firms have been outsourcing vendor payments for decades. It’s become a standard practice in medical, hospitality and government contracting.  The consistent premise is to operate your business within your business systems, and to have your systems feed payment instructions to payment processors – seamlessly, safely and cost effectively.  That’s the goal.

The evolution of technology integrations has also resulted in a proliferation of financial solutions.  Some of these solution structures make particular sense in certain industries, not so much in others.  Some providers offer credit capacity, others focus only on technology solutions.  Just to make things more confusing, the terminology isn’t consistent.  But overlooking the labels just a bit, we can identify three general categories of payment processing solutions.  For purposes of this road map, let’s call them Dynamic Discounting, Supply Chain Finance and Virtual Card Payments.  And, of course, there are combinations of the three, but let’s get started anyway – paying particular attention to what makes sense in for-hire transportation.

Dynamic Discounting

The simplest form of payment processing involves an arrangement between a buyer (such as a freight broker) and vendor (carrier) whereby payment for goods or services is made early in return for a reduced price or discount.  Dynamic Discounting has been primarily a technology service offer with the following characteristics:

  • Transaction unchanged between buyer and vendor
  • Servicer may or may not provide credit or liquidity
  • When credit is provided, it’s most typically in the form of a loan structure (to buyer)
  • Often combined with other tech-based services, such as freight bill auditing

We haven’t seen huge impact of Dynamic Discounting in the trucking space, largely because of the complexity.  Most truckers are happy with two payment terms: standard and quick.  The market saturation of factoring companies has probably simplified quick pay requirements as well.

Supply Chain Finance

Often called “Reverse Factoring”, the basic premise is that buyers (freight brokers) can become more attractive to their vendors (carriers) by incorporating working capital options from the onset. Unlike traditional factoring, where carriers sell their accounts receivable, reverse factoring is a financing solution initiated by the broker to help its carriers to finance their open accounts more easily and at a lower cost than what would normally or otherwise be available.  In Europe, where factoring is more prominent than in the U.S., Supply Chain Finance has become more prevalently adopted than traditional factoring.  Characteristics include:

  • Cost benefits to both buyer and vendor
  • Proactive alternative to “Factor Fatigue”
  • Optimal in markets where buyers deal with a large number of small vendors and can rely upon the payment processor to minimize onboarding costs

Our company’s payment processing platform, which we call TriumphPay, is a form of Reverse Factoring or Supply Chain Finance.  There are a few other very good products coming to the transportation intermediary market in this style as well.  From a broker’s perspective, the quality of the carrier experience, and consequently their rate of adoption, will largely drive the cost saving benefits to be realized.

Virtual Card Payments

Despite several transaction models, this is a style of B2B payment processing that uses a single-use credit card number. Virtual card payments have become extremely popular in certain industries and offer distinctive advantages to buyer, including fraud deterrence and revenue opportunities.  However, processing costs are transferred to vendors which has resulted in limited adoption in other industries.

  • Highly controlled, buyer-centric process
  • High adoption rates in stable and/or contractual vendor communities (i.e., hospitals/medical providers)
  • Low adoption rates in markets with high factoring penetration

To be fair, Virtual Cards are a valuable tool to have in your payment processing toolbox.  You’ll need to determine whether it’s a platform you lead with or use to supplement other transaction models.

Outlook

Payment processing options are coming.  If the U.S. trucking industry is similar to other markets around the world, it will be coming quickly. But please understand, these are customized solutions that can be tailored to fit your business like a glove.  The more time you invest in learning about the various structures, including their relative strengths and weaknesses, the better equipped you’ll be to make these financial products works for you.

 

 

Increase Cash Flow

3 Quick Ways to Increase Cash Flow

Cash is king. You know this as well as anyone else. Without cash, you can find yourself in some pretty uncomfortable situations, like not having enough money for payroll, or making late payments to vendors and bill collectors.

So what can you do to manage your cash flow effectively? Let’s take a look at three quick and easy ways to increase your cash flow—and help you sleep at night.

1. Sell or lease unused assets

You paid good money for your assets and, even if you’re no longer using some of them, it’s time to put that investment to work again. Take an inventory of the assets you’re not currently using and consider selling or leasing them.

How do you shed the assets? Use your industry contacts, such as suppliers, to find buyers or lessees. Also search for websites that specialize in auctions for your industry. For assets with significant value, contact a business broker.

2. Deposit additional cash into interest-earning accounts

This one’s a bit of a no-brainer. Let the banks work for you for a change. Deposit any cash you won’t need for a while into an interest-bearing account so it can grow. Look for an insured account with the highest interest your financial institution offers and let your money sit there.

Here’s a tip: If you’re concerned about locking your funds away in a long-term account like a certificate of deposit, consider a money market account instead. Money market accounts offer greater interest than regular savings accounts, while still giving you access to your funds. After all, cash flow is what you’re after—not more restrictions.

3. Factor your receivables

Invoice factoring is perhaps one of the smartest cash flow solutions out there. In fact, this is how many other small to mid-size businesses manage cash flow effectively.

You may be asking yourself: How does invoice factoring work? Here’s how. Simply send your invoices to a factoring company like Triumph Business Capital and we’ll fund the money straight to your bank account—usually within 24 hours.

Keep in mind that we verify the creditworthiness of your customer. If the customer has a history of missed or late payments, the invoice may not be approved for the financing.

Get paid today

We believe that getting paid shouldn’t be the hardest part of your job.

When you factor your invoices with Triumph, you’ll also gain access to a host of back office solutions. Solutions like free credit checks to make sure your clients have the ability to pay; and collection services to get your money from those who won’t pay.

Ready to get started? Factor your invoices with Triumph Business Capital and get paid today.

 

Invoice Factoring

Debt Collection vs. Invoice Factoring: What’s The Difference?

It’s not only been days, but weeks—or even months—since you performed work for your client, and you still haven’t received payment. Sound familiar?

As a professional, you need to be paid on time. You’ve got people to support and bills to pay. You may be considering using a debt collector to secure payment from your customer. Or, you may have considered proactively factoring your invoices with a trusted, credible factor. But which one is the smarter option. Are there any hidden implications you should be considering before making your decision?

The answer is yes. There’s actually a huge gap between debt collection and invoice factoring. Think through these three key differences before reaching out to either one.

1. Purpose

The primary purpose behind using a debt collector is very different from the reason you’d use invoice factoring. While invoice factoring involves current unpaid invoices—no more than 30 days old—debt collection deals with invoices that are at least 60 days past due.

Debt collection

If you’re still trying to get paid months after you’ve completed the work, it might be time to check in with a debt collection agency.

Invoice factoring

If you prefer timely payment for your work instead of relegating your receivables to the bad debt file, you’ll want to connect with a reputable invoice factoring company like Triumph Business Capital.

One of the benefits of working with an established and reputable factor like Triumph is that we’ll not only factor your invoices; we’ll also provide a host of back office solutions—including payment services—to ensure that you get paid on time for the work you perform. Welcome to the best of both worlds.

2. Funding timeline

How much longer are you willing to wait to be paid? The difference between how long it takes a debt collector to get funds to you and how quickly an invoice factoring company sends you funds can be a game changer.

Debt collection

You’ll be paid, but only after the collection agency receives payment from your customer. That can take time—if it happens at all. Add an aggressive process that can alienate customers, and you may decide that engaging a debt collection agency just isn’t worth it.

Invoice factoring

With factoring, you simply sell your invoices at a small discount and get immediate cash for your business. How fast? You get paid before the factoring company receives any money from your customer—usually within 24 hours.

3. Fees

How much are you willing to pay to be paid? In an ideal world, the payment conflict wouldn’t exist. But in today’s environment, unfortunately, you often end up either arm wrestling your customers or throwing up your hands.

Debt collection

When you hire a debt collector, you’ll likely pay a hefty 25% to 30% collection fee—which still beats giving up 100% of an unpaid invoice! But there’s an even better option.

Invoice factoring

Getting paid shouldn’t be the hardest part of your job. Invoice factoring isn’t free, but weigh its small price against its great advantages: you’ll receive an immediate payment from the factor—usually 70% to 100% of the invoice—followed by any remaining balance (minus a fee) as soon as the factor collects full payment from your customer.

Get paid today

Factor your invoices with Triumph Business Capital to get paid today.

When you factor your invoices with our team, you’ll also get access to a host of back office services like credit checks to make sure your clients can pay, and collection services to get your money from those who won’t.

Ready to get started? Factor your invoices with Triumph Business Capital today.

Invoice Factoring Service

Get Paid On Time While Maintaining Business Relationships

Let’s face it, money can get in the way of any relationship, whether business or personal. And small or mid-size business owners like you never want to compromise relationships with customers or vendors.

But without the funds to pay your bills on time, how can you avoid damaging your relationship with your vendors? And how can you demand timely payment of your invoices without jeopardizing your relationship with your customers? What’s a small to mid-size business owner to do?

Managing cash flow takes diplomacy—and these three industry secrets.

1. Set up mutually beneficial payment terms

If, for example, a customer refuses to pay an initial deposit, but wants you to work on a large project that won’t be completed for months, you can negotiate progress payments. As you reach the agreed-upon benchmarks, you’ll receive partial payments, at least enough to cover your overhead and project costs. This will keep your contractors and vendors happy.

Your customer will benefit, too, by making smaller periodic payments instead of paying a huge lump sum upon completion, or even a hefty deposit with a large final payment.  

2. Pay your bills on time

Another key point is to pay your bills on time—always. Set up automatic payments so you never miss a bill payment. Timely payments go a long way toward improving your credit and your credibility. Vendors and contractors appreciate on-time payments and may even give your account preference over other businesses.

On the other hand, late payments can be a black mark against your business—vendors may not be as willing to work with you, and may stop extending credit or services.

3. Offer discounts for quick payment

Everyone likes to save money! Offer a discount off the top of your invoices if your customers pay within a specified period instead of waiting 30, 60, or 90 days to submit payment. Many will jump at this chance, and your offer will generate good will with them. It’s a win-win for everyone.

Get paid, today

Still struggling to get paid by your customers so you can pay your vendors? Invoice factoring can be an easy and effective way to manage cash flow while maintaining—and even improving—business relationships.

Simply send your invoices to a reputable factor like Triumph Business Capital so you can get paid today. When you factor your invoices with Triumph, you’ll get 70% to 100% of your funds upfront. And as we collect full payment from your customers, we’ll then pay you the remaining balance on your invoices, minus a small fee. In the end, you’ll get the cash you need to pay vendors and creditors quickly.

Since 2004, Triumph Business Capital has helped thousands of small and mid-size businesses manage their cash flow effectively. When you factor your invoices with our team, you’ll also get access to a host of back office services like credit checks and collections: We’ll make sure your customers can pay you, and we’ll get your money from those who won’t.

Ready to get started? Factor your invoices with Triumph Business Capital today.

About Invoice Factoring

Cash Flow Gaps? Boost Your Bottom Line with Invoice Factoring

You’re running a small or mid-size business and that takes money—lots of it. But coming up with the capital you need, when you need it, can often pose significant challenges—like how to meet payroll, pay vendors, upgrade equipment . . . the list goes on and on.

So how do you manage cash flow effectively? Let’s explore some common business cash flow problems and what you can do to turn those problems into productivity and profit.

4 common small business cash flow problems

1. Meeting payroll demands

As a small business owner, you know that payroll can take a large chunk of your budget each and every month, if not every week. At best, many small business owners lose sleep over payroll; at worst, some lose their business entirely.

Bankruptcies in the U.S. increased to 25,227 companies in the second quarter of 2016, from 24,797 companies in the first quarter of 2016. That’s a staggering number of businesses that closed shop in just this year alone.

Perhaps you can still keep your doors open, but just by a crack. You’re struggling every payday to meet the financial demand. You’re bound by the Fair Labor Standards Act (FLSA)—laws that set the minimum wage and establish guidelines regarding overtime—as well as state payday laws outlining when employees must be paid. No matter how much you want to treat your employees fairly, if you can’t meet those requirements, you could be in for it.

An employee who has a payroll grievance, whether about regular pay, overtime, or vacation pay, can submit a complaint against your company to the appropriate state or federal agency.

The result? An investigation by the agency, which may, in turn, lead to financial penalties, the loss of your business license, or a lawsuit against your company. Your business could be liable for back pay, fines, or other financial judgments—not to mention the collateral costs and work disruption associated with such investigations.

2. Maintaining a flawless credit score

Since your credit score plays a key role in the viability of your business, it’s important to keep a watchful eye on this number. At the very least, get a free credit report each year and make sure the information is both correct and current. You can request removal of any negative information after seven years, but don’t forget that you’ll have to wait up to 10 years for a bankruptcy to drop off your report.

If your credit score is less than a perfect, get back on track with these simple steps.

  • Pay your bills on time—always. Arrange automatic payments on every debt so you never miss a payment. Timely payments determine up to 35% of your score.
  • Keep open all accounts that are in good standing. These older accounts positively influence your length of credit history—about 15% of your score.
  • Apply for a credit card—but read the fine print for interest and fee information. Most importantly, only use the card for small charges you can afford to pay back every month.
  • Keep a low debt load—carrying more than 25% of your limit will increase your debt-to-income ratio and damage your score. Pay the bill on time and in full each month.
  • Don’t apply for more credit accounts than you need. If you must open new lines of credit, don’t try to open them all at once. Prospective lenders will check your credit, which lowers your score, and these pings stay on your record for two years, accounting for 10% of your score.
  • If you have a dispute about a debt, be proactive to communicate with the lender.  If all else fails, take the issue to small claims court before the debt gets into collections. Avoid lawsuits and judgments, too.
  • Review your credit report often, disputing incorrect information. You can get one free report each year, but monitoring its accuracy more often may be worth the cost as you’re rebuilding your credit.

3. Surviving slow-paying customers

You know the drill—you deliver your end of the bargain; you invoice; and then you wait . . . and wait . . . and wait to be paid. All the while, you have overhead costs to cover, vendors clamoring for their money, and employees who need to be paid on time.

Maybe your payment terms are net 15, but your customers insist on their terms—net 30, 60, or even 120. You don’t want to lose their business so you reluctantly agree. Fair? Not at all. And, as you well know, waiting to get paid can have serious financial consequences, like not having enough money to run your day-to-day operations, much less expand your business.

You could, of course, apply for a line of credit or get a loan to help carry you through the month, but will you get approved? And with the piles of paperwork and myriad backup documents required—not to mention the back and forth with the bank—you could be practically out of business before the bank makes a decision, much less actually gives you the funds your business needs. And let’s face it: you simply cannot afford to wait all that time only to be turned down.

4. Avoiding unnecessary debt

“Debt” is a nasty four-letter word to a small or mid-size business. According to the U.S. Small Business Administration (SBA), roughly 50 percent of small businesses fail within their first five years, mostly because of insufficient capital, poor credit arrangements, and—you guessed it—too much debt.

Unfortunately, debt can be accumulated rather quickly when trying to boost cash flow or finance growth. Perhaps a business loan could help, but loans must be repaid—and with interest, which can add up significantly.

Fact is, unnecessary or additional debt can be the first step on the slippery slope toward Chapter 11 bankruptcy or even “Closed!”

Fortunately, you can utilize financing solutions other than bank loans—options such as invoice factoring—that won’t incur that four-letter “D” word or burden your business with additional cash flow hardship.

How to overcome cash flow gaps

With potential hazards lurking around every financial corner, how can a small or mid-sized business overcome cash flow gaps and boost its bottom line in this economy—or any economy?

Alternative lending

You could opt for cash flow solutions like alternative lending, but that can prove costly. If your loan is a payday loan, your payment will be withdrawn from your checking account every single day. If the money isn’t in your checking account, you’ll accrue additional fees, increasing the payoff amount and delaying the payoff date—damaging your bottom line by keeping your business in debt and paying exorbitant interest longer than expected.

Merchant cash advance

You could also consider a Merchant Cash Advance, which charges you based on your projected sales. But this, too, can be costly—and risky. If your future sales don’t meet your projections, you could end up repaying more than you actually sell, and at a high interest rate. While invoice factoring offers a genuine cash flow solution by purchasing your existing invoices, a merchant cash advance can actually add to your stress.

Invoice factoring

Invoice factoring answers each of these financial challenges. Here’s how it works.

You simply sell your invoices, minus a small discount, to a factoring company like Triumph Business Capital. After checking out the creditworthiness of your invoiced customer, the factor advances 70% to 100% of the invoice amount to you as immediate cash for your business.

In a recourse factoring agreement, you’re likely to see 100% advanced, while a transportation company with a non-recourse factoring agreement would likely see a 90% to 97% advanced, and a small business with a general factoring agreement would likely see 70% to 95% advanced. And when you customer pays the invoice, the factor remits the balance, minus a fee, to your business.

So instead of waiting 30 to 120 days—or even longer—to receive your customer’s payment, you get cash in hand within 24 to 48 hours.

Triumph offers both recourse and non-recourse invoice factoring for approved clients. With non-recourse factoring, you’re not liable if your customer doesn’t pay your invoice for credit reasons. Since the factor assumes all risk with non-recourse invoice factoring, your business reduces bad debt while increasing cash flow, even if your customer never pays the invoice.

Here’s why invoice factoring might be right for your business.

Get more cash for immediate needs

Invoice factoring helps relieve payroll pain, giving you ready cash to meet weekly, bi-weekly, or monthly payroll. Need to stock up on supplies? No more waiting for your customers’ payments so you can purchase supplies or pay vendors. How about the rent or mortgage payment? Invoice factoring can take the stress out of meeting all your first-of-the-month commitments.

Get more cash for growth opportunities

With invoice factoring, you can expand operations, hire more staff, or develop a new product line. Your customers’ unpaid invoices no longer hold your business hostage, stifling your progress. And unlike a conventional loan, there’s no limit to the amount of financing with Triumph. The cash you receive for your invoices is unrestricted—you don’t need Triumph’s approval to use it for whatever your business needs.

Get more cash without more debt

Sure, bank loans or lines of credit could shore up your finances. But would your business be approved? How long would that take? And at what cost? Invoice factoring gives your business the cash you need quickly and easily. It doesn’t show up on your balance sheet as debt and your business won’t have to make onerous interest payments. Invoice factoring doesn’t negatively impact your credit score either.

Let Triumph help you boost your bottom line today

We believe that getting paid shouldn’t be the hardest part about your job. Since 2004, Triumph Business Capital has helped over 7,000 small and mid-size businesses in the U.S. manage their cash flow.

As your partner, we’ll factor your invoices so you can get paid today—and make your financial challenges a thing of the past. And in addition to helping you manage cash flow through invoice factoring, we offer a host of other business services through our parent company Triumph Bancorp to help you do what you do best.

Asset-based lending

Does your business need $1 million or more? Triumph Commercial Finance Business Capital offers asset-based lending (ABL) solutions for small and mid-size businesses. As your company steps up to this next level, Triumph Commercial Finance may be your best option for continued growth.

Defined as a loan or line of credit secured by balance-sheet assets (“collateral”) such as accounts receivable, inventory, etc., ABL typically costs less than invoice factoring. However, its loan underwriting process also has more requirements, including CPA-reviewed or -audited financial statements that reflect favorable earnings and tangible net worth. Additionally, ABL can be more restrictive than invoice factoring.

Equipment financing

Triumph Commercial Finance also specializes in equipment financing for the construction, refuse, and transportation industries—so you can upgrade your operations to grow your business or expand your footprint. Loans for purchasing new or used equipment range from $250,000 to $6 million, and loan terms are typically two to five years.

Back office solutions

Invoice factoring at Triumph Business Capital includes a slew of helpful back office solutions like free credit checks, collection services, data storage, and more. It’s our goal to help you reduce overhead costs and simplify your operations.

Take the guesswork out of taking on new clients. Triumph Business Capital offers free credit checks to help you make informed decisions before signing a new contract. And our online portal gives our trucking clients access to freight broker credits that we monitor daily.

After you’ve provided the contracted goods or services, our Account Resolution team will ensure that you receive timely payment. What’s more, Triumph Business Capital provides account management reports online—conveniently available to review at any time—so you can make smart business decisions based on your actual data (ageing reports, collection reports, etc.).

Insurance services

Need insurance at competitive rates? Triumph Insurance Group Business Capital offers a wide range of insurance options for the transportation industry, as well as damage protection for new and used equipment. Get the property and casualty insurance coverage that’s right for you—and at the best price, with affordable payment options.

 


Let’s get you paid today

Triumph Business Capital is committed to helping small and mid-size businesses manage cash flow and so much more. End late payment worries and slow cash flow problems. Factor your invoices and get paid today with Triumph Business Capital.

Small Business Factoring

How Much Does Invoice Factoring Cost?

Don’t you love that feeling—you know, the one you get when an invoice pays? With invoice factoring, you don’t even have to think about processing invoices, and you can forget about having to wait 30, 60, or 90 days to receive your client’s payment. You can actually get paid today. When calculating the cost of invoice factoring, it’s important to remember the benefits it can provide to small businesses and to always consider your own business situation and goals. 

The many benefits of invoice factoring

No more invoices to process, no waiting for clients to pay, and immediate cash in hand—invoice factoring services simplifies your bookkeeping experience and helps you get paid on time every time.

According to the Wall Street Journal, “The factor advances most of the invoice amount—usually 70% to 90%—after checking out the credit-worthiness of the billed customer. When the bill is paid, the factor remits the balance, minus a transaction (or factoring) fee.”

The benefits of invoice factoring are many, but how much does it actually cost? In this article, we’ll explain everything you always wanted to know about invoice factoring.

Non-recourse factoring vs. recourse factoring

With non-recourse factoring, the factor assumes the risk of collecting the debt. That’s a lower-risk option for small companies that can’t absorb the cost of unpaid invoices, but it does cost slightly more than recourse factoring.

Larger corporations often favor recourse factoring because, if a customer fails to pay, they can afford to return the funds they received from selling the uncollectible invoice to the factoring company.

Aside from the cost differential between the two, there are times when the cost differential is not justified by the credit risk being taken.

For example, if you’re selling to WalMart or the Federal Government, the chances of either one not paying because of credit reasons are quite small. Thus, paying a premium for non-recourse starts to look a little less attractive. If you do elect for non-recourse factoring, pay special attention to the Security Agreement that you’ll be required to sign and make sure you ask the factor to specifically go over when you will be covered and when you will not be covered from credit risk.

So how much does invoice factoring cost? 

Fees vary from factor to factor, so check with your factor before getting started.

Application/Due Diligence Fee

Some factors charge this fee some do not. Those that do not may recover this upfront expense by increasing the initial financing fees. This fee varies highly from factor to factor and can cost anywhere from zero to thousands of dollars.

Closing Fee

The factor retains a percentage of each invoice, typically 1–3%.

Monthly and Termination Fees

Some factors may require that you sell a certain amount of your invoice each month and sign a long-term contract. If the monthly target isn’t met, a minimum monthly fee will be charged. Terminating the contract early can trigger a cancellation fee.

Discount Fee

The cost of paying for your invoices in advance can vary anywhere from 1.5–5% of the invoice value each month. This wide disparity is yet another reason to check with your factor before jumping into a relationship.

Factoring Fee

If your invoices go beyond the 30–45 days covered by the advance discount fee, you can expect an additional charge of 2–3% or more for every 30 days that the receivable is outstanding beyond the original 30 days. Some factors may prorate the fee daily, while others may charge on a 10-day basis.

Triumph’s factoring fee depends on your unique factoring agreement. Our factoring experts considering whether you’ve chosen recourse or non-recourse factoring, the credit quality of your customers, and more. But in general, let’s say you decided to factor $3,000 with a 95% advance rate over a 90-day repurchase period. Meaning, you’d get paid $2,850 within 24 hours of submitting a load, and the final 5%—minus standard factoring fees—after 90 days. 

While the scenario we just presented is common, it’s important to remember that your factoring fee will vary depending on the terms of your factoring agreement.

How does Triumph Business Capital compare to other factoring companies?

Now that we’ve broken down the fees, let’s get into specifics. While not all factors are entirely transparent with their pricing, we’re an open book. The last thing we want to do is surprise you with a fee. Here’s how our pricing structure compares to other popular factors you may have heard of.

Other companies charge flat advance rates of 10–15% and $15 per wire, but offers free ACH transactions. Some don’t include a setup fee, but they charge a fee based on the advanced amount.

Triumph Business Capital, on the other hand, works with your business to fit your budget and requirements. Triumph takes into consideration the credit risk associated with your customers, the time it takes them to pay their invoices, and the monthly funding volume we forecast for your business.

Can invoice factoring save you money?

Consider this simple illustration. You decide that invoice factoring is the best option for your business, so you convert your invoices into cash instead of waiting a month or more to get paid.

With immediate cash in hand, you can stop worrying about how you’re going to pay your bills and get on with the growing your business. And when you pay vendors more quickly, you can take advantage of their discount offers, which saves you money. You’ve not only gotten invoice collection off your plate, you’ve paid your bills and saved money in the process—and that’s good business.

Calculate The Cost To You...

Let's take a look. Pricing for both options will vary considerably based on business size and other criteria - so feel free to enter the information most appropriate to you.

Cash Advance Loan
$97,000
125
$1,000
$125,000
109%
Invoice Factoring
$114,000
21%
Your Effective Annual Interest Rate
Cash Advance Loans
109%
Invoice Factoring
21%

Cash Available For Operations
DISCLAIMER

The above calculations incorporate estimated values and are intended for comparative illustration purposes only. Terms and conditions of specific cash advance loan and/or factoring agreements may result in additional margin of error. If, for any reason, you suspect the results are not representative - please contact us directly so that we may address those concerns. Alternatively, the most accurate way to calculate the Annual Percentage Rate for a loan or competitive factoring facility may be to contact the financial service provider directly and request that they perform or confirm the calculations. Thank you.

Get paid today

The hardest part about your job shouldn’t be getting paid. Let Triumph Business Capital help you factor your invoices and get paid today.

 

Let’s Talk About How to Get You Paid

Take five minutes to learn more about how we help owner/operators increasing their cash flow.

Invoice Factoring Companies

Invoice Factoring vs. Traditional Bank Loan: What’s The Difference?

Invoice factoring and a bank loan have very little in common—other than the fact that both provide cash to small businesses. Here’s a simple factoring vs. bank loan comparison to help you decide which can work for your business.

Invoice factoring

With invoice factoring, you simply convert your invoices into immediate cash to cover operating costs without taking on debt. You sell your invoices at a small discount to a factoring company like Triumph Business Capital and get immediate cash for your business.

Worried about your credit? No problem! Invoice factoring is primarily based on the quality of your customers’ credit, not your own credit or business history. While most banking institutions look at the same documentation we do, our focus primarily on the quality of your customers. Don’t let the successes and failures of your business journey stop you from getting paid.

Plus, invoice factoring works fast. You’ll typically receive approval in a few business days. Better yet, there’s no debt to repay, and you have unlimited funding potential.

As long as you have invoices, you have the opportunity to convert them into cash. Even startups are eligible for factoring.

Traditional bank loan

Compare that to a bank loan. You pay principal and interest over time, and the funding potential is capped by the bank. After completing all necessary paperwork, the approval process can take months—and it’s based on your company’s operational and credit history. If you’re a startup, chances are you won’t be approved for bank funding.

Additionally, bank loans and lines of credit often carry what’s called a loan covenant. Essentially they’re conditions in a commercial loan that require you to fulfill certain financial performance requirements. If you don’t meet the covenant requirements, you can default on your loan or line of credit. If your bank representative is nice, they may waive the default and charge an additional waiver fee. In the end, it’ll likely cost you more than you bargained for.

 

Bank loans or lines of credit also come with restrictions that forbid you from taking certain actions like purchasing or selling assets for your business, incurring additional debt for any reason, and more. Because of restrictions, you’ll often find yourself with the financial resources you need without the freedom to use them to solve your biggest business problems.

 

While a “line of credit” implies that you’ll be financed for whatever you need up to a certain amount, more often than not, that’s not actually what happens. Your credit line often comes with so many restrictions that it’s often easier to look for the next best option.

 

Which is best for your business?

If you own a business that has a long history of favorable cash flow and profits, or is well-capitalized, then a bank line of credit might be the right choice. But if you’re a new business—or one that may have had a significant hiccup somewhere along the road—then you should consider invoice factoring.

Invoice factoring gives you immediate cash flow without creating debt on your balance sheet, and it’s virtually an unlimited source of working capital.

While banks require a wide range of collateral and financial statements, often refusing businesses that need additional funding but can’t meet the stringent borrowing requirements to qualify for a new bank loan.

Why Triumph Business Capital?

When considering factoring, it’s important to work with a reputable factor with a strong track record. Triumph Business Capital has provided factoring for over 7,000 small to mid-sized businesses since 2004. We have a long history with the transportation industry—and staffing agencies, government contractors, and small businesses are increasingly seeking us out to help solve their cash flow challenges. Triumph also offers smart Asset Based Lending and Equipment Financing options as well as a discount fuel card program.

Triumph is a proud member of the International Factoring Association (IFA) and strictly adheres to the IFA’s code of ethics. Originally called Advance Business Capital, the company joined Triumph Bancorp Group in 2012. As a financial holding company, Triumph Bancorp, Inc. maintains a diversified line of community banking, commercial finance, and asset management activities. Since day one, our vision has been centered on four core business priorities—delivering value, developing people, demonstrating expertise, and displaying a commitment to enterprise success.

Factor your invoices today

Ready to get started? Let Triumph Business Capital help you factor your invoices—and get you the cash you need when you need it.

Accounts Receivable Financing

4 Funding Options for Your Small Business in 2018

What are some of the popular types of short-term funding available to small businesses? How can you fund your business? You’ve got questions; we’ve got answers!

 

1. Bootstrapping

Bootstrapping is a funny word for a smart financial concept. The term comes from the phrase “pulling oneself up by one’s bootstraps.” An individual is said to be bootstrapping when he attempts to found and build a company from personal finances or from the operating revenues of the new company. According to Investopedia, more than 80% of new startup operations receive their funding from the founder’s personal finances.

 

So where exactly does the bootstrapper get startup funds? A bootstrapper may pull from a savings account, use zero interest credit cards, or leverage personal assets like selling a house or car and cashing in on a 401(k). With bootstrapping, the business is your own—no answering to investors like venture capitalists.

What are the benefits and drawbacks of bootstrapping?

Business owners who utilize bootstrap funding don’t have to worry about diluting ownership between investors. They don’t need to issue equity, and they can focus debt on personal sources. The downside? Unnecessary financial risk is all on the entrepreneur. And bootstrapping may not provide enough investment for the company to become successful at a reasonable rate.

What other companies have used bootstrapping?

If you decide to bootstrap, however, you’ll be in good company. Dell Computers, FaceBook, Apple, The Clorox Company, and The Coca-Cola Company each catapulted to greatness from humble beginnings as a bootstrapped enterprise. To learn more about bootstrapping, Fast Company offers 10 tips for bootstrapping your startup.

 

2. Friends and family

Of course, you can always tap into friends and family. With business plan in hand, pitch your idea to those closest to you, explaining what you’re selling, what you plan to charge, and how they’ll make money by backing your business.

What are the benefits and drawbacks of tapping into this method?

Be upfront about the risks and put the rules behind the investment in writing. Whether you’re asking for a loan, an investment, or even a gift, remember that each one comes with strings attached.  In the case of loans and investments, you will have to pay the money back: you cannot file bankruptcy if the business fails.

 

Entrepreneur.com offers tips and tactics in Five Tips for Asking Friends and Family for Funding.

 

3. Loan or Line of Credit

You can also apply for a loan or line of credit. What’s the difference? A loan is a specific amount disbursed to you at once in a lump sum. It has a fixed or variable interest rate, and a fixed repayment term. On the other hand, a line of credit functions much like a credit card. You’re given a maximum amount that you can use over a period of time, and you can borrow against that amount as you need money.

What are the benefits and drawbacks?

Once you’re approved for a line of credit, you can tap into it at any time to access the amount your business needs. You can also use a line of credit as an alternate overdraft protection option on a checking account. Keep in mind, though, that excessive borrowing against a line of credit could get you into financial trouble as surely as continuing to rack up credit card debt.

 

Want to know more about the benefits and drawbacks of traditional bank loans? We just wrote an article to compare and contrast traditional bank loans and invoice factoring. Read the full article here.

 

4. Invoice Factoring

Invoice factoring can be a small business owner’s best friend. It’s been around for over 4,000 years, dating back to the time of King Hammurabi of Mesopotamia. In the 1900s, the most popular industries for invoice factoring were the garment and textile industries. Today, the transportation industry, staffing agencies, government contractors, and small businesses are taking full advantage of invoice factoring. The reason? It helps relieve the stress of cash flow and slow-paying clients without adding debt.

How does invoice factoring work?

Here’s how: you sell your invoices at a small discount to a factoring company like Triumph Business Capital and get immediate cash for your business. Since 2004, Triumph Business Capital has provided factoring services for 7,000 small to mid-sized businesses throughout the U.S.—so you can be sure you’re working with a reputable company that has your best interests in mind.

Are there any drawbacks?

Invoice factoring can have higher fees than traditional financing, with fees based on sales volume and factoring agreement. But it’s a small price to pay for welcome relief and cash in hand. Learn more about the Common Risks Involved with Invoice Factoring.

 

What are the best options for short-term business funding?

Triumph Business Capital offers more than just invoice factoring. If your business has grown to the next level and you’re looking for a larger loan to pay for new equipment or provide additional working capital, Triumph offers smart Asset Based Lending and Equipment Financing options as well as a discount fuel card program.

 

Let’s Talk About Your Cash Flow

Take five minutes to learn more about how we help owner/operators increasing their cash flow.

Accounts Receivable Financing

The Ultimate List of Funding Options Every Small-Business Owner Should Know About

It’s a big world out there. We’re talking the world of funding for small- to medium-sized businesses. That’s why we’re giving you a bird’s-eye view of the available options—everything you need to know about funding your business.

Invoice Factoring

You may have heard of it; maybe you know a company or two that use it. But what exactly is invoice factoring?

 

Invoice factoring can be a welcome relief for a small business or government contractor—or any business owner tired of waiting for their invoices to be paid. You simply sell your invoices at a small discount to a factoring company and get immediate cash for your business. According to the Wall Street Journal, “Now billions of dollars in accounts receivable flow through factors each year.”

 

Should you consider invoice factoring for your small business?

Here’s what you should know about invoice factoring before diving in. Invoice factoring virtually eliminates cash flow problems. There’s no need to process invoices and wait—and wait—to get paid by your clients. No more putting plans on hold because there’s just not enough money to put them into effect. Or worrying about meeting payroll because you haven’t been paid yet. Non-recourse factoring even reduces bad debt since the factor assumes all risk if the invoice isn’t paid.

 

Got bad credit? Bank loan application already declined? No worries. Invoice factoring companies look at your credit and business history differently than a bank would. They base the majority of their decision on the quality of your customers’ credit and business history, not your own. The downside? Invoice factoring can have higher fees than traditional financing, but it can be well worth it when you consider its many advantages, including being able to sleep at night.

 

Whom should you trust?

It’s important, of course, to work with a reputable factoring company like Triumph Business Capital. Since 2004, Triumph has provided factoring for over 7,000 small to mid-sized businesses like yours—from the transportation industry to staffing agencies, government contractors, and other small businesses.

 

If your business has grown to the next level and you’re looking for a larger loan to pay for new equipment or provide additional working capital, Triumph also offers smart Asset Based Lending, Equipment Financing, and a discount fuel card program.

 

SBA Loan

The U.S. Small Business Administration (SBA) can also help finance your business with a guaranteed loan issued through participating banks and other lenders.

 

The most popular type of SBA financing is a General Business Loan, otherwise known as a 7(a) Loan. You can use the funds to establish a new business or assist in the acquisition, operation, or expansion of an existing business. The SBA guarantees loans up to $5 million to help small business owners with major investments, like building new facilities or buying land, machinery, and equipment. The SBA also offers loans that help small business owners affected by natural disasters and other kinds of emergencies.

 

Should you consider an SBA loan for your small business?
If you don’t qualify for a traditional bank loan, the government can help—although you’ll still need to work primarily with a bank. Aside from a low annual percentage rate (APR), you’ll receive funding in less than a month. Also, you’ll have more time to repay an SBA loan. If you use the loan for working capital or daily operations, you’ll have seven years to pay it back. Buying new equipment? You’ll have up to 10 years. If you use the funds for a real estate purchase, the terms go up to 25 years. A longer loan term means a lower interest rate and lower regular payments.

 

The application process, however, can be daunting. An SBA loan requires good credit and may call for collateral—and the paperwork can be both lengthy and cumbersome. The best way to navigate the process is to work with a bank that has extensive experience with SBA loans. The advantage? Lenders offer flexible terms and low rates since the federal agency guarantees the loans.

 

Alternative Lending

You’ve probably seen advertisements for alternative lenders like Kabbage, OnDeck, Lending Club, Prosper, Street Shares, and Deal Struck. Even PayPal has become a major player in the alternative lending space.

 

Alternative lending is a saving grace for some small businesses—especially if they need cash fast, or if bad credit disqualifies them for traditional lending. Sometimes referred to as “direct lending,” alternative lending provides cash in hand within two to three days on average, with a 12- to 36-month repayment period. And there’s no restriction on how to use the money.

 

Merchant Cash Advance (MCA)

MCA is an alternative financing source that provides businesses with a lump sum of cash by purchasing a set amount of their future sales. MCA companies debit your business account on a daily basis until the loan is paid in full.

 

Sound like invoice factoring? Not quite. Merchant cash advances and invoice factoring are both alternatives to traditional financing. Each involves a simple, quick application process with minimum credit requirements, making it easier and faster for small businesses to get approval—but while merchant card advances may seem like an equal option to invoice factoring, there are several catches.

 

Primarily, if your receivables are inconsistent, you may not have enough cash in the bank everyday that a withdrawal is made. At that point, you’ll overdraft on your account and experience the fees and penalties that follow.

 

Should you consider merchant cash advance for your small business?

Merchant cash advancements typically involve more risk than invoice factoring. A merchant card advance charges you based on your projected sales, while invoice factoring companies purchase your existing invoices. Since merchant cash advance payments are solely based on a prediction, rather than an actual dollar amount, this means that if your future sales don’t meet your projections, you could end up making large payments, with a much higher interest rate—usually significantly more than invoice factoring.

 

The larger problem could be that the payments continue for a period beyond your revenue generation. This form of cash advance is typically associated with incredibly high interest rates and should be avoided if at all possible.

 

Should you consider an alternative lending source for your small business?

The process for applying for alternative lending is fast and often easy. The loan application can be completed entirely online and approved in just a few minutes. Approval rates for alternative lending are much higher (64 percent, as opposed to about 20 percent for big banks, according to Inc.), and you could have your money in a matter of days, rather than weeks or months. Typical lending ranges from $10,000 to $100,000.

 

But alternative lending can be costly. In fact, the cost of these loans can be significantly more than the annualized rates associated with conventional financing. If your loan is a payday loan, beware. Your payment will be withdrawn from your checking account every single day. If the money isn’t in your checking account, you’ll accrue additional fees, increasing the payoff amount and delaying the payoff date. Another thing to keep in mind—be sure you’re working with the lending company that actually provides the financing, versus dealing with a broker, which leads to substantially more costs.

 

Microloans

Heard of microfinancing? It’s the new buzzword in funding circles, yet its concept dates back over 200 years. The first case of microlending, attributed to the Irish Loan Fund system introduced by Jonathan Swift, sought to improve conditions for impoverished Irish citizens.

 

So what is microfinancing? According to Investopedia, “Microfinancing provides options to customers with limited resources to promote participation in productive activities or to support a small business.” Simply put, it’s a type of banking service for unemployed or low-income individuals or groups who have no other access to financial services. Some microlenders even provide information in the areas of financial literacy, such as understanding interest rates and managing financial risks. Several organizations, including the Small Business Administration, offer microloans to help emerging businesses and underserved individuals get solid financial footing to start and grow their businesses.

 

The SBA offers microloans of up to $50,000 with a maximum term of six years. Administered through community nonprofits, the loans can be used for working capital or for the purchase of inventory, supplies, furniture, fixtures, machinery, or equipment. You can’t use the funds to pay an existing debt or to buy real estate.

 

Here’s how SBA microloans work: The SBA makes funds available to specially designated intermediary lenders—nonprofit organizations with experience in lending and technical assistance—including Justine Petersen, Grameen America, and Access to Capital for Entrepreneurs, to name but a few. These intermediaries then make loans to eligible borrowers. But before these lenders consider an application, qualifying for SBA microloan financing may require borrowers to complete specific training or planning—requirements designed to help you launch or expand your business successfully.

 

Other independent organizations—such as Bentley Microfinance Group, Association for Enterprise Opportunity, Business Center for New Americans, and Opportunity Fund—also provide microloans to the underserved community outside of the SBA model.

Should you consider a microloan for your small business?

A microloan is easier to get than a traditional loan, especially if your credit report is less than perfect or you don’t have a long credit history. If you don’t have a credit score, you can opt for a credit-building loan that lets you establish credit. On the other hand, a microloan usually costs more than a traditional bank loan.

 

Additional Government Funding Options

The federal government isn’t the only agency that can help your small business get off the ground and grow. Every state and many local governments have economic development agencies dedicated to helping both new and established businesses to grow and succeed. These agencies offer such services as start-up advice; training and resources; financial assistance through loans, grants, and tax-exempt bonds; business location and site selection assistance; and employee recruitment and training assistance.

 

Some states also provide grants for expanding childcare centers, creating energy-efficient technology, and developing marketing campaigns for tourism. These grants usually require the recipient to match funds or combine the grant with other forms of financing, such as a loan. The amount of available grant money varies, depending on each grantor and the type of business to be funded.

 

In addition to loans, the SBA also offers grants to nonprofit and educational organizations in many of its counseling and training programs. However, the SBA does not provide grants for starting or expanding a business.  

 

Here’s another way the government can help put dollars into your business. The Small Business Lending Fund (SBLF), enacted into law as part of the Small Business Jobs Act of 2010, provides capital to qualified community banks and community development loan funds (CDLFs) to encourage small business lending.

 

What does that mean to the small-business owner? Your community bank can be a resource for commercial and industrial loans; owner-occupied nonfarm, nonresidential real estate loans; loans to finance agricultural production and other loans to farmers; and loans secured by farmland.

 

If you’re in the biomedical space, the National Institutes of Health (NIH) can be another resource for your business. The NIH is the largest public funder of biomedical research in the world, offering funding for many types of grants, contracts, and even programs that help repay loans for researchers.

 

Should you consider government funding for your small business?

Government funding may come with free technical assistance, including workshops, seminars, or onsite consultations. Sometimes government agencies bring together all the recipients of a particular grant, facilitating peer-to-peer learning. These gatherings often provide grantees with their first introduction to others delivering similar services in the same city—which, in turn, can lead to more potential funding or resource-sharing opportunities.

 

However, as you’d expect, a great deal of red tape goes hand-in-hand with government funding. We’re talking time-consuming paperwork, meticulous recordkeeping, and demanding reports. And you can anticipate that the agency providing government funds for your program will closely monitor the use of those funds. It’s also possible that the receipt of government dollars will discourage donations from private sources.

 

Crowdfunding

It all started in 1997, when a British rock band funded their reunion tour through online donations from fans. Since then, crowdfunding has become a smart option for entrepreneurs and others to raise money, awareness, and support for a business or a project, especially when turned down by traditional lenders.

 

Through online platforms like Kickstarter, Indiegogo, Fundly, RocketHub, and Fundable, your small business can receive needed funding, with donations ranging from as little as $5 up to $5,000 and more. In exchange, your business offers rewards like T-shirts, tickets to shows, or perhaps a personal call from the founder of the company. The better the reward, the better the chance of donations.

In addition to soliciting donations, you can use the crowdfunding concept to get a loan. The site LendingClub, for example, allows members to directly invest in and borrow from each other, essentially eliminating the banking middleman.

 

Should you consider crowdfunding for your small business?

According to the research firm Massolution, the estimated fundraising volume for global crowdfunding is a whopping $34 billion. But while there’s money to be had, crowdfunding has its drawbacks as well. If you don’t have a great story to tell or a terrific product to sell, then your crowdfunding bid could fail. Some crowdfunding sites don’t collect money until a fundraiser reaches the goal. If your efforts fall short, you’ve wasted a lot of time, energy, and other resources. And then there’s the risk of getting sued if you fail to deliver your rewards.

 

Venture Capital

VC—venture capital—spells big bucks to some companies. An entrepreneur will seek this type of equity financing when the company’s size, assets, or stage of development precludes more traditional funding sources, such as public markets and banks. Venture capitalists generally invest cash in exchange for shares as well as an active role in the invested company.

 

Should you consider venture capital for your small business?

Venture capitalists typically focus on young, high-growth companies, invest equity capital rather than debt, offer a longer investment horizon than traditional financing, and actively monitor the companies in their investment portfolios. Lenders like EarlyShares and MicroVentures generally require some equity cushion or security (collateral) before they will lend to a small business.

 

Venture capital provides businesses a financial cushion, but at what cost? Equity providers have the last call against the company’s assets and require a higher rate of return or return on investment (ROI) than lenders receive. So it’s vitally important to weigh the pros and cons before engaging in a venture capital relationship.

 

Angel Investment

Many startups opt for an angel on their shoulder. Angel investors provide funding for early-stage or startup companies in exchange for an equity ownership interest. Often referred to as a business angel, informal investor, angel funder, private investor, or seed investor, the typical angel invests anywhere from $25,000 to $1.5 million.

 

How do you find an angel investor? Forbes lists a variety of ways—through other entrepreneurs, lawyers, and accountants; AngelList; crowdfunding sites like Kickstarter and Indiegogo; or through a colleague or friend of an angel.

 

Check out organizations like CircleUp or Gust that provide online platforms to connect entrepreneurs with angel investors. CircleUp offers the largest online marketplace for investing in innovative consumer and retail companies. Gust connects startups with over 1000 investment groups around the world, resulting in more than $1.8 billion invested in startups to date.

 

Should you consider angel investment for your small business?

Angels can be a Godsend for a startup and the investment usually comes in the form of a lump sum. However, angel investors expect a high rate of return, often 25 percent or more. And as a major investor, your angel may also feel entitled to some control over your company’s future.

 

The Bottom Line

At the end of the day, when you’re considering how to fund your business idea, the best option is one that helps you achieve your business objectives with minimal risk or high rates. That often turns out to be invoice factoring with Triumph Business Capital. Triumph believes the hardest part about your job shouldn’t be getting paid. Get paid today.

 

Have questions about invoice factoring or the options listed above? Please leave us a comment below.

Factoring Funding

Is Invoice Factoring Right For You?

Invoice factoring is a saving grace for many industries, from transportation and staffing to small and mid-size businesses as well as government contractors. In fact, invoice factoring can offer welcome financial relief if you’re just starting a business, have bad credit, can’t get funding from banks, or are at risk of losing your business.

A simple process

Invoice factoring lets you convert your invoices into immediate cash to cover operating costs without taking on debt. You simply perform a service for your customer or deliver a product, and send your invoice to a factoring company like Triumph Business Capital to get paid. You immediately receive payment upon completion of the load or job being invoiced.

The process is simple and virtually seamless. Triumph purchases the invoice. If you’re a recourse client, Triumph takes the factoring fee out, then a small portion of that invoice goes into a reserve account, usually 5 or 10 percent. This “advance rate” of 90 or 95% is released once the invoice is paid.

If you’re in a non-recourse agreement, you receive 100% of invoice minus the factoring fee. Since the factor assumes all risk in this type of agreement, there is no reserve held in the event that an invoice does not pay.

The pros

You get money when you need it.

Invoice factoring is fast cash in the bank to help cover day-to-day expenses, restock materials, pay staff—or just about anything you need. The alternative? Wait . . . wait . . . wait . . . and then wait even longer—30 days, 60 days, or more—to get paid by clients. But with fast cash in hand, you can keep loyal customers on longer payment terms.

Your invoice factoring company grows with you.

Compare invoice factoring to a traditional bank loan and there’s no competition. Bad credit? Limited operating history? Loan declined? No problem. Invoice factoring companies base their decision on the quality of your customers’ credit, not your own credit or business history. You get cash based on your invoices, not your company’s net worth.

The cons

You might pay higher fees than traditional financing.

Invoice factoring can have higher fees than traditional financing—but it’s a small price to pay for peace of mind. Triumph’s fee takes into account the credit risk associated with your customers and the time it takes them to pay their invoices. In fact, invoice factoring provides cash flow that meets your business where it is today and can grow as your business grows because it’s based on your actual account receivables.

Always transparent, always fair, Triumph Business Capital offers options that match each client’s financing needs without incurring debt.

Your factor may work directly with your customer.

Invoice factoring companies work directly with your customers to collect payments on your invoices. You’ll need to ensure that the factoring company you choose is ethical, fair, and respectful. Triumph Business Capital is a proud member of the International Factoring Association (IFA), and strictly adheres to the IFA’s code of ethics. We ensure a smooth transition for both you and your customers.

Your financing depends on your customer’s credit.

Lastly, recognize that your customer’s bad credit may derail your financing. The factoring company may reject your invoices to any customer that isn’t creditworthy.

Three questions to consider

How do you know if invoice factoring is right for you? Ask yourself these three simple questions.

  1. Can my problem be fixed by factoring?
  2. Can I cover the cost of factoring and still make a profit?
  3. Are my customers creditworthy?

Ready to get started? Learn how Triumph Business Capital can help you factor your invoices—because the hardest part about your job shouldn’t be getting paid.

Business Factoring

4 Common Risks Associated with Factoring Your Invoices

Many businesses turn to Triumph business capital to get their invoices factored for relief from today’s financial pressures. Faster and easier than a bank loan, getting an invoice factored doesn’t rely on your credit or your years in operation. You simply convert your invoices into immediate cash to cover operating costs without taking on debt.

In some cases, factoring an invoice is the only way a business can get cash quickly. In others, it’s simply the smartest way to get cash today. But what risks are involved when it comes to factoring your invoicesinvoice factoring involve?

1. Can you trust the factor?

In its infancy, a few unprofessional factoring companies charged excessive fees and used deceptive business practices, giving the entire industry a black eye. Now, however, factoring is not only widely accepted; it’s a trusted funding source for businesses across many industries.

Of course, before entering into any business relationship, you should always exercise due diligence. Investigate how long the factor has been in business and find out where its headquarters are located. Check into the background of its management team. Go a step further and ask for referrals from current clients, and then research complaints or lawsuits using web searches, the Better Business Bureau, and your state’s Attorney General’s Office. Remember to trust your gut: if you feel you can’t build trust with the factor, walk away.

As a respected industry leader and a proud member of the International Factoring Association (IFA), Triumph Business Capital strictly adheres to the IFA’s code of ethics. Providing invoice factoring for over 7,000 small to mid-sized businesses since 2004, Triumph Business Capital is backed by the extensive assets of Triumph Bancorp, Inc., a financial holding company that maintains a diversified line of community banking, commercial finance, and asset management activities.

2. What about uncollectible invoices?

Triumph Business Capital offers two kinds of factoring arrangements to handle invoices—recourse and non-recourse. Both eliminate the hassles and headaches of collecting invoices, so you can spend more time growing your business, gaining more opportunities to find new shippers, or taking the next load because you’ve already been paid.

With recourse factoring, you ultimately take the responsibility for the payment of the invoice. If the customer doesn’t pay the debt, then the seller is liable to repay the factoring company. With non-recourse factoring, your company pays slightly higher fees, but takes on a lower risk. The factoring company assumes all the responsibility for collecting the debt. This lower-risk option is better for many small companies that can’t absorb the cost of unpaid invoices.

3. How will the factor communicate with your customers?

Triumph has designed a seamless process for our clients to transition to factor their invoices. To start, we create a lockbox to accept payments in care of your company. Either you create your invoices or we create them for you. In either case, all invoices are stamped by Triumph with a “Notice of Assignment.” Your debtor will know that the invoice has been assigned to Triumph Business Capital as a third-party partner to help you manage your Accounts Receivable financing.

4. Is your customer creditworthy?

Savvy business owners like you know that perfect customers are rare, and even your best customers may be slow to pay your invoices. At some point, your current or future customers may not be able to pay you at all.

That’s why it’s crucial to confirm your customer’s creditworthiness before conducting business with them. But routine credit checks can be a hefty expense for your business. Triumph Business Capital runs customer credit reports all day long—for free. It’s the Triumph advantage.

When you factor your invoices with Triumph Business Capital, we monitor the creditworthiness of your customers at every transaction. By doing so, we reduce the amount of risk you take, directly reducing the amount of invoices that get kicked back after 90 days. Invoice factoring is about reducing your financial risk, after all. Let’s get you paid.

The benefits outweigh the risks

Bottom line—the hardest part about your job shouldn’t be getting paid.

Factoring your invoice provides you with the immediate cash you need to run and expand your business. No more need to process invoices. Worried about your balance sheet? This financing doesn’t show up as debt. Factoring your invoices is easy, fast, and flexible.

Ready to get started? Factor your invoices with Triumph Business Capital today.

Factoring Invoices

How to Avoid the Net-30 Trap and Actually Get Paid

It’s a headache and a hassle, and it causes complete confusion—It’s the Net-30 Trap. Does it mean you get paid 30 days from the date on the invoice, 30 days after the client bills their client, or within 30 days of what exactly? Do you get paid at all? What is net 30 anyway?

It’s a power play—and you lose

Fact is, “Payment Terms Net 30” can mean different things to different people—but in most cases, the client wins. In essence, net 30 means you’re extending credit to your client long after you’ve delivered as promised. Fair? I think not.

Chances are, you’ve seen or heard about large companies using their purchasing power to force a supplier to agree to terms that are more favorable to the large company—like a longer period of time to pay or relaxed rules for returning goods. How about the promise of future work to keep you at arm’s length when it’s time to get paid?

If you’re like most trucking or staffing companies, small to mid-size businesses (SMB), or government contractors, you don’t have great cash flow or a big cushion to fall back on. That forces you to finance your customers and accept their net-30 terms, or worse—net 60, or even net 90—leaving you looking like less than a good risk for banks or anyone else checking into your creditworthiness. And with few assets to balance such cash flow challenges, you’re not likely to have leverage to increase credibility and trust.

Three courses of action—and you win

1. Charge interest

One tried-and-true method to help ensure you’re paid—on your terms—is to charge interest if payment isn’t received on time. After all, the threat of interest for late payments is part of our everyday life, from credit cards to loans and even utility bills. In some cases, charging interest may be enough incentive for clients to pay on time.

2. Factor your invoices

Invoice factoring helps take the 30, 60, 90—or never—financial burden off your shoulders, allowing you to pay your bills and staff, stock up on materials, and sleep at night. You simply sell your invoices at a small discount to a factoring company such as Triumph Business Capital, and get immediate cash for your business. Learn more about how invoice factoring works in Invoice Factoring: The Antidote for Net-30, 60, 90, or Never .

3. Walk away

Your last course of action is to be willing to walk away. If the deal looks bad, or too good to be true; if you’re worried about a prospective client’s ability or willingness to pay—walk away before it’s too late. In the short term, taking the job gets you the work; but in the long term, you’d be taking on trouble—big time trouble.

Already stuck in a situation where you’re doing work and still not getting paid? Stop the work; your client will see this and make paying you a priority.

It’s time to get paid

Let’s face it: the hardest part about your job shouldn’t be getting paid. Free your business from the Net-30 Trap and factor your invoices with Triumph Business Capital to get paid, today.

Invoice Factoring

Invoice Factoring: The Antidote for Net 30, 60, 90, or Never

You do the work, deliver the product or service, and wait. And wait. And wonder—will you get paid on time or have to make countless calls to get your money?

Let’s face it. One of the biggest challenges facing small and mid-size businesses (SMB) is getting paid—especially since many companies are increasingly stretching invoice payment from 30 days to 90 days or even longer.

In the meantime, you have employee salaries, vendor payments, and taxes to pay—regardless of whether or not your customer pays you. How, then, do you cover your day-to-day expenses, much less expand your business? You could, of course, apply for a bank loan and cope with its cumbersome paperwork, lengthy process, and restrictive funds limit—not to mention possible rejection. Or your can opt for a more business-friendly way to go—invoice factoring.

What is invoice factoring?

To understand invoice factoring, you have to understand what it is not. Invoice factoring is not debt collection—running after businesses to pay their bills. Nor is it a business loan or line of credit.

You simply convert your invoices into immediate cash to cover operating costs without taking on debt. Invoice factoring helps take the 30, 60, 90—or never—financial burden off your shoulders and, frankly, lets you sleep at night.

Invoice factoring goes by several names—accounts receivable financing, AR factoring, and invoice financing. No matter what you call it, the process is the same: you sell your invoices at a small discount to a factoring company and receive immediate cash for your business. No more need to process invoices. Depending on your agreement, bad debt is also reduced as the factor may assume financial risk if the invoice is not paid. The bottom line—invoice factoring gives you fast access to funds with greater flexibility, minus the bad debt.

Less stress, more cash

You could say that invoice factoring is a stress reliever. It takes the billing and collecting off your plate and transfers it onto the factor’s. It also gives you greater control of your company’s finances by providing the necessary capital when your company needs it. Say goodbye to your customers’ accounts payable procedures or terms, or a traditional bank’s underwriting processes or delays—and your own cash flow problems. How’s that for control?

Another benefit? With fast cash in hand, you can pay vendors more quickly and take advantage of their discount offers, saving you money.

How does invoice factoring work?

Unlike conventional lending methods, invoice factoring is based on the quality of your customers’ credit, not your own credit or business history. You receive cash based on your invoices, not your company’s net worth. That’s welcome relief for start-ups with minimal capital or for businesses experiencing financial challenges or bad credit. Worried about your balance sheet? This financing doesn’t show up as debt.

 

The factoring process works quickly and easily: you deliver a product or perform a service for your customer and send your invoice to a factoring company like Triumph Business Capital. You immediately receive a cash advance on your invoice from the factor, who then collects full payment from your customer, and pays you the balance of your invoice, minus a fee. After verifying the creditworthiness of your customer, the factor may not accept invoices for a customer that has a history of late or missed payments.

Invoice factoring vs. traditional loan

Still not sold on invoice factoring?

Consider this: bank loan processing can take weeks or longer. In that case, you might as well wait for the customer to pay you. Invoice factoring, on the other hand, is fast. You can be paid within 24 hours. You decide which invoices to factor and when.

Invoice factoring is also more flexible than a bank loan. You aren’t locked into a long repayment period. And the cash you receive for invoices is unrestricted—you can use the funds however you want. Compare that to a business loan that requires the money to be used for specific purposes.

Who factors?

Invoice factoring has been around for over 4,000 years, dating back to the time of King Hammurabi of Mesopotamia.

In the 1900s, the most popular industries for invoice factoring were the garment and textile industries. There was simply no better way to continue to buy raw materials to produce clothing and textiles.

In the 1940s, transportation industries were added to the roster of factoring participants. From the 1960s through the ’80s, rising interest rates and bank regulations made invoice factoring more popular because it didn’t require the same sort of credit checks. Today, small to mid-size businesses finance their working capital by factoring over $1 billion annually.

“Companies of all sizes, with annual revenues from $10,000 to $10 million, continually approach us for invoice factoring,” says Steven Hausman, President of Triumph Business Capital, an industry leader headquartered in Dallas, Texas. “We have provided factoring for over 7,000 small to mid-size businesses since 2004. We have a long track record with the transportation industry. Staffing agencies, government contractors, and small businesses are increasingly seeking us out to help solve their cash flow challenges.”

The difference between recourse and non-recourse factoring

Just as there are varying client needs, there are various types of factoring arrangements. With recourse factoring, the client ultimately takes the responsibility for the payment of the invoice. Larger companies often use lower-cost recourse factoring. If the customer doesn’t pay the debt, then the seller is liable to repay the factoring company.

Non-recourse factoring allows companies to sell their invoices to the factoring company, which then assumes all of the credit risks for the collection of the invoice. Triumph Business Capital employs non-recourse factoring and assumes all the risk of collecting the debt. That’s a lower risk option for small companies that can’t absorb the cost of unpaid invoices, but it does cost slightly more than recourse factoring.

A small price to pay for substantial relief

What will all this convenience cost you? Invoice factoring can have higher fees than traditional financing, with non-recourse factoring fees based on a variety of considerations.

During the application process, Triumph analyzes the credit risk associated with your customers, the time it takes them to pay their invoices, and the monthly funding volume forecast for your business.

Triumph then offers pricing options that match each client’s budget and risk tolerance. As an added benefit, factoring fees are deductible as a business expense.

Why Triumph Business Capital?

Triumph Business Capital is a proud member of the International Factoring Association (IFA), and strictly adheres to the IFA’s code of ethics.

Originally called Advance Business Capital, the company changed its name when it joined Triumph Bancorp, Inc. in 2012. As a financial holding company, Triumph Bancorp, Inc. maintains a diversified line of community banking, commercial finance, and asset management activities. Since day one, the company’s vision has focused on four core business priorities.

  • Delivering value
  • Developing people
  • Demonstrating expertise
  • Displaying a commitment to enterprise success

“Many clients have been with us since our early days—testament to the integrity of our service and dedication to their business,” says Hausman. “Our team is professional and courteous. We’re a partner with our clients to help them find success with their customers.”

Triumph customers couldn’t agree more. A senior executive at JP Transport, LLC spoke about Triumph: “I have been beyond impressed with the service from Triumph Business Capital. My payments are processed on time every time. The online submission process is fast and easy. Reports on various payment statistics are helpful. I’ve been contacted by Triumph staff just to check on how things are going. Couldn’t be more satisfied.”

Is invoice factoring right for you?

If you’re often caught in the net-30, -60, -90—or never—battle with customers, let us help you determine if invoice factoring is right for your business. Our answers to the following frequently asked questions may get you one step closer to the cash flow relief and improved client relationships that invoice factoring provides.

Q. How much do I have to factor?

A. You have total control over which invoices you want to factor and when. Keep in mind, though, that once you decide to factor one of your accounts, it’s generally required that you factor all the invoices for that customer in order to reduce payment confusion.

Q. What are the costs?

A. The fees for invoice factoring depend on several items, including your customer’s credit risk, how long they take to pay your invoices, and your monthly funding volume. Always transparent, always fair. In any case, your factoring fees will stay the same throughout your entire contract and are contract determined before we purchase your first invoice.

Q. What if I’ve been rejected for a bank loan? Will a factor reject me?

A. Unlike traditional lending, invoice factoring does not rely solely on your credit. Invoice factoring is based on the quality of your customers’ credit, not your own credit or business history.

Q. Can invoice factoring improve relationships with my customers?

A. Absolutely! First, invoice factoring can help increase your credibility. Here’s how: invoice factoring is a recognized, established method for a company to optimize cash flow. Since banks have tightened credit policies for small businesses and startups, many companies now use factoring instead. A factoring company’s willingness to finance your invoices serves as an endorsement of your business as a solid company and a good risk.

Invoice factoring also allows you to give more attention to your customer’s needs—instead of worrying about their payments. Triumph has a decade of experience and dedicated teams that work closely with you to handle the invoicing and collecting of payments. These courteous professionals partner with you to enhance the relationship you’ve built with your customers.

Transitioning to invoice factoring is seamless. Triumph stamps each invoice with payment instructions known as a Notice of Assignment. It’s a very smooth transition for both you and your customers.

Lastly, invoice factoring helps you keep better track of your invoices. Triumph’s online account management, for instance, provides a full array of client reporting and real-time information. The goal is to keep you totally informed on the status of your customers and accounts—and give you the cash you need, when you need it.

Trucking? Staffing? SMB? Government Contractor? Get paid today!

Any business owner or consultant would readily agree that getting paid shouldn’t be the hardest part of the job. Thanks to factors like Triumph Business Capital, it doesn’t have to be.

Freight factoring lets trucking companies get the show on the road. They can pay drivers, insurance, fuel, and other expenses on time, and never have to turn down another job due to lack of cash in hand.

Staffing companies can relax, knowing that they’ll make payroll on time, every time. Small and mid-size businesses can easily replenish their operating capital and get back in business. Government contractors can have the working capital they need to keep the company going strong, without monthly minimums, long-term requirements, or “risk” contracts.

If large invoices or slow payments are standing in the way of your company’s production and expansion, it’s time to learn how invoice factoring can work for your industry—and how Triumph Business Capital can help you get paid today. Get started now, and leave the net 30, 60, 90—or never—far behind.

Government Contractor

Notice: How to Stay Compliant with the Updated Trade Agreements Act

On May 5, 2016, many schedule contractors received a notice of the government’s continual examination of compliance to the Trade Agreements Act (TAA). Schedule contractors are required to comply with this act by verifying the country of origin for all of their products.

If you are a government contractor, here are a few tips to help you stay compliant.

Abide by the TAA

The TAA states that the product produced by government contractors needs to be wholly grown, produced, or manufactured in the United States or a designated country. According to the Trade Agreements Act, the product can also be “substantially transformed into a new and different article of commerce in the US or designated country.”

To find a list of designated countries, you can reference The Federal Acquisition Regulation section 25.003. Major countries that don’t make the list are China and India. If you obtain products from multiple countries, each country of origin needs to be noted. Also, if you use suppliers, they need to tell you the country of origin for every item they provide for you.

Compliance standards for product contracts

If you are unsure if your product has been transformed in a way to make it compliant, you can find recent rulings on the Customs Ruling Online Search System (CROSS), a searchable database of rulings by the United States Customs and Border Protection (USCBP). In its role of investigating a product’s TAA compliance, the USCBP determines if the manufacturing process has changed the product’s functions or its traits.

Compliance standards for service contracts

If you are a government contractor providing services, the compliance standards are slightly different. The country of origin is determined by where the company is legally established and not by where the services are performed. So even though your services may be performed in another country, if your company is established in the United States or a designated country, you are compliant.

What this means for you

Schedule holders who receive an official notice have five business days to submit a spreadsheet that verifies the country of origin for each product on the GSA contract.

If schedule contractors discover that they aren’t compliant, they have to complete these three steps.
1. Remove all non-compliant products from the contracts.
2. Update GSA Advantage so that the non-compliant products are erased from the system.
3. Update and submit their price list to the National Schedules Information Center.

To improve your TAA compliance, incorporate the following procedures into your ongoing compliance efforts.
Keep a record of your manufacturing process. Tracking each step of this process will make it much easier to prove compliance. It will also help you keep in touch with the right people if that manufacturing process changes.
Verify that suppliers meticulously update their product’s country of origin. If any changes need to be made, be sure to let your GSA Contracts administrator know.
Remove products that are not TAA-compliant. You can use the modifications clause to remove any products that are not compliant with the TAA.

Federal rules and regulations are ever changing, so it’s important to stay up to date on the government’s requirements for its contractors. One thing that never changes about working with the government is the need for steady cash flow. To learn more about how government contract financing can benefit your company, visit our invoice factoring page.

Successful Entrepreneur

5 Signs You’re a Real-Deal Entrepreneur

You took the leap and started a business, but now you lie awake at night feeling like a fraud, like you don’t deserve the success you’ve created.

It’s called imposter syndrome, a term coined in 1978 by two clinical psychologists referring to high-achieving individuals who are unable to internalize their accomplishments. Before you spend another minute telling yourself that your success is just a matter of luck and has nothing to do with your hard work, take a look at these five characteristics that prove you’re a real-deal entrepreneur.

1. You executed an idea

“Good ideas are not adopted automatically. They must be driven into practice with courageous patience.” – Hyman Rickover

Anyone can have an idea. It takes execution to turn that idea into a business. No matter what your business idea is, it’s virtually guaranteed that someone else has—or had—the same idea. It’s the execution of the idea that brings it to fruition and makes it unique and worthwhile.

Just think: there are plenty of social networks, but only one Facebook. There are several search engines, but only one Google. There are many electric vehicles, but only one Tesla. Without proper execution, the greatest ideas die out.

2. You have drive and conviction

“The price of success is hard work, dedication to the job at hand, and the determination that whether we win or lose, we have applied the best of ourselves to the task at hand.” – Vince Lombardi

Entrepreneurship is not for the faint of heart. Starting a business takes perseverance. All entrepreneurs take financial risks, work long hours, and face setbacks, but you have the drive and conviction to continue to overcome whatever obstacles emerge.

Whether your end goal is to build wealth, achieve a flexible schedule, or leave a legacy, you have the passion and the drive to push through and build your dreams.

3. You don’t let failure stop you

“Failure is success in progress.” – Albert Einstein

Those who are weak lose motivation when things don’t go as planned, but you know that failure is a springboard to growth. Instead of giving up in the face of failure, you use it as an opportunity to reset your perspective, make necessary changes, or have that “aha” moment of inspiration you’ve been waiting for.

In her column for Forbes, writer Alison Coleman interviewed Virgin Group founder Richard Branson. With nearly five decades in business, Branson is known primarily for huge successes—but he’s faced his share of failures, too. He offers this advice for entrepreneurs facing failure: “Failure is a necessary part of business, so it’s incredibly important for all entrepreneurs and business leaders to know when to call it a day, learn from their mistakes, and move on, fast.”

4. You built a top-notch team

“Great things in business are never done by one person. They’re done by a team of people.” – Steve Jobs

As you know, a growing business can’t be built solely by one individual. It requires a team of people with complementary skills. Whether your entire team is on payroll or you rely on a network of consultants and independent contractors, you’ve created a top-notch team that brings new perspectives and specialized knowledge that enhances your business.

5. You invest in yourself

“Investing in yourself is the best thing you can do. Anything that improves your own talents; nobody can tax it or take it away from you. They can run up huge deficits and the dollar can become worth far less. But if you’ve got talent yourself, and you’ve maximized your talent, you’ve got a tremendous asset that can return tenfold.” – Warren Buffett

When most people think of investing, they think of stocks, bonds, commodities, or even investing in the dream of another entrepreneur—but all of these investments rely on someone else to turn a profit.

You’re different because you know that the best investment involves turning your passion into financial success. You’re always open to learning and sharpening your skills. You read books, listen to inspirational podcasts, take seminars or classes, grow your network, and invest in your own health and wellbeing.

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So, fueled by your personal drive and with input from the team you’ve assembled, you’ve followed through on your idea and overcome the obstacles—all while continuing to invest in yourself. Congratulations, entrepreneur, you’re the real deal!

Even real entrepreneurs like you need a quick influx of cash to build on their momentum and continue growing. Learn more about how invoice factoring can help you improve cash flow and be prepared for potential shortfalls.

Recruiting College Graduates

3 Ways to Successfully Recruit Leading College Grads

1.9 million college students are expected to graduate this year and most of them will want to start their career right after they walk across the stage.

By targeting college graduates, your staffing agency can dip into a talent pool that comes to the workforce with fresh, new ideas and a willingness to learn and be trained. It’s important to know who to look for and how to win them over to your client’s company.

So how do you get the best talent out of the Class of 2016? Here are three ways to successfully recruit the best of the best this year.

1. Attend career fairs

Many colleges and universities across the nation host career fairs for their students to meet potential employers. By attending these job fairs, employers can meet a number of top candidates. Also, students who attend career fairs tend to be more serious about their future, so these fairs are often effective places to recruit the best talent.

One way to find the best career fairs is by targeting schools. If you’re seeking graduates with a particular degree, Workforce Locator can help you find the top schools for that major.

Remember to engage with students at the career fair. Many times, representatives stand behind their tables without interacting with students as they pass by. Unless you represent a company that is very well known, many students won’t know about you, what you offer, or how you can jumpstart their career. Step in front of the table and take the initiative to connect with every student who walks by your booth.

2. Appeal to their deeper interests

Millennials have different interests than previous generations when it comes to what they want from their employers. In a recent study, 83% of millennials chose their positions based on employee benefits and 54% took a job based on flexible hours and work schedules.

For most millennials, it’s not just about the money. However, because recent college graduates typically carry a large amount of student debt, many companies are taking steps to help them pay down their loans. For example, starting in July, Pricewaterhouse Coopers’ junior employees will be eligible to receive up to $1,200 per year for up to six years as assistance from the company to pay down college debt.

Recent college graduates are also looking for a company that can provide a career path and development opportunities. They want to know that they are valued and that they will have opportunities to learn the skills they need to move up the career ladder to a more prestigious, high-paying position.

3. Understand that their experience may be limited

Train your recruiters and hiring managers to understand that a recent college graduate’s resume will look different from the resume of candidates with more career experience. Many times, the students have been involved in internships or campus leadership positions, which can mitigate their lack of on-the-job experience.

In a Monster article, Enterprise Rent-A-Car regional recruiting supervisor, Chris Fitzpatrick, commented on how a candidate’s involvement in college can help hiring managers connect the dots.
“Involvement in sports breeds competitiveness. Membership in fraternities, sororities, and other clubs and organizations helps develop leadership skills. Although a communications major may not have learned case studies about risk management, the ability to communicate verbally, nonverbally, and cross culturally is vastly more critical. Soft skills such as communication, work ethic, flexibility, and leadership transcend the college majors and are better identified when an entire picture of a candidate’s college experience is seen.”

You can always teach the skills that recent graduates may lack; so if you see a lot of involvement in college on their resumes, it means they are probably driven and dedicated individuals. Oftentimes a student’s non-career experiences during college will translate into the skills needed to do the job.

According to a recent study conducted by Leadership IQ, “89% of the time a new hire fails, it is for attitudinal reasons, not for technical competence reasons.” If you have a candidate who fits culturally, but lacks teachable skills, that individual might still be the right person for the job.

For more Staffing Tips, stay up-to-date by bookmarking our blog, or follow us on Facebook.

Freight Brokers

7 Common Bookkeeping Mistakes Freight Brokers Make

Freight brokers have a lot of responsibilities, from matching shippers and carriers to making sure each piece of cargo gets to the right place. Another essential task in this busy industry is bookkeeping. Freight brokers who don’t prioritize bookkeeping can end up losing money in the long run. Here are seven common bookkeeping mistakes freight brokers make and how to avoid them.

1. Attempting to DIY

In order to save money, many business owners insist on handling the books themselves or delegating the task to an inexperienced employee or family member. While you may initially save time and money, costly errors can result in higher bond premiums, more expensive financing terms, and other unforeseen expenses in the long-run.

Hiring a competent bookkeeper will save you money, because the job will be done quickly and efficiently, with fewer errors.

2. Postponing important tasks

Running any business is hard work. Many freight brokers find themselves too busy doing the day-to-day work to focus on important bookkeeping tasks such as reconciling bank and credit card accounts each month. Reconciling statements helps you catch errors and know how much cash or credit you actually have.

Although postponing this task may be tempting, you should reconcile your bank and credit card statements every month, preferably as soon as each statement is available. That way, you can identify any missing deposits, lost checks, or fraudulent charges and address these problems in a timely manner.

3. Not tracking invoices and receivables

If you’re not properly accounting for receivables, you can’t get paid. Getting paid equals cash, the lifeblood of every business.

Experienced freight brokers know that the delay between when you must pay your carriers and when you receive payment from your customers can strain your cash flow.

If tracking and collecting invoices takes too much time, consider invoice factoring. For a small fee, an invoice factoring company like Triumph Business Capital will purchase your invoices. You’ll get paid immediately without the time and expense of dealing with collections.

4. Ignoring liabilities

When a surety looks at your business financials to underwrite a bond, one of their major considerations is whether you have enough assets to cover your liabilities. Inexperienced bookkeepers sometimes remember to record a liability, but then forget to reverse the liability when the payment is made. This error results in an overstatement of liabilities and an understatement of net income, making your business look less financially stable than it actually is.

You can avoid this type of error by hiring an experienced bookkeeper. It’s also a good idea to have another set of eyes (either an owner or a CPA) review the balance sheet regularly and look for unusual account balances.

5. Miscategorizing expenses

Another common error made by inexperienced bookkeepers is miscategorizing expenses or creating too many expense categories. Most businesses and industries have a fairly standard set of expense categories. Miscategorizing expenses or creating too many categories can be a big red flag, signaling to a surety or loan underwriter that your books are not well prepared.

Set up your accounting software correctly from the start with the help of an experienced bookkeeper or accountant and don’t add new expense categories without careful consideration. If you’re unsure of how to classify an expense, ask your CPA or accountant for guidance.

6. Missing details on invoices

When invoicing your customers, you need to provide sufficient detail on each line item. For example, is the charge a flat fee, or do you invoice per mile, per piece, or by weight? If you include additional charges, such as reimbursement for fees or fuel, you should list these as separate line items. Make sure the charges are properly detailed so there is no confusion.

Including the necessary details on your invoices will prevent pushback from your customers for charges they don’t recognize. Any missing information can cause delays in payment—a headache no business owner needs.

7. Missing out on accounting software functionality

Often, in an effort to get their business running, freight brokers purchase an accounting software package but never take the time to learn how to use it correctly. If you’re outsourcing all your accounting and bookkeeping tasks, this is probably not an issue. On the other hand, if you’re using the software at all, even just to enter checks and run reports, you should take the time to learn all of the available functions.

The right accounting software, when used correctly, can save you time and give you real-time information on the state of your business—information you can use to make important business decisions.

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Want to take one task off your endless to-do list? Learn more about how invoice factoring can put cash in your bank account, while Triumph Business Capital handles the time-consuming task of calling shippers to collect on invoices.

Small Business Factoring

Small Business Social Media 102: Creating Killer Content

After the first lesson in this series, you now have your social sites all set up and are ready to engage your followers.

People want go where content is fresh, new and relevant. No one likes or follows a page with stale content. With an abundance of ideas on what content to post, how often to post and who you are trying to reach, you do know you want to find killer content for your page.

Creating Engaging Content

You have worked really hard to gain relevant followers. Now you have to keep your audience captivated with interesting content. Content is king in the marketing world, and it doesn’t have to be difficult to create.

Step 1- Create a solid piece of content

Consider this one piece of content your content hub. The majority of your social posts and additional content will come from this one piece. It will take time to create, but it will save you time in the long run. This can be a great blog post, an ebook or whitepaper.

Step 2- Repurpose the Content

Let’s say, for example, you have an informative blog post that you’ve posted to your small business blog. You can repurpose that blog content into the following:

  • Videos or even a video series (Hello, YouTube)
  • Whitepapers
  • Ebook combining multiple blogs
  • Slideshare presentation
  • LinkedIn Pulse post
  • Infographic
  • Videographic
  • Podcast
  • Webinar
  • Multiple Facebook posts
  • Pinterest pins
  • Tweets
  • LinkedIn posts
  • Instagram posts

Use your time effectively by doing all you can to develop more content from content you have already created.

Step 3- Test How it Performs

Test how it preforms. If one Facebook post does better than another, why is that? Could it have been the time it was posted? Could it have been that an image is more compelling than a video or vice versa? The more you know about what content performs better, the more you can perfect your content.
You then repeat the cycle now knowing how each piece of content performs with your audience. If videos resonate more, create more videos. If you see an abundance of whitepaper downloads, create more whitepapers. Testing is an important part of your social media success that should not be skipped.

Scheduling and Reporting Tips:

  • Schedule out your content using tools like Hootsuite and Buffer to save you time.
  • Use link shorteners like Bitly to track who clicks on your links and through what medium.

Engaging Content Tips:

  • Every post needs a purpose. Are you looking for link clicks, likes, shares, retweets, comments, etc.? Make sure your content reflects that. For example if you’re looking for comments, ask a question.
  • Keep track of Facebook, Twitter and other social medium’s changes. For example, sometimes Facebook will release what pieces of content will hold more weight in the ranking algorithm.
    Don’t be afraid to share a blog post more than once. Because of how social media works, your content will probably not reach all of your followers the first time you post it.

For more small business tips, follow us on Facebook, Twitter, Google+ or Instagram.

Truck Parking Problem

The Parking Problem

In 2009, a trucker named Jason Rivenburg was shot and killed by a man who stole $7 in cash from him. Forced to park in an abandoned gas station when he became tired, Jason became the victim of a brutal crime. Sadly there are other stories similar to this one; it’s not the first time this has happened nor was it the last. It’s been 7 years since the murder of Jason Rivenburg, and even after a law has been passed, can we say that much has been done to address this problem?

According to a recent report from the Federal Highway Administration, 72% of states reported having problems with truck parking. What is causing the problem for the lack of parking? There are a couple of factors that could be playing into this:

• HOS Rules

With the hours of service rules in place, truckers may not be able to find parking when the clock runs out. In an article by Fleet Owner, one trucker said that the closest safe parking to his intended destination was 15 miles away. In traffic, that distance could be up to 45 minutes. Because of HOS rules, this 45 minutes could cause a trucker to go over his or her allotted time. The impact of hours of service rules on truck parking is causing many truckers to park in unsafe areas, like along highways, interstates, exit ramps and abandoned lots.

• Lack of truck stops

The United States went through a recession in 2008. During this time, trucks on the road decreased and many truck stops had more spaces than trucks. A couple of years after, the economy picked back up as well as the number of trucks on the road. However, truck stops haven’t caught up to the demand, creating a lack of safe parking at truck stops.

So what’s the solution?

After the tragedy involving Jason Rivenburg in 2009, legislation occurred to increase available, safe parking for truckers through Jason’s Law. The law was passed in 2012 providing more than $6 million to put toward the construction of safe truck parking.

In 2015, the National Coalition on Truck Parking was created through the Federal Highway Administration to address this shortage. The coalition met in the fall of 2015 after the survey results of Jason’s Law confirmed the lack of safe parking available. During this meeting, the coalition defined some obstacles and opportunities to reaching the ultimate goal.
The United States Department of Transportation conducted a Beyond Traffic study and concluded that by 2040 the amount of freight moving in this country will increase by 45 percent. Therefore, the truck parking issue needs to be addressed way before we get to that point.

Many truck stops are expanding their spaces and giving truckers the option of “reserving” spots. However, this can cost money, and should a trucker have to pay for his or her safety? Another option for truckers is the big box stores that sometimes let truckers park in their parking lots. Many of their parking lots have the ability to hold that amount of weight, because freight is coming in and out constantly, However, not all big box stores have the same policies. While some are welcoming to big rigs, others turn them away. This is not always a viable option, so it can’t be the only solution.

In addition to the coalition formed, Truckers Had Enough has created a video creating more awareness of the truck parking problem.

Ultimately, we can create laws and coalitions, but in the end, we need to prevent more Jason Rivenburg situations; we need a solution.

Social Media Tips, Staffing Agencies

5 Social Media Tips for Staffing Agencies

If you work for a staffing agency, social media can be a powerful tool to help your firm grow by finding the right candidates.

Agencies that aren’t utilizing social media marketing in their strategy are missing valuable opportunities. However, with many platforms available, it can be challenging to determine which are most effective and which are simply a waste of time. In this article, we’ll share five social media tips to increase your staffing opportunities.

1. Understand your target audience

Each social media platform features its own audience. The first step to develop a solid social media strategy is to pinpoint the demographics. Who are your ideal candidates? Focus your efforts on the channels where those individuals will likely be found.

2. Ensure brand credibility and consistency

Another important component of a good social media strategy is branding. Undoubtedly, you will be competing with dozens of other recruiters, all of whom are vying for the same top talent. To grab and keep the attention of potential candidates, your brand must stand out as both credible and consistent. Be sure your agency maintains an active online presence with an image and voice that are consistent across all platforms.

3. Find the right platform

One social media marketing mistake many businesses make—staffing companies included—is trying to spread their resources too thin. Sure, you could be active on multiple social media channels, but that doesn’t mean you have to be. In fact, doing so could have a negative effect. Instead, focus on mastering the top few platforms where you’re most likely to reach your target audience.

4. Make your content searchable

Keywords aren’t just for search engine optimization (SEO). They also make your content easier to find. In fact, search engines rank social media sites so favorably that leveraging the right keywords can increase your results, making locating the right candidates far easier. In the company description, incorporate targeted keywords and links to the agency’s other social media accounts. Keyword-rich “about me” descriptions will enhance your online search ability and visibility. And don’t forget to incorporate relevant hashtags on all posts to better reach your target audience. Hashtags make it easier for your audience to find, follow, and contribute to a conversation.

5. Tap into your current workforce

Successful recruiters have a built-in network of referral opportunities in the candidates they’ve already matched with companies in need. Why not tap into this resource to help spread the word socially about other openings you’re trying to fill? Today’s consumers trust online recommendations just as much as if they’d come from a friend, family member, or colleague; and getting others to share on your behalf provides access to additional networks of potential candidates.

Where to spend your time

Now that you’ve built a strong foundation to support your social media strategy, let’s take a quick look at which platforms tend to be the most beneficial marketing channels for staffing agencies.

  • LinkedIn: Advanced search allows you to look for prospects using keywords, job titles, industries, and more.
  • Blog Posts: Leverage the power of SEO to help candidates find you and learn about your openings.
  • Facebook: Use the new advertising format to target candidates based on a number of variables.
  • Twitter: Use keywords to search for qualified candidates.

For more details on recommended social media platforms for recruiters as well as other valuable tips, watch this short video clip.

And be sure to bookmark our Staffing Blog for the best staffing agency resources, professional advice, tips, tricks, and much more.

Cash Advance

How to Close the Sale

Whether you realize it or not, at some point in your career you will inevitably face the need to sell something, be it a product or service, or even yourself as a qualified candidate in a job interview. Learning how to effectively close the sale, regardless of what’s at stake, is an important part of being successful in any line of work. For many, it’s also one of the most challenging. Here are a few key points to keep in mind that will help you become more adept at negotiating and sealing the deal in any situation.

Understand your ideal customer…

There’s no one-size-fits-all approach to sales. In fact, it’s something that must be tailored to the audience you’re specifically targeting if it’s going to net you the results you’re after. Having a clear understanding of who your ideal customer is and what their unique needs, wants and pain points are can help you develop a more effective sales pitch. This not only reaches your prospects where they are, but demonstrates why your product or service is something they absolutely must have.

It’s about them, not you…

You may have an amazing product or service that could help people tremendously. The problem is, if you can’t clearly communicate how your offering will specifically benefit your prospects, you’re wasting your time (and theirs). When you sell, focus on your customers’ needs rather than what you believe are the key selling points of your product. What you find great about your product may be different than how others perceive its benefits. As an added bonus, when your sales approach is focused solely on your audience, you’ll naturally begin to build valuable relationships. Because people are more likely to buy from someone that they know and trust, you’ll already be a step ahead of the game.

Use happy customers as sales tools…

You could talk for hours about how awesome your product or service is, but it doesn’t mean nearly as much as when that kind of glowing endorsement comes from an actual customer. In fact, 84% of consumers say they trust recommendations from family, colleagues and friends more than any other resource. Don’t be afraid to ask satisfied clients and customers who have had a positive experience with your brand to give a recommendation for future sales. Reviews and videos can be a strong and powerful tool for effectively closing the sale.

Ask…

It may seem obvious, but this is the step that many people tend to struggle with the most. If you’ve done your job in identifying your prospects’ needs and aligning the benefits of your product or service with those needs, the final step in asking them to sign on the dotted line shouldn’t be that difficult. What’s the worst that could happen? You’ll get a ‘no’? Overcoming objectives and dealing with rejection is par for the course, and will ultimately make you a stronger negotiator over time.

Successful individuals have one thing in common: the ability to close the sale. It doesn’t matter whether it’s the sale of your latest product, an upgrade on a particular service offering or selling yourself as the ideal candidate for that new job or promotion. The key is understanding the science and psychology behind the sales process and making that work for you. By applying the tactics listed above, you’ll be able to hone your skills and start closing deals with cool confidence and an increasing success rate.

Staffing Blog

The Cash Advance Option You Never Considered

When small businesses have a need for money, the most common next-step is to apply for a loan. What many don’t realize is that they have capital readily available to them in the form of outstanding invoices. In fact, the process of accounts receivable factoring has many favorable benefits over traditional financing methods, particularly in the case of government contracting. Let’s take a look at a few of these benefits and how invoice factoring services might be the ideal solution to your business capital needs.

Dependable Cash Flow

You can’t win a government contract if you don’t have the financial means to fulfill your bid. Don’t miss out on that upcoming RFP due to lack of positive cash-flow to back it up. Government contract financing is fast, easy and cuts out all the red tape involved in getting a loan. You’ll have access to the money you need when you need it, without having to take on additional debt in the process.

Competitive Advantage

Many small businesses feel it’s impossible to compete with larger organizations, particularly when it comes to bidding on government contracts. By working with a reputable invoice factoring company, you can step up to the plate and play ball with the big dogs. Better yet, you can do so with the confidence that comes with knowing you’ve got the funding to back it up.

Hire the Best People

Anyone who has been in business for even a short amount of time knows how important it is to hire a qualified staff of skilled, dedicated workers. Attracting and recruiting top talent is only half the battle. You also have to make sure you’re taking care of their needs so they’ll want to stay onboard for the long-term. Leveraging your outstanding invoices for upfront cash can help ensure that once you’ve landed the right candidates, you won’t lose them due to payroll disruptions or other financial woes.

Think Long Term

One of the biggest factors in successful government contracting is proper preparation ahead of time. You need to know what types of contracts you’re best suited for, how and when to best position your offer, and what bid amount would be most likely to help you come out on top. Having a plan in place for financing is a significant part of this preparation. Plan ahead, research invoice factoring as well as reputable factoring companies now. It will give you assurance that once the bid is won, you are set with your financing needs.

Transparency

Successful small business professionals value honesty and choosing an invoice factoring company is no exception. Not all providers are created equal, but if you do your homework, you can end up with a partner that provides this high level of transparency. For instance, our government contract financing services do not include any monthly minimums, and there are no hidden fees to worry about. It’s a level of trust that is rare in the factoring industry.

If you’re a small business that’s considering entering the world of government contracting, it’s important to know all of your options ahead of time, including the best way to finance your bids. Invoice factoring can provide the working capital you need to confidently throw your hat into the ring and emerge victorious.

Freight Broker Factoring

Finding the Right Freight Broker Training

When you search for freight broker training courses on Google, you will inevitably find pages and pages of results. How can you decipher which one is best for your freight brokerage? More importantly, how can you determine which one will provide the best return on your investment? Let’s take a look at a few of the key features to look for when choosing a freight broker training program for your business.

Experience

The goal of any freight broker training program is to gain as much knowledge and value as possible in order to grow your freight brokerage. To improve the chances of achieving this goal, you need a training partner that has specific experience in the freight broker industry. For example, the Transportation Intermediaries Association (TIA) training program is backed by over 30 years of experience in the industry. Typically, the longer the company has been in business, the more reliable their training program will be.

Reputation

Along with extensive experience comes a host of satisfied customers. The reputation of the training provider you choose should be an important factor in determining whether their program is worth the investment. Are there other freight brokers or those in the transportation industry talking about this program? Look for reviews to find out if it’s legitimate. If you’re not careful and don’t do your homework, you could end up with a training program that is sub-par and fails to produce the results you’re after.

Convenience/Flexibility

Freight brokers often find themselves being pulled in a number of different directions. To accommodate this somewhat chaotic schedule, you need a training program that supports the busy freight broker lifestyle. This may include online classes or courses that can be completed at home. Of course, some people are just naturally more successful attending a physical class. Figure out what best fits your schedule and plan from there.

Cost

For most freight brokers who are just getting started, the cost of training is also an important factor. Not only do you need to find a program that will provide quality course material with training options that suit your schedule, but it will also likely need to fit within a particular budget. Companies looking to free up extra capital to fund training may consider freight broker factoring as an option. Simply sell your outstanding accounts receivables to a factoring company, like Triumph, and you could have cash in your pocket the same day. Freight broker factoring is a great alternative to other quick cash options.

As with anything else in business, choosing the freight broker training program that’s best for your freight brokerage is an important step in ensuring a qualified, well-trained staff. Knowing what characteristics to look for – such as the ones listed above – can help take you from overwhelmed to confident when choosing the best freight broker training option for you.

Freight Broker, Owner Operator

Look for the Green Check Mark and Kiss the Lost Loads Goodbye

Since 1978, DAT Solutions has been a trusted source of information for transportation professionals, providing valuable data on important topics like supply and demand trends, forecasting, benchmarking and capacity planning, which is vital for achieving operational efficiency. As part of our commitment to serve the trucking industry and our valued clients, Triumph Business Capital has had an exclusive factoring partnership with DAT since 2013.

Through this partnership, our clients can enjoy free trials on two different DAT freight matching services – 30 days free on TruckersEdge and 15 days free on DAT Express. All DAT load matching services offer full technology integration with our own proprietary Online Broker Credit program. This provides valuable insight into which loads are factorable while searching for your next load to haul.

In the past, truckers struggled with mustering up the time and resources it took to identify which loads are factorable through their factoring company. By the time you received credit approval, the load could be gone. That’s why this partnership between Triumph and DAT is so beneficial. With the seamless interface, you can search for loads and see which ones are credit-approved – all at the same time. The green check on the DAT Load Boards indicates a factorable load through Triumph Business Capital. It’s that simple!

Freight factoring provides a number of benefits to those in the trucking industry, the most obvious of which is improved cash flow. By selling your outstanding accounts receivable balances, you can gain quick and easy access to much-needed capital without having to rely on loans or other complicated financing options. And because invoice factoring doesn’t involve ongoing debt payments or interest charges, your company will experience reduced risk. Freight factoring is built to last through the various seasons of your business’ life.

What could your trucking company do with better cash flow? Pay your drivers on time, stay up to date on insurance, pay for fuel and much more. Truck factoring can even help you work toward an aggressive growth strategy. Whatever your unique business needs, freight factoring can provide the funding you need to achieve your goals and objectives. And with this exclusive DAT partnership, doing so has never been easier.

To learn more about our DAT partnership and how you can take advantage of this and other great benefits that our factoring company has to offer, click here or visit our Trucking Blog.

Trucker Health

The Drive for Better Health

Truck Factoring

Choosing Your Big Rig: Buying vs. Leasing Your Truck

Purchasing a truck can be a significant expense, even for the most established trucking companies. As with most vehicles, acquiring a truck typically requires either a lease or a purchase. Which is the wisest investment? Let’s take a look at some of the pros and cons associated with each option to help you make a more informed decision for your business.

Leasing

Leasing is essentially financing the use (or deprecation) of your truck, as opposed to a loan, which finances the actual vehicle. There are various types of leasing agreements to choose from, but generally speaking, a truck lease covers the difference between the purchase price of the vehicle (excluding sales tax) and the projected value of the vehicle at the end of the lease terms.

One of the biggest differences between a lease and a purchase is what happens when all the required payments have been made. Unlike a purchase, with a lease, you will not automatically own the vehicle at the end of the terms. Some leases will allow you to purchase the truck when the lease ends for an additional amount of money, while others will allow you to trade the vehicle in, either for another truck or for the remaining cash value.

Depending on the type of lease you choose, you could end up paying more for a “closed end” lease. You could also be paying for mileage or wear and tear before you walk away as well. Furthermore, leases often include other expenses, such as security deposits, non-refundable acquisition fees and other miscellaneous fees.

In short, leasing provides flexible options, but sometimes that flexibility can come back to hurt you, as having an outstanding lease on a vehicle directly impacts your company’s cash flow, taxes and ability to replace or increase fleet.

Buying

Unless you can afford to pay in full, buying a truck typically involves taking out a loan for the purchase amount, less any cash down payment you can come up with. The loan will be for a set term, with incremental payments due that include whatever interest rate your business was assessed. Unlike leasing, purchasing a vehicle doesn’t involve nearly as many fees or expenses. It also provides the distinct advantage of allowing your business to establish and grow equity over time. When that last loan payment is made, ownership of the vehicle is transferred over to your company.

When purchasing a truck, there are a number of available equipment financing options from which to choose. Most importantly, as you make payments on the truck, unlike with a lease, you will continue to increase your equity in that vehicle. Once your financing obligation is met, you will be free to do whatever you’d like with the vehicle, including selling it to raise more capital for newer, better or additional truck purchases.

Ultimately, the choice of whether to lease or purchase will depend on your company’s unique situation. It will also depend on cash flow. If you’re looking to increase your fleet, trucking factoring can help provide an additional avenue of income to help make lease or loan payments more manageable.

Staffing Tips

The Goldilocks Effect: Payroll Funding That Is Just Right

You’ve probably heard the well-worn story of Goldilocks and the Three Bears. In this age-old tale, young Goldilocks is out for a walk in the woods when she stumbles upon the cabin belonging to the three bears. Upon entering and realizing nobody was home, she tests out each of the bears’ beds. Finding baby bear’s bed to be “just right,” Goldilocks promptly falls into a deep, fitful sleep. In real-life, this concept of finding solutions that are “just right” is important, especially in business.

Often times, staffing companies struggle to find the ideal solution to their cash flow woes. Let’s take a closer look at what these challenges are and how they can be overcome.

Funding Your Payroll

When it comes to paying your employees, there are a number of different options available to you. Determining which one is “just right” will depend on your specific business needs and a wide variety of other factors. These options include:

Traditional Revenue Funding – That is, relying on your incoming revenue to issue payroll. While on paper this may seem like the wisest choice, in reality, it may actually be more challenging than you may realize. After all, if your payroll is contingent solely on your income, what happens during a financial down turn? Furthermore, if most of your profits are being paid back out, this type of setup can stunt your ability to grow.

Payroll Loans – Another viable option for funding your payroll is taking out a bank loan. This isn’t necessarily a terrible idea, but it’s not the right fit for everyone. It’s important to weigh the pros and cons of taking on additional debt and to assess your company’s financial ability to repay the loan without stretching yourself too thin. Additionally, if you’re finding yourself in a position to need extra funding for your payroll needs on a regular basis, bank loans could potentially make matters worse. In fact, you may not even be approved.

Payroll Funding – The third option is invoice factoring or payroll funding. Unlike the other two methods, there is no dipping into existing or incoming funds, nor does it involve incurring any type of debt (and the interest payments that come along with it). Instead, you simply sell some or all of your outstanding accounts receivable to a factoring company for a small fee. The cash payment you receive in return can then be used to fund payroll (or any other business needs you may have).

When you consider the three available options, it becomes clear that for the majority of staffing companies, payroll funding is the solution that fits “just right.” This is especially true for smaller to mid-sized firms or those that wish to grow and expand, as it doesn’t require the use of existing profits nor does it depend on bank approval or credit-worthiness.

Some of the other benefits of staffing factoring or payroll funding include:

Fast Access to Working Capital – With the right partner, you can have the funds you need in no time. Eliminate the time-consuming task of waiting for invoices to be paid or for banks to make decisions. Get your cash when you need it.

Flexibility – If there’s one thing about the staffing industry, it’s that there can be tremendous ebbs and flows in the demand for talent. With payroll financing, you don’t have to worry about how you’ll keep up with these changing demands, because you’ll always have access to the funding you need.

Opportunity – Growth is something that many smaller staffing businesses strive to achieve. The problem is, many find it difficult to compete due to financial restraints. Having access to funding when you need it allows you to take on those larger clients without the worry of how differing payment cycles might impact your business.

Customer/Client Satisfaction – When you no longer struggle to meet payroll, regardless of external or internal circumstances, employees and the companies you place them with will find your staffing company “just right” too!

Want to learn more about payroll funding? Click here or contact us today!