Factoring Blog Posts

Carrier broker

What Do Carriers Do If They Don’t Get Paid? Learn About Broker Agreements

When a carrier completes a shipment in good faith, they expect brokers to pay them the full amount when they said they were going to. Unfortunately, in transportation, it’s not uncommon for there to be payment issues between carriers and brokers.

Why Don’t Brokers Pay Invoices?

There are several reasons brokers don’t always pay up. It could be a legitimate issue with the freight: damaged cargo, for example.

Sometimes there are paperwork issues that need to be fixed before a broker pays.

And worse, sometimes brokers go out of business and carriers are left waiting for their money, sometimes pennies on the dollar, of what they’re owed.

What Can a Carrier Do About Non-Payment?

First, if the broker has a legitimate complaint, communicate with them right away. Often, a quick phone call can clear up the confusion, and you can begin to work on a solution.

Even if the broker is still unwilling to pay the invoice after your talk, you’ll have the information you need to determine your next steps.

Things get a little stickier when the broker refuses to pay for other reasons.

Dealing with an Unreputable or Insolvent Broker

If the broker has gone out of business, you will likely never see the full amount you’re owed. You may have a glimmer of hope if the broker files for bankruptcy. The broker could eventually pay you, at least partially, when they liquidate their assets. Unfortunately, this could literally take years, and it’s far from a guarantee, and you’re probably not the only one standing in line waiting for your money.

Brokers who ignore your invoices and calls may have no intention of paying, at least not quickly. Depending on the amount of the invoice, you may need to sue them or sell the invoice to a collection agency to collect what you can.

Filing a Claim Against a Broker Bond

Another option is to file a claim against a freight broker surety bond through the Department of Transportation (DOT). Freight brokers need surety bonds to comply with DOT requirements aimed at preventing fraud and improving safety. They serve as a kind of insurance meant to protect you in situations like non-payment.

Bad news: filing on a broker’s bond is not simple, and it can take many months to work your way through the process. There’s no guarantee you’ll receive payment even then.

Can Carriers Do Anything to Avoid Non-Payment?

Non-payment situations are a hassle that threatens your livelihood. Your best option for dealing with them is by doing your best to avoid them in the first place. The good news is that there are a few things you can do to increase your chances of being paid.

Start on the Same Page

It’s crucial to hammer out details with the broker from the start, in writing. Communicate constantly and always be up front about accessorials and other charges that may crop up. Be sure to document everything and save your paperwork. A simple folder can help you keep track of your load paperwork and make the payment process a little bit easier.

Don’t forget, that your phone can be your best friend for dealing with all the paperwork. Many brokers don’t require the original documents, so you can use a 3rd party app to scan your documents and have them with you wherever you go. It also makes sending in load paperwork easier.

As the saying goes, “If it’s not in writing, it didn’t happen.” Even if you’re working with a trustworthy broker, it’s a good business practice to put everything in writing. That way, both parties know what to expect later. If it comes to the point where you need to take legal action, you’ll be happy you had your documentation.

Maintain good communication along the way so you can quickly get in touch to clear up issues. This can help you avoid a delay in payment because the broker will know what to expect on the invoice.

Eliminating Non-Payment Issues

So what’s the best way to get paid on your loads? Be as proactive as you can before accepting the load.

One of the reasons so many carriers use factoring companies is to handle the broker payment process.

In a factoring agreement, the factoring company advances most of the money owed to the carrier. When the broker pays the invoice, the factoring company pays the carrier the balance after deducting a fee for their services.

If a broker doesn’t pay or is slow to pay, the factoring company works with you and your customer to collect the payment.

A factoring company can help you minimize non-payment situations by:

  • Checking the credit and payment history of a broker before you enter an agreement. Triumph provides 24/7 access to its online broker credit check portal to give carriers an instant answer on a new customer or one you haven’t worked with in a while.
  • Offering additional protection with non-recourse factoring arrangements. A non-recourse contract protects you if a broker goes out of business and declares bankruptcy. In that case, you aren’t on the hook to pay back the advance from your factoring company.
  • Saving you time and energy by working directly with the broker to collect payment
  • Providing you with funds up front while working with you to resolve issues with broker payments

Stop Wasting Time Chasing Payments

If slow payments from brokers are hurting your cash flow, working with a factoring company like Triumph Business Capital can help you break the cycle of chasing broker payments.

And because we’ll pay you up front for your invoices — as quickly as the same day — you’ll always know where your money is.

Learn more about our freight factoring program and get started today.

Trucker’s Guide to Freight Factoring

Our Trucker’s Guide to Freight Factoring explains what exactly invoice factoring is, how it works, and if it’s a right fit for your trucking company.

Maintaining your professional network

Tips for (Safely) Maintaining and Building Your Professional Network

The coronavirus has forced everyone to take a step back from trying to improve their cash flow and take a ‘get back to the basics’ approach. The ability to build a professional network and strengthen existing relationships or make new contacts is just one more area of business that has been affected by the COVID-19 pandemic. Most small businesses rely on being able to establish professional relationships with clients, co-workers, and colleagues for business opportunities and referrals. But the coronavirus pandemic has forced many business staff members to work from home and cancel in-person networking events and conferences.

While recent developments might have made traditional networking opportunities more challenging, safer alternatives for building professional connections still exist. Here are some tips for staying on top of maintaining and expanding your professional network.

Check-In First

Many professionals tunnel on the idea of meeting new people and expanding their lists of potential collaborators and mentors. But it’s equally vital that you maintain the connections you’ve already made.

With so much changing in a small span of time, now is the time to touch base with folks who are already in your professional network:

  • Pick up the phone or send an email to people you may not have communicated with in the past several months.
  • Lead off by asking how they’re doing. These are difficult times for everybody, so don’t hesitate to check in on how they’re adjusting to changes brought on by COVID-19.

Many will appreciate you reaching out. This simple act will help you retain valuable relationships well into the future.

Use Social Media

When done strategically, using social media is a simple but effective way to expand your network. Professionals live on Twitter and LinkedIn, and most love to get engagement after they post something:

  • Twitter is an excellent place to meet people. It is more fast-paced, but don’t ignore business opportunities on LinkedIn, particularly if you are in the finance space.
  • LinkedIn gives you the opportunity to build your network through mutual connections, join groups that share your expertise and interests, and engage in conversations related to your industry.

Before you approach someone, spend a few minutes researching their profiles. Maybe you have mutual connections or interests that you can mention. It’s also fair to assume others will take a look at your information, so make sure your social media profiles are up-to-date and professional.

Attend Virtual Conferences

In-person industry conferences are off the table for now, but that doesn’t mean they’ve been canceled. Many now take place online and provide significant opportunities for networking.

Networking can be easier at digital conferences than in-person. When you meet people at a conference, it’s often one at a time. You shake hands, exchange business cards, and promise to connect later.

With a digital event, you have wider access to more people and the connections are instant. You can have discussions, follow each other on social media, and even set up a follow-up meeting on the spot with access to your online calendars.

Participate in Forums

You will likely find online discussion forums that cater to just about any interest from cave diving to personal finance to the trucking industry. Forums have always been excellent sources of information and education, but they have become more relevant to networking in 2020.

If you haven’t done so yet, investigate forums in your industry and other areas of interest. Join and start asking questions or participating in conversations to meet some new people.

Consider Blogging

Not every business owner or professional blogs, but now is a good time to take a closer look at ways to build your business or professional brand. Instead of pursuing new contacts and being solely focused on improving cash flow, post content that brings them to your virtual doorstep. You can set up your own blog or use a site like Medium, which has become popular in many industries. You can also use LinkedIn’s long-form posts as well so others can see your blog there.

Step Outside the Box

The COVID-19 crisis has forced professionals and businesses to adapt, and technology has been able to help many to fill in the gaps. Many have been able to work from home, but also get tips for succeeding with new ways of getting things done and business referrals when appropriate.

There are also many ways to connect with people and expand your professional network that don’t involve face-to-face meetings. For instance, with more people telecommuting, there are nearly half a million members in various “Work at Home” groups. Professionals who devote the time and resources to these networking will lay the foundation for growth in the future.

For more small business tips, subscribe to our blog or contact us to learn about how our funding services can help you with your short- and long-term financing needs or join our referral partner affiliate program.

small business financing

Small Business Financing For Those Who Did & Didn’t Qualify for a PPP Loan

The current economic environment poses unique challenges to the small businesses financing industry because banks aren’t lending as much or as often. It’s harder to obtain other types of small business financing that might have been available before the pandemic. Some businesses have been able to take advantage of Paycheck Protection Program (PPP) loans for funding, but in many cases, this money must be paid back. Even then, it’s not always enough to cover necessary expenses.

The good news is that there are still viable options for small businesses to solve cash flow issues, whether or not you were able to access PPP funding.

How PPP Loans Work for Small Businesses

The Paycheck Protection Program was created by the US Small Business Administration (SBA) to provide “a direct incentive for small businesses to keep their workers on the payroll.” Though PPP funding is technically a loan, these loans can be forgiven either partially or in full, as long as the business uses the funds for eligible expenses and adheres to rules about payroll and employee numbers.

PPP loans have offered crucial relief for many businesses, but not all businesses will qualify for them. Those that do qualify may have to wait months before receiving funding from PPP providers, and even then, that funding may not be able to cover all related business expenses.

In cases like these, businesses may be able to use invoice factoring to offer a steady, reliable source of income.

What Is Invoice Factoring?

In the simplest terms, factoring is a way for businesses to obtain immediate capital based on future income.

A factoring company buys your invoices or work orders, minus a factoring fee. The factoring company takes on the responsibility of collecting debts, and you get your money right when you need it. It’s a way to get an injection of cash or working capital quickly and easily, without going into debt or waiting for clients to pay in full.

Unlike a loan, you do not need to repay the funds received from factoring. You can even leverage invoice factoring if you get a PPP loan, helping you adhere to PPP loan rules and giving you the flexibility you need to pay it back.

Factoring for Businesses with PPP Loans

Because PPP loan amounts are based on 2.5 times the company’s 2019 average monthly payroll cost, this funding alone may not be enough to keep many small businesses afloat.

PPP loans also require business owners to spend a certain percentage of their funding on employee salaries. However, the majority of business budgets consist of day-to-day operational expenses like utilities and rent, not just payroll.

For businesses that received PPP loans, invoice factoring may be a way to meet financial obligations that government loans can’t cover. It can also be a way to ensure that PPP loan rules are being met without falling behind on other funding needs.

For example, if your business needs new equipment or rent is due, it can be tempting to dip into PPP funding to cover these expenses. To be eligible for PPP loan forgiveness, however, business owners are required to spend at least 60% of funding on payroll or salaries.

Invoice factoring can allow you to keep up with these crucial, non-payroll expenses without losing eligibility for loan forgiveness. This can help keep your business stable while saving you money down the line.

Factoring for Businesses Without PPP Loans

If you didn’t apply for or don’t qualify for PPP loans, factoring may be able to help your business maintain a steady cash flow in the short term and long term.

Factoring may be most immediately useful for maintaining income during unpredictable market conditions, but it can also help your business recover more easily in its aftermath. Even when businesses are allowed to fully reopen, many small business owners believe it will take three months to a year before a return to “normal.”

Additionally, it’s not just businesses dealing with economic uncertainty—it’s your clients, too. An economic downturn means that clients may struggle to pay invoices on time for the foreseeable future, further destabilizing income for small businesses.

For businesses in need of added stability, invoice factoring can be a useful alternative to PPP loans. Factoring can help mitigate the problem of unpaid invoices, giving your business a stronger foundation into the future.

Is Factoring Right for Your Business?

Whether your business was able to benefit from the Paycheck Protection Program or not, invoice factoring may be a way to help your company keep cash flowing and pay for important business expenses.

Think invoice factoring might be a good small business finance solution for you? Reach out to Triumph today to learn how we can help you leverage the power of your unpaid accounts receivable—and sidestep complicated, expensive loans.

business loan scams

Tips for Carriers: Avoiding Common Business Loan Scams and Logistics Fraud

As if 2020 hasn’t been a difficult enough year, business owners are still facing threats from scammers trying to take advantage of hard times. While you can’t stop all fraud, you can minimize your risk by knowing how to spot and avoid common business loan scams.

Fuel Advance Scams

Fraudulent fuel advances are among the most popular scams in shipping logistics. A false carrier, often using the name of a legitimate trucking company, will book a load with a broker and then request a fuel advance. The “carrier” may even present a falsified bill of lading to make it look like a pickup has happened.

When the scammer receives the fuel advance, they walk away with the money. The broker has paid for a job that wasn’t done and still has to find another carrier to finish it.

How to Protect Your Business from Business Loan Scams

To avoid brokering a load to a scammer masquerading as a legitimate carrier, check the carrier’s phone number or email address against its Federal Motor Carrier Safety Administration (FMCSA) listing.

If you work with a factoring company like Triumph Business Capital, you can use their client portal to run credit checks on brokers 24/7.

Double Brokering

Double brokering usually happens in one of two situations:

  • A broker accepts the job of finding a carrier for freight but offloads that responsibility to another broker without telling the original hiring company
  • A carrier agrees to move freight for a broker but re-brokers the freight to a different carrier

A lot can go wrong with double brokering. The final carrier or second broker could be accepting the job to deliberately engage in fraud, ultimately walking away with the money and leaving the company that hired them holding the bag.

If the middle company that initiated the double brokering deal walks away, the original hiring company and the final carrier are left in difficult positions. The original carrier could have to pay again for delivery of the load, or the buyer could end up with that responsibility.

How to Protect Your Business from Scams

The best way to avoid becoming the victim of double-brokering fraud is to conduct background and credit checks before you accept a job or contract with a carrier. If you have any suspicions, check the company’s business credit report.

Advance Fee Scams

Transportation-specific scams aren’t the only ones that affect the trucking industry. Logistics companies can also fall victim to lending scammers who prey on businesses that need money. They charge “fees” for the services they claim to offer and then walk away with the cash.

One example is the advance fee scam, in which a “lender” promises a low-interest or no-interest loan in exchange for an advance payment. The scammer might frame that payment as an application fee, processing expense, commission, or tax.

Because legitimate lenders may also charge upfront fees, it’s easy for less experienced business borrowers to fall into this trap.

To tell the difference between a fraudulent and legitimate upfront fee, look at the loan itself. Scams will seem too good to be true, and the scammer will use that image to entice you to pay the fee. Steer clear of extremely low or nonexistent interest rates, especially if your credit isn’t top-notch.

Other red flags include unsolicited contact and lenders who refuse to explain their terms. A legitimate lender won’t contact you out of the blue, offer attractive loan terms, and then refuse to give you details.

What to Do If You’ve Been Scammed

If you’ve been the victim of one of these common business loan scams, immediately contact the proper authorities. Notify the FMCSA about activity by fraudulent brokers or carriers. Call your bank if you’ve made an advance payment to a fraudulent lender or broker, and be sure to ask if there are any other organizations you should notify.

Remember, it’s always easier to avoid business loan scams than to recover from them. Triumph Business Capital has helped thousands of companies manage working capital through invoice factoring. We can help you analyze credit for new clients, make sure they are legitimate, and choose the right solution.

Don’t be taken in by scammers—contact us today for funding solutions, credit analysis, customer research services, and more.

Trucker’s Guide to Freight Factoring

Our Trucker’s Guide to Freight Factoring explains what exactly invoice factoring is, how it works, and if it’s a right fit for your trucking company.

Working-capital

Best Working Capital Solutions for Small Businesses

Working capital is the life blood of every small business. Without working capital, you won’t have the money to pay overhead expenses, purchase raw materials, meet your payroll, or pay your vendors.

In fact, a lack of working capital combined with poor cash flow is behind most small business failures. To avoid ending up as one of those statistics, it’s important to identify the best working capital solutions for small businesses.

Ultimately, the best working capital option is going to depend on you, your business and your current financial situation. For example, startups may not qualify for the same things as established companies.

Before choosing what financing solution is right for you, you need to understand the basics of each. Here’s a quick list of some of the most common working capital options.

Line of Credit

A bank line of credit is, for many small business owners, the gold standard of working capital solutions. When you have a line of credit, you pay only for the money you use. That makes it a good solution if you have working capital needs that fluctuate or are difficult to predict.

The biggest stumbling block to a line of credit is that many small businesses can’t qualify for one because banks have very strict requirements for LOCs. If your business is new or your personal credit isn’t stellar, then a line of credit may not be a viable option to provide you with the working capital you need.

Merchant Cash Advances

Merchant cash advances have become popular because they are easier to qualify for then a line of credit or small business loan. They usually work by providing a cash advance that a business repays with a daily, weekly or monthly percentage until balance is paid. Some MCA companies require automatic ACH payments from their clients’ bank accounts.

Typically, MCAs have high fees that can add up and cause significant issues if your projected sales miss the mark. For example, if you took out a $30,000 MCA with a factor of 1.4, your repayment amount would be $42,000 and might increase if it took longer than expected to pay back. For that reason, many small business experts consider MCAs to be a working capital solution of last resort.

Small Business Loan

Small business loans have some things in common with both lines of credit and MCAs. Loans are for a fixed amount and you’ll pay interest on the entire loan amount whether you use it immediately or not.

Qualifying for a small business loan presents some of the same challenges as qualifying for a line of credit. However, federal agencies including the Small Business Administration offer loans that may be easier to qualify for than bank loans.

Invoice Factoring

Invoice factoring is a working capital solution that combines the advantages of a line of credit with same-day funding speed. When you factor your invoices, you receive an advance on the majority of the invoice within 24 hours. The factoring company collects its fee when the invoice is paid, while also providing back office solutions such as invoice collections, credit checks and more.

The big benefit of invoice factoring is that you can often choose which invoices to factor. You’ll only pay fees for the invoices you factor, which makes invoice factoring like a line of credit. It’s easy to qualify for invoice factoring since many factoring companies, including Triumph Business Capital, are willing to work with young businesses and business owners with less-than-perfect credit.

For many small and medium-sized businesses, invoice factoring is the quickest way to unlock the working capital they need. It offers flexibility and scale without leaving you debt to pay back.

What working capital solutions make sense for you?

Getting the working capital that you need to run your business is a priority. The solutions here can help you streamline your cash flow and grow your business.

Interested in learning how invoice factoring can work for your business? Click here to contact us!

factoring-company

Does my Trucking Business Need a Website?

The trucking industry is a unique one, but it is not exempt from the digital age that we are living in today. According to our invoice factoring company, while truckers of the past may not have seen a need for a website, there are a few reasons why you should consider creating one.

You use freight brokers and load boards, why would you need a website? In today’s busy and competitive market, you want to make it easy for brokers and shippers to find you. Have you thought about building your own trucking website? Have you wondered if it could help your trucking business? Here’s what you need to know.

Why Your Trucking Business Needs a Website

Think about what you do when you are looking to buy a product or hire someone for a service. The first thing you do is jump online and search for it, right? You go to different websites, you read reviews, and you might even watch some YouTube videos related to your search.

So if you do all of that, why wouldn’t a broker or shipper potentially do the same before they hire you for a load? Or maybe they’re looking for someone in a certain geographical area or were referred to you by another driver. There are a lot of reasons why having a simple website can help your profile and your business. Here are a few: things

  1. Get Found: The first and most important benefit is that a website will allow your business to be found. You can use your website to add important contact information for brokers to reach you.
  2. Build Your Reputation: Websites are a great resource for client testimonials; you can have past clients leave reviews about their experiences that can then be shared on social media. Additionally, people will likely throw away your business card, but if you send them an email with a link to your website, they might take a look.
  3. Establish Authority: If you’ve been on the road for a while or work in a niche area, you can keep a blog or vlog on your website to share lessons and experiences from the road. This can help garner attention around your business and allow you to establish yourself as an authority in the field. This also leads to a better chance of getting additional referral income with affiliate links and partnerships.
  4. Look Professional: A good website can instantly boost credibility and show clients that you take your business seriously. Clients will feel more confident in you and will be more likely to trust you with their business. Take the time to include a photo and a little bit of your personal story. Believe it or not, people like to get a sense of someone’s personality before working with them.

How to pick the right domain name for my trucking business

There is a lot of creativity that can go into building your trucking website. But when it comes to your domain name, you want to be as straightforward as possible. Remember, you are building this site so people can find you.

The most obvious choice for your domain name is your company’s business. If I own Triumph Transportation, I am going to look for www.triumphtransportation.com. There are several websites that you can buy and register your domain at. You can use GoDaddy, for example, to see if your domain is available. If it’s not, they’ll suggest other ideas for you to consider. All in all, you might spend $8 to $20 a month a year for your domain.It’s well worth it to make sure you own your little piece of the internet.

How to create a website for your trucking business

You might have always thought that a website was good for your business, but maybe you got hung up on how much time you think it would take or how much it would cost. But now there are a ton of great, easy-to-use website templates and builders that can get you up and running in a few hours.

Here are some simple ways you can build a website for your trucking business.

  • Look into website builders like Squarespace, WordPress, Wix, and many others that have pre-designed templates and simple features all for free or a low monthly fee.
  • Ask around your network and see if any of your friends or family have experience building simple websites. See if they’re willing to help.
  • Outsource the job to a freelancer. Check out freelance websites like Upwork, where you can contract freelancers according to your budget that can build your website for you.

Building a website doesn’t have to cost you big or even take up much time, but it will require some effort. This small investment can have a huge payoff for your business.

What other tools does your trucking business need?

A business website is just one part of you reaching your business goals. As a growing trucking business, you need a steady stream of cash rolling in to keep you operating. That’s where working with a freight factoring company can help you get paid quickly for your delivered loads. Learn more how Triumph Business Capital helps thousands of owner-operators get their money and many times faster than a QuickPay.

Trucker’s Guide to Freight Factoring

Our Trucker’s Guide to Freight Factoring explains what exactly invoice factoring is, how it works, and if it’s a right fit for your trucking company.

Factoring and QuickPay: What's the Difference?

What is the Difference Between a QuickPay and Factoring?

Many owner-operators start to consider factoring or take broker QuickPays when they don’t want to wait more than a few days to get paid on a delivered load. You can’t afford to turn down loads, but you can’t run your business without consistent income.

This is why broker QuickPay and invoice or freight factoring are popular payment choices for carriers. Both options get you your money faster, but there are differences between the two that you should consider.

Here’s what you need to know about the differences between a QuickPay and factoring.

What is a QuickPay?

QuickPay is a payment option that offers carriers a faster option of getting paid from a broker. A QuickPay can take, on average, between two and five days after you’ve completed the load.

Not all brokers have a QuickPay program, but it’s important to remember that each broker determines its terms and cost. One broker might pay in two days and take 2% out. Another might take five days and charge 5%.

QuickPays are a faster option to waiting whatever the agreed upon standard terms are — could be 21-30 days. If you have strong cash flow, and don’t need quick influxes of cash, you might only take a QuickPay from time to time.

What is Invoice Factoring?

Invoice factoring is another alternative for getting paid faster. The factoring company buys your invoice at a discount and advances you the majority of the invoiced amount in as fast as one business day.

So if both basically pay you for a load faster, how do you know which one is right for your business?

What Are the Key Differences Between QuickPay and Invoice Factoring?

Here are some key differences between QuickPay and invoice factoring:

  1. QuickPay usually takes longer than freight factoring. It can take anywhere from two to five days or more to get a QuickPay from a broker. Most factoring companies pay within one business day, and some can even pay same day if you meet their deadline.
  2. With factoring, you have more flexibility than you do with QuickPay. Brokers only offer QuickPay on their own loads. With factoring, you can choose which invoices to factor, meaning that you can still accept QuickPay on some loads if that’s what works for your company. That also means you don’t have to handle the paperwork on different brokers and try to collect from them. Factoring companies can handle the invoicing and collections for you.
  3. Factoring companies offer back office services in addition to advance funding. That includes services such invoicing and collections, broker credit checks, fuel card discounts and fuel advances. With standard broker QuickPays, you don’t get those additional benefits.
  4. Factoring companies offer client portals, so you can access your account and check the status of your funding and fuel advances. Brokers do not typically have client portals.
  5. Factoring companies offer integrations and partnerships to add more value to their clients. For example, we offer free trials to load boards such as DAT and AscendTMS.
  6. QuickPay happens on a case-by-case basis. For the most part, you don’t sign an exclusive contract. Some factoring companies, including Triumph Business Capital, allow clients to factor only the invoices they want to factor.

With factoring, you’ll have a dedicated account executive who handles every aspect of your account. You can build a relationship with your AE and your factoring company to help you grow your business.

  1. Fees for factoring companies are typically higher than QuickPay fees because factoring companies offer support, services and flexibility that QuickPay does not.

Learn More about Invoice Factoring Services 

As you can see, there are significant benefits to factoring your invoices. Invoice factoring with Triumph Business Capital helps thousands of owner-operators to streamline their cash flow and grow their businesses. Click here to learn more about Triumph’s freight factoring services and fill out an application today.

Trucker’s Guide to Freight Factoring

Our Trucker’s Guide to Freight Factoring explains what exactly invoice factoring is, how it works, and if it’s a right fit for your trucking company.

Oil & Gas Events

2020 Guide to Oil & Gas Events

The oil and gas industry is an economic juggernaut, accounting for $236.8 billion in domestic value in 2018 alone. 

In an industry defined largely by its volatility, the need to be up on current trends is critical to long-term success. Oil and gas events can be important and necessary for companies and vendors to share their services and leadership. That’s why we’ve gathered more than 20 of the top oil and gas conferences, expos, and forums happening this year. Check them out below. 

FEBRUARY 3-7, 2020 

NAPE Summit 2020
Houston, TX 

It’s said that NAPE is “where deals happen.” More than 15,000 upstream oil and gas come together from over 30 companies to explore in excess of 900 exhibits. The trade show has a huge focus on networking, empowering domestic and international decision makers to forge, facilitate, and close deals. 

More info: napeexpo.com/summit 

 

FEBRUARY 4-5, 2020 

American LNG Forum
Houston, TX 

Key topics for this year’s American LNG forum include production and exports, market outlook, LNG projects, and innovations. The forum also offers opportunities to connect with other industry professionals and learn. 

More info: americanlngforum.com 

  

FEBRUARY 4-6, 2020 

SPE Hydraulic Fracturing Technology Conference and Exhibition
The Woodlands, TX 

Put on by the Society of Petroleum Engineers, the 2020 Hydraulic Fracturing Technology Conference and Exhibition features a robust technical program, an exhibition of innovative products and services, and multiple networking opportunities. 

More info: spe-events.org/hydraulicfracturing/Homepage 

 

FEBRUARY 10-14, 2020 

SPE Forum: Unlocking the Value from Digital across the Full E&P Value Chain
Austin, Texas 

Topics for this Society of Petroleum Engineers forum will surround potential value capture and future applications of digitalization with discussions on data acquisition, management, transfer, analytics and governance across the entire upstream hydrocarbon industry including exploration, development, production, contracting/procurement, and organizational capability. 

More info: spe.org/events/en/2020/forum/20fus1/spe-forum-unlocking-the-value-from-digital-across-the-full-ep-value-chain.html 

  

FEBRUARY 11-12, 2020 

EnerCom Dallas: The Energy Investment Conference
Dallas, TX 

Investment professionals come together to listen to oil and gas management teams provide updates on their operational and financial strategies for the year ahead, providing insights on how they will build value. All presentations are streamed, but those who attend in person can take advantage of exclusive break-out sessions, VIP networking events, and one-on-one meeting scheduling. 

More info: enercomdallas.com 

 

FEBRUARY 19-21, 2020 

SPE International Conference and Exhibition on Formation Damage Control
Lafayette, LA 

The SPE International Conference and Exhibition on Formation Damage Control has learning opportunities covering challenges and remedies for all things related to the identification, prevention, and remediation of formation damage, plus networking. 

More info: www.spe.org/events/en/2020/conference/20fd/formation-damage-control.html 

  

MARCH 3-5, 2020 

IADC/SPE International Drilling Conference and Exhibition
Galveston, TX 

Operator companies, contractor firms, and service companies come together to explore ideas advance scientific understanding of drilling in oil and gas E&P at the IADC/SPE International Drilling Conference and Exhibition. 

More info: drillingconference.org/international/Homepage 

  

MARCH 9-11, 2020 

Energy 2.0
Houston, TX & Online and Denver 

Formerly known as HERWorld, Energy 2.0 is an “un-conference” designed to bring everyone to the table and attracts 75,000+ professionals each year. The 2020 theme is “Equality, Environment, and the New Economy,” with an in-person session in Houston being simulcast to virtual attendees and an in-person session in Denver. A third session runs in London later in the month. 

More info: energy2dot0.com 

  

MARCH 31, 2020 

Upstream Oil and Gas Professionals Hiring Event
Houston, TX 

Initiated by the Society of Petroleum Engineers – Gulf Coast Section, the Upstream Oil and Gas Professionals Hiring Event brings all upstream disciplines and organizations together to explore opportunities. 

More info: spegcs-mit-hiringevent.org 

  

MAY 4-7, 2020 

Offshore Technology Conference
Houston, TX 

The Offshore Technology Conference (OTC) is the leading event on technical advances, safety, environmentally-focused solutions, and economic and regulatory impacts, designed to advance the development of the offshore energy sector. 

More info: 2020.otcnet.org 

  

JUNE 17-19, 2020 

Energy in Data Conference
Austin, TX  

The AAPG, SEG and SPE are coming together to launch the first Energy in Data Conference, an experience wholly centered on digital transformation in the energy sector. Topics span machine learning through data management storage and more. 

More info: energyindata.org 

  

AUGUST 12-13 

Summer NAPE 2020
Houston, TX 

NAPE Summer is like the major NAPE Summit, but more intimate and with a regional focus. Meet with other upstream professionals to network and explore mutually beneficial opportunities. 

More info: napeexpo.com/summer 

  

DECEMBER 6-10, 2020 

23rd World Petroleum Conference 
Houston, TX 

Themed “Innovative Energy Solutions” the annual World Petroleum Conference will feature upstream and downstream innovations such as AI, VR, and predictive analytics. 

More info: wpc2020.com 

Staffing Industry Events

2020 Guide to Staffing Industry Events 

Even with all of the technology that drives the day-to-day business operations of staffing companies, live, in-person events should be part of a staffing company’s yearly business development strategy.   

Events give you the opportunity to meet and learn from industry leaders, network with potential clients and most importantly, give you the opportunity to come back to your business with a fresh perspective and maybe some tips and best practices to implement.  

We’ve gathered more than 20 of the top staffing industry conferences and expos happening this year. Check them out below. 

  

JANUARY 28-30, 2020 

Talent Acquisition Week
San Francisco, CA 

This year’s Talent Acquisition Week, “Take a Step into the Future of Talent Acquisition,” provides insights on staffing trends, the latest talent acquisition strategies, and employer branding to create a one-of-a-kind experience for HR professionals, marketers, communications teams, and anyone involved in the hiring process. 

More info:  talentacquisitionweek.com 

  

JANUARY 29-31, 2020 

People, Analytics & Future of Work
San Francisco, CA 

People, Analytics & Future of Work (PAFW 2020) is dedicated to “Honoring the Human Experience in the Age of AI & Perpetual Change.” In keeping with the motto, “People Data for Good,” the conference brings together leaders, practitioners, vendors, academics, and anyone interested in how people data and analytics will affect the future of work. 

More info: pafow.net/san-francisco20 

  

FEBRUARY 11-12, 2020 

Hiring Success 20
San Francisco, CA 

Put on by SmartRecruiters, the Hiring Success 20 conference offers insights from thought leaders on talent acquisition strategies, networking opportunities, and learning as well as the chance to earn a Recruiting Rockstar certification. 

More info: smartrecruiters.com/hiring-success 

  

FEBRUARY 26-28, 2020 

EX Impact 2020
Orlando, FL 

Exploring the theme, “Employee 3.0: People and Communities- Creating Unique Employee Experiences for Your Organization,” the fifth EX Impact Summit is dedicated to addressing employee engagement in a time of change and includes sessions on how to create organic people-centric cultures that empower organizations. 

More info: hrexchangenetwork.com/events-eximpact-winter  

  

MARCH 9-12, 2020 

SIA Executive Forum: North America 
Miami Beach, FL 

Staffing Industry Analysts (SIA) brings together top execs, world-renowned keynote speakers, and state-of-the-art suppliers as well as SIA’s own proprietary industry data to help attendees amplify their strategies. This year’s theme is “Strategies for a New World” and includes presentations like “Breaking Through the Barriers to Growth” and “Tech Stack 2020.” 

More info: cvent.com/events/2020-executive-forum-north-america/event-summary-24480ffb4deb47a0b76cfd396b1fd8a4.aspx 

 

MARCH 9-11, 2020 

HR West 2020
Oakland, CA 

A mainstay in the San Francisco Bay area for 36 years, the HR West conference attracts more than 1,000 participants from all over the country with a large concentration from Silicon Valley companies and their HR experts. The conference offers 14 credits and has more than 70 sessions, ensuring development and networking opportunities for every location, niche, and specialty. 

More info: hrwest.org 

  

MARCH 18-19, 2020 

HRD Summit US
Boston, MA 

The HRD Summit attracts more than 600 people directors on topics important to “curators of the new business landscape” to explore leadership, talent, engagement, and learning. 

More info: www.hrdsummit.us 

 

MARCH 23-25, 2020 

2020 People Analytics & Workforce Planning Conference
Aventura, FL  

The 2020 People Analytics & Workforce Planning Conference is all about bringing your people strategy into alignment with business strategy. Workshops, opportunities for hands-on-practice, peer-to-peer networking, and more are provided by the Human Capital Institute (HCI). 

More info: hci.org/conferences/2020-people-analytics-workforce-planning-conference 

  

MARCH 23-25, 2020 

HR Transform
Las Vegas, NV 

Organized by HR Tech, HR Transform 2020 addresses how to engage passive candidates, the gamification of HR, making the most of feedback tools, and more. The event attracts people professionals, entrepreneurs, and talent partners from across the globe. 

More info: ransform.us 

  

MARCH 23-25, 2020 

SourceCon 2020
Seattle, WA 

Are you a recruiter or sourcer who wants open sourcing? SourceCon is for you. It brings together industry innovators and recruiting thought leaders to explore tips, tricks and techniques that are proven to find top candidates. 

More info: 2020.sourcecon.com 

 

MARCH 23-26, 2020 

i4cp 2020 Conference
Scottsdale, AZ 

i4cp does away with vendors and consultants and focuses purely on peer-to-peer learning opportunities with some of the most innovative speakers in the industry today. It’s designed for senior HR, talent, learning, and other business leaders and covers the next practices to focus on to beat out the competition in the years ahead. 

More info: i4cp.com/conference 

  

MARCH 31-APRIL 1, 2020 

ProcureCon Contingent Staffing
Phoenix, AZ 

ProcureCon Contingent Staffing is a peer-led, interactive experience offering the tools necessary to help professionals elevate their contingent workforce programs; growth, talent engagement, program oversight, analytical capabilities, and more.  

More info: contingentstaffing.wbresearch.com 

  

APRIL 6-7, 2020 

TAtech Leadership Summit on AI & Machine Learning in Talent Acquisition 
Chicago, IL 

The TAtech Leadership Summit on AI & Machine Learning in Talent Acquisition opens with a half-day Artificial Intelligence 101 program co-presented by TAtechDirectEmployers and Paradox.ai and welcome reception in the evening. Day two is a full-day event dedicated to the latest trends, developments, opportunities, and challenges associated with the application of AI in recruiting. 

More info: tatech.org/summit-ai-na 

 

MAY 11-14, 2020 

workhuman Live
San Antonio, TX 

workhuman live is a unique experience dedicated to the humanistic approach. Explore data behind gratitude, get details on implementing human rights in the workplace, and dig into provocative issues related to the future of work—all after a morning yoga and meditation session. 

More info: workhumanlive.com 

  

MAY 11-13, 2020 

Indeed Interactive 2020
Austin, TX 

Gain new insights from those disrupting the talent acquisition industry and pick up new tools that can help with your recruiting and retention strategies. 

More info: indeedinteractive.com 

  

MAY 13-14, 2020 

TAtech North America & UNLEASH America Joint Mega Conference
Las Vegas, NV 

Referred to as the “grandmother of all TA technology conferences,” this event brings business and thought leaders to the stage plus offers a wealth of B2B networking opportunities and some of the best parties and after-parties in recruiting. 

More info: www.tatech.org/congress-na 

  

MAY 13-15, 2020 

RecruitCon
Denver, CO 

RecruitCon 2020 is dedicated to helping talent acquisition and management execs as well as leaders uncover new recruiting practices and leveraging analytics to streamline the hiring process. Workshops run on the 13th with the main conference on the 14th and 15th. 

More info: live.blr.com/event/recruitcon-denver 

  

JUNE 28-JULY 1, 2020 

SHRM 20
San Diego, CA 

“The World We Shape” is the theme for SHRM 20, an annual conference and expo filled with inspiring speakers, learning opportunities, and networking. Topics for this year include compensation and benefits, culture, employment law, global HR, HR department of one, HR tech, inclusion and diversity, and more. 

More info: annual.shrm.org 

  

SEPTEMBER 13-15, 2020 

NAPS 2020 Annual Conference
Henderson, NV 

The National Association of Personal Services (NAPS) is considered the premier education opportunity representing the search, recruiting and staffing industry, attracting more than 400 attendees each year. 

More info: naps360.org/page/ConferenceOverview 

  

SEPTEMBER 14-17, 2020 

SIA CWS Summit North America & SIA Collaboration in the Gig Economy
Dallas, TX 

The Staffing Industry Analysts (SIA) run two back-to-back conferences for workforce solutions professionals. The first is Contingent Workforce Strategies (CWS), which runs the 14-15 and offers insights on best practices, strategies, and future preparedness. The second, Collaboration in the Gig Economy, runs the 15-17 and explores solutions for sourcing, deploying and retaining talent in the gig economy. 

More info: cvent.com/events/2020-cws-summit-gige-north-america/event-summary-31693567fd984a10a89c96051bb138e3.aspx 

 

OCT 20-22, 2020 

Staffing World
Nashville 

The American Staffing Association’s Staffing World is an immersive convention experience unlike any before it in the staffing industry. 

More info: americanstaffing.net 

Freight Broker Events

2020 Guide to Freight Broker Industry Events

The freight broker game continues to change the way that cargo is moved. Technology now dominates an industry that used to require nothing more than a telephone and a poster board. Staying on top of the changes in this fast-paced industry requires knowing what’s trending and what new tech is coming up to challenge how freight is moved.  

From TMS conferences to FreighWaves Live!, our list of freight broker events has something for every size broker. Bookmark this page so you can refer back to it in the future.  

  

MARCH 17-19, 2020 

Descartes Evolution Global User & Partner Conference 
Fort Lauderdale, FL 

Network with other Descartes customers and business partners from around the world, give feedback on the direction of Descartes products, and find out how to improve operations with Descartes’ growing portfolio of solutions. 

More info: Descartes.com/usergroup 

 

APRIL 2-3, 2020 

TIA 2020 Capital Ideas Conference & Exhibition 
Austin, TX 

Put on by the Transportation Intermediaries Association, the TIA 2020 Capital Ideas Conference & Exhibition is the only conference for third-party logistics providers. More than 1,300 of North America’s brokerage-based logistics professionals meet to discuss best practices, learn, and see the latest tech. 

More info: Cvent.com/events/tia-2020-capital-ideas-exhibition/event-summary-755549616a6043869fb81f9e0a8df0cf.aspx?dvce=1 

  

MAY 5-6, 2020 

FreightWaves Live- Atlanta 
Atlanta, GA 

Catch demos of the latest tech, presentations from industry and business leaders, and connect with other industry professionals at the premier freight conference. 

More info: Freightwaves.com/live-atl 

  

JUNE 16-18, 2020 

Reuter’s Events: Supply Chain USA 2020 
Chicago, IL 

Explore supply chain visibility, digitization & workforce management, supply chain risk, the economics of freight, and more, with more than 1,000 senior decision makers from across the supply chain industry. 

More info: Events.eft.com/3pl 

  

AUGUST 23-26, 2020 

in.sight User Conference + Expo 
Orlando, FL 

Trimble’s in.site User Conference + Expo is one of the largest technology conferences in the transportation industry. More than three days of educational, networking and engagement opportunities are being planned with service providers and fleet operations professionals in mind. 

More info: Insightuserconference.com 

  

SEPTEMBER 15-17, 2020 

FTR Transportation Conference 2020 
Indianapolis, IN 

  

Take part in the premier transportation forecasting event, with more than 80 speakers and panelists and 450 attendees. It’s the opportunity this year to experience all the different aspects of the freight transportation world into one place. 

Learn more: FTRConference.com 

   

SEPTEMBER 27-29, 2020 

McLeod Software User Conference 2020 
Washington, D.C. 

Network with more than 1,000 industry professionals, participate in any of the more than 90 breakout sessions, get one-on-one training from a McLeod professional, and get details on the latest McLeod products as well as future tech. 

Learn more: Userconference.mcleodsoftware.com 

 

OCTOBER 19-21, 2020 

DATCON 20 
Austin, TX 

The DAT user conference offers expert insights, hands-on workshops with DAT products, and networking opportunities with other logistics professionals.  

More info: DAT.com/company/news-events/user-conference 

  

OCTOBER 24-28, 2020 

ATA MCE Conference & Exhibition 
Denver, CO 

The American Trucking Association’s (ATA) Management Conference & Exhibition (MCE) brings together trucking executives from across the country to explore economic, regulatory, and business trends that drive the success of fleets today and in the future. More than 2,500 of trucking’s top decision makers attend MCE annually. 

More info: mce.trucking.org 

  

OCTOBER 28-29, 2020 

FreightWaves Live- Fort Worth 
Atlanta, GA 

Catch demos of the latest tech, presentations from industry and business leaders, and connect with other industry professionals at the premier freight conference. 

More info: Freightwaves.com/live-ftw 

Calendar of Trucking Industry Events

2020 Guide to Trucking Industry Events

Trucking events can be some of the best ways for busy, on-the-road carriers to see what’s going on in the world of transportation. Many shows have huge expo halls that you can walk and get a glimpse of the latest and greatest products on the market for truckers.  

Other events hold educational seminars for new and established truckers looking to brush up on new laws and regulations or to learn tips on how to maximize their profits. Many of these events are free and family (and pet) friendly. Take a look at the list below and see if any of these are taking place near you or where a future load may take you.  

FEBRUARY 24-27, 2020 

The Technology & Maintenance Council (TMC) Annual Meeting & Transportation Technology Exhibition
Atlanta, GA 

TMC is North America’s premier technical conference for trucking with educational sessions covering all aspects of vehicle maintenance and design. 

More info: tmcannual.trucking.org 

  

MARCH 1-3, 2020 

TCA Annual Convention
Orlando, FL 

The Truckload Carriers Association’s 82nd Annual Convention brings together more than 100 industry suppliers in 22,000 square feet of exhibition space as well as several speaking sessions.  

More info: tca2020.com 

  

March 3-6, 2020 

The Work Truck Show
Indianapolis, IN 

Put on by The Association for the Work Truck Industry (NTEA), The Work Truck Show is North America’s largest work truck event. Programming includes a massive exhibitor floor and conference with lots to see and do.  

More info: worktruckshow.com 

  

MARCH 26-28, 2020 

Mid-America Trucking Show (MATS)
Louisville, Kentucky 

MATS is the most comprehensive trucking event with over 1,000,000 square feet of exhibition space and more than 1,000 exhibitors. It’s a great opportunity to research new products, connect with experts, keep up with regulatory changes, and more. Exhibitor and attendee registration are free until February 20, 2022. 

More info: truckingshow.com 

  

APRIL 6-8, 2020 

NAFA 2019 Institute & Expo
Indianapolis, IN 

The National Association Fleet Administrators’ annual Institute & Expo is the largest gathering of fleet professionals, attracting fleet managers at all stages of their careers. The even offers cutting-edge training and engagements with prominent speakers as well as the opportunity to check out the latest products and services. 

More info: nafainstitute.org 

  

APRIL 26-28, 2020 

NPTC Annual Education Management Conference and Exhibition
Cincinnati, OH 

The National Private Truck Council’s Annual Conference and Exhibition has over 1,250 attendees and 165 exhibitors as well as educational opportunities across a wide variety of topics. 

More info: nptc.org 

 

JULY 9-11, 2020 

Truckers Jamboree
Walcott, Iowa 

Since 1979, the annual Trucker’s Jamboree has been a celebration of America’s truckers. Parking and admission are free for this one-of-a-kind event which features everything from carnival games through live country music, the Trucker Olympics, the Iowa Pork Chop Cookout and over 175 exhibits. 

More info: iowa80truckstop.com/trucker-jamboree 

  

AUGUST 27-29, 2020 

The Great American Trucking Show (GATS)
Dallas, TX 

The Great American Trucking Show is an interactive and all-encompassing public convention of trucking professionals. Expect to see more than 150 trucks, 500+ exhibitors, 50,000+ products, and attend with 50,000 other industry professionals. Registration for GATS is free online or $10 on-site. 

More info: truckshow.com 

 

SEPTEMBER 20-24, 2020 

CVSA Annual Conference and Exhibition
Wilmington, DE 

The Commercial Vehicle Safety 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. 

More info: www.cvsa.org/eventpage/events/cvsa-annual-conference-and-exhibition 

  

SEPTEMBER 23-35, 2020 

Women in Trucking Accelerate! Conference & Expo
Dallas, TX 

Accelerate! offers more than 60 educational sessions covering critical transportation issues and trends as well as perspectives from women in the industry and a full expo. More than 1,200 are slated to attend. 

More info: womenintrucking.org/accelerate-conference 

  

OCTOBER 24-28, 2020 

ATA MCE Conference & Exhibition
Denver, CO 

The American Trucking Association’s (ATA) Management Conference & Exhibition (MCE) brings together trucking executives from across the country to explore economic, regulatory, and business trends that drive the success of fleets today and in the future. More than 2,500 of trucking’s top decisionmakers attend MCE annually. 

More info: mce.trucking.org 

  

NOVEMBER 19-20, 2020 

NASTC Annual Conference
Nashville, TN 

The National Association of Small Trucking Companies’ Annual Conference is helps small trucking companies control their costs through managed purchasing, analysis, consultation, and advocacy; leveling the playing field and allowing member companies to prosper. 

Registration begins February 1, 2020. 

More info: nastc.com/nastc-annual-conference/annual-conference 

factoring-company

7 Tips to Get Your Invoices Paid Faster

As a factoring company, we talk to business owners everyday about cash flow. Some complain about slow payments. Others work in unpredictable or seasonable industries and are looking for some help to make it through the harder months.  

In either case, the goal is the same: to get paid as quickly as possible. If you’re not currently working with an invoice factoring company, there are some immediate and proactive steps you can take to get paid faster.  

Ultimately, you can’t make your client pay you sooner or even on time. You hope they do, or at least honor the contract. But you should also be doing everything you can to simplify the payment process — for your client and yourself.  

Let’s look at seven quick ways you can start taking control of your payments.   

  1. Bill Immediately After Service or Delivery
    Don’t wait to invoice your customers. The second you’ve delivered goods or completed a service, get the invoice out. Many organizations only send invoices every couple weeks or even monthly, which only increases the amount of time it takes to get paid.
  2. Use Net 10 Payment Terms
    Standard invoicing terms vary by industry, but net 30 (which means your customers have 30 days to pay) is the most common. In some industries, net 60 or net 90 is also common. Set shorter payment terms, like net 5 or 10 days. Setting these terms is easier to do with newer clients. They don’t know a difference. Work with existing clients to move closer to your preferred terms. Remember that early and frequent communication can help avoid issues or confusion later. Give them a call or shoot them an email a couple months before the new changes go into effect
  3. Send Reminders
    Don’t send invoices and then forget about them until you send the next round. Follow up. Many businesses have success sending a reminder a day or two before an unpaid invoice is due. If invoices go unpaid, send another reminder the day after payment was due. Continue to follow up on a bi-weekly basis until you get a response.
  4. Automate
    Sending all those invoices and reminders probably sounds like a lot of work, and it is if you’re doing it manually. Get invoicing software that will take care of the reminders for you and that will automatically generate invoices for your customers
  5. Charge a Late Fee
    Make no mistake, if your customers aren’t paying you in a timely manner, it’s hurting your business and costing you money. You’re unable to pay your bills, potentially incurring late fees and other penalties. Late fees can be helpful motivators for slow-paying clients. A late fee sends a message to your customers that they need to prioritize your payment
  6. Reward Good Payers
    Invoicing doesn’t have to be all doom-and-gloom. Positive reinforcement works too. Do you have customers who consistently pay on time? Offer them an incentive to pre-pay. Or, create incentives for anyone, such as a 5% discount for those who pay within 5 to 10 days of receiving an invoice.
  7. Work with an Invoice Factoring Company
    At the end of the day, how you address your invoicing practices determines how and when you get paid, but it can also influence the relationships you have with your customers. If changing up your terms is going to send your customers to competitors, create friction in the relationship, or isn’t producing the results you need, invoice factoring can helpWith invoice factoring, you sell your unpaid invoices to a factoring company. Factoring companies advance you a large portion of the balance of the invoice. From there, the factoring company handles the invoicing process and collects from the customersOnce the customer pays up, whether it’s 30, 60 or even 90 days later, the factoring company pays you the remaining balance, minus a nominal fee for the service

If invoice factoring sounds like a better solution for your needs, get an instant estimate from Triumph Business Capital.  

freight-factoring-services

Is now the time to start your trucking business?

Is next year the right time to pursue your dreams and start your own trucking business? It could be. With an estimated shortage of 60,000 truckers nationwide (with estimates it will hit six figures by 2024), there will be plenty of opportunity to become an owner-operator over the next five years. 

If you’re a company driver, you already know that transportation is different than other industries. There are a lot of requirements and investments that need to be made before you can earn that first dollar. 

It’s not complicated, but the more you know, the better decisions you can take to make Year 1 successful. 

Ultimately, the choice to start your own trucking company comes down to you. Are you ready to take the plunge and work for yourself? Have you been driving for someone else for so long that you haven’t considered going out on your own?  

If you’ve already started your own trucking company, be sure to check out our other helpful blog on getting through your first year as an owner-operator. 

The Benefits of Starting a Trucking Company

Do You Want to Be an Owner-Operator or Lease On? 

As an owner-operator, you’re king (or queen) of the road. You choose your loads, set your hours, decide who you want to work for, and for the most part, don’t need to ask for permission about anything. 

Plus, as an owner, you stand to make more money. You have full control to negotiate rates and you’re not kicking up a percentage of every load to the company you’re leased on to. New business owners need money coming in right away to keep up with new expenses.   

The biggest difference between an owner-operator and a company/leased-on driver is your responsibility. Company drivers don’t have to worry about regulations, businesses taxes, reporting, insurance, etc. 

For example, owner-operators need to set up their operating authority (MC number), USDOT number, insurance and follow other regulations. 

On the other hand, you can lease on with a larger carrier, and you won’t have to worry about compliance issues or a majority of the paperwork. Your main focus is driving. 

Remember: working as a leased-on-operator is not the same thing as leasing your equipment. You can lease equipment, and find your own loads, or you can work as a contractor for the carrier you’re leased on to. 

Are You OK with Up and Downs in Work?  

Most people who want to start a trucking business have experience as a company driver. In these cases, you’ve got a good idea of when and where you’ll be driving, and the work tends to be consistent. 

You focus on driving without having to find your loads. As an owner-operator, you’ll need to find your own loads, and as anyone who runs the spot market can tell you, there are no guaranteed loads or consistent freight to rely on. 

As you gain experience, you can build relationships with certain brokers or shippers who can help keep your trailer full and avoid going home empty.    

Most owner-operators use load boards to easily search for freight. But load boards are also great sources of information, including lane averages and the number of loads going in and out of a state. That’s helpful when you’re worried about getting stuck with no load going home. 

Very few, if any, new owner-operators have contracts with shippers, so you’ll need to have a strategy that includes using load boards and working with brokers. 

How Much Does it Cost to Start a Trucking Company?

As an owner-operator, you’ll be responsible for purchasing a new or used truck, getting your trucking authority and other regulatory concerns, insurance, and, ultimately, billing for your services and collecting payments. 

Without adding in the cost of your truck, you’re looking at a minimum investment of about $6,000 to $10,000 to get started. Tack on insurance for a new authority, and that can get up to over $30,000. 

Can you afford to wait weeks to get paid?  

Here’s a not-so-secret secret about broker payments: they can take a long time. How long is long? On average, between 21 and 30 days, but it can take as long as 90. 

The truth is, most startup owner-operators can’t afford to wait a month or more to get paid. If you are leased on or a company driver, could you make it for a month without getting paid? But as an owner-operator, you have expenses that have to get paid, or you’ll be out of service. 

Some startups might have great credit and savings that can help them through these payment gaps. But the majority of startups won’t have either. That’s why many trucking companies use a freight factoring service to get paid on their loads. 

Freight factoring companies buy your invoice, and advance you the majority of your balance in one business day. It’s pretty simple: you deliver the load; submit your documents to your factoring company, and you get paid. 

Let’s look at an example of how invoice factoring works for owner-operators: you deliver a load on Monday, submit your paperwork that same day, and by Tuesday your money is in your account.  

Factoring companies also work with your broker on payments and offer credit-checking services. 

What you need to know to start your own trucking company  

We’ve covered some of the basics of starting your own trucking company. If you decide that becoming an owner operator is the right choice for you, here’s a quick checklist of what you’ll need to do to get started: 

  • Get your authority 
  • Get trucker insurance 
  • Buy or lease a truck and trailer 
  • Get an ELD 
  • Sign up for a load board 
  • Figure out how you’re going to get paid 

Are You Ready to Get Started? 

Triumph Business Capital has worked with owner-operators since 2004. As one of the largest freight factoring companies, we can speed up the time between dropping off the load and getting paid. Contact us today to learn more about our freight factoring services. 

What is Net 30

A Factoring Company’s Guide to Net 30 and Invoice Payment Terms

It doesn’t matter if you just started your business, or you’ve been around for years. There are basic terms and definitions that every entrepreneur should know. 

Not knowing the basic definitions of common invoice payment terms can cause confusion between you and your client, set the wrong expectation and (even worse!) keep you waiting longer than you need to get paid.  

Following a simple set of best practices for invoice collection can get you paid faster, and sometimes, without ever following up with your client. Even with a contract, collections can be tricky and messy.  

Collections are the difference between making a living and working on a hobby. Not being able to confidently predict when payment is going to hit your bank account can put you in a defensive, vulnerable position.  

A report published by PYMNTS shows that 41 percent of small businesses say that collecting on invoices is still their greatest challenge, and more than one-third say that it takes clients more than a month to pay. 

Before you can develop a strategy for collections, you should know some of the most common terms and definitions related to invoice payment. We’ll go over the definition of net 30 and other common invoice terms, so you can apply the right techniques to your invoicing processes and eliminate unnecessary waits. 

Net 30 or Net D Payment Terms

You may see net 30 written as “net 30 days.” In this case, “net” refers to the total amount due after all discounts, and the number (represented by net-D) is the total number of days the client has to pay after services are performed or goods delivered.   

For example, if you perform a service for a client on July 1, and the invoice states “Net 30,” the client is expected to pay in full on or before July 30. 

You’ll probably find that net 30 invoicing is the most common, but some industries even have net 60 or 90 days.  

Remember, unless your terms are net 0, you are essentially providing free credit to your clients. Something to keep in mind: do banks allow you to borrow money interest free for 60 or 90 days? 

You might not want to tell a client that you can’t wait 60 or 90 days to get paid, especially if you’re just starting out. Not everyone can afford to say no to money. You don’t want customers thinking that you’re so small that you can’t keep your operations open for that long without payment.  

It’s not enough to be honest with your customer. You have to be honest with yourself. If you need the money sooner than 30 days, you need to make that clear. If they are a good client, but they aren’t flexible, there are other ways to get your money without jeopardizing your relationship with your client. We’ll look at one example below.  

3% 10 Net 30 or 3/10 Net 30 Payment Terms

Businesses can encourage faster payments by sweetening the pot. A common reward for faster payments is to offer a discount when the invoice is paid in full by a specific date before the final due date. This is where terms like “3% 10 Net 30” or “3/10 Net 30” come in. 

In both cases, the customer is expected to pay his or her invoice in a 30-day window. However, the “3” represents a discount of 3%, and the “10” represents the window in which the customer must pay to receive the discount. With these examples, the client must pay within 30 days, but if he or she pays within 10 days, he’ll get 3% off the bill. 

Like the “net” payment terms, businesses can customize their discount offerings. For example, if an invoice says “2% 15 Net 30,” the company is offering a 2% discount when the invoice is paid within 15 days, but the full amount is due if the customer waits until days 16 to 30 to pay.  

Payment Due Upon Receipt 

You do not need to extend credit to your clients at all. As an alternate option, you may elect to note “payment on receipt” on invoices. This means payment is expected as soon as the customer receives your invoice or goods/services are delivered. 

Interest Invoice 

Even if you are offering credit to your clients by waiting more than a day to get paid, you can still put incentives in the contract to encourage the client to pay on time. 

As a consumer, you’ve seen this in action with services you subscribe to. If you miss your cable payment, you might be charged a late fee. In your contract, you agreed to this schedule of fees. As a business owner, you can do the same for you clients. However, you must make it clear that you intend to do so beforehand and spell it out in the contract. 

Even if a customer misses a payment, it’s not professional to suddenly charge a late fee when that wasn’t agreed upon earlier.  

The amount of interest you charge is entirely up to you. The amount should provide motivation but not potentially damage a long-term relationship. You’ll also have the option of compounding interest on a daily or monthly basis. If you’re using accounting software, it will handle the math for you and make the process of adding interest simpler.  

It’s also worth noting that having a late-payment penalty does not necessarily mean you have to assess one. You’re free to waive your fees at any point in the interest of customer service. 

Recurring Invoice 

When your customers have recurring demands, you can set your accounting software to generate invoices at regular intervals. Doing so makes it easier to predict cash flow. 

Payment in Advance (PIA) 

It’s common in some industries for clients to pay some of their costs in advance. This is more common when estimates are used. For example, if a contractor says his total fees will be $1,000, he may request 10 or 15% of the estimate ($100-150) in advance to cover supplies. Depending on your industry, you may also be able to offer customers a discount for paying an invoice in full in advance. 

Terms of Sale 

We’ve covered a lot of important information, but how do you use it? More importantly, how do you make sure your customer knows your specific payment requirements? You’ll do this through your terms of sale (TOS), which should appear on estimates, invoices, your website, and other customer-facing communications. Again, accounting software can provide you with stock TOS, but it’s best to customize yours and run it past an attorney before applying them. Your TOS should cover:  

  • The scope of your work 
  • Your obligations and timelines 
  • Any promises you’re making 
  • When and how clients are expected to pay 
  • Who is responsible for duty fees and taxes 
  • What penalties will occur if you or the client does not fulfill obligations 
  • How dispute resolution will be handled  

Invoice Financing and Factoring 

While strong invoicing practices can help reduce the gap between completing work or delivering goods and getting paid, it can be complicated and time-consuming. Unfortunately, it may also not be enough to solve your cash flow issues. 

Invoice financing and factoring companies help B2B companies by providing them with immediate payment for their open invoices. Factoring companies purchase the invoices and handles the full invoicing process, freeing the business to focus on its core tasks without the burden of billing, follow ups and collections.  

Remember, that with factoring, your terms are always Net 1. 

If invoice factoring sounds like it could be a good solution for your cash flow issues or delinquent payments, contact Triumph Business Capital today. 

Accounts Receivable Financing

Is Accounts Receivable Financing Right for Your Business?

Accounts receivable financing is one way business owners speed up payment on B2B invoices. Many or most invoices are Net 30(meaning the customer has 30 days to pay). Some may even extend out to 90 days or more. Waiting this long for payment can be difficult, even for businesses with a healthy number of clients.  

In a perfect world, your clients would just pay sooner. Or, in most cases, as soon as a project or service is completed. Client payments can be unpredictable, and companies have little recourse if a client doesn’t pay on time or at all. Some reports estimate that more than 91% of businesses suffer from late payments.   

Unfortunately, businesses that try to clamp down on late payments also run the risk of losing customers. Some of your clients might threaten going to a competitor who would “be happy to wait” 30 or more days to get paid. Depending on the size of your business, that one client could put a serious dent in your income.   

What’s the answer for businesses that need their money but don’t want to pressure clients for payment?  

This is where accounts receivable financing and accounts receivable factoring come in. Although they sound similar and are often used interchangeably, they’re different methods that can help you speed up payment on your B2B invoices. 

Accounts Receivable Financing is a Loan 

Getting approved for accounts receivable financing is similar to getting approved for a loan. Your lender, which might be a bank, AR financing company, or other institution, examines your company much like it would for any other loan.  

They look at your time in business, credit score, cash flow, debt, and other areas, and then decide whether you qualify. In this arrangement, your invoices are used as collateral against an advance to your business. These payments can take the form of a lump sum or a line of credit.  

With the lump sum payout, you’re given the money up front and pay down the balance with interest and fees over a period of months or years. With a line of credit, you’re still responsible for making monthly payments, but you’re also allowed to draw from the account as long as you stay below your limit, much like a credit card. 

Taking out a loan can be better if your business has good credit and is established. 

Because accounts receivable financing is a loan, many businesses won’t qualify because they don’t have good credit, or they haven’t been in business long enough. Even those that may qualify don’t always get approved for a large enough sum to cover their needs. For these reasons, AR financing typically works best for established businesses that have had time to build their credit. 

Accounts Receivable Factoring is Selling Your Invoices 

Accounts receivable factoring offers the same result  getting cash for your unpaid invoices — but instead of taking out a loan, you’re selling your invoices to the factoring company. Getting approved for AR factoring is easier because the factoring company doesn’t spend as much time evaluating your business. They’re getting paid by the same person you were — your client.   

The factoring company purchases your B2B invoices, gives you a lump sum payment, and then collects from your customers. That’s why they’re more concerned with your customers’ credit history than yours 

Once the customer pays, the factoring company pays any remaining money owed, minus a small fee for the service. 

A key difference between invoice financing and invoice factoring is the added value you get through the back offices provided by the factoring company. When you factor, you get your advance, but you also get help with invoicing, collections and even running credit checks on potential clients. If you are a large company with an accounting team, this may not be as important to you, but for the majority of small business owners wearing several hats, this can be a difference maker.  

Factoring is a debt-free alternative for businesses that won’t qualify for loans  

There are lots of reasons why businesses don’t qualify for loans. Time in business and credit are two primary reasons, but banks will shy away from businesses that aren’t diverse or only have a few customers. Because factoring isn’t a loan, your years in business and general financial situation don’t matter as much.  

You could have one large client that has strict 90-day terms. The money is good, but you have other expenses and vendors to pay during that time. Or, you could have a lot of clients of different sizes with different payment terms. Factoring helps keep your income predictable and steady by advancing you the money quickly.  

Get Started with Accounts Receivable Factoring with Triumph Business Capital 

If your business doesn’t qualify for loans or you don’t want to take on debt, invoice factoring may be the ideal solution to getting your B2B invoices paid fast. Get started with an instant funding rate quote now. 

Working capital

7 Steps to Improving Your Net Working Capital

If your business is running short on working capital, it can totally derail operations and add to your stress. The good news is there are lots of ways to remedy this all-too-common situation.  

Many business owners assume that a loan or credit line alone can solve their working capital challenges. Before putting yourself further behind, start with some simple, repeatable steps that can give you a better sense of your working capital numbers.   

You might find that some tweaks in a few areas can help increase the amount of working capital you have available for your business.  

Step 1: Do the Math: How to Calculate Net Working Capital  

Net Working Capital = Current Assets (minus) Current Liabilities 

Naturally, your net working capital should be a positive number. Figure out yours by adding up your assetslike your cash on hand and unpaid invoices. From that number, you’ll subtract what you owe, such as payments on debt. 

Working Capital Ratio

Working Capital Ratio = Current Assets / Current Liabilities 

A positive number is a good start, but there’s more to it than that. What you really care about is your working capital ratioCalculate your working capital ratio by dividing the same numbers from above. If it’s a 1.0 or less, that means you’re using all your working capital resources.  

This leaves you with absolutely no wiggle room. What if a client fails to pay you on time, or some other expense comes up?  

If you rise above a 2.0, it could be a sign that you’re not making the most of the cash you have on hand. You might want to look over your budget and see if you can invest in things that will help you grow, like new equipment or marketing. 

Your working capital ratio will likely go up and down depending on your industry or your company’s growth plan.  

Step #2: Get Invoices Paid Faster 

Many small businesses have huge amounts of money tied up in unpaid invoices. This is one of the things Triumph Business Capital  helps companies with. We provide invoice factoring services, which means we advance our clients money for their unpaid invoices, then collect from the business that owes you.  

If you’re not yet working with a factoring company, here are some additional strategies that can help get you paid faster.  

  • Billing immediately after the service/ product is completed or delivered. Don’t wait until the end of the month. 
  • Providing an incentive for early payments. 
  • Establishing a penalty for late payments. 
  • Making it easier on clients to make payments by providing an online payment portal. 
  • Automating the billing process and sending out regular reminders. 

Step #3: Check Your Inventory 

Technically, inventory counts as an asset, but you can’t always count on it to pay your bills. Make sure you have enough inventory to get you through your projected sales, but if you have a garage or storage-room full, hold off on purchasing more items or producing more goods until you can clear out some of it. 

Step #4: Review Your Vendor Options and Look for Savings 

No matter what type of business you own, you need resources to complete your work. For example, if you’re a trucker, you’re paying for gas and maybe even subscriptions to load boards. At Triumph Business Capital, we offer our transportation clients free trials to premium load boards and a TMS (Transportation Management System), along with fuel discount cards that can help save at the pump. 

If you’re not a client or own a business outside the transportation industry, see if there are ways to cut vendor costs. Keep in mind, you may not have to leave your current vendors to get a discount. Just as you may offer a discount for early payment, many other companies offer the same, or might give you a discount for setting up automatic payments. 

Step #5: Evaluate Your Fixed Expenses 

Making monthly payments on things like rent or company vehicles? See if there are ways to reduce these costs. You may be able to refinance to get better rates or find less expensive options. 

Make sure you’re taking a day out of every month – or at least once a quarter – to evaluate these expenses. You might surprise yourself with what savings you can find. 

Step #6: Automate and Outsource 

Everything from invoicing to payroll can be automated and can save you on expensive labor cost and reducing errors. It may also be worthwhile to look into outsourcing specific business processes or jobs.  

Working with a factoring company is a quick way to push off costly and time-consuming processes like invoicing and collections. You get an advance on your invoice and back-office support included.  

Step #7: Work with Specialists 

You started your business because you are an expert in that field. Whether you started a staffing firm specializing in IT professionals, or you own a large janitorial company that services Fortune 1000 clientele, you know your business.  

But nobody knows everything about business, especially when it comes to taxes, payroll or even setting up your business correctly. 

Tax and legal specialists make sure that you’re minimizing your risk, so you keep more money in your pockets. Working with specialists can pay for itself if you’re overlooking even one minor thing. You’ll need to work with an accountant regardless to keep your books straight, and as you grow, it might be helpful to hire an accountant who can maintain your finances year-round and keep you on top of important deadlines, like paying quarterly taxes, etc. 

Leverage factoring services from Triumph Business Capital 

As a business owner, you know how important it is to have positive cash flow. We’ve gone over seven ideas for increasing your working capital position. In order to maintain and improve your finances, you have to be proactive about knowing what’s coming in and what’s coming out. Many of the suggestions above are related to what you can directly control.  

But what about when clients take a month or more to pay? If you’d like to leverage invoice factoring as a method to improve your working capital, we can help. Contact Triumph Business Capital for a your free factoring rate quote or learn more about invoice factoring today. 

Factoring

Freight Factoring Helps Carriers When Business is Slow

It’s no secret that demand for trucks has been down compared to 2018. If you follow trucker message boards or social media groups, you’ll find a lot of truckers wondering where all the loads went. To put it more bluntly, they’re wondering where all the high-paying loads went. 

Seasonal, or even year-to-year drops in demand, are nothing new to carriers. Experienced truckers are used to the ups and downs of the freight industry. Many have watched and survived similar dips before. It wasn’t that long ago, in 2008, when the industry was hit hard by the global recession, not to mention fuel prices surging to $5 a gallon at the same time. 

Right now, a lot of owner-operators are choosing to keep their trucks parked instead of taking loads that, at best, might break even or, at worst, lose money. During these lulls in the freight industry, cash flow becomes more important. If you’re taking fewer loads, you don’t have steady income to run your operations. 

This is one of the reasons that freight factoring has been a tool that has been used by trucking companies of all fleet sizes, and why it’s become one of the most popular methods for carriers to finance their trucking businesses in recessions and in booms. 

Let’s look at some of the three ways that freight factoring can help when business is slow. 

  1. Freight factoring provides immediate cash for your loads

Seasoned drivers know their numbers. They know how much it costs just to turn their engines on. You hear a lot of those drivers say things like, “I won’t even turn my key for less than $X.YZ.” 

If demand for trucks is down, that means that a lot of truckers are spending less time on the road, and likely have bigger-than-usual gaps between their loads. These can create a cash-crunch for trucking companies that depend on consistent payments to pay for fuel, insurance, etc. 

A 2018 industry survey estimated that 91% of brokers take, on average, between 21 and 30 days to pay. That’s a long time to wait for payment even when business is good. But what about when business is sluggish? 

Freight factoring provides you with an advance on your delivered loads within one business day. So even if you’re being more selective, or if you’re just hauling less than you were, you still know that the money is going to be there. 

Something to remember: when an industry is down, it’s down for a lot of businesses, including brokers. Those 21 to 30 days could grow to 60plus as brokers deal with their own cash flow issues (FYI: brokers use freight factoring services, too). With factoring, you’re not at the mercy of the industry. You get your money when you deliver the load and submit your invoices.  

  1. Freight factoring is flexible

Let’s assume you’ve never worked with a factoring company before, and you’re worried that if business slows down, you’re still going to be on the hook for additional charges or fees.  

The meter’s not running when you work with a factoring company. With many freight factoring contracts, you decide what loads you want to factor. 

You might start working with a factoring company to give you quick boost of cash between loads. Having a source of income in a slow market can be the difference between accepting a great load and having to wait until you get paid from a load you delivered weeks ago. Carriers know that this doesn’t happen. You can’t tell a broker, “hang on until I get paid in a week.”  

Factoring takes the guesswork out of the equation. You know when the money will be there, and you can confidently take load knowing you’ll have the money for fuel and other expenses. 

When freight is tight, you can’t afford to turn down great-paying loads. But factoring isn’t just for rough patches, it helps you when business is booming, and you need money to finance your growth or to help collect on all the additional loads. 

  1. Freight factoring is not a loan

Bills don’t know when money is tight. They don’t stop just because business is slow. As a carrier, there are certain bills you must pay — on time, without fail — or you’ll be parked until you do. 

When money is tight, a lot of owners turn to personal or business credit cards to pay their bills. Using credit isn’t always a bad thing if you know you’re going to have the money to pay back those charges before the next month. But if you’re not moving a lot of freight, then using a credit card could set you further back, and you’ll be paying down those charges for months or even years. 

Freight factoring doesn’t work that way. You get an advance, and the factoring company takes a small fee in the process. That’s it. Done. No debt to worry about. No looking back. You’re free to focus on the next load. 

Plus, if business is slower than normal, adding debt will only make it harder to recover when the industry comes back. Freight factoring gives you the money you need, and the freedom to make quicker choices in the future.   

Looking for freight factoring services for your business? 

Triumph Business Capital offers freight factoring services that can help you get your cash flow back on track, whether business is slow or you’re looking to grow your trucking operation. To learn more about our freight factoring services and how they can work for you, contact Triumph Business Capital today. 

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 note cards 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

If you’re new to invoice factoring, you might come across some terminology that you’ve never seen or heard beforeit can be a little bit like learning a new language. 

At Triumph Business Capital, we always want our clients (and potential clients) to understand what we’re talking about when we use factoring terms. With that in mind, let’s talk about what invoice factoring terms mean, so you can decide if factoring is right for your company. 

Factor/Factoring Company 

A factor or factoring company is a company that advances a percentage of the face value of an invoice to its customers. You sell your unpaid invoices to the factoring company, which then collects the outstanding balance from your client, the debtor (see below).   

For example, let’s say you’re a staffing company, and you just signed a long-term contract to supply developers to a large technology company. Great news for you, except that this tech company has 45-day terms.  

As a business owner, you have expenses, most importantly paying these developers every week. If you were to factor those invoices, you could get a debt-free advance on those invoices, while the factoring company waits out the payment terms and collects from your client.  

Most factoring companies also provide back office services including credit checks and collections. 

Invoice Factoring/Accounts Receivable Financing  

Invoice factoring and accounts receivable financing are interchangeable terms. Accounts receivable refers to your outstanding payments for work you’ve already completed, or services you’ve already rendered. When you work with an invoice factoring company, you are leveraging your accounts receivables and selling those in order to get an advance on your payment.  

Advance Rate 

The advance rate is the percentage of an invoice that the factoring company pays to the client when the invoice is factored. Advance rates can vary from client to client, but most range between 70% and 95%. 

Clients 

When you factor your invoices, the factoring company collects the outstanding balance from your client. It’s important to remember that you maintain your relationship with your client directly. Think of the factoring company as an extension of your accounting department, working on your behalf to invoice and collect from your clients.   

Factoring companies like Triumph Business Capital do not charge you based on the number of clients you have. In fact, your rate is determined by the number of invoices you factor and the total invoice amount. Typically, the more you plan on factoring (in terms of volume and total invoice), the lower the rate.  

Debtor 

Debtor is the term the factoring company uses to refer to your clients, the ones they will collect from. It’s a term that’s also used by collection services. Technically, a debtor is any party that owes money to another party. You may see the term ‘debtor’ on some of the reports you receive from your factoring company. 

Account Executive/Customer Service Rep 

An account executive is a factoring professional who’s responsible for the day-to-day management of the client relationship, and most importantly the ones verifying and purchasing invoices. These are the individuals or teams that you will work with regularly, so it’s important to develop a strong relationship with them.  

Factoring Fee 

The factoring fee is the amount discounted from your invoice that goes to the factoring company.   

Rates can vary among factoring companies and are dependent on different criteria. As mentioned, the more you factor, typically the lower your factoring fee.  

For example, if you submitted a $2,000 invoice at a factoring fee of 3%, you would get $1,940 advanced if you are in a non recourse contract, with the factoring company collecting $60.  

Recourse Factoring 

Recourse factoring has a lot to do with risk, and how confident you are in your clients’ ability to pay on time.  

In a recourse factoring agreement, you are 100% responsible for payment if your client doesn’t pay the factoring company. That means that even if there is a dispute, or the company goes out of business, you’re on the hook.  

Now because of the degree of risk involved, rates in a recourse agreement tend to be lower. But, before signing a recourse deal, make sure you’re prepared to pay back whatever you were advanced if your client fails to pay after the payment terms have been exhausted.  

Aging Report  

Your aging report, or invoice aging report, is a list of all your invoices that remain unpaid. The factor can provide you with this report as needed, and in some cases you may be able to run an aging report using your accounting software or your client portal.  

Most typically, an invoice aging report would list invoices by debtor (your customer) in descending order of invoice date. The oldest invoices would appear at the top of the list. It’s also possible to run an aging report showing only past due invoices. 

Non-Recourse Factoring 

Non-recourse factoring is, as you might expect, the opposite of recourse factoring. In non-recourse factoring, the factoring company takes on the risk associated with collecting an invoice. If one of your customers goes out of business or declares bankruptcy, the factoring company takes the loss.  

Since non-recourse factoring carries more risk for the factoring company (and you!) than recourse factoring, the fees are typically a bit higher than they would be for recourse factoring. 

Reserve 

The reserve is the portion of an invoice that is not advanced, minus the factoring fee. For example, if you factored a $5,000 invoice and had an 80% advance rate, you would receive $4,000 as an advance, When the invoice is paid, the reserve (in this case, $850) would be returned to you, minus your factoring fee. Again, let’s assume 3%, so $150.   

Conclusion 

Understanding factoring terms can also help you see how factoring your accounts receivable can help your business to grow. If you’d like to learn more about how Triumph Business Capital can help improve your cash flow, please click here now. 

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 small 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 start a small business and turn it into a success?

How do I start a small business?

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, small business factoring is a perfectly suitable option for businessesNumerous small business factoring companies, also known as invoice factoring 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 start a small business. 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 a small business 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 thousands of 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. 

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 operating 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 reduce operating costs, 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 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

How Staffing, Service & Manufacturing Industries Benefit from Invoice Factoring

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 & Recruiting 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 in the staffing industry when payroll needs to be made on a weekly basis. New clients also need to be taken on 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.

Payroll funding for staffing companies: What are the 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.

Factoring can provide payroll funding for staffing companies & 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 funding problems.

Remember: keep your employees, keep the contract.

If you’re looking to hear more about how payroll 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.  

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

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.

#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 why invoice factoring is a great financing option for small businesses and can help you have the holiday season you deserve.  

#1: Factoring companies for small businesses provide 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

How to Get Small Business Funding With Bad Credit

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 business funding with bad credit, or 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 small business funding with bad credit. 

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.