Factoring Blog Posts
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
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
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
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.
FEBRUARY 11-12, 2020
EnerCom Dallas: The Energy Investment Conference
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
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.
MARCH 3-5, 2020
IADC/SPE International Drilling Conference and Exhibition
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.
MARCH 9-11, 2020
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
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
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
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
Summer NAPE 2020
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
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
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
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.”
MARCH 9-11, 2020
HR West 2020
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
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
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).
MARCH 23-25, 2020
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
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
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
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
The TAtech Leadership Summit on AI & Machine Learning in Talent Acquisition opens with a half-day Artificial Intelligence 101 program co-presented by TAtech, DirectEmployers 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
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
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 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
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
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
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.
OCT 20-22, 2020
The American Staffing Association’s Staffing World is an immersive convention experience unlike any before it in the staffing industry.
More info: americanstaffing.net
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
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.
MAY 5-6, 2020
FreightWaves Live- Atlanta
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
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
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
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
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
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
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
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
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
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
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
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)
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
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
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
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)
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
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.
SEPTEMBER 23-35, 2020
Women in Trucking Accelerate! Conference & Expo
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
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
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.
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.
- 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.
- 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
- 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.
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.
- 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
- 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.
- 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 help. With 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 customers. Once 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.
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.
Let’s take a look at some of the benefits of starting your own 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.
Are You Prepared for the Costs?
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.
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 a 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
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 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
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” 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 on 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.
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.
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 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.
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
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 assets, like your cash on hand and unpaid invoices. From that number, you’ll subtract what you owe, such as payments on debt.
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 ratio. Calculate 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 client’s 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.
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.
- 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 60–plus 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.
- 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 a 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 a 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.
- 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.
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.
#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
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.
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?
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.
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
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.
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.
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.
If you’re new to invoice factoring, you might come across some terminology that you’ve never seen or heard before, it 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.
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.
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%.
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 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.
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 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.
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 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.
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.
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.
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
- A2B Cargo
- Freight Bull
- DD Logistics
- St. Mark of Orlando
- Cargo Runner
- Freight One Inc.
FC Bodrost Wins Inaugural Tournament
Congratulations to our Semi-Finalists
Unique Freight Carriers (UFC)
Photos from Tournament
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.
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.
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. 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 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. 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. 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 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.
The transportation industry
The apparel industry
The staffing industry
The manufacturing industry
The technology industry
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.
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 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.
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.
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 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.
We’ve discussed the benefits of invoice factoring in previous blog posts. From improving cash flow to providing stability, small businesses of all types and sizes — even trucking companies, — use and benefit from factoring companies to help their enterprises grow. Factoring companies specialize in helping small businesses drastically cut down wait times on payment, meaning that you can avoid waiting for 60, 90, or even 180 days for customer payments. But which businesses can make the best use of these services? Here are just a few large volume industries that can benefit from the assistance of invoice factoring services.
Staffing Firms Industry
Staffing agencies frequently use invoice factoring services for one main reason: they need to pay their employees regularly. But if their clients aren’t paying quickly enough, invoice funding or factoring services can step in and make sure the company’s hard-working employees get their paycheck. Access to immediate working capital is critical for a staffing company needing to make payroll on a weekly basis and still be able to take on new clients efficiently without worrying about being able to spend resources on finding and hiring new people. In staffing, it’s pretty simple: no money for payroll, no people and ultimately loss of contract. Many staffing companies can end up failing or having serious financial issues simply because of slow payments. Partnering with a factoring company and using strategic invoice funding ensures your people get paid, and you keep the contracts.
Professional Services Firms
Various professional firms also take advantage of invoice factoring options because of high-budget projects that take time to pay off. For example, law firms and architecture firms’ services usually range in the thousands of dollars, which may take months for businesses or corporations to pay off. These firms need capital to run efficiently and promote growth. Invoice funding can be an alternative to a traditional bank loan.
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.
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.
- 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.
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:
- Oil and Gas
- Cleaning & Janitorial
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.
Knowing more about your invoicing process is essential to helping your business thrive
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.
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.
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.’
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.
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.
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.
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 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.
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.
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.
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 is a type of accounts receivable financing that converts outstanding invoices due within 30, 60, or 90 days into immediate cash for your small business. While invoice funding companies work with businesses in many industry sectors, staffing agencies are looking to invoice factoring services for help with payroll funding. According to a U.S. Bank study, 82 percent of businesses fail because of cash flow problems. Understanding the unique range of benefits that invoice factoring services can provide for your staffing agency can help you make the best financial decisions. Here are just a few ways small business factoring can help your staffing agency grow.
Staffing agencies have unique payroll funding challenges
Even though small businesses (defined as businesses with fewer than 500 employees) account for 99.7% of all business in the United States, staffing agencies have a business model that’s different than most.
Before placing a candidate with a client, the agency has to a) market its services effectively, b) pay for advertisements to find personnel and c) ensure it has enough money to make payroll. Your client is trusting that you will be able to both run your day-to-day operations and most importantly pay that person.
The client doesn’t receive the actual bill for the staffing agency’s services until the employee has worked and submitted a timecard. This process can take weeks and even months before a staffing agency will see its first payment. Established business or not, few companies can afford to wait weeks and months for payment, not when getting people paid is their primary priority.
Invoice factoring can help staffing agencies reduce turnover.
It’s been estimated that if all invoices were paid on time, U.S. small businesses could collectively hire 2.1 million more employees, which would reduce unemployment by 27 percent. This is particularly relevant for staffing companies. As businesses have the capacity to hire more staff, staffing agencies can provide the necessary contingent labor force to meet the swells in demand.
But it also means greater pressure on the staffing agency to find long-term payroll funding solutions. If you can’t pay your employees, they’ll move on to the next gig, and your client is left hanging, and you’re looking for another person AND trying to solve your payroll problems.
Remember: keep your employees, keep the contract.
If you’re looking to hear more about how invoice funding can help your business, contact Triumph Business Capital today. We work with thousands of business owners every day, providing them the working capital to make payroll and grow their business operations. We can help you, too.
Share this article
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. 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 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 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 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 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 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 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 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 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 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 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.
FEBRUARY 25-26, 2019
MARCH 26-28, 2019
APRIL 10-13, 2019
MAY 5-7, 2019
MAY 6-8, 2019
JUNE 10-12, 2019
OCTOBER 5-9, 2019
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.
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
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
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
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
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
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
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
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
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
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
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.
Share this article
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.
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.
MARCH 5-8, 2019
The Work Truck Show, Green Truck Summit, and Fleet Technical Congress
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
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)
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
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
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
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
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
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
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
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
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
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
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:
- Driving 10,000 miles at 70 mph would yield an mpg of 5 miles and you’d pay $72,000 for fuel; and
- 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:
- The load you’re carrying
- Road conditions
- 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:
- Own a specialty trailer that’s only used for specific types of loads
- Have experience with handling hazardous or niche loads
- 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.
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!
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.
- 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.
- We determine the creditworthiness of your customers and approve those that we will factor.
- 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.
- Your dedicated account executive will make collection calls as needed to collect your outstanding invoices.
- 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:
- Credit checks (including online credit checks)
- Invoicing and collections services
- Online reporting
- Data storage
- Fuel discounts
- Fuel advances
- 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:
- Do my customers take a long time to pay me?
- Is a lack of cash flow negatively impacting my ability to grow my business?
- Are slow paying customers impacting my ability to pay my vendors on time?
- Do I have issues related to my customers’ creditworthiness?
- Do I know the broker/shipper will pay me before I take a load?
- 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.
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.
The holiday season is here, bringing days of celebration and fun. But, for many small business owners in the United States, it also brings some anxiety. How will they keep up with increased holiday orders, pay for inventory, and keep their businesses afloat?
According to the Small Business Administration, there are more than 30 million small businesses in the US as of 2018. As a small business owner, you may struggle with a range of issues at the holidays. Here are three ways that invoice factoring can help you have the holiday season you deserve.
#1: Providing Cash Flow
At Triumph Business Capital, one of our top concerns at the holidays is giving our clients access to the cash flow they need. Your sales may double or even triple at this time of year. To meet the increased demand for your products, you need cash on hand to pay for raw materials, inventory and maybe even employee overtime.
Because we can advance money against your unpaid invoices, invoice factoring can keep the money flowing so you can keep up with those holiday orders. You won’t need to wait weeks (or even longer) to be paid. Each sale you make becomes part of a steady stream of cash that you can use.
#2: Checking Customer Credit
For some small business owners, any order is a good order. But, at the holidays, it’s not uncommon for a big invoice to turn into a huge headache when it proves to be uncollectable when the season ends. And, in some cases, the headache of a collection problem can be warded off by simply checking the customer’s credit before you process their order.
At Triumph Business Capital, our experienced account executives can review a potential customer’s credit for you. Or, you can use our online credit check to check it yourself. If a company has a history of serious delinquency, you can decide not to sell to them – or to sell only on a cash basis to avoid collection issues down the line.
#3: Speeding up Collection of Invoices
Collecting invoices can be a time-consuming and frustrating process for business owners. At the holidays, it can be doubly difficult. It’s hard not to feel like a Grinch when you’re calling to collect money in the middle of the holiday season.
Factoring your invoices gives you access to back office solutions that include professional collection services. At Triumph Business Capital, our professional account executives and their teams will make courteous and timely collection calls on your past due accounts. That way, you can focus on making holiday sales while we handle the rest.
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!
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 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.
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.
We’ve discussed in recent posts how invoice factoring works: it’s a type of accounts receivable financing solution that converts outstanding invoices due within 90 days into immediate cash for your small business. And while many business owners assume that they need good credit to qualify for funding for their business, invoice factoring services can provide a unique and simple cash flow solution, even if you don’t have perfect credit. Here’s what you need to know about getting funding for your small business, even with a not-so-great credit history:
Have Bad Credit?
It can be incredibly tough for business owners with bad credit — or lack of credit — to gain traction, especially as they’re trying to get their businesses off the ground. Keep in mind that small businesses (defined as businesses with fewer than 500 employees) account for almost all business in the United States. Invoice factoring, for many types of small businesses, can help ensure adequate funding while they continue to grow their businesses.
Can Invoice Factoring Services Help Build Credit?
In short, yes. The Wall Street Journal reports that, “The factor advances most of the invoice amount — usually 70% to 90% — after checking out the credit-worthiness of the billed customer. When the bill is paid, the factor remits the balance.”
To be clear, building credit and establishing a higher score certainly takes time, but invoice factoring services can help build your credit. For example, by partnering with an invoice factoring company, you can pay down existing debts with the immediate cash flow, and you can also pay vendors and other expenses on time.
Plus, many invoice funding companies offer additional financial services, such as free credit checks, free background checks, online reporting with 24-hour access, invoice management and collections and more. Together, these comprehensive solutions can help you get your small business up and running regardless of your credit score.
As a business owner, you need to be proactive in improving your credit score. Working with an invoice factoring company can prevent you from falling behind by giving you immediate cash for work you’ve completed. That means on-time payments, which can, over time, lead to better credit.
Understanding how to establish credit for your business is the key to maximizing potential and growth. For more information about business factoring companies, contact Triumph Business Capital.
Invoice factoring is a type of accounts receivable financing that can help small businesses avoid wait times of up to 90-plus days for customer payments. And while it’s ideal for countless types of small businesses across many industry sectors, it’s particularly popular for freight and trucking companies. Nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network, and freight factoring services can help an owner-operator or freight broker’s day-to-day business operations in more ways than one. But before you choose a freight factoring company, it’s important to be aware of some common mistakes. Don’t let these mistakes affect your freight factoring decisions.
Not choosing the right type of factoring.
You may not be aware that there are two main different types of factoring: recourse and non-recourse factoring. The key difference between recourse and non-recourse is the amount of risk you’re willing to take on and how likely your clients are to pay.
In a non-recourse agreement, the factoring company takes on the risk and offers credit protection to you when your client fails to pay because they filed for bankruptcy. If you select non-recourse, you’ll have that added peace of mind if one of your clients goes out of business.
Recourse factoring, on the other hand, still provides the same factoring services but does not provide the protection to you in the event that a client goes bankrupt. That means, you’d still be financially and legally responsible for paying the amount back to the factoring company that was advanced to you. For this reason, recourse factoring fees tend to be less than in a non-recourse contract.
The decision between recourse and non-recourse comes down to your personal level of risk and trust that you have that your clients are going to pay on time.
Not choosing the right factoring company.
Choosing the wrong freight factoring services could cause more problems than it solves. According to the Federal Motor Carrier Safety Administration, approximately 5.9 million commercial motor vehicle drivers operate in the United States, and if the company you choose is inefficient or charges too much, you could just be digging yourself into a deeper hole. Make sure to consider all invoice funding companies, and ensure reputability in as many ways as possible. Getting a referral from another company or owner operator is another good way to find the right factoring company.
Some questions to ask:
- How long has the company been in business?
- Do they offer recourse and non-recourse contracts?
- Do I need to factor all of my invoices or can I select which ones I submit?
- Are there monthly minimums?
- Can I go month-to-month or do I have to sign up for long-term agreements right away?
If invoice factoring sounds like the right solution for your business, contact Triumph Business Capital today to speak to one of our representatives about our freight invoice factoring services.
Invoice factoring can go by many names: invoice financing, invoice funding and accounts receivable financing. Different names, but they all help small businesses receive the funds they need without waiting 30, 60 or 90 days to get paid from their customer.
In many cases, invoice factoring services can provide funding in as little as 24-48 hours. Thousands of businesses turn to invoice factoring companies, in large part, because of how easy it is to apply and get approved. But that doesn’t mean that a small business owner should just choose the first factoring company that pops up on a Google search. While most factoring companies offer the same basic service, there can be significant differences in the terms and cost. It’s important to avoid pitfalls that can leave you in a long-term, expensive contract.
Here are the most common mistakes your business should avoid when selecting and working with an invoice factoring company.
1. Not staying organized from the start
It’s important to submit error-free, easy-to-read paperwork. To do that, you have to stay organized. Include every expense as well as an explanation of each charge in your invoices, and proofread everything before sending the documents off. Sending duplicate invoices, sending them to the wrong place or department, or not sending them at all can quickly lead to larger problems down the road, such as becoming unqualified in the application process.
Businesses become, well, busy, so you don’t want to trust yourself to send an invoice later. All too often, waiting leads to forgetting. Keeping track of which documents you need to send and where they should go will save you a headache. Plus, it saves time for both you and the invoice factoring company. Don’t waste time by neglecting applications or filling them out haphazardly. Simply be sure you submit clear paperwork to avoid extra work or additional charges. Here’s a good rule of thumb: send invoices the moment you complete or deliver a project.
Your invoice factoring company will also work with you and provide you resources to help you submit clear and easy-to-read documentation. Remember — if your invoice factoring company can’t read your invoice, it can’t be processed, and you won’t get paid until the paperwork issue is resolved.
2. Failing to familiarize yourself with the factoring company
Borrowers should understand exactly what they’ve agreed to with their factors. What’s the contract length? What does the fine print say? Are there any additional fees your business should know about?
Beware of glossing over any of this information. You should thoroughly read your contract. It might look confusing if you’re not familiar with formal industry terms, but you need to make sure the proposal and the agreement match. You’re still going to be held responsible for everything in the agreement, whether you understand its terms or not. While a commercial factoring company should generally avoid ambiguous language, they should also be happy to explain their policies if you have any questions.
3. Withholding important information
Invoice factoring is a popular choice for businesses because of how quickly you can get signed up and approved. But the best way to guarantee a fast response is to be thorough and honest on your application. If you’re in a hurry, it’s easy to leave sections of your application blank or, worse, submit misinformation.
From the start, factoring companies need to assess your business. In order for them to provide you with the best possible quote, you need to provide them with a complete, detailed application. Failing to include information on your application can delay approval or it can be denied all together.
Be upfront about any previous bankruptcies or tax liens. They won’t automatically disqualify you, but they will come up on a routine credit check, so save time by letting the factoring company know what to expect.
4. Not using technology to speed up the process
Most factoring companies don’t require the original documents to issue payment. That means that your mobile device is probably one of the most important tools you have in getting funded quickly. If you’re away from your desk or on the road, you can easily snap photos of your documents and email them or load them to your factoring company’s client portal. This can help cut down on the delay between submission and funding.
Be sure to ask your factoring company what other technological resources they have to help you better manage your fundings and overall finances. Many provide reporting tools and other alerts and notifications that provide real-time status updates on your paperwork and payments.
5. Limiting your earning potential
Like most businesses, invoice factoring companies benefit from client referrals, and many will even compensate you for them. So just by submitting client referrals, you can gain some extra cash when a new client is funded.
The payment structure and schedule depend on the volume of business you’re referring, so ask your factoring company what type of programs they have for client referrals. With client referrals, you can boost your bottom line, while using invoice factoring to meet your monthly expenses.
Invoice factoring helps you build financial health
While invoice financing can help boost your cash flow, it’s important to remember that it’s one part of a coordinated strategy to maintain your business operations.
Working with an experienced company ensures that the invoice factoring process goes smoothly. Founded in 2004, Triumph Business Capital can help your business manage its capital. Over the years, our invoice funding company has helped over 7,000 small and mid-size businesses with their financial needs.
Freight, trucking, oil and gas, and business factoring services are simply a few of our offerings. If you need to remedy your business’ cash flow issues, we make the process easy. Our team can help you get the cash advances you need on your invoices. Choose us as your commercial factoring company—call today at 866-368-2482, and let us be your partner.
Making it as a small business isn’t easy, no matter your industry. Rarely, can small businesses survive waiting 30+ days for payment, especially when their vendors are calling for their payment.
If you find yourself struggling to manage payroll, rent and other overhead costs while waiting for payment, you have options. Read on to learn about the advantages of small business factoring and find out what it can do for your company.
Get the funds you need immediately
Corporations enjoy constant streams of revenue and vast reserves of capital, so they can generally afford to wait 60 or 90 days for customer payments. That’s a luxury small business owners often can’t afford. An unexpected expense or a poor sales month can make covering your immediate costs difficult or even impossible. Your invoices might have the necessary funds to maintain positive cash flow, but what good is that if you won’t see the money for three months?
That’s where working with a factoring company can provide relief. When you send an invoice to a business factoring company, they’ll provide you with those funds trapped in your invoices, minus the discount of the factoring service . You’ll typically receive your funds within 24 to 48 hours. From there, you can make whatever payments are necessary to keep your small business on the right track. Plus, the invoice factoring company will handle all the paperwork and collections necessary, which means you’ve got one less headache to deal with.
A great option for startups
If your company just got off the ground, you may need cash a little sooner than your customers will be paying up. Without funds from past work, it can feel like you just have to constantly scrape by.
Unanticipated costs might threaten to destabilize your operation before it’s truly begun. Alternatively, you may encounter chances to expand your business and bring in new customers, only to realize you can’t take advantage of these opportunities because your bank account is empty.
Fortunately, a business factoring service can get the cash from your invoices immediately, giving you the funds you need to cover your initial expenses or expand your services. This allows you to get your company on its feet sooner—and you won’t have to saddle yourself with an early loan.
Smarter than a loan
If you’re new to factoring, you may be thinking to yourself, “Why shouldn’t I just get a loan instead?” That’s a good question. In fact, there are two reasons to choose small business factoring over a loan.
The first of these is your credit worthiness. If you don’t have a strong credit history, you may not be able to secure a loan. Even if you do obtain it, the high interest rate will cost you a great deal over time. Should your company go under, your obligation to repay the loan won’t disappear, and you could find yourself in a truly disastrous financial situation.
Second, you don’t pay business factoring companies directly. They instead examine your customers’ credit history to assess the risk of taking on your invoices. Generally, you won’t be turned away because of your past, and you won’t have to take on loans with large interest rates to keep your operations stable.
Even if you do have sufficient credit for a loan, you’ll have to deal with the associated debt and interest rates potentially for years to come. This can be a stressful experience, as well as an expensive one. Plus, taking a loan to stay afloat is a risky venture. If you’re already in a tight situation and trying to address an immediate need, tying yourself to potentially years of repayments may not be the best idea for your business.
Invoice factoring, meanwhile, provides flexibility for small businesses. Depending on your agreement, you can sign up for as little as one month, six months or a year. Because factoring companies offer funding based on your invoices, your risk of owing a large balance at the end of your contract decreases dramatically.
Reduce your risks with factoring
Regardless of what solution you ultimately choose for your business, it’s important to understand the differences, and the overall costs and benefits of each. If a customer doesn’t pay, you may have to repay the business factoring company the amount they advanced you for that invoice. However, there are a few elements that can lessen the potential risk.
First, as mentioned above, the factoring company will investigate your customers’ credit history before agreeing to do business with you. This means that, if you decide to factor your invoices, you can be confident that the factoring company has evaluated the likelihood of getting paid on time. If your regular customers are large, reputable corporations or federal or state governments, you probably don’t have much to worry about.
In other situations, it may be best to invest in non-recourse factoring. When you choose this option, the factoring company takes on more risk on your behalf. The actual terms of the agreement vary. Some companies will only let you off the hook if your customer declares bankruptcy. It’s always important to ask these questions when choosing the right factoring company for your business.
Factoring companies help thousands of businesses get the immediate funding they need. Before choosing a traditional bank loan or working with an invoice factoring company, you should do your research on what makes the most sense for your unique business situation.
Triumph Business Capital specializes in factoring, and we offer business factoring services tailored specifically to small businesses. We’ll work with you to find the best solutions that put cash in your hands, and we take on all the risk when you choose our non-recourse factoring option. With over a hundred experts on staff, we’ve got the knowledge and experience it takes to help small businesses optimize their cash flows. Give us a call today, and let us work with you to set your enterprise up for financial success.
There are nearly 28 million small businesses in the U.S., and in today’s uncertain economic climate, many small businesses struggle to stay afloat as a result of insufficient funds. In fact, according to a U.S. Bank study, 82 percent of businesses that fail do so because of cash flow problems.
For many small businesses, however, invoice factoring can be a viable solution to their cash flow issues. Invoice factoring is a type of accounts receivable financing that converts outstanding invoices into immediate cash for your small business. Before choosing the right invoice factoring service for your business, it’s important to understand the facts. It’s also important to clear up the potential misconceptions about invoice factoring. Here are just a few invoice factoring myths you shouldn’t believe.
Myth 1: Business factoring services are expensive.
The most common misconception about invoice factoring services is – no surprise – related to the cost. Most charge a small percentage of the invoice total to provide your business with the immediate cash flow it needs to help meet your day-to-day expenses.
The reality is that no business can survive for long without a consistent stream of income.
Recent research suggests that nearly 60 percent of all invoices are paid late. Invoice factoring ensures that you’re not waiting for your money or wasting your time chasing down slow-paying clients.
Invoice factoring companies also provide additional services as part of your fee. These services – invoice creation and submission, collections, credit checks on your future clients — can be invaluable resources to busy small business owners who are wearing too many hats. Invoice factoring companies provide a team of back office professionals that keep your paperwork in check and make sure that you’re getting funded on the work you’ve completed.
When considering working capital solutions for your business’s cash flow issues, it’s important to keep in mind the additional benefits included in the factoring services and calculate the overall benefit to your business. Outsourcing your invoicing and collections processes can lead to savings in time and money, allowing you to dedicate more resources to growing your business.
Of course, the exact fee and costs associated with factoring depends on your specific business situation.
Myth 2: My customers will look negatively upon invoice factoring.
Some people think that businesses using invoice factoring might be having financial issues or may not be seen as dependable vendors. More than that, some business owners worry that a third party provider contacting your clients to follow up on payment may be seen as more of a collections service rather than an extension of your accounts receivable department.
But the reality is that thousands and thousands of businesses use this form of accounts receivable financing for their small business funding. Increasingly, invoice factoring is becoming more common across industries, as companies look to streamline their account receivables process.
Some providers can even provide a white label service in order to make it appear as though invoices are sent to and from your business instead of a third party.
Myth 3: Invoice factoring companies won’t work with businesses that aren’t ‘established.’
Whether you just started a company, or you’ve been in business for a long time, if you have an invoice, you can take advantage of business factoring services.
The reality is that most startups don’t have enough credit to qualify for traditional loans and financing. Conversely, invoice factoring looks at the credit history of your clients when deciding to purchase your outstanding invoices.
Finally, it’s important to note that all types of small- and medium-sized businesses can take advantage of invoice factoring services. Also, invoice factoring companies consider a wide range of criteria when reviewing your application and accounts receivables.
The best way to know if factoring is a great short- or long-term fit for your business is to be as straightforward and direct about your financial history and situation as possible.
Myth 4: All invoice factoring companies are the same.
It’s easy to assume that all invoice factoring companies offer the same services, charge the same rates and have the same contract terms. But in selecting a factoring company, it’s important to remember that there can be significant differences among providers.
For instance, depending on your agreement, many factoring companies require you to submit all of your invoices for funding and maintain monthly minimums (or be charged a fee). Not all factoring companies have these policies, so it’s important to ask and to read and then reread your contract to understand what you’re agreeing to and for how long.
Ultimately, it’s important to understand the facts about the services provided by an invoice factoring provider and the services that they provide before you decide on a working capital solution. If you’re ready to move forward or have questions about invoice factoring, contact Triumph Business Capital today for a free rate quote.
When you’re on the road, you need to make sure you can afford to maintain your truck as well as your business. Cash flow is critical to truckers and trucking companies, which is why we have a solution —freight factoring services.
What exactly is freight factoring?
Freight invoice factoring allows trucking companies of all sizes to immediately receive cash from unpaid invoices. With money in hand, companies can pay for materials, employees and overhead costs. While invoice factoring used to be uncommon, it’s quickly become one of the most popular funding methods for trucking companies.
Trucking companies can choose from two types of factoring services —recourse and non-recourse factoring. While many companies offer both, there’s a significant difference between them.
- Non-recourse factoring— Non-recourse factoring contracts protect you in the event that your clients don’t pay the factoring company. If your customers fail to pay their bills, you won’t be held financially responsible. In a non-recourse agreement, the invoice factoring company assumes the risk. The fees will generally be higher for non-recourse factoring, but it’s the better choice for trucking companies that cannot afford to take the risk if a debtor goes out of business.
- Recourse factoring— In a recourse factoring arrangement, your company is ultimately responsible if the debtor does not pay the invoice. The fees associated with a recourse factoring contract are often less because you are sharing in the risk if the debtor fails to pay. To minimize the risk of non-payment from your customers, the invoice factoring company provides credit checks on your debtors (clients), allowing you to make better informed decisions prior to taking the load.
The process of freight factoring
The first step is easy, and you’re already doing it: deliver your load as you normally would. Then, you need to submit a copy of your freight bill, frequently referred to as a BOL (bill of lading), to an invoice factoring company. Most invoice factoring companies accept paperwork by email or FAX.
The best invoice factoring companies also offer the ability to upload paperwork through a web portal. Once received, the factoring company verifies the invoices and works with your customers to collect payment. You receive your money — typically same day — once the factoring company verifies that the load was delivered and to check to see if any fuel advances were taken. If you are on a recourse program, you will receive the agreed upon advance rate within 24 hours from the day the BOL was submitted. Finally, once the invoice is paid by your client, the reserve is released minus your factoring fee.
The benefits of freight factoring
What makes freight invoice factoring appealing is its many advantages over other financial solutions. Factoring is a great financing option because:
- It’s easy to receive financing—Traditional loans and other long-term financing solutions are often harder to get. If you don’t have the best credit, invoice factoring might be the most viable option for you. Your customers are paying the invoice factoring company, so your customer’s credit is typically more relevant than yours.
- Speeds up your operating cash flow—It’s no secret that carriers need to be paid, and they need to be paid what customers owe them. Unfortunately, this can take anywhere between 30 and 90 days. Invoice factoring allows freight brokers to provide advances to trucking companies on the same day. With all the work you’re doing, there’s no reason why there should be a waiting period standing between you and your hard-earned money. In addition to freight factoring services, you may even receive complimentary offerings, such as tire discounts or a fuel discount card from the factoring company with negotiated discounts at many participating retailers.
- You’ll have money to spend on growing your business— Usually, it’s more difficult to take on more jobs if cash flow is tight, but freight invoice factoring alleviates this issue. It’ll be much easier to meet growing demand because you’ll be able to use the cash to hire more drivers or for other day-to-day expenses.
- There’s no debt to repay— Invoice factoring helps you avoid taking on new debt. It isn’t a loan, so there’s no expectation to pay anything back. There are no interest rates or hidden fees—just a small, one-time payment taken from your load.
It’s essential to familiarize yourself with the invoice factoring process and its benefits, but there’s another piece of information you should keep in mind as you decide whether freight invoice factoring is right for you.
The application process for freight factoring services is pretty simple. Most freight factoring services require you to complete an application providing basic information that pertains to your business entity. Invoice factoring companies primarily are looking at the debtor’s credit (not your credit) since it is the debtor who will be paying the invoice.
The application paperwork is fairly straightforward, and factoring companies can approve your application for funding quickly. In fact, it generally takes only two to three days to receive approval.
Why you should use a freight factoring company
Provides you with immediate cash flow.
- We already mentioned the amount of time it may take to process payments, and emergencies can’t wait. This is why you should start out with an invoice factoring company as soon as possible.
Get access to funding even if you have bad or no credit.
- When you’re operating a newer business, you probably haven’t established a line of credit. Invoice factoring provides your business cash flow even if you have limited or poor credit history.
Saves you time and money on collections.
- For one thing, using an invoice factoring company can also help alleviate the stress associated with invoicing and collections. The invoice factoring company handles the general accounting responsibilities, such as collections and accounts receivable paperwork. By handing off your invoices and letting invoice factoring companies manage the back-office work, you can have peace of mind and the time to focus on other tasks.
Provides flexible contract terms.
- Invoice factoring companies offer flexibility. There are no long-term contracts, and you can submit as many unpaid invoices as you’d like. Once you’re approved, you can decide how often you’d like to use invoice factoring services to fund your business. Many invoice factoring providers do not have minimum requirements, meaning you can pick and choose which loads you’d like to factor.
Every business owner knows that there are going to be fluctuations in your business, so it’s important to prepare with the right financing option. You can use a factoring service when you need to, so you won’t be stuck on the road when you need the cash most.
Don’t miss out on opportunities to make money, and don’t let your invoices affect your company’s growth. Work with a partner who will give you a fair, honest and stress-free experience.
When it comes to invoice factoring companies, we stand out from the rest. Triumph Business Capital is dedicated to your unique needs. With over 100 knowledgeable team members, we can help you manage your business, get you the funding for your business and save you time and money.
Triumph Business Capital truly is a preferred source for freight factoring services. We’re able to pay carriers within 24 hours after a load has been delivered. If you want a steady flow of capital to help your business continue to grow, call us today and convert your accounts receivable into cash.
The start of a new year is a great time to take stock of what you want to achieve and what it will take to reach your goals. We wish you great success as an owner-operator in 2020, and offer some practical do’s and don’ts as you rev up for the road ahead.
DON’T: Blame shippers or brokers for your rate, lane or anything else that isn’t working in your world. Rates and loads are driven by fuel costs, supply and demand, among other factors in the trucking industry. Too many drivers and owner-operators mistakenly believe that simply having a number of years of experience in trucking will be enough to be a highly profitable business owner. It takes good business skills, understanding of the trucking industry and logistics, keeping an eye on trends, and smart choices of brokers. If you find a broker or who is honest and certified by the TIA (important!), you have probably found a good broker.
DO: Familiarize yourself with how the industry works and what is currently happening. Use that knowledge to your advantage, and to set realistic expectations. Keep tabs on fuel pricing, supply and demand trends, and other influencers so you are well-informed in discussions with your broker and/or shippers about why you deserve the rate you do, going rates for specific lanes, etc. Be able look at your business and see what causes downturns and what helps conditions improve. You can further enhance key relationships in 2016 through your professionalism: treat everyone well and communicate effectively.
DON’T: Rely on salespeople for an accurate assessment of a truck’s fuel mileage. Their agenda is selling you the truck, and they will say or do what it takes. It’s in their best interests to convince you that a given truck delivers the best fuel mileage so they get the sale and their commission. The truck may get that MPG some of the time, but don’t count on it to be what you get all of the time. Also, don’t buy into the idea that you’ll get better mileage hauling light weights with a high-horsepower engine than with a smaller one. Fuel efficiency will vary based on the engine, load and conditions throughout the year.
DO: Become a fuel-efficient truck driver. Fuel economy plays a huge role in your success as an owner-operator. A single mile to the gallon in fuel economy can make or tank your bottom line. You may have heard other drivers say that you can’t make money if you’re driving just 60 mph, because you’re driving fewer miles each day. But driving 55-60 versus having idle time and driving 70 mph will make a dramatic difference, saving you thousands of dollars in fuel efficiency. At a fuel cost of $3.00 per gallon, let’s assume Driver 1 averages 70 mph for 10,000 miles, and gets 5.0 mpg. Driver 2 averages 60 mph for 10,000 miles, and gets 5.5 mph. At the end of the year, Driver 1 has shelled out $72,000 for fuel while Driver 2 has spent just $65,000, leaving $7,000 more in his pocket.
DON’T: Mistake your gross revenue for profits you can pocket. As an owner-operator, you have a number of expenses that come out of that revenue – fuel, permits, vehicle maintenance, truck payments, insurance, health care and insurance, other operating costs, taxes … Also, don’t assume that your truck warranty will cover all of your maintenance expenses or neglect repairs. It will cost you far less in time, money and headaches to get your rig into the shop when you have downtime than having it towed and out of commission because you got complacent or sidetracked. If you don’t sufficiently plan for the costs of operating your truck and business, you’re going to have a rough ride.
DO: Make sure you understand the costs of operating a truck and trailer and stay prepared financially. Basically, revenue per mile minus cost per mile equals gross revenue. Subtract taxes from that figure and you have your net profit. The Owner-Operator Independent Drivers Association (OOIDA) has a great article to help you calculate your fixed and variable costs per mile, which will help you determine how much money in profit you can make. Basic business accounting and book keeping skills are also very important to see success as an owner-operator. You can even take some online classes from the road to get the fundamentals. Of course, the other way to keep more money in your pocket is to control spending. If you need something, research and buy wisely. For “wants,” think long and hard about whether the immediate gratification will interfere in reaching your longer-term goals.
DON’T: Buy a slick, tricked-out, chromed-to-the-gills truck that will ultimately cost you more money in the long run. Focus on what’s best for your business instead of getting distracted by something shiny on the lot or at truck shows. It’s all about getting from point A to point B and having the most appropriate tool for making money in your business. Don’t treat it like a toy or feel compelled to buy more engine than you really need, because it’s just going to suck down more fuel.
DO: Buy a truck that is reliable. Matt Douthit, the voice of experience behind truck driver career site CDL 101, suggests purchasing a lightly used truck – target about 200,000 miles on the odometer. That way, someone else has taken the big depreciation hit, and all the little kinks are already worked out. You can also pull the Electronic Control Module (ECM) report to see how it’s performed, operating issues and actual fuel efficiency. If you go the used route, check out the warranty carefully. You can’t afford to get stuck with a lemon. Whether buying new or used, absolutely do your homework. If you’re purchasing a new one, see what the various diesel engine manufacturers say about fuel mileage, and ask owner-operators with similar trucks and engines about their experiences. Bottom line, you need a truck you can trust for reliability and longevity with good fuel efficiency and few repairs.
DON’T: Believe that work will always be there, and live and budget as if your costs and revenues will never change. Just because we will always need trucks to haul our goods across the country doesn’t mean we will always have work. You can’t view the road through rose-colored glasses and budget solely based on the best of times. The economy ebbs and flows, and so do our businesses. That’s why it’s important to look at yearlong averages and stand out from the pack.
DO: Work hard, do your job well, make smart decisions and build solid relationships with others who can help you in your career. Networking can connect you to the inside track on the best loads offered by multiple brokers and shippers. It’s also important to find and work your niche – a distinct segment of a market what makes you different from the big guys, gives you a profitable edge and keeps you busy.
For example, if you have a trailer used for hauling something unusual, or requiring special handling or specific permits, you improve your opportunity to make more money. Consider doing something that most people can’t; a business model based on lower freight volumes than will sustain a large company; and odd or niche freight, which pay much more than general freight. What can you focus on that most trucking companies do not do? This will help you better brand and market yourself because you will stand out in a small market, then you can build the business by building your reputation for honesty and reliability.
Take five minutes to learn more about how we help owner/operators increasing their cash flow.
Let’s Talk About How to Get You Paid.
Take five minutes to learn more about how we help owner/operators increasing their cash flow.
Invoice factoring has been around for thousands of years and can be traced to the 18th century B.C. Babylonian king, Hammurabi. Over the past 10 years, transportation intermediaries are directing more and more of their carrier payments to factoring companies ‐ anecdotally, we hear as much as 80%. At Triumph Business Capital, we’ve processed carrier payments for over 500 freight brokers, and our experience is consistent with those reports.
It starts with economics. Lots of new capital has flooded the commercial finance sector, and many new factoring companies have entered the transportation space. And, why not? The collectability of a freight bill is terrific. As a result of increasing competition, carriers are solicited daily with factoring offers of high advance rates (the percentage of the freight bill advanced at time the invoice is sold or “factored”) coupled with factoring fees that are a fraction of what they were 10 years ago. In fact, factoring fees are typically at or below the same pricing which many brokers charge for quick pay.
The quality of factoring services has improved as well. Many of the top factoring companies offer online credit services, fuel purchase programs, equipment and insurance financing and mobile technology applications. The factoring industry has come a long way, too.
Frequently Asked Questions
Q. What is the difference between recourse and non‐recourse factoring? And, how does it affect me?
A. Recourse means the factoring client is ultimately responsibility for the payment of the invoice. Non‐recourse factoring allows companies to sell their invoices in a style in which the factoring company assumes the credit risks. Often misunderstood, non‐payment for legitimate disputes (such as shortages, claims, late delivery, etc.) remain the responsibility of the client regardless of contract form. The style of a carrier’s factoring contract should have no impact on the freight broker.
Q. What is a Notice of Assignment and do Freight Brokers need to acknowledge them?
A. The Uniform Commercial Code (§ 9‐406) outlines the business and law underlying the invoice factoring industry. The ability to assign payment obligations (accounts) from the
broker (account debtor) to a factor (assignee) was a purposeful and intentional provision that the UCC drafters identified to provide businesses with opportunity to raise working
capital. Remember, the assignment of pay proceeds is separate and distinct from the assignment of services or other responsibilities in a legal contract (i.e., Broker‐Carrier
agreements). Payors cannot restrict the assignment of proceeds and are subject to double‐payment liability if they choose to ignore proper notification. Notice of
Assignments (NOA’s) can be presented by an invoice “stamp”, separate communication (letter) or both. Once you have been “effectively noticed” all payments must go to the
factoring company, whether the invoice has a stamp or not, and regardless of any claims by the carrier whether or not a particular invoice was factored. Never stop sending
payments to the factor until you receive a release letter, which the factoring company should be willing to provide
Q. What makes a Notice of Assignment binding? Is a signature required?
A. The effectiveness of an NOA is a question answered by case law, but the practical guidelines are simply and widely accepted. The account debtor is not required to
acknowledge the NOA with a signature and, even if there was a signature, it might not be clear as to whether the person signing the NOA had the proper authority to do so.
So, you don’t have to sign them – but that doesn’t really matter. Once an account debtor sends payment to the factoring company, it’s broadly understood that they did so based
upon receiving notice. (Why else would you send money to someone other than the carrier who hauled the freight?) If you pay a factoring company one time, then the NOA
is probably effective and you’re most likely bound by its terms. Now, you can refuse to use carriers that work with factoring companies, or even certain factoring companies,
but you can’t ignore a valid NOA once received.
Q. Am I obligated to pay a carrier’s factoring company if we haven’t received a Notice of Assignment.
A. Short answer is No. With more and more “online” or “cash advance” lenders entering the space, this question is more likely to come up than you may realize. A business may
grant a factor or lender a security interest in its accounts receivable, and perfect that security interest by filing a UCC financing statement. Security interests establish priority
among secured creditors, but do not impact payment remittance. It’s all about assignment and your receipt of effective notification of that assignment.
Q. Does the presence of a factoring company restrict our ability to offset future payments for claims?
A. Frankly, there’s a lot of “urban myth” surrounding this subject, but it ultimately depends on the broker‐carrier agreement. UCC § 9‐404 provides the factor (assignee) with certain
protections against claims and defenses – but only to the extent that the contract was silent on those provisions. Generally speaking, the broker’s obligation to the pay the
factor are identical to the contractual obligations for paying the carrier. As a practical (and ethical) matter, the factor is entitled to the same level of communication regarding
claims and setoffs that you would reasonably provide the carrier.
Q. What can be done about factoring companies which report slow payments and delinquencies to credit reporting agencies, regardless of how timely those payments are sent?
A. There are two primary reasons for unfair credit reporting: the U.S. Postal Service and bad factoring companies. Mail times are continuing to deteriorate, and payors using mail
service providers are likely experiencing additional delays. If you’re committed to mailing your payments, utilizing the “Intelligent Bar Code” will reduce USPS time and
processing errors. Alternatively, most reputable factoring companies will accept payment by ACH or wire, particularly if your TMS or accounting system can provide
reasonable instructions for correctly applying those payments.
Q. What about the “bad actors” in the factoring community, who are unreasonable, annoying and difficult to deal with?
A. The International Factoring Association (IFA) is an engaged trade organization which is elevating its constituency through education, best practices and advocacy. Over 450 IFA
members ascribe to a Code of Ethics and the organization actively responds to inquiries and disputes. You can contact the IFA at (800) 563‐1895 or email@example.com.
Let’s talk about how we help
Whether you’re a broker needing to make payments or a carrier looking to get paid, Triumph Business Capital can help you.
Freight brokers pay carriers – that’s what you do. You do it for fuel advances and again when the load’s settled and billed. You pay when it’s due and sometimes you pay quick. You pay by fuel card, by express check, by bank draft, by paper check. And mostly you pay factoring companies – after they call to verify the load, again to check for advances and yet again to collect. You’re ready to pay the trucks who’ve been with you forever, the one that showed last week and the one which may still call back. You pay carriers – but is that what you do best?
New Technology, More Options
Large industrial firms have been outsourcing vendor payments for decades. It’s become a standard practice in medical, hospitality and government contracting. The consistent premise is to operate your business within your business systems, and to have your systems feed payment instructions to payment processors – seamlessly, safely and cost effectively. That’s the goal.
The evolution of technology integrations has also resulted in a proliferation of financial solutions. Some of these solution structures make particular sense in certain industries, not so much in others. Some providers offer credit capacity, others focus only on technology solutions. Just to make things more confusing, the terminology isn’t consistent. But overlooking the labels just a bit, we can identify three general categories of payment processing solutions. For purposes of this road map, let’s call them Dynamic Discounting, Supply Chain Finance and Virtual Card Payments. And, of course, there are combinations of the three, but let’s get started anyway – paying particular attention to what makes sense in for-hire transportation.
The simplest form of payment processing involves an arrangement between a buyer (such as a freight broker) and vendor (carrier) whereby payment for goods or services is made early in return for a reduced price or discount. Dynamic Discounting has been primarily a technology service offer with the following characteristics:
- Transaction unchanged between buyer and vendor
- Servicer may or may not provide credit or liquidity
- When credit is provided, it’s most typically in the form of a loan structure (to buyer)
- Often combined with other tech-based services, such as freight bill auditing
We haven’t seen huge impact of Dynamic Discounting in the trucking space, largely because of the complexity. Most truckers are happy with two payment terms: standard and quick. The market saturation of factoring companies has probably simplified quick pay requirements as well.
Supply Chain Finance
Often called “Reverse Factoring”, the basic premise is that buyers (freight brokers) can become more attractive to their vendors (carriers) by incorporating working capital options from the onset. Unlike traditional factoring, where carriers sell their accounts receivable, reverse factoring is a financing solution initiated by the broker to help its carriers to finance their open accounts more easily and at a lower cost than what would normally or otherwise be available. In Europe, where factoring is more prominent than in the U.S., Supply Chain Finance has become more prevalently adopted than traditional factoring. Characteristics include:
- Cost benefits to both buyer and vendor
- Proactive alternative to “Factor Fatigue”
- Optimal in markets where buyers deal with a large number of small vendors and can rely upon the payment processor to minimize onboarding costs
Our company’s payment processing platform, which we call TriumphPay, is a form of Reverse Factoring or Supply Chain Finance. There are a few other very good products coming to the transportation intermediary market in this style as well. From a broker’s perspective, the quality of the carrier experience, and consequently their rate of adoption, will largely drive the cost saving benefits to be realized.
Virtual Card Payments
Despite several transaction models, this is a style of B2B payment processing that uses a single-use credit card number. Virtual card payments have become extremely popular in certain industries and offer distinctive advantages to buyer, including fraud deterrence and revenue opportunities. However, processing costs are transferred to vendors which has resulted in limited adoption in other industries.
- Highly controlled, buyer-centric process
- High adoption rates in stable and/or contractual vendor communities (i.e., hospitals/medical providers)
- Low adoption rates in markets with high factoring penetration
To be fair, Virtual Cards are a valuable tool to have in your payment processing toolbox. You’ll need to determine whether it’s a platform you lead with or use to supplement other transaction models.
Payment processing options are coming. If the U.S. trucking industry is similar to other markets around the world, it will be coming quickly. But please understand, these are customized solutions that can be tailored to fit your business like a glove. The more time you invest in learning about the various structures, including their relative strengths and weaknesses, the better equipped you’ll be to make these financial products works for you.
Cash is king. You know this as well as anyone else. Without cash, you can find yourself in some pretty uncomfortable situations, like not having enough money for payroll, or making late payments to vendors and bill collectors.
So what can you do to manage your cash flow effectively? Let’s take a look at three quick and easy ways to increase your cash flow—and help you sleep at night.
1. Sell or lease unused assets
You paid good money for your assets and, even if you’re no longer using some of them, it’s time to put that investment to work again. Take an inventory of the assets you’re not currently using and consider selling or leasing them.
How do you shed the assets? Use your industry contacts, such as suppliers, to find buyers or lessees. Also search for websites that specialize in auctions for your industry. For assets with significant value, contact a business broker.
2. Deposit additional cash into interest-earning accounts
This one’s a bit of a no-brainer. Let the banks work for you for a change. Deposit any cash you won’t need for a while into an interest-bearing account so it can grow. Look for an insured account with the highest interest your financial institution offers and let your money sit there.
Here’s a tip: If you’re concerned about locking your funds away in a long-term account like a certificate of deposit, consider a money market account instead. Money market accounts offer greater interest than regular savings accounts, while still giving you access to your funds. After all, cash flow is what you’re after—not more restrictions.
3. Factor your receivables
Invoice factoring is perhaps one of the smartest cash flow solutions out there. In fact, this is how many other small to mid-size businesses manage cash flow effectively.
You may be asking yourself: How does invoice factoring work? Here’s how. Simply send your invoices to a factoring company like Triumph Business Capital and we’ll fund the money straight to your bank account—usually within 24 hours.
Keep in mind that we verify the creditworthiness of your customer. If the customer has a history of missed or late payments, the invoice may not be approved for the financing.
Get paid today
We believe that getting paid shouldn’t be the hardest part of your job.
When you factor your invoices with Triumph, you’ll also gain access to a host of back office solutions. Solutions like free credit checks to make sure your clients have the ability to pay; and collection services to get your money from those who won’t pay.
Ready to get started? Factor your invoices with Triumph Business Capital and get paid today.
It’s not only been days, but weeks—or even months—since you performed work for your client, and you still haven’t received payment. Sound familiar?
As a professional, you need to be paid on time. You’ve got people to support and bills to pay. You may be considering using a debt collector to secure payment from your customer. Or, you may have considered proactively factoring your invoices with a trusted, credible factor. But which one is the smarter option. Are there any hidden implications you should be considering before making your decision?
The answer is yes. There’s actually a huge gap between debt collection and invoice factoring. Think through these three key differences before reaching out to either one.
The primary purpose behind using a debt collector is very different from the reason you’d use invoice factoring. While invoice factoring involves current unpaid invoices—no more than 30 days old—debt collection deals with invoices that are at least 60 days past due.
If you’re still trying to get paid months after you’ve completed the work, it might be time to check in with a debt collection agency.
If you prefer timely payment for your work instead of relegating your receivables to the bad debt file, you’ll want to connect with a reputable invoice factoring company like Triumph Business Capital.
One of the benefits of working with an established and reputable factor like Triumph is that we’ll not only factor your invoices; we’ll also provide a host of back office solutions—including payment services—to ensure that you get paid on time for the work you perform. Welcome to the best of both worlds.
2. Funding timeline
How much longer are you willing to wait to be paid? The difference between how long it takes a debt collector to get funds to you and how quickly an invoice factoring company sends you funds can be a game changer.
You’ll be paid, but only after the collection agency receives payment from your customer. That can take time—if it happens at all. Add an aggressive process that can alienate customers, and you may decide that engaging a debt collection agency just isn’t worth it.
With factoring, you simply sell your invoices at a small discount and get immediate cash for your business. How fast? You get paid before the factoring company receives any money from your customer—usually within 24 hours.
How much are you willing to pay to be paid? In an ideal world, the payment conflict wouldn’t exist. But in today’s environment, unfortunately, you often end up either arm wrestling your customers or throwing up your hands.
When you hire a debt collector, you’ll likely pay a hefty 25% to 30% collection fee—which still beats giving up 100% of an unpaid invoice! But there’s an even better option.
Getting paid shouldn’t be the hardest part of your job. Invoice factoring isn’t free, but weigh its small price against its great advantages: you’ll receive an immediate payment from the factor—usually 70% to 100% of the invoice—followed by any remaining balance (minus a fee) as soon as the factor collects full payment from your customer.
Get paid today
Factor your invoices with Triumph Business Capital to get paid today.
When you factor your invoices with our team, you’ll also get access to a host of back office services like credit checks to make sure your clients can pay, and collection services to get your money from those who won’t.
Ready to get started? Factor your invoices with Triumph Business Capital today.
Let’s face it, money can get in the way of any relationship, whether business or personal. And small or mid-size business owners like you never want to compromise relationships with customers or vendors.
But without the funds to pay your bills on time, how can you avoid damaging your relationship with your vendors? And how can you demand timely payment of your invoices without jeopardizing your relationship with your customers? What’s a small to mid-size business owner to do?
Managing cash flow takes diplomacy—and these three industry secrets.
1. Set up mutually beneficial payment terms
If, for example, a customer refuses to pay an initial deposit, but wants you to work on a large project that won’t be completed for months, you can negotiate progress payments. As you reach the agreed-upon benchmarks, you’ll receive partial payments, at least enough to cover your overhead and project costs. This will keep your contractors and vendors happy.
Your customer will benefit, too, by making smaller periodic payments instead of paying a huge lump sum upon completion, or even a hefty deposit with a large final payment.
2. Pay your bills on time
Another key point is to pay your bills on time—always. Set up automatic payments so you never miss a bill payment. Timely payments go a long way toward improving your credit and your credibility. Vendors and contractors appreciate on-time payments and may even give your account preference over other businesses.
On the other hand, late payments can be a black mark against your business—vendors may not be as willing to work with you, and may stop extending credit or services.
3. Offer discounts for quick payment
Everyone likes to save money! Offer a discount off the top of your invoices if your customers pay within a specified period instead of waiting 30, 60, or 90 days to submit payment. Many will jump at this chance, and your offer will generate good will with them. It’s a win-win for everyone.
Get paid, today
Still struggling to get paid by your customers so you can pay your vendors? Invoice factoring can be an easy and effective way to manage cash flow while maintaining—and even improving—business relationships.
Simply send your invoices to a reputable factor like Triumph Business Capital so you can get paid today. When you factor your invoices with Triumph, you’ll get 70% to 100% of your funds upfront. And as we collect full payment from your customers, we’ll then pay you the remaining balance on your invoices, minus a small fee. In the end, you’ll get the cash you need to pay vendors and creditors quickly.
Since 2004, Triumph Business Capital has helped thousands of small and mid-size businesses manage their cash flow effectively. When you factor your invoices with our team, you’ll also get access to a host of back office services like credit checks and collections: We’ll make sure your customers can pay you, and we’ll get your money from those who won’t.
Ready to get started? Factor your invoices with Triumph Business Capital today.
You’re running a small or mid-size business and that takes money—lots of it. But coming up with the capital you need, when you need it, can often pose significant challenges—like how to meet payroll, pay vendors, upgrade equipment . . . the list goes on and on.
So how do you manage cash flow effectively? Let’s explore some common business cash flow problems and what you can do to turn those problems into productivity and profit.
4 common small business cash flow problems
1. Meeting payroll demands
As a small business owner, you know that payroll can take a large chunk of your budget each and every month, if not every week. At best, many small business owners lose sleep over payroll; at worst, some lose their business entirely.
Bankruptcies in the U.S. increased to 25,227 companies in the second quarter of 2016, from 24,797 companies in the first quarter of 2016. That’s a staggering number of businesses that closed shop in just this year alone.
Perhaps you can still keep your doors open, but just by a crack. You’re struggling every payday to meet the financial demand. You’re bound by the Fair Labor Standards Act (FLSA)—laws that set the minimum wage and establish guidelines regarding overtime—as well as state payday laws outlining when employees must be paid. No matter how much you want to treat your employees fairly, if you can’t meet those requirements, you could be in for it.
An employee who has a payroll grievance, whether about regular pay, overtime, or vacation pay, can submit a complaint against your company to the appropriate state or federal agency.
The result? An investigation by the agency, which may, in turn, lead to financial penalties, the loss of your business license, or a lawsuit against your company. Your business could be liable for back pay, fines, or other financial judgments—not to mention the collateral costs and work disruption associated with such investigations.
2. Maintaining a flawless credit score
Since your credit score plays a key role in the viability of your business, it’s important to keep a watchful eye on this number. At the very least, get a free credit report each year and make sure the information is both correct and current. You can request removal of any negative information after seven years, but don’t forget that you’ll have to wait up to 10 years for a bankruptcy to drop off your report.
If your credit score is less than a perfect, get back on track with these simple steps.
- Pay your bills on time—always. Arrange automatic payments on every debt so you never miss a payment. Timely payments determine up to 35% of your score.
- Keep open all accounts that are in good standing. These older accounts positively influence your length of credit history—about 15% of your score.
- Apply for a credit card—but read the fine print for interest and fee information. Most importantly, only use the card for small charges you can afford to pay back every month.
- Keep a low debt load—carrying more than 25% of your limit will increase your debt-to-income ratio and damage your score. Pay the bill on time and in full each month.
- Don’t apply for more credit accounts than you need. If you must open new lines of credit, don’t try to open them all at once. Prospective lenders will check your credit, which lowers your score, and these pings stay on your record for two years, accounting for 10% of your score.
- If you have a dispute about a debt, be proactive to communicate with the lender. If all else fails, take the issue to small claims court before the debt gets into collections. Avoid lawsuits and judgments, too.
- Review your credit report often, disputing incorrect information. You can get one free report each year, but monitoring its accuracy more often may be worth the cost as you’re rebuilding your credit.
3. Surviving slow-paying customers
You know the drill—you deliver your end of the bargain; you invoice; and then you wait . . . and wait . . . and wait to be paid. All the while, you have overhead costs to cover, vendors clamoring for their money, and employees who need to be paid on time.
Maybe your payment terms are net 15, but your customers insist on their terms—net 30, 60, or even 120. You don’t want to lose their business so you reluctantly agree. Fair? Not at all. And, as you well know, waiting to get paid can have serious financial consequences, like not having enough money to run your day-to-day operations, much less expand your business.
You could, of course, apply for a line of credit or get a loan to help carry you through the month, but will you get approved? And with the piles of paperwork and myriad backup documents required—not to mention the back and forth with the bank—you could be practically out of business before the bank makes a decision, much less actually gives you the funds your business needs. And let’s face it: you simply cannot afford to wait all that time only to be turned down.
4. Avoiding unnecessary debt
“Debt” is a nasty four-letter word to a small or mid-size business. According to the U.S. Small Business Administration (SBA), roughly 50 percent of small businesses fail within their first five years, mostly because of insufficient capital, poor credit arrangements, and—you guessed it—too much debt.
Unfortunately, debt can be accumulated rather quickly when trying to boost cash flow or finance growth. Perhaps a business loan could help, but loans must be repaid—and with interest, which can add up significantly.
Fact is, unnecessary or additional debt can be the first step on the slippery slope toward Chapter 11 bankruptcy or even “Closed!”
Fortunately, you can utilize financing solutions other than bank loans—options such as invoice factoring—that won’t incur that four-letter “D” word or burden your business with additional cash flow hardship.
How to overcome cash flow gaps
With potential hazards lurking around every financial corner, how can a small or mid-sized business overcome cash flow gaps and boost its bottom line in this economy—or any economy?
You could opt for cash flow solutions like alternative lending, but that can prove costly. If your loan is a payday loan, your payment will be withdrawn from your checking account every single day. If the money isn’t in your checking account, you’ll accrue additional fees, increasing the payoff amount and delaying the payoff date—damaging your bottom line by keeping your business in debt and paying exorbitant interest longer than expected.
Merchant cash advance
You could also consider a Merchant Cash Advance, which charges you based on your projected sales. But this, too, can be costly—and risky. If your future sales don’t meet your projections, you could end up repaying more than you actually sell, and at a high interest rate. While invoice factoring offers a genuine cash flow solution by purchasing your existing invoices, a merchant cash advance can actually add to your stress.
Invoice factoring answers each of these financial challenges. Here’s how it works.
You simply sell your invoices, minus a small discount, to a factoring company like Triumph Business Capital. After checking out the creditworthiness of your invoiced customer, the factor advances 70% to 100% of the invoice amount to you as immediate cash for your business.
In a recourse factoring agreement, you’re likely to see 100% advanced, while a transportation company with a non-recourse factoring agreement would likely see a 90% to 97% advanced, and a small business with a general factoring agreement would likely see 70% to 95% advanced. And when you customer pays the invoice, the factor remits the balance, minus a fee, to your business.
So instead of waiting 30 to 120 days—or even longer—to receive your customer’s payment, you get cash in hand within 24 to 48 hours.
Triumph offers both recourse and non-recourse invoice factoring for approved clients. With non-recourse factoring, you’re not liable if your customer doesn’t pay your invoice for credit reasons. Since the factor assumes all risk with non-recourse invoice factoring, your business reduces bad debt while increasing cash flow, even if your customer never pays the invoice.
Here’s why invoice factoring might be right for your business.
Get more cash for immediate needs
Invoice factoring helps relieve payroll pain, giving you ready cash to meet weekly, bi-weekly, or monthly payroll. Need to stock up on supplies? No more waiting for your customers’ payments so you can purchase supplies or pay vendors. How about the rent or mortgage payment? Invoice factoring can take the stress out of meeting all your first-of-the-month commitments.
Get more cash for growth opportunities
With invoice factoring, you can expand operations, hire more staff, or develop a new product line. Your customers’ unpaid invoices no longer hold your business hostage, stifling your progress. And unlike a conventional loan, there’s no limit to the amount of financing with Triumph. The cash you receive for your invoices is unrestricted—you don’t need Triumph’s approval to use it for whatever your business needs.
Get more cash without more debt
Sure, bank loans or lines of credit could shore up your finances. But would your business be approved? How long would that take? And at what cost? Invoice factoring gives your business the cash you need quickly and easily. It doesn’t show up on your balance sheet as debt and your business won’t have to make onerous interest payments. Invoice factoring doesn’t negatively impact your credit score either.
Let Triumph help you boost your bottom line today
We believe that getting paid shouldn’t be the hardest part about your job. Since 2004, Triumph Business Capital has helped over 7,000 small and mid-size businesses in the U.S. manage their cash flow.
As your partner, we’ll factor your invoices so you can get paid today—and make your financial challenges a thing of the past. And in addition to helping you manage cash flow through invoice factoring, we offer a host of other business services through our parent company Triumph Bancorp to help you do what you do best.
Does your business need $1 million or more? Triumph Commercial Finance Business Capital offers asset-based lending (ABL) solutions for small and mid-size businesses. As your company steps up to this next level, Triumph Commercial Finance may be your best option for continued growth.
Defined as a loan or line of credit secured by balance-sheet assets (“collateral”) such as accounts receivable, inventory, etc., ABL typically costs less than invoice factoring. However, its loan underwriting process also has more requirements, including CPA-reviewed or -audited financial statements that reflect favorable earnings and tangible net worth. Additionally, ABL can be more restrictive than invoice factoring.
Triumph Commercial Finance also specializes in equipment financing for the construction, refuse, and transportation industries—so you can upgrade your operations to grow your business or expand your footprint. Loans for purchasing new or used equipment range from $250,000 to $6 million, and loan terms are typically two to five years.
Back office solutions
Invoice factoring at Triumph Business Capital includes a slew of helpful back office solutions like free credit checks, collection services, data storage, and more. It’s our goal to help you reduce overhead costs and simplify your operations.
Take the guesswork out of taking on new clients. Triumph Business Capital offers free credit checks to help you make informed decisions before signing a new contract. And our online portal gives our trucking clients access to freight broker credits that we monitor daily.
After you’ve provided the contracted goods or services, our Account Resolution team will ensure that you receive timely payment. What’s more, Triumph Business Capital provides account management reports online—conveniently available to review at any time—so you can make smart business decisions based on your actual data (ageing reports, collection reports, etc.).
Need insurance at competitive rates? Triumph Insurance Group Business Capital offers a wide range of insurance options for the transportation industry, as well as damage protection for new and used equipment. Get the property and casualty insurance coverage that’s right for you—and at the best price, with affordable payment options.
Let’s get you paid today
Triumph Business Capital is committed to helping small and mid-size businesses manage cash flow and so much more. End late payment worries and slow cash flow problems. Factor your invoices and get paid today with Triumph Business Capital.
Don’t you love that feeling—you know, the one you get when an invoice pays? With invoice factoring, you don’t even have to think about processing invoices, and you can forget about having to wait 30, 60, or 90 days to receive your client’s payment. You can actually get paid today. When calculating the cost of invoice factoring, it’s important to remember the benefits it can provide to small businesses and to always consider your own business situation and goals.
The many benefits of invoice factoring
No more invoices to process, no waiting for clients to pay, and immediate cash in hand—invoice factoring services simplifies your bookkeeping experience and helps you get paid on time every time.
According to the Wall Street Journal, “The factor advances most of the invoice amount—usually 70% to 90%—after checking out the credit-worthiness of the billed customer. When the bill is paid, the factor remits the balance, minus a transaction (or factoring) fee.”
The benefits of invoice factoring are many, but how much does it actually cost? In this article, we’ll explain everything you always wanted to know about invoice factoring.
Non-recourse factoring vs. recourse factoring
With non-recourse factoring, the factor assumes the risk of collecting the debt. That’s a lower-risk option for small companies that can’t absorb the cost of unpaid invoices, but it does cost slightly more than recourse factoring.
Larger corporations often favor recourse factoring because, if a customer fails to pay, they can afford to return the funds they received from selling the uncollectible invoice to the factoring company.
Aside from the cost differential between the two, there are times when the cost differential is not justified by the credit risk being taken.
For example, if you’re selling to WalMart or the Federal Government, the chances of either one not paying because of credit reasons are quite small. Thus, paying a premium for non-recourse starts to look a little less attractive. If you do elect for non-recourse factoring, pay special attention to the Security Agreement that you’ll be required to sign and make sure you ask the factor to specifically go over when you will be covered and when you will not be covered from credit risk.
So how much does invoice factoring cost?
Fees vary from factor to factor, so check with your factor before getting started.
Application/Due Diligence Fee
Some factors charge this fee some do not. Those that do not may recover this upfront expense by increasing the initial financing fees. This fee varies highly from factor to factor and can cost anywhere from zero to thousands of dollars.
The factor retains a percentage of each invoice, typically 1–3%.
Monthly and Termination Fees
Some factors may require that you sell a certain amount of your invoice each month and sign a long-term contract. If the monthly target isn’t met, a minimum monthly fee will be charged. Terminating the contract early can trigger a cancellation fee.
The cost of paying for your invoices in advance can vary anywhere from 1.5–5% of the invoice value each month. This wide disparity is yet another reason to check with your factor before jumping into a relationship.
If your invoices go beyond the 30–45 days covered by the advance discount fee, you can expect an additional charge of 2–3% or more for every 30 days that the receivable is outstanding beyond the original 30 days. Some factors may prorate the fee daily, while others may charge on a 10-day basis.
Triumph’s factoring fee depends on your unique factoring agreement. Our factoring experts considering whether you’ve chosen recourse or non-recourse factoring, the credit quality of your customers, and more. But in general, let’s say you decided to factor $3,000 with a 95% advance rate over a 90-day repurchase period. Meaning, you’d get paid $2,850 within 24 hours of submitting a load, and the final 5%—minus standard factoring fees—after 90 days.
While the scenario we just presented is common, it’s important to remember that your factoring fee will vary depending on the terms of your factoring agreement.
How does Triumph Business Capital compare to other factoring companies?
Now that we’ve broken down the fees, let’s get into specifics. While not all factors are entirely transparent with their pricing, we’re an open book. The last thing we want to do is surprise you with a fee. Here’s how our pricing structure compares to other popular factors you may have heard of.
Other companies charge flat advance rates of 10–15% and $15 per wire, but offers free ACH transactions. Some don’t include a setup fee, but they charge a fee based on the advanced amount.
Triumph Business Capital, on the other hand, works with your business to fit your budget and requirements. Triumph takes into consideration the credit risk associated with your customers, the time it takes them to pay their invoices, and the monthly funding volume we forecast for your business.
Can invoice factoring save you money?
Consider this simple illustration. You decide that invoice factoring is the best option for your business, so you convert your invoices into cash instead of waiting a month or more to get paid.
With immediate cash in hand, you can stop worrying about how you’re going to pay your bills and get on with the growing your business. And when you pay vendors more quickly, you can take advantage of their discount offers, which saves you money. You’ve not only gotten invoice collection off your plate, you’ve paid your bills and saved money in the process—and that’s good business.
Calculate The Cost To You...
Let's take a look. Pricing for both options will vary considerably based on business size and other criteria - so feel free to enter the information most appropriate to you.
Your Effective Annual Interest Rate
Cash Advance Loans109%
Cash Available For Operations
The above calculations incorporate estimated values and are intended for comparative illustration purposes only. Terms and conditions of specific cash advance loan and/or factoring agreements may result in additional margin of error. If, for any reason, you suspect the results are not representative - please contact us directly so that we may address those concerns. Alternatively, the most accurate way to calculate the Annual Percentage Rate for a loan or competitive factoring facility may be to contact the financial service provider directly and request that they perform or confirm the calculations. Thank you.
Get paid today
The hardest part about your job shouldn’t be getting paid. Let Triumph Business Capital help you factor your invoices and get paid today.
Let’s Talk About How to Get You Paid
Take five minutes to learn more about how we help owner/operators increasing their cash flow.