Most trucking companies have to pay in cash for their day-to-day expenses such as fuel bills and also have unexpected expenses such as truck repair bills and fixed expenses such as salaries, regular servicing and tire bills. Since they get their payments from their customers after 30 to 60 days, freight factoring is a good way for them to increase their cash flow and also to expand the business.

If you own a small to medium trucking company, then the above conditions apply to you too. You might not be able to run to a bank for a loan every time you need funds. You might also have taken a loan already to finance your trucks. Hence, taking another loan to run them might not be possible. In this case freight factoring companies would be able to help you out. In freight factoring, the factoring company will “buy” your credit invoices, which you have issued to your customers and pay you your invoice value in 2 installments.

The 1st installment will be wired to your account within a day or two, and would be 60 to 90 percent of your invoice value. The 2nd installment will be given to you when your customers pay the factoring company on the due date of the invoice. This installment will be minus the factoring company’s charges. These charges will depend on your customer credit rating with the freight factoring company, the number of days of credit given by you to your customer and the total volume of business that you give to the factoring company.

Freight factoring companies can also take care of collection of your freight bills from your customers. This frees your concentration from the credit section of your business, enabling you to concentrate more on getting new customers and handling old ones. The can also provide you with regular receivables and payment received statements enabling you to streamline your business.

You might have to enter into a long-term contract with your freight factoring company, so choose a company that gives you and your customer prompt and polite service. There are many companies who have started advertising on the Internet so you can check them out. You can also contact a factoring broker who, after accessing your business needs, can help you to tie up with the right freight factoring company. You might not have to pay him any brokerage, since it is normally paid by the factoring company.

So, when freight-factoring companies pay you almost your entire freight invoice value within 2 days, this not only improves your cash flow to enable you to pay your fuel bills and other expenses, but also takes care of your collection end and helps you to increase your business. You can now take on more freight deliveries and earn more in the long run. It also removes worries about delays in payments from your customers. Hence, a freight factoring company is more than just a way of finance. It is an extension of your business.

So, if you have a trucking company, it makes sense to use the services of a freight factoring company to help you grow in your business.Freight Factoring is made easy with Phoenix Capital Group. We offer Equipment Financing and full Factoring services including high advances, Low Rates, Same Day Funding and no long-term contracts. Visit our website today at http://www.phoenixcapitalgroup.com.

When businessmen sell products to their customers, they issue invoices to those customers. The businessmen then receive payments after some days, normally 30 to 60 days, which is called the credit period. This blocks the business cash flow and creates problems if they have to pay their suppliers, employees or if they receive big orders during that time. By and large, small to medium businesses face this problem. The solution is invoice factoring. You too can avail of it.

In invoice factoring, you can “sell” your invoice to a third party called the invoice factoring company which “buys” that invoice from you. The invoice factoring company then pays you the majority portion of that invoice immediately and then takes the full payment from your customer on the due date. So, in short, your accounts receivable becomes the third party’s accounts receivable. You can get your payment immediately but in 2 installments.

Usually you will get around 60 to 90 percent of your outstanding amount in the 1st installment which is payable on submitting the customers invoice. The balance installment is received when your customer pays the factoring company the full invoice amount. The factoring company will deduct a factoring fee from your 2nd installment. This fee can range from 1.5 to 12 percent, depending on a number of factors like your customers credit rating as perceived by the factoring company, the number of credit days given to your customer and the total amount involved.

You can go in for invoice factoring if your margins in sales are reasonably good and if your business is growing quite fast since this is the period where you will require access to ready funds. This is also a good way of getting funds without applying for a loan from a bank where you would need to submit more documents and have to pay interest on that loan anyway. This method eliminates credit cycles and provides you with ready cash that can be used to fulfill your business needs. Calculate your profit margins minus the factoring company’s charges to arrive at a conclusion whether you can afford to go in for this type of ready finance.

You can find many invoice factoring companies that provide you ready money within 24 hours of you sending them the invoices on the Internet. Some of them even have their own collection agents to collect the payments from your customers. Check out different invoice factoring companies and compare their factoring rates before doing business with them.

This method can give you a chance to get big orders from your reputed customers who require a certain credit period but you were previously unable to execute their orders because of their credit terms. Now, since you are getting at least your purchase cost immediately, you can go in for more business with them.

Invoice factoring therefore is a good way of maintaining your cash flow and also a good way to increase your sales especially to reputed customers, without having to worry about receivables. As your sales increase, you too can go in for bulk purchases thereby getting additional discounts. It could turn out to be a win-win situation for you.Freight Factoring is made easy with Phoenix Capital Group. We offer Equipment Financing and full Factoring services including high advances, Low Rates, Same Day Funding and no long-term contracts. Visit our website today at http://www.phoenixcapitalgroup.com.

If you own a small to medium size business and have reputed customers or supply to government companies on credit, then you might have a lot of funds blocked up during the credit period, which could be from 30 to 90 days. It would be wonderful if you could get immediate cash against your sales. This would increase your cash flow and help you tide over routine expenses such as salaries, payments to suppliers, etc. It would be even better if you would not have to take a loan against any collateral and worry about paying your installments on time. The good news is that this is possible with the help of your factoring company.

When you take the services of a factoring company, they will “buy” your credit invoices that you have issued to your customers or government bodies. They will then make the payment of the invoice amount in 2 installments. The 1st installment will be transferred to your account electronically within 1 or 2 days and could be 60 to 90 percent of your invoice value. The 2nd installment will be given to you after deducting the factoring company’s charge when your customer makes the payment on the due date. This charge will depend on your customer credit rating as perceived by your factoring company, your credit terms with your customers and the volume of sales. Therefore, you get most of your invoice amount almost immediately even though you have sold goods on credit.

This service by the factoring company frees your money blocked in the credit period and improves your cash flow. This enables you to pay your staff salaries, your suppliers, and can even help you make bulk purchases at special discounted rates. This can now enable you to increase your sales. You can even bag big orders from your customers, which previously would not have been possible because of the large amount of your money being locked up. Hence, due to factoring companies, your sales and cash flow will improve immediately.

The factoring companies can also take care of the collection side of your business. Once they “buy” your invoice, they will then follow it up with your customers to get the payment released. They will also release regular reports of payments received and accounts receivable to you. This can help you in re-directing your collection department to some other work and you too can concentrate on other areas instead of worrying about collections. No more sleepless nights worrying about payments.

However, your gross profit margins should be above 15 percent for you to actually enjoy the financial aspect of this service. Getting your money quick enough should not be the only criteria since you would have to pay a factoring charge of 1.5 to 3.5 percent, depending on the above-mentioned factors. Your increased sales will fully utilize the potential of this facility.

So factoring companies are not only financiers against your sales, but are also an integral extension of your business since they also look after collections and bad debts. Hence, factoring companies help your company to become stable and grow at the same time.Freight Factoring is made easy with Phoenix Capital Group. We offer Equipment Financing and full Factoring services including high advances, Low Rates, Same Day Funding and no long-term contracts. Visit our website today at http://www.phoenixcapitalgroup.com.

If you are running a medically related business such as medical supplies to doctors or hospitals or running a clinic, then you must be aware that although sales have improved, margins are under pressure and the waiting period to collect pending payments are increasing day by day. Also with the advent of Medicare and other insurance companies making the payments after completing their assessment, the wait for payments has increased to around 120 days and that could hamper your cash flow and hence your growth. You could approach a bank for your needs but that would require endless paperwork, collateral and lots of time. You would also have to pay a fixed percentage of interest on that loan amount. Here is where medical factoring could be a lifesaver to your business. Here is how it works.

Normally when you sell your items to doctors or hospitals, you make a sales invoice or you put up a claim to insurance companies or Medicare or Medicaid to claim for services provided. You can “Sell” your sales invoices issued to various reputed doctors, clinics or hospitals and even your claims to insurance companies to your factoring company. The factoring company then electronically transfers the invoice amount in 2 installments in the following way. The first installment is usually 60 to 85 percent of the invoice amount and this amount is transferred to your account in 24 to 48 hours. The second amount, also known as the “reserve” amount, is transferred minus the factoring company’s fee when the full invoice amount is received from your customer or insurance company.

The factoring fee is usually between 1.5 to 15 percent of the invoice value, depending on the rating of your customer or insurance company as decided by your factoring company, the number of days of credit given, and the monthly invoice totals i.e. the volume of sales and claims. Your factoring company might also take care of collecting the payment from your customers and they can send you regular statements of the payments collected from your customers and the pending receivables statement. This can free up your collection department and you can utilize your time and their services in a different way. The more your value of receivables, the lower the rate of commission!

Getting most of your invoice amount immediately also improves your cash flow and that money can be utilized in paying off salaries, suppliers and even in making bulk or cash purchases, which could give you a better profit margin. You can also execute large orders from hospitals without having to worry about your money getting locked during the credit period. If you have a testing or diagnostic center, then you can invest in new medical equipment. You could even hire more staff to increase your business.

Find a matching medical factoring company through a reputed factoring broker or even through the Internet. The medical factoring company should be able to provide you prompt service and should also be efficient and courteous while collecting payments from your customers or insurance companies. Since many of them also take care of bad debts, you will also have to worry less about collection of payments and bad debts. This will help in taking your medical business to a new high.Freight Factoring is made easy with Phoenix Capital Group. We offer Equipment Financing and full Factoring services including high advances, Low Rates, Same Day Funding and no long-term contracts. Visit our website today at http://www.phoenixcapitalgroup.com.

Factoring is a financial tool, which allows you to immediately get money against your credit sales instead of waiting for it to mature. It is a process followed down from hundreds of years ago and now modified to suit various types of industries.

Basically, factoring means selling your credit invoices to a third party, called a factoring company and getting immediate payment against that invoice. The factoring company pays you the invoice amount in 2 installments. The first installment is about 60 to 90 percent of the invoice value and is posted electronically to your bank account with one or two days, and the second installment, minus the factoring company’s fee is paid to you when your customer pays the invoice amount.

This fee is normally 1.5 to 5 percent of the invoice value and normally depends on factors such as your customers’ credit rating with the factoring company, the number of credit days as mentioned on the invoice and the total value of business you give to the factoring company. In addition, factoring companies can also take care of your payment collection from your customers.

Factoring therefore is a boon for your business, if you have mostly credit sales to a wide range of customers. It not only improves your cash flow dramatically, enabling you to use that money for staff salaries, payments to your suppliers or even to buy in bulk quantities, but also frees up your collection staff which you can re-direct to some other department. It also frees you from the hassles of payment collection and worrying about customers not paying on time. The factoring company will give you regular updated statements of payments collected by them and the pending receivables statement.

Factoring is directly linked to your sales and hence is much better than trying to avail a bank loan, which might involve submission of many documents and collateral or guarantees and you will still have to pay interest on that loan. Through factoring, it is now possible to go in for a big order given by your customer, which previously would have locked your money. You can also make bulk purchases with the money received enabling you to get extra discount, which can be used to increase your sales and profit margins. So it is a win-win situation for you.

However, you should note that factoring is suitable only if you have a minimum of 15 percent of gross margin on your sales and that the credit period offered to your customers is not very high. Calculate your profit margin after deducting the factoring company’s charges so that you can decide whether it is viable financially to employ their services. Also, since your customers will have to be informed about your arrangement with the factoring company, some of them might not be comfortable of making payments to third parties.

There are various types of factoring facilities available such as invoice factoring, purchase order factoring, etc. which have different percentage of charges. You can find different factoring companies advertising on the internet. You can even hire the services of a factoring broker to find you the right factoring company to match your needs. It normally takes a week or two to set it up.

So, go in for factoring and watch your bottom line and sales improve. It’s easier than it sounds.Freight Factoring is made easy with Phoenix Capital Group. We offer Equipment Financing and full Factoring services including high advances, Low Rates, Same Day Funding and no long-term contracts. Visit our website today at http://www.phoenixcapitalgroup.com.