Factoring and Fuel Cards for Trucking: What You Need to Know

September 5, 2023 By Marco Carbajo

Factoring and Fuel Cards for Trucking

For truckers, collecting payments and record keeping can be the most difficult parts of the job. Waiting 40-90 days for funds to reach your bank account only makes it that much harder.

To address these challenges, freight factoring is an alternative solution to help keep money flowing more consistently. Plus, it also helps you get paid much faster. After completing a haul, a factoring company will process your pay really fast, for a small fee. Then they do the work to collect the unpaid invoice balance from your broker.

How Does Factoring Work?

First, you sell your load invoice to a company specializing in collecting and processing. You get paid fast, nearly your entire earnings. Next, the factoring company deducts a small % (fee for service) and now the invoice is off your hands. Finally, the factoring company processes the invoice and collects from the brokerage.

Why Use Factoring?

There are many benefits you receive by working with a freight factoring company. Let’s review the benefits:

1. Improve cash flow – one of the main reasons small businesses fail is due to poor cash flow. Freight factoring provides expedited pay in as little as 24 hrs.
2. Get paid faster – No longer wait 40-90 days to get paid
3. Speed up invoicing – you can leave the invoicing to the freight factoring company, saving you time and money
4. Haul more loads – with consistent cash flow, you can pay bills quicker and focus on hauling more high-paying loads
5. Spend more time growing your business – Freight factoring enables you to predict your income reliably. More time to focus on expansion rather than administrative burdens
6. Reduce administrative burden – with less focus on invoicing, follow up calls and chasing payments, you save a great deal of time

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How to Get Cash for Your Outstanding Invoices Now

October 30, 2015 By Marco Carbajo

Cash for Outstanding Invoices

Are you tired of waiting 30, 60 or 90 days for your invoices to get paid?

What would it mean for your business if you could clear invoices at the push of a button to keep your cash flow steady?

Now I’m not talking about factoring which is selling your accounts receivables to a third party at a discount. In today’s post we are going to cover the easiest and most effective solution to getting advanced payments for outstanding invoices without factoring.

According to Dun & Bradstreet 90% of small business failures are due to cash flow problems with 60% of those being profitable at the time; they just ran out of cash. The fact is 64% of small businesses have invoices that had gone unpaid for at least 60 days.

If you are experiencing this challenge you’re not alone. Even big brands are the worst offenders. Wal-Mart takes on average 86 days to pay an invoice and McDonalds takes 64 days.
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Bad Credit Business Loan – Top 5 Solutions

July 2, 2009 By Marco Carbajo

During tough economic times many business owners are faced dealing with tough personal credit challenges. As a result they have to resort to applying for bad credit business loans just to keep their businesses afloat regardless of the interest rate being charged.

Hard money lenders have no problem charging outrageous fees and interest rates for taking on the risk but there are alternatives to bad credit business loans.

Here are my Top 5 Solutions to Bad Credit Business Loans

Accounts Receivable Factoring

Factoring is a form of finance used to finance commercial, consumer, and government accounts receivable. Typically, businesses factor their accounts receivable to improve and accelerate their cash flow. Businesses that factor their invoices (accounts receivable) sell their invoices to a factoring company, usually for anywhere between 95 to 99 cents on the dollar.

Business Cash Advance

An alternative to a traditional bad credit business loan, you can receive advance cash based off your future credit card sales (Visa, MasterCard, American Express, Discover, and Debit Cards). There are no personal guarantees or collateral attached to the business advance. This allows you to have the working capital you need within 3 business days or less. There are no restrictions on how to use the money allowing you to grow your business hassle free.

Business Asset Liquidation

While liquidation usually means you’re closing your business forever this can be a viable strategy to raise capital without actually closing your business. You may have equipment that you no longer use or other assets that can be sold off that can generate substantial capital for your business.

Personal Credit Restoration

It’s not a shame to have bad credit because everyone at one time goes through challenges but it is a shame to keep it. Start repairing your bad credit immediately by either fixing it yourself or enrolling in a solid, reputable, and legal credit repair service.

Increase Credit Scores

In addition to credit restoration another strategy for solving a bad credit challenge is in improving your debt to credit utilization. You accomplish this by establishing higher credit limits with lower balances typically below 30%. When you have larger credit limits on personal and business credit reports new lenders that you apply to will tend to extend even larger credit lines.

Bad credit business loans do exist but before you decide to commit be sure to consider these options. If you do choose to apply or you are already in a high interest rate loan because of bad credit be sure to start restoring your personal credit. Once you improve your credit you can apply for a loan and obtain a much better rate. This will allow you to pay off the high interest rate loan and saving you thousands in interest.

Remember – Improve your business, your life, your relationships, your finances and your health. When you do the whole world improves. ~ Mark Victor Hansen

Instead of jeopardizing your personal credit and assets every time your company requires financing, you can use the business’ credit rating to secure the financing you need with even more favorable terms and lower interest rates.

Start your business credit today!

To Your Success!

Marco Carbajo

About the Author

sp_image-435950341-1242740704.pjpeg Marco Carbajo is a business credit specialist, author, speaker, and founder of the National Entrepreneur Club. Click here to visit his blog and signup free to get strategies, resources, and credit building tips with blog updates, news, and more! To start building business credit join his business credit community today and Click Here.