Freight Bill Factoring is the Future of Trucking

Wouldn’t it be great to leave the administration and paperwork, and just get on with the business of trucking? And what about those unpaid broker invoices that always leave you strapped for cash? It would be different if the administrative headaches resulted in profits – but they don’t – they just get in the way!

For some reason, managing the business just seems to get in the way of growing the business! And trucking is challenging enough – the economy can be tough and both insurance rates and fuel prices are constantly increasing. Then there’s the never ending need to finance trucks and trailers.

But today there is a better way to do business! Capital Depot now provides the trucking industry with a 100% Cash Advance Factoring package customized for the small and medium sized trucking company. It’s a solution-orientated approach that will impress even the most skeptical of truckers. In short, Capital Depot provides factoring that streamlines the operations – and with a 100% Cash advance on freight bills, working capital becomes stable, reliable and consistent.

In situations where cash flow challenges threaten the trucking business and traditional sources of credit aren’t available, Capital Depot provides the necessary funding through factoring your freight bills – a realistic alternative to conventional means of financing. When it comes to financing, the specialist at Capital Depot perform all the necessary credit work on your behalf, even to the point of accessing credit report on your brokers. All transactions are handled by competent and experienced credit professionals using the latest in web based technology. Capital Depot also undertakes the latest in web based technology to handle your collections, relieving you of the burden of chasing customers for unpaid invoices.

In fact, Capital Depot trucking clients experience a collections process that is well managed and results orientated. In fact, once you sell us (Factor) your freight bills - you never have to worry about bad debts and cash flow is instantly enhanced, while drivers and vendors are paid on time. And with custom designed aging reports, clients have 24 hour web access – and reports can be viewed either at home, or on the road.

Whether your company has one truck or three hundred trucks, Capital Depot has the freight bill factoring package to suit your needs. So instead of being buried in paperwork, you can grow the business and capture new customers. That way, your trucking company can capitalize on the services and resources that only the bigger companies usually enjoy.

Capital Depot recognizes the needs of the small trucking business and understands that cash flow is the life of the trucking business. So with credit worthy brokers and quality freight bills, you can qualify for an instant cash injection - to keep your business on track! That way - fuel, drivers, insurance and leases are always paid on time, even if brokers take 60 or 90 days to pay their freight bills.

Doing business with the Capital Depot Team does not jeopardize your ownership, control, or independence – they realize that your success comes from personal control of the business and that maximizing profit goes hand in hand with maintaining an independent, entrepreneurial spirit.

With Capital Depot you operate a business with a sound financial base and a secure, proven cash flow system. And when cash flow is consistent and on going, you can purchase equipment, hire personnel, undertake new deals and truly grow the company – it’s the only way to do business in trucking!

Why Should You Factor Your Freight Bills?

You should factor freight bills in order to provide liquidity to your trucking business. Typically, cash flow problems can occur when a trucking company has to wait for a period of 30 to 60 days to get paid.

Therefore, when you factor (sell) your freight bills your trucking business receives an immediate cash injection from Capital Depot, rather than having to wait for a payment.

Furthermore, when you decide to factor (sell) your freight bills it eliminates the risk of not getting paid by a broker or shipper.

Now the instant cash that is provided by factoring (selling) your freight bills, can be used for whatever reason your want, such as:

• Paying Drivers
• Paying Fuel
• Paying Insurance
• Paying Taxes

Freight bill factoring is the best kept secret in financial services.

If you own a trucking business, or plan to start one - then Freight Bill Factoring could well be a viable component in achieving your overall business goals. But you can’t use it if you don’t understand it!

Freight Bill Factoring has been referred to as the financial backbone of the trucking business. Why? Because Freight Bill Factoring is the one financing alternative that makes it possible for business to secure additional financing capital that might otherwise be unavailable.

The freight bill factoring process itself is quite straight forward – it simply involves the purchase of bill of ladings at a discounted rate. The resulting scenario is truly a win-win situation – both for the trucking company receiving the funds and for the broker that is paying the invoices.

Freight bill factoring has a long rich tradition. In fact, almost every civilization that has engaged in commerce has also engaged in some form of factoring. For instance, during North America’s colonial period business relationships had to make cash advances against an Accounts Receivable in order for a business to continue with commercial operations before their users were paid for their goods. Yes, they were engaged in Factoring.

Over the years Factoring has become more sophisticated. It is now more focused on credit worthiness, financial management and on collections, but the fundamental idea of purchasing Accounts Receivable has remained intact. Today, a factoring company can do much more than just funding – factoring specialist can assist a client in verifying customer credit worthiness by evaluating and setting credit limits and in managing A/R collections professionally.

Across North America Factoring companies exist in all forms, servicing industries and business sectors of all types. And many large financial institutions actually have Factoring divisions, but for the most part, Factoring companies are smaller, independently owned enterprises.

As for the commercial banks any business owner knows that they have become increasingly inflexible, with much stricter regulations and with ever changing lending criteria. Small and medium sized businesses have been forced to search for alternative sources of financing and Factoring has become a popular option. It is a workable, solution based opportunity that provides an alternative when conventional means of financing just aren’t available. And as banks become less and less friendly to the small business owner, Factoring looks better and better as a financing remedy.

Around the world the Factoring volume has already exceeded the trillion dollar mark and with companies operating on every continent just in the last 4 years, factoring transactions worldwide have increased by 60% - That’s why we call it the best kept secret in financial services.