Right now, the transportation industry is a vital part of the American economy for both small business and big businesses. However, some small businesses have a hard time getting paid in a timely manner when it comes to invoices and more. This is dangerous because there are almost 28 million small businesses in the United States. Therefore, businesses need to utilize freight capital factoring and small businesses factoring to their advantage.
The definition of small businesses is simple and pertains to any business with less than 500 employees. These smaller-sized businesses will comprise nearly 99% of all businesses in the United States. As a result, transportation factoring and transportation factoring companies are very important. Here are all of the facts on freight capital factoring and more:
Freight Capital Factoring Is Vital and Important
A United States bank study was conducted recently and this revealed huge stats on businesses that fail. This study revealed that over 80% of these businesses have problems because of cash and the lack of cash flow. This can be a huge issue for transportation companies that have to rely on customer invoices. Therefore, the work of freight capital factoring is a huge deal.
Over 60% of all invoices are not paid on time which is going to hurt a transportation company. This will prevent them from being able to pay employees accordingly and then, these employees will be unhappy and may quit. Estimates show that small businesses across the country could hire almost 2 million employees collectively if invoices were paid on time. This means that employment could be reduced by almost 27%!
Business factoring companies, small business factoring companies, and freight capital factoring can really help a business. Invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 90 days into immediate cash for your small business. Any transportation business that is having a hard time getting payments on time need to make sure they get help from all kinds of factoring companies and more!
There Are Plenty Of Freight Transportation Companies and Workers In America
There are so many workers that get reliable forms of income from their jobs as a truck or transportation worker. These people feed their families, pay their mortgage rates, and take care of themselves with their income. As a result, it is imperative for these people to receive payments in a timely manner. However, if invoices are usually paid late then these people will suffer without the help of factoring companies.
A study was recently conducted and has revealed that nearly 12 million forms of transportation are moving across the network with goods for companies. This includes trucks, rail cars, vessels, and even locomotives as well. Therefore, so many people are tasked with operating these forms of transportation and rely on their jobs for income. So freight capital factoring is a huge deal and much more important than most people even being to realize.
The Federal Motor Carrier Safety Administration is tasked with collecting, studying, and monitoring data that deals with commercial motor vehicle drivers and more. Their data has revealed just how important it is for transportation companies to receive their invoices and payments on time. There are almost 6 million commercial motor vehicle drivers working in the country and this number will grow over the next few years.
In Conclusion
The rise of Amazon as a company and people sending items to customers, which is considered to be e-commerce, is going to really send a surging spike to the transportation industry. As a matter of fact, there are more and more workers that deliver items for the transportation industry than ever before. Plus, if e-commerce continues to rise and increase in popularity, this number is not going to decrease anytime soon!