When’s the last time you were frustrated about a late payment?
Chances are…you’ve lost count. Late payments are not just a common issue, but so common as to be entirely expected. Too many businesses today are going belly-up for reasons ranging from mismanagement to a lack of proper marketing. When you add a constant slew of late payments to the mix it’s no wonder why stability seems a distant dream. Money factoring companies can offer you a leg up on these irritating patterns, particularly if you’re starting to face the very real possibility of bankruptcy.
What is freight invoice factoring and how can it help you finally catch up to your financial goals? Here’s what you should know.
Small Businesses Are A-Plenty In America
Throw a rock and you’ll hit a small business in dire need of some on-time payments. According to recent data there are nearly 30 million small businesses operating in the United States. These can range from individuals that freelance to fifty-person teams, across just about every industry you can think of. The difference between a small business that succeeds and a small business that goes belly-up can be cemented right in money management. Even a single lost document can cost hundreds of dollars in lost information and wasted labor.
Late Payments Are Practically A Staple
You’re far from the only one tearing their hair out at late payments. It’s actually far more common to receive a late payment than an on-time one, irregardless of the deadline involved. Money factoring companies are your first stop on all things related to money management. They’re able to help small businesses bridge invoice payment gaps with upfront payments, as high as 90% of the original invoice. It doesn’t matter your niche, either.
Transportation Factoring Is A Niche You Can Consider
Do you work in transportation? You might want to consider trucking factoring companies. Today over 12 million trucks, rail cars, and locomotives move goods across the transportation network. According to data provided by the Federal Motor Carrier Safety Administration nearly six million commercial motor vehicle drivers operate in the country. You work on a more strict deadline than most, which makes the top transportation factoring companies an ideal resource.
Bankruptcies Are On The Rise
What happens when you don’t manage your money correctly or keep getting hit with late payments? You might be faced with the possibility of bankruptcy. While it’s more common for individuals to be offered this solution than businesses, that’s no reason to get complacent. Recent studies found bankruptcies in the United States increasing to 25,000 companies in the second quarter of 2016, up from 24,000 in the first quarter. Many of these could have been avoided, too, with a little help.
Freight Invoice Factoring Can Offer You Much-Needed Support
What is an invoice advance loan? It might just be your way out of this entire mess. Invoice factoring provided by money factoring companies is a type of accounts receivable financing that converts outstanding invoices due within the 90 day limit into cash for your business. The Wall Street Journal has gone at length to state that the factor advances most of the invoice amount, which ranges between 70% and 90%. Once the bill is paid (after checking out the credit-worthiness of the customer) the factor will then remit the balance.
Make 2019 the year you stop worrying about late payments. Reach out to money factoring companies that have your success in mind.