Turn Your Slow Cash Flow Into A Waterfall With Invoice Factoring
posted in Alerts by Brian Gray
Turn Your Slow Cash Flow Into A Waterfall With Invoice Factoring
Sponsored Content by Oregon Commercial Credit
Trucking companies have been using factoring for decades to access to the working capital they need to succeed without waiting for slow-paying customers. If you believe you would benefit from being paid within 24 hours of load delivery, invoice factoring is for you.
Factoring is not a loan, and it’s simple and easy to use. In a nutshell, here’s how it works:
You deliver the load, create the invoice(s) then send your invoice(s) to OCC. We transfer the agreed advance rate to your business account within 24 hours and push the invoices out to your customers. We then work with your customers to collect on the invoices and when they pay us, we send you the balance (reserve, if any), minus our fee. It’s about the time value of money. Is it worth a slight discount on your invoice to get paid today and not have to worry about collection efforts?
Since factoring is not a loan, our main underwriting focus is on the financial strength and creditworthiness of your customer, the ultimate debtor. Our fee structure is customized for each client with the strength of the debtor’s ability to pay and the overall business volume having the largest impact. And we do not require long term contracts, we don’t charge set up fees and we don’t have minimum monthly requirements. Easy, right?
Benefits of factoring
Factoring frees up your cash flow, and in trucking, cash is king. You need a steady source of working capital to purchase fuel, insurance, and equipment, plus meet payroll and those surprise repair bills. Factoring enables you to take advantage of business opportunities without waiting for a bank loan decision or customers to pay invoices. Having a factoring partner like Orange Commercial Credit can make the difference between being able to accept that next job or not, or being able to pay for permits, tags, licenses and more.
An additional benefit to factoring includes our back-office support such as invoice and payment processing and collection efforts, thus freeing you up to do what you do best and potentially eliminating your need to hire additional office staff. Included in our services is credit checking and monitoring your customers. You will have free online access to credit check any customer you are currently working with or considering. That’s huge!
Factoring is especially a good solution for startup and early stage businesses, rapidly growing or undercapitalized companies, those that do not qualify for traditional bank loans (or don’t want debt) or those with seasonal sales. Further, factoring can enhance your balance sheet by improving your debt-to-equity and debt-to-asset ratios.
Interested in a FREE quote? Call today and mention you saw this article. Call Tina Cawthorn at 1.888.266.0211 or email tcawthorn@occfactor.com
2020 Trucking Safety & Compliance Conference NW brought to you by Orange Commercial Credit
Jan 31st, 2020 Portland, OR | Free Registration and Live-Streamed Nationwide
Conference Topics:
• Preparing For The New FMCSA CDL Drug & Alcohol Clearinghouse
Speaker: Lukas Shaw, CleanFleet
• Preparing For Your Day In Court – Preparing For A Lawsuit
Speaker: Skip Nash
• Preparing For ELD’s In A Full Compliance World
Speaker: Soona Lee, EROAD
• Preparing For The Hours of Service Rule Changes
Speaker: Dave Gray, Glostone Trucking Solutions
• Preparing For California’s Contractor Law and It’s Trucking Implications
Speaker: TBD
• Preparing For California Air Resource Board (CARB) Updates
Speaker: TBD
• Preparing For FMCSA Updates
Speaker: Warren Simpson, Oregon FMCSA Representative
• Preparing For Oregon DOT Updates
Speaker: Oregon DOT
