When you have a business, there is one rule at the very core: money needs to be moving. As the oil in the engine of commerce, movement of money into and out of business is a necessity. The stalling of that movement can be scary. With most businesses the pay and spend cycles can be completely out of sync and thus the interim time between being paid for a previous job and spending to finishing another can be extremely stressful. If this sounds familiar, it’s possible that factoring could be the system for you!

So a Factoring Business is a business which fronts the bill for immediate investments and jobs. This gives say a freight company much needed money to fund their next shipments without having to be paid immediately for their previous job. Since the topic of freight companies was already brought up let’s investigate that particular industry shall we? According to TBS Factoring Service qualifying for bank loans has gotten progressively more selective and the wait necessary to get the loan can take weeks or months. When you are running a business in a high-octane, and fast-moving business like freight truck driving you need to be able to get paid and keep trucks on the road to keep customers happy. In a recent article posted on Transport Topics News they said that many trucking companies have poor earnings in the first and seconds quarters only to recoup their costs and gain profits in the latter half of the year. This behavior, of course, makes banks cautious to do dealings with trucking companies. However, banks are just not accustomed to these kinds of business. Invoice Factoring is a kind of bank-specific to these companies with uneven earning patterns. Trucking companies are so vital to the economy, but because of the way they do business with companies, there are times when their invoices are delayed.

As the economy grows more and more types of companies are created. No matter the type of company there are always goods that need to be transported across the country. The transportation industry is one of the biggest businesses in the United States. And it’s no surprise considering this country is so diverse and spread out geographically. Invoice factoring is the response to newer technological companies sprouting all over the country. Businesses that started from the internet don’t have the normal 9-5 work schedule or even quarterly payment plan, but they still need equipment and goods shipped. Therefore it’s only natural for their different profitable quarters and payment plans to bleed into the freight business.

Invoice factoring is appropriate for any business that is just starting and needs help going from payment to payment. It is also appropriate for businesses with very specific times of the year where they earn most of their profits. One can think of factoring almost like a schedule equalizer, it normalizes irregular payment periods and turns what a bank would see as a risky investment into a profitable business.

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