WHY FREIGHT FACTOR?
A bank is a place where they lend you an umbrella in fair weather, and ask for it back when it begins to rain.
~ Robert Frost
HONEST ADVANTAGES: Trucking
Higher Cash-flow for a healthier business
Timely Fuel advances
Fuel cards with generous discounts at the pump
Simplest rate structure in the industry today
Free Credit Checks to ensure you're working with reliable Brokers
NO paperwork
SIMPLE ADVANTAGES: Business To Business
Funding within hours!
Immediate cash-flow! It’s your money…Don't wait 30 to 45 days or longer to be paid.
Simulates a credit line that doesn't count against your business line of credit.
Reduces administrative burdens and improves your record keeping.
Factoring expedites your ability to provide the (advertising, hiring, technology upgrades, etc.) resources needed to stimulate and manage growth.
BENEFITS OVER BANK LOANS: Freight factoring, proven results that matter
There are numerous benefits to factoring:
Factoring is a virtually unlimited source of working capital.
Your credit limit when factoring is based on the amount of business you can perform, so the more you grow the more money becomes available.
Factoring allows you to focus more of your company's manpower/resources on sales and production, rather than issues of cash-flow, credit and collections.
Balance Sheet
Under Bank Loan
Assets:
Cash in Bank $25,000
Acct. Receivables $150,000
TOTAL ASSETS $175,000
Liabilities:
Payroll Taxes $10,000
Notes Payable $15,000
Bank Loan $150,000
TOTAL LIABILITIES $175,000
Balance Sheet
Utilizing Factoring
Assets:
Cash in Bank $125,000
Acct. Receivables $50,000
TOTAL ASSETS $175,000
Liabilities:
Payroll Taxes $10,000
Notes Payable $15,000
Bank Loan $0
TOTAL LIABILITIES $25,000
Improved Cash Flow. Your money is worth more to you today than 30 to 45 days from now.
Bank loans create a liability plus a monthly interest expense.
Bank lines of credit come with a cap or limit which moves your ability to grow from your hands to your banks.
Requires all of your personal finance statements, credit checks, personal guarantees and often times an asset such as your home as collateral.
Boost Profitability and Balance Sheet (See Example).