Those who have been in the trucking industry a long time know how hard it is to get good sleep sometimes. But, long hours on the road require you to be alert at all times. In fact, sleep apnea has been an issue among truck drivers for years. So, how can you prevent yourself from falling asleep at the wheel and feel well-rested instead? Check out this article with 5 great tips on how to get better sleep after a long day of trucking.
Factoring is a process where you sell your invoices in exchange for immediate payment at a discount. Factoring companies keep the payable invoices, and the business houses get cash immediately. It is a quicker, easier and better way to avoid long or short- term debts. Invoices act, as equity for almost all businesses but to get working cash flow is readily feasible through recourse and non- recourse factoring. So, while starting a business, you have to keep a few things in mind, which are more important than your cash equity. Some of the things, which are counted as capital, are cash in hand, a line of credit and invoices.
So let’s find out what recourse and non- recourse financing is all about. When you use an invoice factoring, it is advisable that you should be aware of certain terms and conditions such as “who would be responsible for debts when customers are unable to pay?” But if you have recourse factoring, then the factor will not take the burden of the debts and will just collect the amount from you if the invoice is unpaid.
Recourse factoring is considered lower cost factoring as you continue to take the risk of the bad debts instead of surpassing them to the factoring company. This factoring is much easier to attain, and the invoice factoring also has less stringent rules about your business systems and the payment history of your clients. But if you have unreliable clients then you may have to pay back the amount along with the standard fees and interest. Thus, it is advisable to weight all facets of the situation before you opt of any factoring.
Non-recourse financing is quite similar to recourse financing. But in non-recourse financing, the financing company is held liable for receiving payment from the payable invoice. The factor accepts specific risks such as total disappearance but doesn’t insure against slow payment. This is the main reason that non-recourse factoring is more expensive. In non-recourse factoring, you don’t have to refund the advance to the factor, but you should pay interest for the particular period mentioned in the factoring agreement. The element takes all the rights to pursue the customer for the payment. It includes the right to take legal action also.
Both, Recourse and non-recourse truck factoring are quite familiar and most of the companies these days offer both these services to customers as both have proved to be the viable option to meet the cash requirements for small as well as big businesses.
Thus, it is crucial to choose the best factoring keeping the current state of operations in mind. Similarly, it is crucial to choose the appropriate invoice factoring company. You may find some factors charge small fees but offer you lower levels of customer service also; now this may end up being more expensive in the long run. Factoring companies have their requirements and whether a financing company is just right for you or not, could be found out by directly interacting with them.
The whole world is paying a high price for the unexpected rise in fuel prices and truck owners especially are bearing the brunt of the resulting recession. With higher fuel prices reducing their margins drastically and a lower volume of freight to move around, truckers will require exploring alternate avenues to maintain a workable cash flow that lets them meet their expenses and allows them to plan for the future. One such tool that can help truckers during a recession is factoring.
Unlike traditional businesses, where employers might have fixed monthly expenses, truckers cannot plan some of their expenditures. While drivers might need to be paid on a weekly basis and the rest of the staff on a monthly basis, there might be other expenses lurking in the dark, such as a high fuel bill for a long haul or sudden expenses due to truck repairs, accidents, etc. These unexpected expenses along with a delay in receiving money from credit clients could choke the truckers’ cash flow and even put them out of business. A practical solution to this problem is factoring.
Truckers can sell their credit invoices to a factoring company, who will then arrange to wire the invoices amount to the truckers’ account within 24 to 48 hours. This amount will be minus a small factoring fee of 1.5% to 5% depending on the credit period extended to the client by the trucking company, the customer’s credibility as assessed by the factoring company and the overall business that the trucking company can provide to the factoring company. The factoring facility could also be of the ‘non-recourse’ type, where the factoring company will be ready to bear the loss, if the client does not pay the invoice amount even after the due date or it could be of the ‘recourse’ type, where the trucker will have to pay back the invoice amount to the factoring company, if the client does not pay the money.
The biggest advantage in any of the above factoring types is that the trucking company will receive almost the entire invoice amount within 48 hours of issuing the credit invoice to the client. This will help the truckers to pay the drivers and staff wages, pay for fuel and other repairs and also put into motion any expansion plan that might have been bogged down due to lack of funds.
A positive cash flow will also enable the truckers to go in for larger and longer hauls, which would not have been previously possible. If the truckers enter into a ‘non-recourse’ contract with the factoring company, then they would also be able to divert all energies in increasing the business, instead of chasing after late-paying clients. In other words, factoring will enable the truckers to remain in control of their businesses and also help them to expand it. While it might take some time for the economy to turn around or fuel prices to stabilize, tying up with the right factoring company will help truckers to successfully survive any downturn.
A recession can be an alarming phase for any business and truckers are no exception. The trucking industry is entirely dependent on the health of other sectors. But, with the help of the right factoring company, truckers can safely ride out the storm and confidently face the future
Transportation Company owners have to face a typical situation in dealing with clients who pay the freight bills in 30 to 60 days. They have daily cash expenses to take care of. They have to pay the driver’s wages, fuel bills, and vehicle and tire repair expenses. The expenses have to be met urgently while the clients would delay paying the amount for many days. This puts them into a tricky situation with regard the cash flow for their needs. Unless the company has cash in the bank, they cannot afford to wait to be paid.
The owners try to sort this out by arranging for a loan from the bank. But the banks usually do not finance businesses that have less than three years of profit and financial statements to show. So what other option does a freight company have? They have a better option than business loan in freight factoring. It is a quick pay tool to convert slow paying client freight bills into cash. It does not need the clients to pay early. It is the factoring company who will buy the freight bills on delivery of the load and give you some percentage of the amount of the freight bills.
They even collect the bills from the clients on the due date. Generally they would provide you an advance of 90% of the bill amount. The remaining 10% is paid after the customer makes the bill payment. A small factoring fee is taken from this 10% based on how long the invoice is factored and the monthly volume of factored invoices. Discount rates range between 1.5% and 4% per month depending upon the above factors.
Freight factoring is better than conventional loans in more ways than one. It is easy to get it and that too in just a few days. There are certain limitations to the amount of loan you are taking, but if you consider the freight factoring option it has no such limits. As your sales grow so does your factoring amount! Thus your financing is directly related to your transportation company’s growth. If you arrange with the factoring company to collect the bills on your behalf, you are relieved of credit collection. You can use that time and money to invest more in your business. Factoring companies also regularly provide you with receivables and payment statements, which help you to streamline your business.
Most factoring companies buy the bills using non-recourse invoice factoring. Under this agreement the factoring company bears the risk of non-payment due to insolvency of your customer.
Not many banks provide factoring services. However there are many new factoring companies coming up who have professionals working with them and offer good services and competitive prices. There are many companies coming up, who advertise on the Internet also. You could check them out and make a long-term contract with a company that gives you and your customer quick and courteous service.
Freight factoring gives you the advantage of improving the cash flow and helps you to concentrate on the growth of your business. It is a very good finance option. Rather one may say that it is an extension of your business. Thus if you have a transportation company you may use the services of a factoring company and take your business to the next level.
When you are going to buy semi truck parts you are required to go behind a system that permits you to get what you are actually searching for without negotiation with your financial plan. Simply put, this is a simple process if you are familiar with what you are doing. Unluckily, some people begin to look for parts previous to having any clue of what they want to do or what part they need. This leads them downward the incorrect path, and pretty soon, they are lost, later realizing the mistakes that they’ve made.
Now the question has come where to order the truck parts they need. There is always the possibility to buy the truck part you need from the online environment. When searching on the internet, there are several companies or traders, offering online trading on truck semi part, which are reliable and dependable.
With the following instructions, you will see just how easy it can be to order semi truck parts.
One of the first things you have to assume regarding this is buying used parts. There is no discard that you can give cash for new parts, and for many people, this is the only method to go. However, on purchase of used semi truck parts, you are going to get a lot in return. As well, you might be surprised to see a big market of used truck parts. In other words, you should be able to find what you are looking for.
What You Need
When searching for truck parts you are required to be familiar with what you desire. Do you need a part for transmission? Do you want to buy semi truck mud flaps, but you have no knowledge regarding this? In that case, you have many options to choose from.
Once you find out a good website, which deals with semi truck parts, it’s easy to see how many options you have in your hand. It can be awesome at times, but soon you will understand clearly about what you want to purchase and how much you are willing to spend.
More Parts at Once
What occurs if you are purchasing more parts rather than a single part? For instance, a lot of people are looking on the market for semi truck engines. This is certainly a large purchasing and one where you require to be very wary.
Not only do you need to find an engine that you can afford, but you must also acquire the one that is going to work most excellently for your truck. When buying an engine for your truck, it’s extremely essential to be certain that each last detail falls into place.
You do not have to be anxious when you are going to buy parts of your semi truck. This might sound like a job that is not for you, but the probability is that you can make things work out well. There is no cause to consider that you will not be capable of making the right choice. Now that you know how significant it is to find a fine price and a large collection, the whole thing should begin to fall into place. With the correct information, you can purchase semi truck parts with success.
The Online Environment
What you need to pay attention to are the reviews that you find from other people who have bought from that website. A respected website will make available for its customers the possibility to leave a review, so that more people could use the information. Choose someone else if you can’t find anything relevant, but do the same if the reviews are negative.