Sometimes business owners are too proud to admit that they need help with their finances. What they fail to realize is that it happens even to the very best of companies. Cash flow is a matter that can be fixed without you having to apply for a loan at a traditional bank. There are options available, and freight factoring is one of them.
If you’re still in denial about why you should consider freight factoring, here are things to think about.
You’re failing to take on more significant projects because of limited cash flow
Are you failing to take on more substantial contracts and projects because your clients are taking so long to pay you for work you’ve already completed? It’s not unusual in the world of business for clients to have a 90-day grace period in which to settle their accounts. However, this could very well mean going more than two months without receiving a dime. It can hamper efforts to grow your business.
You’re failing to retain top talent because you can’t pay on time
When clients take their time clearing their invoices, it can cause problems on your end in your business. If you’re struggling to get payment and paying your employees on time, this can become a problematic issue in your company, which could see you losing top talent. No one wants to work for a company that doesn’t pay on time and is continually coming up with excuses as to why it can’t pay them. Don’t be this type of company. Find a factoring company to help you out.
You are seen as a defaulter by business associates
You want people doing business with you to think well of you and your trucking business, isn’t that so? No one wants to be thought of as a defaulter or someone who doesn’t do what they said they would do. This is particularly true if you have people you need to pay that have rendered your business service. Once again, if there is no positive cash flow in your firm because clients are taking longer to process and pay you what they owe, it can have negative repercussions on other areas of your business.
You’re getting rejected because of bad credit
Perhaps you’ve had a rough patch in your business, and your credit score isn’t too good. Maybe you’ve even gone to banks to see if they could lend you a helping hand, but they turned you down because of this bad credit score. Is there no hope for you? Fortunately for you, there is. You see, freight factoring companies don’t consider your credit score when they choose to extend a line of credit to you. They look at your clients’ credit, and if your clients have good credit, then your application stands a higher chance of being accepted.
You’re considering filing for bankruptcy
When a business is struggling to keep up with its day-to-day operations, things can become so complicated that at times, one considers filing for bankruptcy. If a lack of liquidity is making you feel like retiring your business, then you need to think again. This is something a freight factoring firm can help you out with. Thanks to their quick application and approval processes, you can almost solve this dilemma overnight!
If your business is suffering from any one of these points, it might be time to consider partnering up with a freight factoring company.