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Financing the Trucking Industry * USA - Accounts Receivable
Finance companies provide trucking companies with the necessary amount of finance against their accounts receivables
USA -Article Home, by Kris Koonar -Jun 2, 2008: -- Many owners of trucking companies often face a very tricky situation. They will have clients who do not pay their invoice before the credit period of 30 to 60 days, while at the same time being in constant need of finance to pay off different expenses. Truck driver's wages, fuel, and maintenance expenses are areas of immediate financial requirements. Lack of timely payments mean a lack of cash for immediate expenses. Banks may not be able to give quick loans for different reasons. So how do companies meet these expenses? The solution lies in the accounts receivable finance that factoring companies and other financial institutions are ready to provide. Depending on the financial standing of the clients and the overall rating of the clients, finance companies provide trucking companies with the necessary amount of finance against their accounts receivables... The truck factoring companies buys these accounts receivables and a certain percentage of cash is paid to the clients, which may be up to 90% of the invoice value... This amount is not to be repaid. It is not a loan of any sort, and will be discussed further down... The percentage of finance given depends upon the credit standing of your clients and not on your credit rating...This way factoring companies can even assist you in selecting clients that have good credit ratings. Moreover the collection is taken care of by these companies, so you need not worry about the collection aspect...
Labels: financing trucking industry
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