Small businesses are at the heart of the American economy. In fact, the latest research indicates that there are as many as 30.7 million business in this country. Finding a way to survive during normal conditions can be a challenge for these companies, but as the pandemic continues to threaten these businesses many are looking for resources to help them transition into other kinds of opportunities. Bars that were closed for weeks, for example, used their microbrewery capabilities to make hand sanitizers and distribute for free or low costs. With funding provided by the payroll protection plan to keep their employees on, many of these same bars have now created new and safer ways to allow folks to dine, drink, and socialize. Without that available funding, however, many of those businesses may have had to shut their doors.
In absence of any other options like the PPP, many businesses are again struggling to find a way to survive. And when you realize that bankruptcies in the U.S. increased to 25,227 companies in the second quarter of 2016, from 24,797 companies in the first quarter of 2016 you begin to see how even a short time period can be devastating. Multiply these challenges by the fact that the pandemic is making these financial problems even worse and you realize that you we are in an unprecedented time. Fortunately, factoring companies can help small businesses bridge invoice payment gaps with upfront payments up to 90% of the original invoice. “The factor advances most of the invoice amount, usually 70% to 90%, after checking out the credit-worthiness of the billed customer. When the bill is paid, the factor remits the balance, minus a transaction, also called the factoring, fee,” according to the Wall Street Journal.
When was the last time that your business has had to struggle to meet its financial obligations? If you are like most small business owners you likely face this challenge a couple of times a year, if not every month. Consider some of these facts and figures about the needs many businesses have for the services provided by transportation factoring companies. load factoring companies, and other kinds of similar providers:
- Nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network. The cost of keeping these transportation resources operating, however, are substantial. For this reason, many businesses find themselves in need of the economic resources provided by load factoring companies. In fact, small business invoice factoring services play an integral role in the success of many companies.
- Approximately 5.9 million commercial motor vehicle drivers operate in the U.S., according to the Federal Motor Carrier Safety Administration. Many times these drivers are paid with funding made available through load factoring companies.
- Invoice factoring is a type of accounts receivable financing that converts outstanding invoices due within 90 days into immediate cash for a small business. Used by many kinds of small businesses, these funds help companies fill the gap between the expenses they must pay upfront and the accounts receivable that they are waiting for.
- The top factoring companies for freight brokers help businesses of any size navigate the challenging gaps between receiving payments from customers and meeting the payments that are due to employees.
- As a long term solution, the revolving credit provided by load factoring companies provides the kind of resource that many businesses need to succeed.
Small business are at the heart of the American economy, but there are an increasing number of challenges that these businesses face. Even before the pandemic, many of the locally owned small businesses struggled to meet their monthly financial obligations. These last six months, however, have provided insurmountable challenges for many businesses. Those business owners who already had established a revolving credit option with an invoice factoring companies are more likely to have had the financial resources to meet even these challenges. As the nation continues to look for ways to move forward, it is important to note that even more companies will be looking for these factoring services to bridge the financial gaps that they will face. Are you looking for these options?