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The Benefits of Choosing a Factoring Service over a Bank

The freight industry is fast paced, and whether you are a newcomer or an established brand, you cannot wait weeks or months for payments to come in. Factoring is a great way to improve your cash flow and help your business grow by allowing you to exchange invoices for immediate cash, but how exactly is factoring different from a traditional bank loan? The following is a list of some of the benefits of choosing a factoring service over a bank.

Accessibility

Banks are notoriously stingy when it comes to approving loan applicants. Even if the bank approves you for a loan, the amount might not be enough to meet your needs. Your credit score, lack of collateral and financial history will all be important factors in your approval. Factoring companies don’t look at the applicant’s financial history, so it is easier to get the money you need.

Time

Bank loans take a long time to process. In the freight industry, each day you are left without the proper capital to pay suppliers is a day you miss out on business. Factoring companies can get you the cash you need when you need it.

Additional Services

Banks are limited in the services they provide. Factoring companies can provide a wide range of services beyond supplying capital. Factoring companies often provide administrative support, online record keeping, and other business solutions for your company.

Liability

Bank loans demand set interest rates and terms that you must commit to without knowing what your future holds. No matter what happens to your business, you are liable for your loan payments. According to the website of TBS Factoring, factoring is an advance on work you already completed, but have not yet been paid for. Non-recourse factoring allows you to sell invoices for advanced cash without being liable for unpaid invoices. If a customer fails to pay an invoice, the factoring service absorbs the loss. Your business will be unaffected and the capital given to you remains unchanged.

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Can I Be Pulled Into Disaster Fraud?

The time following a disaster can be a time of great difficulty. After all, there may be calm before the storm but there’s only confusion and chaos after it. (Though not every disaster is a storm, let that be said on record.)

There is another kind of chaos that can result from disaster and that is disaster fraud.

This type of fraudulence is a criminal offense and happens when disaster relief (whether in the form of money or other such assets that are aimed to help people who have gone through terrible loss following a disaster) is illegally mismanaged, usually with the intention of personal gain. For example, if there has been funding that was meant for the rebuilding of an institution – say a school or a clinic or something of the like – and it was managed to as to land in the pocket for the benefit of a private party, that can constitute as disaster fraud.

Not every situation is like that, yes, as the factors can change depending on the situation at hand.

According to the website of the Portale Law Firm, if you have been connected into allegations concerning disaster fraud, it is imperative that legal help is consulted right away. You may not know that you have been roped into or may have benefitted from the fraud without your knowledge. Each case is different and there are many different variables to consider. There are different angles to take, with which to present a case, which is why it is advisable to seek an experienced professional’s help in situations of this nature.

Disaster fraud is, in fact, a white collar crime and could result into many consequences that affect every circle of your life. It can be very possible for you to be pulled into this kind of scenario, which is why it is necessary to be cautious and vigilant in the time following a disaster. If you or someone you know has been accused of disaster fraud, it is important that professional assistance is sought as soon as possible.

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Should Small Businesses Consider Offshore Outsourcing?

It takes a lot of effort to get a small business started. At the beginning of your run, certain limitations in resources will require you to stretch what little workforce you have in order to properly accomplish tasks that will help your business move forward. As you can imagine, this scenario can easily cause a lot of stress and leave a lot of room for mistakes. One way you can solve this problem is by considering offshore outsourcing.

A small business can run a lot smoother if you and your employees can go back to focusing on tasks that correspond to your main objectives. This can easily happen if you outsource the work that is tangential and secondary to your organization’s core competencies to offshore workers. You can ensure that these tasks are properly accomplished by external specialists as long as you are able to find the best outsourcing solution for your given situation.

Offshore outsourcing is the best option for small businesses that are just starting out because it leaves a lot of leeway for those working with a tighter budget. Employing specialists from India or the Philippines will cost significantly less than hiring domestically within the United States. You should carefully consider the options you have before committing to an offshore outsourcing firm. Do your research and find a company that focuses specifically on the tasks that you want accomplished. It would be best to outsource highly repetitive tasks like data entry and specialized work such as IT support. According to the website of the Pinoy Partners Outsourcing Center, other business processing outsourcing (BPO) companies also offer services like customer support, SEO marketing, and web development.

Another important consideration is making sure that the outsourcing solution you consider specializes in helping smaller organizations. Most people are of the opinion that offshoring is only a viable solution for large companies and corporations. However, there are BPO companies abroad that are focused on providing quality assistance for small businesses. No matter how large or small scale a company, looking into outsourcing can help any company increase efficiency while lowering costs.

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American Trucking Industry: An Overview

The trucking industry plays a crucial and important role in a healthy economy. After all, the market relies on having an efficient transportation system in order to deliver goods and products from one destination to the next. As such, entering into the industry can be a good business decision for some. According to the American Trucking Associations, the American trucking industry is especially successful—having generated about $600 billion in total freight revenues for the year 2011.

Individuals who want to be part of the trucking industry can expect substantial rewards and tight competition. As a result, the U.S. Small Business Administration (SBA) urges people who want to start their own trucking business to do their research and consider their options. Determining the details of the operation is the only way to ensure that a new trucking business will succeed.

One of the first considerations to be made when entering the trucking industry is the mode of operations. According to the SBA, a trucking business can operate in two distinct ways. One way is for a business to hire their own drivers and invest on their own fleet of vehicles. This method gives the owner full control and insight on every aspect of the trucking business, but will obviously require a larger budge. Another way is to sub-contract drivers from an external company, leaving the owner in charge of handling operations and contracts. This method will be less expensive, but will limit the owner’s control of their own business.

Aside from making considerations about the mode of operations, owners will also have to face other challenges as soon as they start their trucking business. According to the website of TBS Factoring, one such problem involves financial complications caused by issues with invoice payments. Trucking business owners will have to consider consulting with a freight factoring service in order to properly solve any cash flow issues.

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