Family Business Can Create Challenging Situations for Some Owners

our grandparents’ dream of starting their own business decades ago has now turned into a near nightmare for you and your wife now. Faced with the economic challenges that are part of the pandemic have been the most recent challenge, but even before the middle of March of 2019 you were facing plenty of hardships. You are hopeful that by establishing a long term relationship with one of the local trucking factoring services you can make the process of paying for bills more predictable. You have talked to bigger companies that make use of international factoring associations, but you are hoping that working with a local advance business capital factoring company or a business that offers services specifically to trucking companies that you can find the best solution.
Managing Accounts Receivable and Balancing Weekly Paydays Are Difficult Tasks for Many Kinds of Businesses

Whether you are a brand new business owner or if you are trying to keep a business going that has been in the family for generations, today’s economy is difficult. In fact, even before there was a pandemic many businesses were struggling to make ends meet. The mere fact that you often have to spent significant amounts of money to make money means that there are businesses that need additional resources. Having access to the cash that you need to pay employees while you wait for your accounts receivable to be paid is, in fact, one of the biggest challenges that businesses face. And when you have the opportunity to quickly expand but that expansion means that you need to invest more capital it is important to have a plan in place to quickly access the cash that you need. Operating as a kind of rolling credit, it is important to know that both local and international factoring associations can offer a solution.

By definition, international factoring associations and other kinds of similar platforms offer their clients access to the funds they need to succeed. More specifically, the factor advances most of the invoice amount, typically between 70% and 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 known as a factoring, fee, according to the Wall Street Journal. Invoice factoring is a type of accounts receivable financing that allows businesses to convert outstanding invoices due within 90 days into immediate cash for a small business. This convenience, used on a monthly or quarterly basis, allows businesses of many sizes to more predictably meet the monthly expenses that they incur.
With the nation’s economy relying on the success of the nearly 28 million small businesses in the U.S., it is important to note that any kind of advantage that can help a business succeed is important. International Factoring associations can help small businesses bridge invoice payment gaps with upfront payments up to 90% of the original invoice, making the end of the month less stressful while a business waits for accounts receivable to be paid. Unfortunately, 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. These numbers from just a half a decade ago, however, will likely pale in comparison to the number of businesses that will struggle to make their way through the pandemic. And given that there are nearly 12 million trucks, rail cars, locomotives, and vessels move goods over the transportation network, it is important for all consumers that the transportation industry continues to be as effective as possible.

If you are facing the challenges of keeping a family business that has been around for two or three generations running then you need to find a way to access all of the available resources. Factoring services, perhaps more than any other resource, is a way to help you meet your monthly expenses while you wait for the payment of your accounts receivable. Asking for help sooner rather than later is another way that many people find the solutions they need to keep their businesses afloat. Are you doing everything you can to make sure your business not only succeeds, but thrives?

Leave a Reply

Follow by Email