Congress recently passed a regulation that aims at tackling exhaustion among truckers. While come weeks truckers would work up to 82 hours, the regulation now limits the time spent driving to a maximum of 70 hours a week. The change mandates a “restart period,” which provides two days off and no driving between 1 am and 5 am. Truckers are able to use the restart period once a week.
Some argue that the new rule will force truckers to be more active during rush hour, increasing the risk of accident. Congress, however, feels as though these regulations are necessary in promoting the most sound sleep among truckers in order to combat the prevalence of sleep apnea caused crashes.
Keep an eye out for new transportation legislation in 2017.
Vape is a trend like has caught on like wild fire. But, what truckers need to know is that vape may actually lead to actual fires. The FMSCA warns truckers about the dangers involved with vaping in their truck cabins. In the past 5 years, vapes in trucks has caused over 100 explosions and accidents. Make sure you’re aware of your trucking company’s smoking regulations and the dangers involved with smoking while carrying hazardous materials.
A bank loan may seem to be a solution but it is difficult to obtain. Even if you manage to get one, you will remain under pressure until you clear off the loan. Moreover, the loan is just a one time solution and as your business grows, your financial needs are going to increase once again bringing about a situation where you will need more funds.
Non recourse factoring in such a situation offers an ideal solution. As you factor your freight invoices, you get access to required funds for paying off your employees, suppliers, taxes and to cover essential recurring expenses like fuel, vehicle maintenance and repair, tire purchasing and many other important things. Non recourse factoring, which is factoring of receivables, principally assumes that your invoices are valuable assets fit for financing. For a small fee, usually between 1.5 and 3% per month, a factoring company, within twenty four hours of your forwarding the invoices to them, advances you up to 97% of the invoice value.
The actual amount depends on the specific terms of the factoring agreement you enter into and eliminates most of your financial worries related to your immediate business expenses while the factor waits to be paid by your client. Most factors break their fee into ten day payments, to make it more attractive. For example, a 3% per month fee would actually be just 1% for every ten days the invoice remains outstanding. Additionally, if your factoring agreement has a non-recourse invoice factoring clause, the factoring company also covers the risk of non-payment in case your client becomes insolvent or closes down the business.
Non recourse factoring is important in business because it a viable financing tool for growing businesses, providing them with a solution to accelerate slow payments and free up cash flow. However, for factoring to work successfully for you, your business must have a commercial or government clientele and provide you with at least a 12 percent or higher profit margin. non recourse factoring can help you where you are forced to turn away orders on account of limited cash flow and also help you to avoid the risk of missing key payments like payroll, suppliers and rent etc due to cash flow problems.
Factoring is basically a financial tool that aids you to get immediate money against your credit sales so that you do not need to wait too long before it matures. Factoring has been a part of the business sector for hundreds of years and has acquired a new shape with the changing needs.
Factoring allows any business to meet its capital needs. In the process of factoring, an invoice of a company is utilized by the factoring company as a security against which it provides a loan to that particular company. Cash is made instantly accessible by a factoring company, which in normal circumstances, would take months to recover. The factoring company disburses the cash immediately against the invoice, which is kept as security.
Truck factoring is the process in which truck factoring invoice firms purchase invoices only from the trucking and transportation firms. The cash that these trucking firms, big or small, get from factoring companies helps them to regulate their work with a smooth cash flow. In the trucking companies, cash comes only after a stipulated time of 60-90 days. In this scenario, factoring comes as a welcome respite to these companies where deficit of cash might hinder the smooth working of the firm.
Definitely, a fee charged by these factoring companies which varies from 1.5% to 7% depending upon the volume of invoices factored and time taken for the same invoices to get cleared. This might seem a high fee but when one looks at the larger picture then the benefits one gets, in terms of cash flow and saved time and energy, is very reasonable.
The main benefit of factoring invoices is that the company gets the much-needed cash flow to run the business smoothly. This is done after the negotiation of the fee of factoring firm is decided and both parties have agreed upon a final rate. Once finalized, the factoring company pays around 60-90% of the invoice as advance, decided earlier. Thus, the other firm gets its cash in hand.
When a firm starts factoring its invoices it saves not only on time but also on the number of employees who can then be directed towards other important jobs rather than employing them to extract dues from clients.
As trucking firms have ready money it also boosts their buying or procuring power, enabling them to make better deals. They are also able to get benefits of bulk procurement discounts. Ready cash flow also helps in expansion through marketing and production and subsequently increasing sales. This comes as an overall boon for the firm that has chosen factoring for freight bills.
A very big benefit of factoring freight bills is that it provides the company with a detailed and clean portfolio of its accounts receivable. Ready cash improves the financial statement and saves a company from falling into a debt trap. Moreover, there is no need to look back to traditional banks for any kind of financial assistance as the factoring companies provide the required amount of cash flow for the smooth expansion of business. This way the company is saved from paying the high interests rates charged by banks on loans.
A freight broker has the critical obligation of working with an organization that needs sending administrations and a berrier that is approved to transport the heap. Note that a merchant does not really do any of the delivery or the transportation of things.
Let’s see some things about fright factoring services that you might find useful in your type of activity.
What is a Freight Factoring Company
Freight factoring company offers the courses for a maker to reestablish stock and make more items to offer: There is no more a need to sit tight for prior deals to be paid. Receivable Loan Financing is not only a money administration device for makers: Practically any sort organization can exploit Commercial Factoring. Regularly, a business that stretches out credit will have 10 to 20 percent of its yearly deals bound in records receivable at any given time. Utilizing trucking calculating organizations is a quick and straightforward procedure. The variable purchases the receipt at a value cut, commonly two or three bit focuses not exactly the expressed estimation of the receipt.
The most effective method to Use Freight Factoring When You Deliver Goods to Your Clients
There are numerous components that go into a freight brokers choice of which transporter will get the heap. In the first place, they should decide the particular needs of the organization doing the transportation. Expense is a central point for shippers, so coordinating the transporter that will transport the products at a rate that is considered sensible by the shipper is a top need. Once the heap is conveyed, commissions are earned and the trucker or trucking organization gets paid.
A freight broker helps organizations that are sending huge burdens locate a transporter that has experience pulling profitable things. It could be said, the dealer is vouching for the transporter and placing trust in his or her hands to convey the merchandise securely and rapidly. By coordinating the kind of things to be transported with the right truck driver or trucking organization, agents permit shippers to get the most effective administration customized to their particular needs.
As a rule, an organization will contact an agent when things should be transported rapidly. This is on account of cargo business offices have a huge rundown of trusted transportation organizations and operators that they can call upon immediately. At the point when a tractor-trailer should be filled or an organization needs to convey a lot of things after all other options have been exhausted, a cargo specialist’s aptitude and rundown of assets is precious.
The employment of a cargo representative can be exceptionally requesting, normally spent chasing for the ideal bearer and investing hours on the telephone. In the event that a merchant has numerous associations and numerous customers, the work can be in a great degree, quick paced and testing. It takes an extraordinary hard working attitude to have the capacity to handle the requests of the employment, however a decent cargo representative is great at multi-tasking and juggling numerous customers.
How It Works
A freight broker can work freely in their own particular business or work for a bigger financier organization. Frequently, merchants begin working for a bigger organization where they can increase potential customers and associations that they can use to cultivate connections when they open their own particular business firm.
Understanding the numerous parts of the trucking business is critical for the individuals who are occupied with a transportation calling. Cargo specialists are one imperative part of the business that you’ll have to comprehend as you start your profession.
The online burden sheets offer A freight broker and haulers a helpful spot online where they can coordinate cargo in like manner. A freight broker offers day in and day out administration, and an assortment of apparatuses to help organizations and people move freight from point A to point B.