The interest rates credit card companies charge are often high. ![]() When one credit card gets full, they will take out another credit card. Some trucking companies pay for their expenses with credit cards. This will not help you if you need immediate funds. It may be months before they make a decision, and that decision may not be in your favor. References may be required, and any other loans you have will be taken into consideration. The bank will run your credit and look at all of your assets and liabilities. If you own a small trucking company, you know that applying for a bank loan can be a long and arduous process. Advantages of Factoring Over Other Types of LoansĪnyone who owns a small business has probably taken out a bank loan or two. This can save you a lot of money and frustration. When you use a non-recourse Texas factoring company, they will be responsible for collecting any unpaid bills. They often will not be able to collect the full amount of the bill. Even if they can collect your debts for you, they keep a certain percentage of what they are able to collect. Collection agencies work on a contingency basis. When a company cannot or will not pay its bills, a trucking business will have to hire a collection agency. You are taking a major risk when you use a recourse invoice factoring company.įinancial solvency is a constant problem for small businesses in America. In many cases, they may be struggling financially. The clients you get when you are a brand-new trucking company tend to be new companies themselves. A trucking company will assume far less risk with this type of factoring. It is easier to qualify for recourse factoring than it is to qualify for non-recourse factoring, and qualifying for either type of factoring service is easier than getting a loan or a line of credit.Īt Simplex Group, we think that it is always a good idea to work with a non-recourse invoice factoring company. The amount of the discount at which you sell your invoice will be about the same no matter which option you pick. They will point out that they are similar in price. You know the status of every invoice at the click of a mouse.A salesperson from a recourse factoring company will tell you that recourse factoring and non-recourse factoring are not that different. Your company gets online access to lookup your customer's payments. We also provide you with free back-office support and manage your collections on invoices that you factored for your Dallas company. We’ll send your invoice to your customer as well as collect the payment from your customer. Upon verification your invoice proceeds are sent to you, typically within 24 hours for returning customers. Next, you send us your invoice and supporting paperwork. First, you deliver your order/service to your customer. Once you are setup for factoring you get funded in 3 easy steps. ![]() The factoring process is online and designed to be as easy as possible so that your business can thrive. We charge a small fee for our factoring service, but there’s no debt and no interest. Of your customer's credit and their ability to pay their bills, not yours. So how does our factoring company program work? Unlike a bank we focus on the strength Our purpose is to build a strong relationship with you and protect your company against risky customers, keeping your Dallas business profitable. You could end up buying back invoices from customers who could have been avoided in the first place. Other factoring companies may not be in it for the long haul and every step of your company's journey.įor example, some factoring companies will continue to purchase your invoices because they don’t have the ability to see trouble ahead. We have your company's best interests and success in mind. Also we have no factoring minimums and transparent factoring fees. ![]() We have a long list of happy factoring clients, our average client has been with us over 4 years, which is unique in the factoring industry.Ĭompared with the other factoring companies, we have the highest factoring advance rates. More than half of our new factoring business comes from current customer referrals. Rest assured we will be here for you when times get tough. We have survived many of the economy's roller coaster rides and in having done so, can lend you a helping hand in hard times. We have been in the invoice factoring business for over 40 years, are independently held, and have a proven track record of being FINANCIALLY SOLID. Before you decide if we are the right factoring company for you, let us tell you a little about us and how we stand above the other factoring companies.
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