Freight Bill Financing: A Custom Solution For The Transportation Industry

by Crestmark 16. May 2012 05:35

Trucking is a unique industry because your product is moving the products of others. You move the country, ensuring that everything from food to clothing to furniture to mail reaches its destination on time. Because you fill such a unique and vital position within the economy, your business structure and revenue stream is sharply different from other companies. Freight bill financing is a unique concept, designed for trucking companies and used by many of the biggest transportation companies in the nation.

What Is Freight Bill Financing?

Although similar to accounts receivable financing or factoring, freight bill factoring is custom tailored for transportation. Once your freight bill is ready, you are eligible for financing based off of it. A non-traditional lender and transportation specialist like Crestmark will purchase the bill from you, paying you a portion of it immediately. Once the account clears with your client, you get the rest minus an administrative fee. Freight bill factoring can be traditional or discount depending on your needs.

Why It Works

You know how volatile the transportation industry can be. There's often a lag time between invoice and receipt of payment. In addition, shifting conditions like gas prices and unavoidable delays from weather can lead to a dramatically variable revenue stream. Financing can help smooth out the operation, ensuring that you have the cash you need when you need it. 

Accounts Receivable lending still good option

by Michelle 10. August 2010 11:15

I was recently reading an article about access to credit for small businesses and thought, geeze…what’s a business owner to think these days?  Are things getting better?  Are banks lending…or not?

Here are a couple of quotes from the WSJ.com article, “For Small Business, Slow Gains In Credit,” dated July 13, 2010;

“Overall, the survey data seem to suggest that current economic conditions for small businesses, though still quite challenging, are less dire than they were in 2009.” This is a quote from Robin Prager, and assistant research director at the Fed.  She was quoted recently at the Fed’s forum for small business lending.  Sounds promising, right?

Well, not so fast…just 2 paragraphs later in the same article, Fed Chairman Ben Bernanke is quoted as saying, “The formation and growth of small businesses depend critically on access to credit.  Unfortunately, those businesses report that credit conditions remain very difficult.”

So, as a business owner who needs credit to start or grow their business I’m sure many are left wondering, “I can perhaps, maybe get a loan or not with my local bank…they more or less may or may not lend me a small amount of money???”

Sometimes I think we would all be better off reading tea leaves…but I digress.  On to the main point…

All of this uncertainty leaves many small business owners deciding not to hire or grow until they can get a better feel for what they can reasonably expect from lenders in their area.  And to speak to the other side of this equation, local and regional banks are nervous about what types of businesses to lend to due in part to the many regulatory rules and a general perception that in these times any risk may be too risky. 

The good news is that accounts receivable lending through factoring or asset based lines of credit remains an excellent option for small to medium sized businesses who don’t qualify for a traditional loan.  Our industry continues to see allot of activity and we are actively working to help as many business owners as possible.

In these perplexing times alternative lenders are a good option.

Crestmark announces our new website

by Michelle 2. August 2010 11:21

After almost a year of hard work and collaboration we are very excited to launch our new, updated website!

Crestmark is an FDIC insured financial institution which specializes in providing working capital through accounts receivable lending to small and medium sized businesses across the country. The bank was originally founded in Troy, MI and in recent years has expanded it’s footprint through a series of acquisitions. These acquisitions brought in already established, successful accounts receivable factoring companies. All of these events lead to the need to create a newer, updated and more comprehensive website.

We hope that you will find the new site informative and helpful! Within the pages of the site, you will find explanations of the various types of solutions that we offer; accounts receivable factoring, asset based lines of credit, and accounts receivable loans. I think you will also find that we are very diverse in the industries we serve; staffing, manufacturing, distribution, apparel, government contractors to name a few.

So…take a look, and let us know what you think. We think you’ll be pleased!

 

We have great customers!

by Michelle 9. July 2009 03:53

Right..??

Back in the good old days, you know before the government took over GM… Before the likes of Lehman Brothers, Circuit City and countless others went belly up.  Back when doing business with any large, well known company was practically a guaranty of growth for your business. Your first class ticket to ride the smooth waters of prosperity.

You know…BEFORE 2008.

We all now (and at least for the foreseeable future) find ourselves living in an alternate reality.  One which causes business owners to question the health and life of even their best customers.  Even large, solid companies that are not running out of red ink while printing their quarterly financials, are holding on to their cash as long as possible.  The result?  Slower payments to their venders. 

Can a factoring company help in this situation?

Yes!

Most factoring companies spend a good deal of their underwriting process vetting their prospective clients’ customers.  And for good reason.

It’s the ultimate goal of both the factoring company and client to get paid for their receivables.  This is a crucial component of any factoring relationship.  Over the years we have helped many clients sail past the squalls and choppy waters of customers who posed a big credit risk.

So…here’s to partnership and smooth sailing; or at the very least a less bumpy ride!

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