Author: Keith Mabe

Factoring Without the Fear

Historically, invoice factoring has not been well-known especially among small business owners.

Accounts receivable factoring now accounts for more than $1 trillion a year in business funding. That is more than three times what it was in the early 1990s. Since then, factoring companies have become more reputable and service-oriented while providing readily available funds to businesses that are challenged with cash flow issues.

Although factoring has not generally been well known in the past (except in a few specific markets like textiles and transportation), it has recently become a sought-after cash flow management tool for the small to mid-sized business (SMB) market across many industries. This is recent, in large part, due to big companies slowing their payment to small businesses (see article “Big Companies Are Slowing Supplier Payments”) creating severe cash flow problems for these smaller suppliers.

For those unfamiliar with Invoice Factoring, it is the process of a business acquiring cash by selling its accounts receivable (invoices) at a discount to a factoring company. The discount, or cost to the business is equivalent to a prompt pay discount a business might otherwise offer to a customer account. The business receives the cash up front from the factoring company and the factoring company takes responsibility for processing the receipts under lock-box control. It can take time to collect on an invoice, so when a company factors its accounts receivable, the company essentially gets its funds upfront while the factor manages the process of collecting the payment remittances — saving the company time, money and positive cash flow.

Factoring is not just available to large organizations. With small business invoice factoring, business owners can retain control of their company and benefit from the ability to grow quickly or at a moderate pace. Small business factoring is all about control and cash flow management. More savvy business owners will work the factoring fee into the product or service provided. Others use the extra cash to take quick-pay discounts from suppliers by paying early. With the right financial strategy, factoring can also provide long-term cash flow management, not just a quick fix.

As more and more small businesses discover the benefits of factoring, new industries are warming up to the idea that there is a readily available source of cash hidden within their accounts receivable. In fact, factoring has become so much a normal part of business financing, that universities are now teaching it in relation to cash flow management.

Streamlining Cash Flow with Factoring for SMBs

With the growth of small and mid-sized business (SMB) financing, small business factoring emerges as a method to maintain steady cash flow, devoid of the common fear associated with credit risk and extensive paperwork. This method allows businesses, especially those in industries like trucking, where the need for quick fund access is critical, to turn their accounts receivable into immediate cash. Unlike traditional loans, which depend heavily on a company’s credit history, invoice factoring relies on the creditworthiness of the client’s customers. This shift offers a flexible, risk-mitigated financial strategy, allowing business owners to focus on growth rather than cash flow bottlenecks.

Bulk factoring, an advanced form of this financing method, further simplifies the process for companies with numerous outstanding invoices, making it an attractive option for those wary of bad experiences with banks or concerned about hidden fees. By submitting invoices to a factoring company, businesses can receive an advance on a portion of the invoice value, often within a short period, enabling them to meet payroll, invest in new assets, or simply maintain a steady playing field in competitive industries such as the trucking sector.

Moreover, the integration of technical solutions and the absence of extensive contract obligations make this method increasingly preferred among modern businesses. It’s a testament to how far factoring has come, from a misunderstood finance option to a cornerstone strategy for enhancing cash flow without the fear historically associated with external funding. As more companies recognize the benefits, including the potential to leverage factored funds for strategic investments or to capitalize on early payment discounts from suppliers, the stigma around factoring continues to diminish, setting a new standard for financial management in the SMB sector.

As more small businesses across various industries recognize the potential of factoring to ease cash flow constraints, it’s clear that this financial tool isn’t limited to a single niche. In particular, staffing factoring has become a popular solution for agencies needing quick access to funds for payroll and operational expenses. By leveraging the value of unpaid invoices, staffing companies can secure immediate capital without incurring debt, making it easier to cover weekly or bi-weekly obligations and focus on expanding their workforce.

This narrative not only acknowledges the historical apprehensions surrounding factoring but also highlights its evolution into a sophisticated, risk-managed financial solution that aligns with the dynamic needs of today’s businesses. Through the lens of invoice factoring, companies now have the opportunity to redefine their approach to cash flow management, ensuring they are well-positioned to navigate the challenges and opportunities of the modern business environment.

Finding the best factoring company for your needs has never been easier. Charter Capital provides Invoice Factoring Services to growing companies in a number of industries. Contact us today to learn more about our services or for a free, no-obligation quote.

September 9, 2020
Big Companies Are Slowing Supplier Payments

Big Companies Are Slowing Supplier Payments

As the credit crunch continues to intensify, large companies are employing strategies to shore up their cash flow constraints by delaying payments to their suppliers.

In a recent article from the Wall Street Journal, “Big Firms Are Quick To Collect, Slow To Pay”, corporations are attempting to beef-up their collections all while slowing down their accounts payable to 60 days or more. As revenues for large corporations continue to slow in an already weak economy, they are putting the cash flow burden on their suppliers.

Since many of the suppliers of larger companies are small to mid-market businesses, they may carry an additional burden due to the ever dwindling availability of bank loans or lines of credit. Also, small to mid-sized businesses have little bargaining power when dealing with their larger customers and are forced to accept more lengthy terms. This can have a devastating impact on suppliers that are already strapped for cash.

As business owners are already struggling with cash flow in today’s economic environment, financial relief seems to be scarce. However, Accounts Receivable Financing is an often overlooked choice for businesses to manage their cash flow. This form of financing (also known as Factoring), is a financial tool that allows businesses to capitalize on the power of their outstanding invoices. Factoring is a valuable mechanism to turn a business’ invoices into immediate cash, enabling them to fund business operations.

It is not widely understood, but a factoring firm provides funds to its clients based upon its clients’ accounts receivable. Most invoices billed to credit worthy customers can qualify. Banks, on the other hand, must consider more stringent criteria before qualifying a borrower for any type of funding. In most cases, when considering assisting a business based strictly upon its accounts receivable, factoring companies can provide funds when a commercial bank cannot.

September 9, 2020
Growing Your Small Business
It’s the American Dream to own and grow your own business. But, whether you’re already flourishing or just getting started, launching a company requires a lot of work and resources. Of course, having a great idea, product, or service is perfect for establishing the foundation, but how do you take things to the next level? To help you turn a business success into a profit and keep your start-up in business, here are a few things to remember.
- Establish your brand and niche. Your brand is more than just your logo and products. It’s the all-around experience that each of your potential customers enjoys when dealing with your business. Focus on customer service and the customer’s needs for new opportunities and new products. While it may include some of your company’s visual and tangible aspects, it’s just as much an attitude about how things are done. If you don’t have a marketing plan or mission statement thought up, now is a great time to establish one.
- Focus on something specific. They say that “You can do anything, but you can’t do everything.” This is especially true when starting a business. While you might have a million great ideas, it’s important to choose one that stands out among competitors and focus on growing it.
- Focus on digital marketing through social media platforms like Twitter, LinkedIn, Instagram, and Facebook and improve your online presence. Create excitement and offer discount incentives, a customer loyalty program, and rewards for existing customers. Analyze the customer base and customer’s needs and use this insight of their profiles in your short-term advertising marketing strategies.
- Put in the hard work. When starting a small business, be there. Your customers need to see the face behind the company. This keeps the staff motivated and provides a structured environment. While it is important for your business to function on its own, find a balance between being present and trusting your employees without you.
- Collect on your accounts. As the owner of a small business, you should pride yourself on the personal touch that you add to the company. However, that doesn’t mean that people don’t need to pay you for your services. Unfortunately, many business owners fail to collect on overdue accounts because they want their new customers to appreciate them. This is a mistake. Money is what keeps you profitable and allows your business to grow. If you aren’t sure how to collect your overdue accounts, hire a professional company to do it for you. There are several invoice factoring companies that are willing to help you grow your revenue without worrying about collecting invoices yourself, or waiting for your customers to pay their invoices to get revenue.
The executives at Charter Capital have provided financial solutions to business owners since the 1980s. By shortening the business cash-flow cycle, they are able to help small businesses turn profits much faster. Invoice factoring is key to growing your company and keeping it profitable. To find out how Charter Capital can help grow your small business, visit www.charcap.com.
September 9, 2020
Improving Cash Flow in Tough Times

A common challenge for many small businesses is the feast-or-famine nature of managing cash flow. Poor cash flow can mean certain doom for an otherwise healthy business.

Beware, a cash flow crunch can sneak up on you if you aren’t prepared. It can affect a company experiencing a slowdown or one that is rapidly expanding. This is why optimizing your cash flow management process is essential if you are trying to mitigate common cash flow problems.

Creating a positive net cash flow for your business can be achieved by implementing a few simple changes to your cash flow management strategies. If you would like to know how to increase cash flow in your business, here’s a list of a few simple tips to improve your cash flow position as a small business:

Accept Responsibility For Minding Your Company’s Cash Flow – Even if you hire an accountant to help keep the books, don’t expect them to tell you everything you need to know. Stay informed and educate yourself on how best to manage your business finances. That includes mastering the basic financial skills every business owner should develop to navigate cash flow decisions confidently and avoid costly mistakes.

Bill Promptly and Accurately – Billing right away for your products or services will only help to facilitate prompt payment. Also, avoiding billing errors and mistakes will not only increase payment turnaround, and therefore maximize your cash flow, but it will also help to build trust with your customer. There’s nothing like regular billing errors to strain a business relationship.

Actively Monitor Your Cash Flow – You should always know the financial status of your business (monthly sales, expenses for the month, how quickly clients are paying, etc.).

Avoid Slow Pay/No Pay Customers – Don’t be shy about checking credit references or even paying for a credit check if the client is significant enough. If your business is currently struggling with slow-paying customers or frequent late payments, there are strategies to get your clients to pay faster that may be worth investigating.

Regularly Analyze Your Finances and Adjust Your Strategy Accordingly – To start, create a business budget that aligns with your goals. Then, actively monitor your business cash flow to catch small problems before they become unmanageable. If something is off, ask questions until you get answers. The answers will help to define your business strategy.

Organize Backup Financing or Cash Reserves – Invoice Factoring, lines of credit, or even equity financing can help get you through a cash flow crunch. These options are especially useful in industries with long billing cycles or delayed payments. In particular, accounts receivable factoring for service companies can provide immediate access to working capital—without taking on debt. At the same time, building a small business emergency fund is essential to staying protected no matter what challenges arise.

Lease Instead of Purchase – Although leasing costs more in the long run, buying on an installment basis means less cash upfront and can be a boon to your cash flow.

Control Spending – Look over your expenses and see where you can trim the fat without causing the business to suffer. Add employees slowly and cautiously. Watch inventory and be careful not to overstock (this can easily bleed your company of cash).

Accelerate Receivables – Don’t be shy about asking customers for advance payments and reward early payers with a discount. Just putting out friendly reminder calls (“Did you get my bill, when can I expect payment?”) can significantly augment your cash flow.

Using Invoice Factoring for Cash Flow Improvement

Invoice factoring is a convenient cash flow solution that gives business owners access to immediate working capital, and unlike a traditional loan, you do not acquire debt. Small business factoring is particularly beneficial for companies navigating tough economic conditions, as it provides quick funding by turning unpaid invoices into cash. This approach helps improve cash flow, allowing businesses to cover operational costs, manage payroll, and invest in growth opportunities without incurring additional debt. Factoring is a financial transaction whereby you “sell” your unpaid invoices to a third party for a percentage of their value upfront. Specialized factoring tailored to your industry is also an option. For example, security firms can leverage invoice factoring to manage payroll and cover operational expenses, ensuring financial stability even when clients delay payments. To find out more about how a factoring company can help you save time, grow your business, and improve your cash flow and accounts receivables processes, contact Charter Capital.

September 9, 2020
Unpaid Invoices: How Do You Ensure Your Clients Pay On Time?

If you’re worried your clients won’t pay their unpaid invoices due to COVID-19 and the residual economic ripples, you’re not alone. In an era where 55 percent of “temporary” small business closures have become permanent, according to Business Insider, and business bankruptcies are skyrocketing 26 percent per Wall Street Journal reports, it’s clear businesses are struggling with cash flow problems.

Banks and financing companies are all too aware of this. Sometime around April, roughly one in four consumers saw their credit card limits slashed, or accounts closed unexpectedly, according to LendingTree. The Federal Reserve’s most recent survey paints a grim picture too, saying banks are raising the requirements to get loans; better credit and increased collateral are the new standards. “Major net shares of banks that reported reasons for tightening lending standards or terms cited a less favorable or more uncertain economic outlook, worsening of industry-specific problems, and reduced tolerance for risk as important reasons for doing so,” the report reads.

Your Clients May Leave You with Unpaid Invoices

The risk that comes with being unable to collect on unpaid invoices is real. Seemingly solid, good-paying companies are turning delinquent overnight, and if you’re invoicing clients after you’ve provided them with services or goods, you are extending them credit too, though typically not with the same protections banks and financing companies secure for themselves. Preliminary findings from the B2B AI platform Sidetrade show a 23 percent hike in delinquency in the U.K., 52 percent in France, and more than 80 percent in Italy. Numbers for the U.S. have not been released, but unofficial reports indicate the problem is growing across America too. Analysts at McKinsey predict delinquency may grow to three times its current levels by 2022.

Can Your Outstanding Invoices be a Tax Deductible?

Sometimes people hope their outstanding invoices will help them out, come tax time. Companies that practice accrual accounting, meaning they record expenses and revenue when the transaction occurs, can usually deduct overdue invoices as a bad expense when they file the next year. However, businesses that use a cash-basis method, meaning they log expenses and revenue when cash changes hands, cannot deduct them from taxes since the payment was never recorded as part of their income to begin with.

Should You Continue Working for a Non-Paying Client?

When someone owes you a balance, and they’re not making good on it, it’s ill-advised to continue working for them. However, when the balance is paid, it’s a matter of personal choice. Just be sure to address the loopholes that enabled them to become delinquent before resuming work.

The Legal Route: Is Court a Viable Option for Unpaid Invoices?

Naturally, most businesses try to work with a delinquent payer through debt collectors before taking legal action. However, collection agencies can only do so much. So, when it becomes clear the money isn’t likely to materialize, businesses may have little choice but to retain a lawyer.

Determine if going to court is worthwhile.

In the initial stages, an attorney may be able to send a demand letter on your behalf to someone that owes your business money in order to get the wheels turning. That can help if the customer is prioritizing payments and struggling, though it’s rarely worth the expense if the invoice amount is lower. Going to court can also work too, but most states set a minimum for small claims court—typically around $2,000—so it’s not normally suited to smaller invoices.

Apply New Strategies for Non-Paying Customers

Keeping your emotions in check and maintaining good records are practices to continue, but you can reduce the risk of delinquency and maintain strong business relationships by exploring new strategies too.

1. Make sure you followed the procedure and then follow up politely.

Literally every business is in crisis these days and emotions are running high. Particularly as businesses cope with shifting priorities, it’s easy to overlook an invoice. It would be understandable if someone on your team made an invoicing error too. If you notice an account has become delinquent, take a look through their history to ensure all billing protocol was followed on your end. Then, reach out to the customer with a gentle reminder or nudge to let them know they’re overdue.

2. Give discounts on unpaid invoices and charge a penalty.

Discounts on unpaid bills are a positive way to motivate people to pay their invoices on time or early. A reasonable late fee or interest fee is acceptable too. Be sure your policies clearly state that you’ll be doing this and include mentions of it on your invoices as well as on any billing correspondence.

3. Abandon the stiff business approach.

Ensuring “continuity and compassion in customer assistance” are paramount going forward, say McKinsey analysts. They anticipate customer service needs growing and recommend increasing customer service channels as well as customer care associates to keep things running smoothly. However, you may want to consider giving more flexibility than normal. For example, if you have a great client who has always been a good payer and they’re a bit late, it’s ok to waive their fee to maintain the relationship. You may also want to explore things like extended payment terms or a more flexible payment plan if you can afford to do so.

4. Consider collections, arbitration, mediation, and court.

The legal system is still a viable option for delinquent payers but bear in mind the courts are inundated with issues surrounding late payments courtesy of COVID-19’s ripple effect. It may be better to save this as a final step after all other options have been exhausted.

5. Get Started with Invoice Factoring to Solve Cash Flow Issues

An invoice factoring service can free you from the entire collections process and give you the working capital you need right now. It involves selling your overdue invoices to a factoring company. Each works differently, but you can generally expect a lump sum upfront that covers most of the outstanding balance. From there, the factoring company handles the collection process and sends you any remaining cash minus a nominal fee when the customer pays. Factoring companies look into the creditworthiness of the customers before accepting unpaid invoices, which provides assurance they’ll pay.

Get Started with Invoice Factoring

For more than 20 years, Charter Capital has been helping businesses grow stronger through invoice factoring. With same-day funding, low rates, and flexible terms that allow you to factor on an as-needed basis, we can help you too. Get started with a complimentary invoice factoring rate quote.

August 31, 2020
How has the Coronavirus Pandemic Affected Fuel Prices?

Anyone still venturing out of their home despite the coronavirus pandemic has probably noticed it costs a little less to do so lately. Data from the U.S. Energy Information Administration (EIA) shows a major drop in fuel prices and, although they haven’t yet reached the levels of the 2016 oil crash or the 2008 recession, they aren’t far off. What’s behind this shift and what does it mean for the future? Let’s take a look.

Global Demand for Fuel is Down

Back in April 2020, something “horrifying” happened. The price of crude oil dropped below $0 per barrel. That’s not a misprint. The price really went negative. In a World Economic Forum article, Laila Kearney attributed the shift to two major issues: nobody was traveling and there was an oversupply of oil. There was literally so much oil ready to go that companies began running out of places to store it.

“There’s no available storage anymore so the price of the commodity is effectively worthless,” explained Mizuho Director of Futures Bob Yawger. “So when it’s minus a dollar, they’ll pay you a dollar to get it out of there.”

The reality is, though, that demand for oil was already shifting. Research gathered by Matt Whittaker of Ameritrade’s Ticker Tape shows that a major surge in the popularity of electric cars occurred long before COVID-19 struck. Sales have seen 40 percent year-on-year growth and experts from Deloitte believe about one-third of new car sales will be electric by 2030, putting an estimated 31.1 million electric cars on the road. As this shift occurs, it’s only natural that there’s concern about the long-term demand for fuel as well.

The Price Crash May Have a Major Effect on the Future

Oil isn’t the only thing impacted by coronavirus. It has driven most commodity prices down. But, unlike other industries, oil has faced a litany of issues for decades. Increased pushes for zero-carbon initiatives, decreased demand, and corporate bankruptcies have left investors wary of the industry. They also suggest oil demand is preparing to peak.

BP’s former CEO John Browne says he thinks the COVID-19-related crash will serve as a warning about the future of the industry. “We’re right at the beginning [of this debate],” Browne recently told the Financial Times. “But a health crisis changes people’s attitudes significantly and that will roll up to the oil industry.”

We Can Expect Coronavirus to Impact the Fuel Market Moving Forward

With about one-third of global demand vaporizing due to travel restrictions and quarantines, it’s clear the industry has been hit hard. Browne, along with a growing number of industry experts, believe that this shift in mindsets and demands will cause the industry to peak much sooner than expected—perhaps in just a matter of years.

Fuel Cards Remain a Boon to the Transportation Industry

It only takes one look at the EIA’s charts to see that diesel prices are not dropping to the same degree gasoline prices are. While they’ve come down a bit, and that provides trucking and freight companies with some relief, it’s not nearly as much as what general consumers are seeing. There’s a simple reason for this—the transportation industry is still on the move. At the same time, the industries they serve are hard-hit, often putting off paying their own bills to ensure they’ll come out of the pandemic intact.

This in mind, many trucking companies are turning to fuel cards to help keep goods moving. It not only allows them to continue accepting work, but allows them to double up on savings between the card discounts and lower fuel prices.

Fuel Advances are in Demand Too

For companies eager to cash in on the lower fuel rates but are stuck with little cash on hand as payment delinquencies rise, fuel advances are growing in popularity as well. In these cases, companies can sometimes get as much as half their pay from a job from a financing company when they load, making it possible to take on more work or keep operations running smoothly in spite of the economic ripples.

Get Help from Charter Capital

Offering game-changing services like fuel cards, fuel advances, and factoring, Charter Capital can help your company thrive in this changing economy and come out on top. Contact us to find the right solutions for your needs.

August 17, 2020
Was 2019 Just a Pothole for Trucking? Or Something More?

Was 2019 Just a Pothole for Trucking? Or Something More?

Nearly 800 trucking companies failed in 2019, taking almost 25,000 trucks out of the industry’s capacity. Is this a sign of things to come? Or is it an overdue correction?

Celadon Group, by far, represented the biggest name to fall last year when it filed for bankruptcy in December 2019. The Indianapolis-based trucking firm’s demise was the largest in industry history. No surprise, as Celadon was one of America’s 10 biggest trucking outfits at the time. When it closed, more than 2,800 drivers hit the road not with a load to deliver, but a pink slip. Another 1,300 support staffers also lost their jobs.

Ten months earlier, New England Motor Freight shuttered, putting its nearly 1,500 truckers out of work. The company blamed labor costs, excessive regulation, toll increases and insurance rates for its decision to close. Other major carriers that went bust in 2019 included New England Motor Freight, HVH Transportation, Cold Carriers, Falcon Transport and LME.

To be fair, trucking had a banner year in 2018, so anything less than a repeat performance was bound to be a disappointment. A downturn may have even been inevitable. Some believe, even with a driver shortage, there was simply too much capacity in the market. When demand slipped a little in early 2019, it didn’t take much for companies operating with razor-thin margins and little room for error to crack.

But even big companies are hurting. Such industry stalwarts as J.B. Hunt, Knight-Swift and Schneider have revised their outlooks downward. This comes amid news that freight volumes have dropped since reaching a high for 2019 last May. The Cass Freight Index shows shipments in December 2019 at a low last seen in February 2016.

It sure seems like things are bleak. But is this grim view justified?

The United States has entered new trade deals with Canada, Mexico and China. The latter agreement puts an end to a trade cold war between the two giants that has had markets on edge. These trade deals could now spark new demand for equipment, machinery and consumer goods, all of which would absorb excess trucking capacity. Combined with the weaker trucking firms going out of business in 2019, reducing the number of rigs available, rates and revenues should increase, helping boost the industry overall.

No one can predict the future with absolute certainty. While there’s a lot of glum faces in trucking today, there are indicators that better times could be just around the corner. You just have to look for them. Keep in mind that bad news almost always makes for better headlines and generates more clicks. Sometimes you have to read between the lines to get the clearest picture of what lies ahead. Two facts are certain in good times and in bad: Things need to be transported and there’s no more popular or efficient way of getting goods from place to place than trucking.

Is your trucking company currently struggling with cash flow waiting for the turnaround to begin? Do you need the funds presently tied up in outstanding invoices? There is a solution available now. This solution lets you keep on trucking with invoices paid and cash flow problems now in the rearview mirror.

It’s called invoice factoring. With this type of alternative business funding, the factoring company advances you funds in exchange for your accounts receivable invoices. The factoring company pays you right away for your outstanding invoices and takes care of collecting on them from that point forward, freeing you of the troublesome and time-consuming chore.

Invoice factoring is also quick – you can usually get paid within just a day or two instead of waiting the usual 30, 60, 90 days or more. Utilize invoice factoring as often as needed to keep your cash flow running as smoothly as your fleet on a wide-open, traffic-free road. Invoice factoring is a convenient alternative to traditional bank loans or fee-laden online loans. To learn more about how factoring companies work, simply call toll-free 1-877-960-1818

February 4, 2020
No Better Time than the New Year to Prepare for Your Next Business Success

“If you don’t know where you are going, you’ll end up someplace else.” – Yogi Berra, former New York Yankees catcher

The confetti’s been swept up, the noisemakers have been put away, the toasts have all been made, the last auld lang syne’s faded, and, surprisingly, resolutions have already been broken. New Year’s Day is over. It’s time to get back to work.

Not the words you want to hear, of course. But there is an upside… do some smart business planning today and at this time next year, you could have a reason to celebrate even more.

The opening days of the year represent a great opportunity to lay out a road map for future success. A solid, well-founded plan with clear goals can ensure you’ll end up right where you want to be instead of someplace else wondering what went wrong.

Getting from Point A to B

A lot of businesses like to tell interviewees and new employees that there’s no such thing as a typical day at their company. Perhaps that’s true. But here’s something else that’s true: No successful business has ever been run in a random or haphazard manner. Oh, it may seem that way during a hectic time or an emergency. If you want to be a successful small business owner and entrepreneur, making and having a clearly defined set of goals and targets is a must.

As the New Year gets under way, look back at how the past year has gone. What have you accomplished? What is still in progress? What did you fail to achieve? Examine each of these scenarios carefully. It’s not only important to understand why you lost, but how you won as well. Each offers valuable lessons. When you lost, was it because of poor planning, bad execution, a target set too high, or events simply out of your control? What could you have done differently? Don’t overlook your wins. For those areas in which you were successful, what did you do right? Was it due to your preparation? A heroic effort by a part of your staff? A misstep by a competitor? Were you simply in the right place at the right time? It’s never a bad idea to learn not only from your mistakes, but from your successes as well. After all, you want to succeed again, right?

Once you’ve looked back, take an objective view ahead. How can you avoid last year’s setbacks? How can you turn a loss last year into a win the next? How can you improve upon last year’s triumphs? How can you push yourself and your staff to even greater heights?

It’s important to set attainable goals and reachable targets. Place the bar out of reach and you’re just setting you and your team up for disappointment. With reasonable goals in front, everyone knows it’s possible to not only work hard, but that management understands the best challenge is one that pushes and rewards as well. That makes for a better workplace with everyone working toward the same end.

It’s all about the bottom line

The primary business of a business is to make money, otherwise it wouldn’t be a business, it would be a charity, right? If the customer is king, then the bottom line is the emperor. How was your bottom line last year? If it was healthy, congratulations! If it was a little anemic, now’s the time to give it an infusion.

Ask yourself what steps can you take in the new year to either keep your success going in the months ahead or what decisions need to be made to ensure your bottom line is a dark black instead of a blazing red.

Perhaps an acquisition can grow your business? Maybe a new partner would give you some fresh blood or new ideas? Could a move to a bigger space help you accomplish more? Or would a reduction be more in order? Do you need more staff to satisfy growing sales? Better marketing to help you identify more prospects? Don’t be afraid to examine every component of your business. Look closely at how revenue is coming into your firm. Is it generating profit? Or being eaten up by debt or expenses? There’s no better time than when the calendar flips to determine the answers to these questions.

New products and services

One way to generate greater revenues is to open up new revenue streams. That means additional products and services. If you already have a product or service in the works, give them a news release on your website or social media trumpeting this fact. Get them looking ahead and pique their anticipation about what’s to come.

If you don’t have anything yet upcoming, get your team together and brainstorm about ways you can deliver more value to your market. You can also gather a group of your clients and ask them directly about what new products or services you can add to your portfolio to meet their needs. Facetime with your clients helps build rapport, trust and understanding.

Key performance indicators

One of the most important business questions of all is: How do you define success and failure? If you as the business owner don’t know, who else will?

Still being in business on January 1 isn’t the best definition of success. You need something a little more definitive than that. As you set your goals and target for the year ahead, be sure to list important milestones and indicators to meet along the way that show you’re either on the path to reach your ultimate goals or are in danger of falling short. Tie these to months or quarters and review regularly. Pulling up the spreadsheet in late November and discovering your production targets are far behind or your sales nowhere near where they need to be is, well, not a good idea.

If your key performance indicators show you’re behind, you’ll need either to increase your effort or adjust your targets downward. If indicators show that you are ahead of your goals, give yourself a big pat on the back for your hard work and keep up the pace.

With some thoughtful planning and careful consideration, you’ll have a clear idea of where you’re going in in the new year. You stand a better chance of getting where you want to be instead of somewhere else.

January 14, 2020
Female Drivers Revolutionizing the Trucking Industry

Female Drivers : The next time a semi tractor-trailer truck picks up or drops off a load at your dock, you may well encounter a woman behind the wheel. Once almost exclusively the bastion of men, the trucking industry is now welcoming more and more women.

The profession has seen a 68 percent increase in the number of female truck drivers between 2010 and 2018, according to the American Trucking Association. More than 234,000 women were employed driving trucks last year, the association said. This represents just 6.2 percent of all drivers (3.5 million total), but the trend is on an upward slope.

Equal pay was a main reason more women were getting behind the wheel. Truck drivers earned a median yearly salary of $44,500 in 2017, according to the Bureau of Labor Statistics. This is higher than several traditionally women-dominated careers such as office administration ($38,990), healthcare support ($32,380) and food preparation ($25,580).

Female Drivers Revolutionizing the Trucking Industry

Driver shortages and retention problems have been plaguing trucking firms in recent years, with an estimated 60,000 driving jobs unfilled at the beginning of 2019. That number is expected to grow to nearly 175,000 by 2026. Companies desperate for more gear jammers to meet increasing customer demand aren’t eager to turn away willing, qualified candidates, no matter their sex.

As a female driver from Missouri, Deb La Bree, summed up in a Fox News story: “The steering wheel knows no gender.”

Several changes in the trucking industry have made it easier for women to enter. For example, new truck transmissions are easier to operate and are less grueling to use over a long-distance haul. In addition, truck drivers are no longer required to unload their cargo at their destination.

“New technology and equipment make truck driving a job that’s more geared toward women,” said Lindsey Othmer, a truck driver in Fife, Washington, in a recent Wall Street Journal article on the growing number of female truckers.

Rebekah Koon explains in a recent Fox News story, “I don’t think it’s all about the pay. I can say, on a personal level, that I actually just really enjoy the trucking… I enjoy the people I meet and the sights I see. I also know that the pay was a definite benefit,” she admitted.

Besides equal pay, what are some other reasons more women are jumping in the cab?

“I like being on my own and making my own decisions about how I’m going to get the job done,” driver Lanelle Devlin tells CNBC’s program Make It.

Margo Mitchell of Schneider says on her company’s website that she was born to be a trucker. “My dad raised me to be a driver,” she recalls. “He saw a God-given talent. At 15, I pointed at a tractor-trailer and asked if he thought I could drive one of those. He looked me in the eye and said, ‘You’re a Mitchell. You can drive anything.’ I started studying for my CDL before I even had a permit to drive a car.”

Schneider has a dedicated page devoted to telling women what it’s like to be a female driver for the company. Schneider driver Toni Thomas gives this advice: “Women shouldn’t be afraid to get out of the norm. I think driving can make a woman feel empowered. I also believe that women are safer drivers because they aren’t afraid to ask questions, ask for help and are willing to learn.”

In the 1970s, the Virginia Slims cigarette brand ran an iconic advertising campaign congratulating women on their progress in the business, political and social worlds. “You’ve come a long way,” the ads proclaimed. Today, not only have they come a long way, but they’re going even farther, often behind the wheel of a big rig on the open highway.

November 19, 2019
Improving Your Odds of Getting a Small Business Loan and Identifying Your Alternatives
For a bettor or a gambler, few things are as revered as a “sure thing.” That’s because few things are ever truly assured. OK, in horse racing, seeing Secretariat’s, Seattle Slew’s or Seabiscuit’s name in the lineup is never a bad sign. The same can be said for holding a royal flush in a high-stakes poker game. But how many times do these happen? In most endeavors, success is never a sure thing, which is why so many people want to stack the odds as much in their favor as possible before taking a chance. And even then, there’s still the possibility of walking away empty-handed.

A small business owner faces that dilemma each and every time they apply for a loan. Getting a small business loan is far from a sure thing. In fact, the odds are often greater of failure than success.

An estimated 30 percent of all businesses fail not because they had a bad idea or they lacked customers but because they ran out of money to keep the operation afloat. So, access to capital, be it to launch a small business or to grow it, is vital.

Small businesses can be capital hungry ventures

They borrow approximately $600 billion a year, a Small Business Administration study has found. About 40 percent of small business owners applied for a loan in 2017, according to the Federal Reserve. The average loan size was $633,000. However, more than half of borrowers applied for loans of $100,000 or less.

Banks and other traditional financial institutions typically reject far more small business loan applications than they approve. Alternative lenders are a slightly better bet with a little more than half approved. But even then, it’s not much more than a 50-50 proposition. Not the best of odds. Is there anything you can do before you apply for a loan to improve your chances? Can you swing the odds more in your favor? The answer is yes, and there are alternatives too.

Build Up Your Personal Credit Score and Business Credit Score

When applying for a loan, no matter what kind of loan, one of the first things a financial institution will look at is your credit history. Personal credit scores show the lender (especially traditional lenders such as banks) your ability to repay personal debts, such as credit cards, mortgages, and car loans. They also look at if you repay your bills on time, how often you have late payments, and the lines of credit you have taken in the past. If you are applying for a small business loan, financial institutions will look at your personal credit score to see how you manage debt.

More established businesses, or companies that have been around for longer, will have business credit scores

Your personal credit score is known as a FICO score and usually ranges from 300 to 850 (the higher your score, the better), while business credit scores usually range from 0 or 1 to 100. Credit bureaus like Experian, Equifax, and Dun & Bradstreet are able to provide you with one free credit report per year.

You can build your business credit by establishing trade lines and keeping your public records clean

To qualify for an SBA loan or a traditional bank loan, you’ll need excellent business credit and good personal credit. However, online lenders may be more lenient because your business’s cash flow and track record are typically considered more important than your credit score.
- Have a solid business plan: Lenders are not gamblers. They are risk-averse. It’s simply their nature. Your job is to convince them you’re a sure thing. How? By having a complete, thorough, and well-presented business plan, accompanied by a concise executive summary. Demonstrate your knowledge, foresight and planning skills. Show you’ve thought of every conceivable contingency as well as a way to overcome any potential issues. Let your passion shine through, but also display your sound judgment and fiduciary responsibility.
- Have some skin in the game: Don’t walk into the lender’s offices expecting them to finance your business 100 percent. Even with the best business plan in hand, you still represent a risk. The lender is going to want to see you’re willing to share at least some of that bet with your own money. The more equity you have in the business when asking for a loan, the greater your odds of approval. Anything less than a 25 percent stake jeopardizes your chances of success.
- Invest first in things that generate income: Lenders want to see a revenue stream that can be put back into the business to grow and expand towards continued success. What they don’t want to see are things that constantly take away from that revenue. One example is your business’s physical location. Do you plan to purchase or construct a building or rent space? If it’s the former, the bank will likely frown on that, considering those costs to be a drain on future revenues and your ability to repay the loan. Rent space in the beginning. You won’t be tied down and if trouble comes, you can easily downsize as needed. Plus, it will show the lender your first interest is generating income not expenses, something they want to see.
- Shop around: As we’ve already seen, small business loan approval rates vary greatly among different types of lenders. Generally, the bigger the lender, the less likely a small business is to get a loan, as larger banks often favor more established borrowers and stricter approval criteria. Focus more on smaller institutions. Not only do they have a higher approval rate, but they are also more likely to give you greater attention and service. If you’re considering an alternative lender, such as an online loan provider, first check out our previous article on the potential pitfalls of going this route.
Five Essential Tips to Enhance Your Small Business Loan Application

Securing a small business loan can feel like navigating a complex labyrinth, especially for first-time applicants. However, understanding what lenders are looking for and preparing accordingly can significantly increase your chances of approval. Here are five tips that can make the difference:
- Solidify Your Business Plan: A detailed and well-articulated business plan is not just a document; it’s a reflection of your foresight, strategy, and preparedness. It should outline your market analysis, financial management strategies, and a clear summary of your business’s goals and operations. Lenders want to see a viable path to profitability and growth, as it directly impacts your ability to repay the loan.
- Strengthen Your Credit Score: Both your personal and business credit scores are critical to your loan application. They indicate your repayment history and financial responsibility. Before applying, check your credit report for any inaccuracies and take steps to improve your credit score, such as reducing credit utilization and ensuring all bills are paid on time.
- Demonstrate Strong Cash Flow: Cash flow is king in the eyes of a lender. It’s the lifeline of your business and a key indicator of your ability to manage financial obligations. Prepare to show detailed financial statements and projections that illustrate a robust cash flow, sufficient not only to cover operational costs but also to comfortably repay the loan.
- Prepare Comprehensive Business Documents: Beyond the business plan, be ready with all necessary documentation that a lender may require. This includes financial statements, tax returns, legal documents, and a detailed plan on how the funds will be used to grow your business. Being thorough and organized can speed up the application process and increase your chances of getting approved.
- Explore Alternative Lenders and Loan Types: Don’t limit your search to traditional banks. Credit unions, online lenders, and SBA loans offer various terms and conditions that might be more suited to your business’s needs. Each lender has a different criterion and understanding these can help you apply to the right institution, thereby enhancing your chances of securing a loan.
By focusing on these five areas, small business owners can not only improve their odds of loan approval but also position their business for successful growth and expansion. Remember, preparation and understanding the lender’s perspective are key to navigating the loan application process successfully.

There’s another way to get same day funding

Engage an invoice factoring company to fund you the amount of your outstanding accounts receivable invoices upfront, giving you the cash you need today to run your business today, and eliminating the worry and hassle of waiting to collect payments from your customer accounts. You’re left free to run your business. Invoice factoring is a convenient alternative to a traditional bank loan or fee-laden online loans.

Factoring gives you the money you need when you need it with no long-term obligations. You can also get cash quicker through invoice factoring – usually within a day or two. To learn more, simply call toll-free 1-877-960-1818 or email [email protected].
September 30, 2019