Author: Keith Mabe

The Streets are Paved with Gold for Gear Jammers as America Celebrates National Truck Driver Appreciation Week

America’s transportation infrastructure is crumbling, with traffic-clogged freeways, pothole-strewn side streets and aging bridges making travel as much an aggravation as an adventure. But for the nation’s 3.5 million truckers, these troubled byways have lately proven to also be yellow brick roads leading to prosperity.

In fact, according to the American Trucking Associations (ATA), there’s no better time to be a trucker or to own a trucking firm in the U.S. The industry enjoyed a robust $796.7 million in revenues in 2018, up nearly $100 million from the previous year. Truckers moved almost 11.5 billion tons of freight in 2018, representing 71.4 percent of all U.S. tonnage freight. That number could be surpassed this year, as the ATA’s July 2019 truck tonnage index surged up 6.6 percent over June. The association is projecting the growth will continue over the next decade, forecasting a healthy 25 percent jump by 2030.

To celebrate, the ATA has declared Sep. 8-14, 2019, as National Truck Driver Appreciation Week. The week will honor truckers for the jobs they do in delivering tons of products and goods safely, securely and on time throughout the country. The ATA estimates more than 80 percent of U.S. communities rely exclusively on truck drivers for deliveries.

“Truck drivers are an integral part of the nation’s growing economy and deserve to be celebrated by their companies, customers, neighbors, families and friends,” ATA President and CEO Chris Spear said in an association press release. “Everything that we consume – groceries, school supplies, clothes, medicine – gets delivered by a truck driver whether it’s to your front door, your local market, or your workplace. These drivers improve our quality of life by dedicating themselves to safety and making every effort to deliver the things we need efficiently, professionally and responsibly.”

There are an estimated 1.2 million trucking companies across the nation. Combined, these firms operate 15.5 million trucks, two million of which are tractor trailers. The ATA says most carriers are small companies – 91 percent run six or fewer trucks and more than 97 percent operate 20 or fewer. About one in nine of the country’s 3.5 million drivers are independent owner-operators.

However, despite these numbers, there is a tremendous shortage of drivers, with more and more work available and not enough men and women behind the wheel to do it. The ATA estimates that an additional 60,800 drivers were needed at the end of 2018, and that number could be higher at the end of this year. Experienced drivers are retiring (the U.S. Census Bureau indicates the median age for a truck driver is 46 years of age versus 41 for all workers). Freight service demand is rising, due in no small part to a surge in e-commerce, which relies almost exclusively on deliveries. So, for younger workers looking for jobs in demand with plenty of income potential and growth, the trucking industry should be an appealing career choice.

Two issues facing many small carriers and independent owner-operators are cash flow and timely payments on invoices. Having slow-paying customers can put the brakes on a trucking company’s operations and growth. One easy way to improve cash flow and overcome slow pay (or no pay) clients is to sell your invoices to a third party, also called a factoring company. The factoring company can 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 slow pay collections. 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 9, 2019
Invoice Factoring: A Better Way to Manage Your Accounts Receivable
A vexing problem almost every business faces, large or small, is accounts receivable. How can you get payments from your customers in a quick and timely manner? Is there a way to get them to pay faster? And if not, is there a way to get around the 30- or 60-day lag from when your invoice goes out and their payment comes in?

The answer is yes! Through “invoice factoring,” you can sell your accounts receivable to a third party (known in the business world as a “factor”). The factoring company will pay you immediately and collect the money themselves down the road. This innovative financing concept provides businesses of all sizes with much-needed flexibility in obtaining capital. Factoring costs are directly related to the business cycle, making it an attractive option for various industries, including factoring for service providers

Want to make the most of invoice factoring? Here are a few helpful tips to get you started:
- Understand what invoice factoring is and what it isn’t – Invoice factoring and invoice financing are two types of accounts receivable financing. Invoice financing is similar to invoice factoring in that it’s a way for businesses to get paid quickly on an invoice, rather than having to wait weeks or months before payment is officially due. However, invoice financing doesn’t involve selling invoices. Factoring can certainly help your business improve its short-term cash flow and enable you to get almost immediate money from outstanding invoices. However, factoring cannot, and will not, solve ongoing issues such as customers with bad credit or clients who exceed their credit limit. Yes, a factoring company can aid with some of these, such as performing customer credit checks on your behalf, but ultimately, it’s up to you to determine who is creditworthy, how much credit you should extend, and the terms and conditions of that credit. If you insist on extending credit beyond the amount a factoring company recommends, you are increasing your risk.
- Organization, organization, organization – Before you can even start to take advantage of invoice factoring, you have to know who owes you, how much they owe you, and when that bill is due. After all, if you don’t know the answers, how can you expect a third party to know? If you haven’t done so already, get your customer account files into shape before you engage a factoring company. Make sure all customer files have every piece of correspondence between you and the client, as well as all invoices and payments. Once you’ve done this, you’ll better understand the relationship’s history and, more importantly, you’ll have a clearer picture of the outstanding invoices you can send to a third-party factoring company. Plus, you’ll have an organized accounts receivable system, which is always a good thing.
- Be open, accurate, and include all liabilities – It’s natural as a business owner to be leery of disclosing delicate company information to strangers. However, to get the most bang for your factoring dollar, it’s best to be upfront about all liabilities, including the extent of your company’s indebtedness. By being open and honest, the factoring company can get a more accurate picture of your situation and can better devise a strategy for accounts receivable factoring.
If you’re a business owner navigating accounts receivable challenges, it’s important to recognize that different industries may require unique factoring solutions. For example, staffing factoring is specifically tailored to address the cash flow needs of staffing agencies, allowing them to meet payroll obligations without delay. By leveraging this industry-specific option, staffing companies can maintain steady operations and focus on growth, rather than worrying about gaps in cash flow caused by extended payment cycles. Equally, businesses in the oil and gas sector can leverage oilfield invoice factoring to address industry-specific challenges related to maintaining cash flow.

What are the benefits of invoice factoring?

By uncovering the benefits of invoice factoring, you’ll also learn how it can help grow your access to working capital without going into debt!

Invoice factoring is an alternative form of financing that is available to businesses that may not have an established banking record with a major lender. Banks and traditional lenders often operate on a line-based financing model based on what your business has already done and the assets you currently own. Invoice factoring, on the other hand, is an innovative way for your business to access the funds you have tied up in your accounts receivable.

Here are four major advantages of invoice financing:

1. Shift your cash flow into high gear

Applying for business loans or alternative financing options can take months to get approved. With invoicing factoring, your business can get much quicker access to cash if you have immediate financing needs.

2. Financial flexibility

If your business requires financial flexibility in terms of maintaining cash flow, then invoice factoring would be your best option. This way, invoices don’t have to be paid in full before there is money in the business account.

3. Higher probability of financial approval

When determining the chances of accessing funding – aspects such as your credit score, collateral, and financing history are often considered with traditional financing. However, these are not required for invoice factoring approvals. Your factoring partner is more focused on the payment history of the customer required to pay the invoice. This is important to understand the level of risk that would be taken in invoice factoring.

4. Save time and money – No collateral required

Normally, when a business applies for a loan or line of credit, the bank requires the business to have upfront collateral such as equipment, vehicles, buildings, inventory, or even intellectual property. However, with invoice factoring, a business doesn’t have to worry about showing that traditional collateral. This can save you enormous amounts of time and paperwork.

With these tips in hand, what can invoice factoring do for you? By employing a third-party factoring company, you’ll be able to now:
- Improve business cash flow
- Invest that money back into your business and into your staff
- Move resources away from collections into more useful and profitable positions, such as sales, marketing, or customer service
- With more reliable cash flow on your end, you’ll be current with your suppliers and may even be able to negotiate better terms.
Now that you have a few ideas on how to make the most from invoice factoring, how do you choose a factoring company? Here are a few questions to ask when considering employing an accounts receivable factoring company:
- How long have you been in business?
- What are your fees?
- Must I submit all invoices, or do I have a choice in which ones I send to you?
- Are you industry-specific? Do you have experience with companies like mine?
- May I see references?
Choosing an invoice factoring company is, like all business decisions, one that should be made only after careful consideration. It’s important that you find someone who understands your business and your unique situation. No two businesses are alike. Find a factoring company that not only understands you but one that can offer you a range of solutions to your cash flow problems. The future of your business could be riding on your choice, so be sure, as with any transaction, you arm yourself with the best information you can find in order to make an informed decision.

If you’re ready to grow your business by factoring your accounts receivables, Charter Capital can help. Establishing yourself and finding out your accounts receivable factoring rate is free, so you can get started on improving your cash flow right away. Request a complimentary invoice factoring rate quote now.
September 9, 2019
Learn to Ride the e-Commerce Wave… or Else

Amazon has unleashed an e-commerce tsunami that has caused waves of disruption in the retail industry. As a commercial vendor engaged in B2B sales, you may think you’re not affected by Amazon. After all, you sell widgets, not books. Think again.

Amazon has established a new mindset among shoppers. Yes, these are retail shoppers, not commercial ones. However, it’s only a matter of time before this e-commerce wave washes up on commercial B2B vendors’ shores. And that means you.

Very soon – if not already – one or more of your customers are going to be shopping online at Amazon and wonder why their business vendors don’t offer the same convenience, speed and delivery as Amazon. Will you be ready when that happens? Or perhaps it has happened and you’re wondering what to do next?

Related Article: It’s Small Companies, Not Big Business, That Create Jobs

Let’s Go Surfing Now, Everybody’s Shopping… and How!

The old business axiom of “location, location, location” is hopelessly obsolete. Buying local? That’s so 20th century. The entire world is a marketplace in 2018. A company may reside in Houston, but thanks to the Web and e-commerce, its customers may now be in Houston, Austin, Seattle, or even Europe or Australia. Success today no longer depends on your customers getting to you to buy your offerings, but on you getting your products and services to the customer after the purchase – the quicker the better.

No matter what commercial product or service you provide, e-commerce has almost certainly begun to alter the way you do business. Customers today have grown used to buying online, without ever having visited a traditional brick and mortar establishment, and having those items shipped to them either overnight or via express two-day mail. It doesn’t matter if these purchases are for personal or business use. Expectations have been set, and if a vendor does not offer an e-commerce option, it stands a good chance of losing a sale and, ultimately, a customer.

What if your business isn’t currently riding the crest of the e-commerce wave? What if you don’t offer your customers a way to buy online and receive purchases via next-day or rapid delivery? Are you simply sunk and out of luck?

Happily, the answer is no. You can still catch the tsunami. However, here are a few things to keep in mind about e-commerce before you throw up a website and expect revenue to flow in like the tide.

Consistent In-Person and Online Experiences are a Must

Your brick-and-mortar locations are well known for their great customer service and welcoming experience. Your online presence must reflect that same feel. Otherwise, you risk causing customer confusion, disappointment and even anger because they won’t be getting what they are used to when dealing with you in person.

You’ve no doubt spent a great deal of time and resources building your brand. You’ve gone the extra mile to ensure your customers know that when they step into your establishment with a need that you’re there to help them solve their problems and that their business is valuable to you. If they don’t get that same vibe from your online presence, you risk losing not only their future business, but your hard-won market reputation as well.

Giving Enough Product Information to Make a Sale

When a customer shops in a brick-and-mortar business, there’s someone around who can answer questions, provide guidance or even offer a demonstration. Not so online. That means it’s important to offer enough information to convince the prospect to buy, but not so much they are overwhelmed, become confused or frustrated.

Three things to consider are visuals, use of enticing marketing language and specifications. Always include a photo of the item. People won’t buy what they can’t see. As for language, spice it up. “Sell the sizzle” applies in person and online. Finally, as the potential buyer can’t touch or feel the item, be sure to give product specifications. Providing specs will often answer many initial, basic questions and head off potential return problems down the road.

Provide Excellent Customer Service – Before and After the Sale

No doubt you already provide great customer service at your brick-and-mortar location. Don’t overlook customer service when it comes to e-commerce. Just because you may never see or interact with your online customers in person doesn’t mean you can take their purchase or their satisfaction for granted.

A good, customer-friendly e-commerce site will have the company name prominently displayed and easy-to-find contact information. Furthermore, that contact information will have a phone number customers can call with questions, concerns or complaints. The site will also clearly state the days and hours that number is available. It will also contain an email address along with the expected response timeframe. Many companies (including Charter Capital) are using live chat features to provide instant e-help.

One big don’t… don’t simply have your customers fill out an online form without the option to receive live assistance. That’s not only a turn-off, it tells them their questions and concerns – as well as their business – aren’t that important to you.

A Wide Variety of Shipping and Delivery Options is Essential

In the entertainment world, a sure path to success is to “give the people what they want.” The same is true in the e-commerce arena when it comes to shipping and delivery.

Customers come to your website or app for two reasons: First, they believe you have a solution to their problem or can fill their need. And if they’re interested enough to make an online purchase with you, you’ve successfully convinced them you can do both. However, unlike a sale at a brick-and-mortar location, the job isn’t finished yet. Why not? Because second, they want that purchase as quickly (and cheaply) as possible. If you can’t provide that, then all your work to this point will have been for nothing.

Amazon has set the retail e-commerce bar for shipping and delivery, and it’s a high one. Buyers know that when they purchase from Amazon, they’ll get their shipments in two days. Not only that, they’ll get shipping at a good rate, or even receive free delivery. Maybe it’s unwarranted, but if they can get these things at Amazon, business and commercial buyers expect that speed and price from you as well. To them, it doesn’t matter if the item is a $10 novel or a $10,000 industrial widget.

You can probably match the two-day delivery without much difficulty, but will you be able match the rate? That’s where the problem starts for small businesses. Yes, you’ve developed a customer-friendly website, you’ve established top-notch customer service, and your product price beats the competition. Congratulations… but you still may miss the sale because your shipping rate is higher. Or because you don’t offer package tracking.

Fulfillment Coordination Can Make or Break Your e-Commerce Efforts

Finally, there’s fulfillment. You’ve sold your product to an eager customer at a price they could afford and at a satisfactory shipping rate and schedule. Game over, right? No. Now the truly hard stuff begins: fulfillment.

In a brick-and-mortar establishment, the customer picks up an item themselves. Any error is usually met with a smile or a shrug from them. In e-commerce, you send the item to the customer. If you send them the wrong item, or if you send the right item to the wrong address, all the work and good will you’ve built using the tips above sinks like lead.

Organization, training and constant vigilance are the hallmarks of accurate fulfillment. The delivered package is the last thing the customer sees from you, and nothing leaves a worse impression than bad fulfillment.

Now that you’re more familiar with what to do – and now also know some things not to do – get ready to make a few e-commerce waves of your own.

September 9, 2019
Are Big Banks Giving Small Businesses Service or the Cold Shoulder?

Everyone naturally wants to feel their patronage is valued and welcomed when they do business with a firm. Grocery shoppers want to be appreciated when they check out; drivers want to be gratefully acknowledged when they have their car serviced at the shop, and so on. Businesses feel the same way when they conduct business with each other.

Small businesses have been feeling underappreciated as of late. Not by their customers. Not by the government’s Small Business Administration. Not even by the news media. No, they’re feeling that they are not getting the welcome and the services they feel that they are due from the firms and institutions they rely upon to grow and expand. They feel they’re being ignored by banks, especially by big banks.

It’s been shown time and again that small business is the real engine that drives the American economy. Small businesses combined generate more revenue and employ more people than big business. Yet when an individual small business owner goes into a big bank to ask for a loan or for financial assistance, it seems many walk away with frustration and anger rather than with money or help.

Are big banks giving small businesses service or the cold shoulder?

First, here are some numbers. Small businesses are investing to meet growing demand for their products and services in a strong economy. Borrowing by these companies has reached recent highs. Big banks report they have loaned record amounts to small businesses, continuing a trend since the end of the last recession. Forbes has even run a helpful article identifying the top 10 big banks loaning the most to small businesses. So everything is fine and dandy, right? Yet horror stories still abound about how big banks seemingly give small businesses the back of their hands on a regular basis.

Both scenarios can’t be true. It can’t be a boom time for big bank small business loans, yet, in the same instance, be a time when small businesses bewail about bad treatment at the hands of big banks. But that seems to be the case.

Small Businesses Don’t Receive What They Need from Big Banks for Many Reasons

Rather than provide anecdotal stories that reflect individual experiences, let’s look at some firm reasons why a small business owner may not get what he or she wants at a big bank. In other words, why might you be turned down for a loan even though, according to published reports, big banks are loaning more than ever to small businesses?

Credit Score/Credit History – Credit score and past credit history are the first things banks look at. If your score is too low or your history reflects a slowness to pay, this will put any potential loan in jeopardy from the start.

Little or No Collateral – No matter if a bank is big or small, it’s not extending a loan for its health. It expects something in return, preferably more money coming back in than it lent out. If it can’t be repaid, then it expects some type of collateral it can take instead to settle the loan. If you can’t offer collateral to secure a loan or what you have to offer isn’t worth much, your chances for a loan are greatly diminished.

Risk – Nothing lasts forever. But a small business may not even last a year. That means a big bank loan to a small business involves increased risk, and risk is something banks are quite averse to. They prefer a sure bet. If they do not view your small business as a sure bet but rather a risky proposition, your chances at a loan start to quickly dwindle.

Interest Rates – You can’t get something for nothing. A bank may charge a higher interest rate to recoup a riskier loan. Of course, that higher interest rate may, in turn, make it harder for the borrower to repay, causing either the small business or the bank to walk away.

Not Enough Return – Related to the above. A bank is a business like any other. They have owners and stockholders who expect to turn a profit. A small business loan, even at a high interest rate, may not provide enough return (profit) to cover its costs to the bank. In that case, the bank may figure, “Why bother?”

You – It’s not personal. But you may not have made a good enough presentation, provided enough information or just not been convincing or confident enough to overcome the bank’s reluctance to engage in what it views as a risky activity.

You Have Options Even if You’ve Been Denied a Traditional Small Business Loan

So what can you do when you walk into a big bank looking for a loan and encounter each of these points? It’s on your shoulders to address each of them and to show the bank you have a sound and workable business plan, that your plan will result in a strong and growing business that will be able to satisfy its customers, pay its employees and vendors, and repay the bank in a reasonable period of time at a minimal cost to the bank.

Of course, unless you’ve come up with a product or service that sells itself – like a cure for baldness or a way to turn straw into gold – that’s often easier said than done. No one ever said running a small business was a cakewalk… not even a baker.

Be Mindful About the Dangers and Risks of Alternative Small Business Funding

There are alternative methods of small business funding if you do not wish to engage with a big bank or have already done so and have been turned down. However, some of these alternative sources often have hidden or high costs associated with them that may make using such a source more expensive or more trouble than it’s worth. For instance, online small business loans/ cash advances can provide fast money, but often at a high price.

Explore Other Credit Alternatives to Big Bank Loans

One alternative gaining traction is working with community development financial institutions (CDFIs) or community banks, which often have more flexible underwriting standards and a better understanding of local market conditions. These institutions may be more willing to approve loans to small businesses based on their operational strength rather than rigid credit thresholds. However, they still typically require a credit score of at least 600, and often greater than 650. Plus, CDFIs exist to help underserved populations and promote economic development. If your business has access to opportunity and financial services, it is unlikely to qualify for a CDFI loan. Furthermore, the process can be slow. So while CDFIs can help certain marginalized businesses, they still come with many of the same barriers big banks have,

Another approach is asset-based financing, where a business leverages existing receivables or inventory instead of taking on new debt. This is where invoice factoring comes into play, offering fast access to capital without the lengthy approval process required by many lenders. As credit standards tighten and approval rates shift, small business owners must adapt by exploring funding partners who align with their needs.

Streamline Your Funding with Invoice Factoring

If a bank doesn’t seem to want your business or to help, and credit-based options are not ideal, you may want to take a closer look at invoice factoring. What is invoice factoring and what makes it a great option for small businesses?

Basically, invoice factoring is a time-tested and proven way for a small business to get immediate funding on its outstanding customer invoices. For example, you may have a slow-pay customer who takes 60 to 90 days or more to settle an invoice for products or services rendered. This delay can cause a small struggling business many hardships as it awaits payment. By employing an invoice factoring company, the small business can receive immediate funding for all its outstanding invoices. Rather than waiting to collect payment from its customers, the small business can put that money to work straight away, either to grow, pay current workers, hire more workers, or settle invoices of its own. In turn, the customer sends invoice payments to the factoring company in the normal course of business.

Charter Capital USA has been providing fast, efficient invoice factoring services for more than 20 years. Our company understands the funding challenge small business owners face. We have the experience and know how to help small businesses overcome those financial challenges and improve cash flow. We are a partner you can trust. To learn more, talk to a factoring specialist.

September 9, 2019
How Can Freight Factoring Fund Your Trucking Business?

Insufficient or uneven cash flow can prevent your business from meeting its full potential and even stunt your long-term growth as a company. Trucking businesses face a number of unique challenges when trying to grow their business, including fuel costs, inventory, and more. Fortunately, your trucking business has a few resources at its disposal to keep cash flow problems at a minimum. Trucking Factoring, also known as freight bill factoring, has become a major player in cash flow management in the trucking industry, allowing trucking companies to manage their business cash flow easily and conveniently.

Freight factoring services are specifically designed to meet the unique needs of the trucking industry and the transportation industry as a whole. Trucking factoring also has a much easier application and approval process than business loans for truckers, and they do not negatively affect your company’s credit score. Small business loans for truck drivers typically include long waiting periods, but freight factoring companies can offer you approval and funding in as little as 24 to 48 hours. Factoring is the trucking financing option that gives your business the cash flow it needs when it needs it.

Build Better Credit

Few things can cause a business to fail like poor cash flow and bad business credit can. Freight factoring services allow business owners to build strong business credit by providing them with access to same-day funds to cover their expenses and pay off previous debts. Unlike traditional business loans, factoring for trucking companies works around potential poor credit history to provide adequate funds to get your business up and running. With sufficient funding, you’ll be able to rid your business of debt and focus on expanding it. And because this is a transaction where your trucking business will be selling its open accounts receivables to a freight factoring company, you are not acquiring debt. You are simply being advanced money that is already owed to you, so there are no negative marks on your credit score.

Take Advantage of Flexibility

The factoring process allows for more flexibility than the average bank loan, which means your business can take better control over its operating costs. By factoring only the outstanding invoices you want and only when you need the extra cash flow, you can decide what funds your company will use, when, and on what. Your business remains in control of your funds at all times, with no minimum or maximum volume requirements.

Dream Big

A reliable cash flow allows your business to take on bigger, better projects, knowing that your cash flow won’t be interrupted by unpaid invoices. Whether you’re interested in expanding your truck fleet, or opening up a new office, factoring can help. Not only will you be able to manage your cash flow, but you’ll also be able to add to it by attracting new business and creating new opportunities for your trucking company to expand. Even simple things like offering discounts and incentives become easier with dependable invoice factoring.

Customer Service

Banks typically offer a “one size fits all” solution to most of their clients, so there are not necessarily trucking business loans. Factoring companies, however, provide personal assistance with dedicated account managers who are familiar with your company’s individual circumstances and business goals. Factoring is the trucking finance solution that is designed to help businesses in the transportation industry focus on growing their business. Factoring companies can also help your trucking business by offering additional administrative assistance with collections support, online reporting, and credit card verification.

Get the best deal for your trucking company with Charter Capital’s freight factoring services. Take advantage of our low rates, same-day funding, no-term contracts, and more today.

September 8, 2019
Bottom Line: Prepare Now for the Next Downturn

Not long ago, a well-known professional wrestler had a popular catchphrase he would shout out during TV promos. “That’s the bottom line, ‘cause Stone Cold Steve Austin said so!” This meant the audience could bank on what the hulking grappler had said would come true, usually to someone else’s grief. Stealing a phrase from Mr. Austin, what’s the “bottom line” on the current economy? And is there something coming that could cause small business owners grief?

Right now, as of mid-August 2019, the line looks encouraging. Unemployment stands at a low 3.7 percent. The latest small business confidence index has fallen slightly to 103.3, but still remains historically high. The annual inflation rate for the 12 months ending in June 2019 tallied a modest 1.6 percent. Even stocks continue to rise, with the current bull market now past its 10th anniversary, making it the longest on record. One small negative blip recently appeared when the Purchasing Managers Index fell to 51.2 in July, its lowest level in three years.

If there’s one thing certain about good times, it’s that they don’t last forever. Somewhere, sometime in the future a downturn in business or some other crisis will occur. As Austin would put it, “that’s the bottom line.” History has shown it time and again. Austin made a career out of sneaking up on unsuspecting opponents and applying his dreaded “Stone Cold Stunner” with devastating results. But unlike a clueless brawler, you don’t have to be caught by surprise. Here are a few heavyweight suggestions that may ensure that even when times do get tough, you’re still standing when the match bell rings.

Don’t Cut Advertising, Publicity and Marketing – It’s always cheaper to try to wrestle new sales from existing customers than to find new ones. As a result, many small business owners believe the first department to cut in a downturn is marketing. That belief can prove fatal. True, building upon and expanding existing client relationships is never bad policy, but not going after new customers is. Without new customers continually refreshing and growing the sales pipeline, an operation quickly stagnates and ultimately shrinks or even dies. A downturn is a great time to renew marketing, advertising and publicity. For one thing, your competition may be foolishly cutting back, leaving an opportunity for you to build market share at their expense. For another, customers may be using the downturn to search for new vendors and better deals. If you’ve cut back on or eliminated marketing, you may not find them nor they you.

Recession-Proof Your Personal Credit – Just as a homeowner prepares for winter by weatherproofing a house in the fall, wise small business owners use prosperous times to ensure their personal credit can withstand tough economic times. Small business loans are hard enough to get as is, with nearly 50 percent getting denied. Those loans are even tougher to secure in a recession, as banks keep money close and become risk averse. This means you may have to use your personal credit to keep your business afloat. Do what you can now to boost your credit rating and available credit lines.

Manage Inventory, Vendors and Debt – When you’re in a hole, the first step in getting out is to stop digging. In a downturn, excessive inventory, costly vendor contracts and excessive debt can tag team your business, making a bad situation even worse. As a recession begins, take steps to reduce inventory, renegotiate vendor contracts or seek out new ones, and pare down debt. These actions will turn your organization in to a lean, mean fighting machine able to better withstand a downturn.

Focus on What You Do Best – When times are good, businesses naturally expand into new areas and diversify their offerings outside their primary area of expertise. This is a good and healthy thing. But when times get bad, these extras may drag you down. Every business has a core competency that forms the basis of their business and sets them apart in the marketplace. Focus on this strength during a downturn. If you’re a widget maker that does event planning on the side, event planning probably distracts you and wastes resources better spent on the real center of your business and earnings.

Protect and Improve Cash Flow, the Lifeblood of Your Company – It’s no revelation that in tough economic times, access to money tightens. The best way to keep your business off the mat in a recession is to keep a healthy stream of cash coming in. This means, as mentioned in the first tip, to resist the urge to drop marketing efforts that identify new customers. It also means ensuring those who have done business with you pay you for your products and services in a timely manner. In an economic downturn, businesses will naturally try to delay paying expenses and invoices if possible to keep funds on hand. A 30-day invoice can quickly turn into a request for 60 or 90 days, greatly impacting your cash flow and harming your small business’ ability to function.

In a recession, one proven method to improve cash flow and protect your business is to engage the services of a factoring company. The factoring company can 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 slow pay collections. 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].

August 15, 2019
The 21st Century Trucker is as Much a Digital Jockey as a Road One

Citizens’ band radios (CBs) were once all the rage in the 1970s trucking industry. The handy communications device truck drivers once used to stay in touch with each other on long cross-country trips became a sudden trend. This was thanks to a popular culture that romanticized the stoic trucker and the freedom of the road. Hit songs such as “Convoy,” blockbuster movies like “Smokey and the Bandit” and TV shows such as “Movin’ On” fueled the hype. Regular folks began buying the sets and installing them in their cars and pickups. They dreamed of being Burt Reynolds and Jerry Reed trying to evade Sheriff Buford Justice and make the big delivery on time.

What many a daydreamer didn’t realize is that being a trucker is more than “Eastbound and Down.” It’s a hard life spent on lonely highways and in greasy diners, far from family and friends. Being a trucker takes a special breed, one that becomes accustomed to the hours of service it takes for their long hauls. This adds to truckers’ near-mythical standard in modern American culture and leads to instant understanding and camaraderie amongst their select group.

Today, the CB radio fad has long since faded. Few of the would-be Bandits of the ‘70s remember their long ago “handles” or what “10-100” even meant. But truckers still go on riding the highways, just not quite as they did in 1976 at the height of the CB craze. Lots of new rules and regulations govern the amount of time they can be behind the wheel. A driver shortage has helped lift their pay as demand for truckers exceeds supply. That’s not the only thing that’s made a trucker’s life easier today than when “Breaker, Breaker” was showing in theaters. Digital technology has turned a generation of highway jockeys into Web surfers and app junkies, and that’s been a big boon for everyone.

A trucker spends a lot of time in the cab. Innovations, new technology, and applications can now turn that cab from a place to not only control the vehicle but to also run an office. Things that once had to be done by hand or manually back at headquarters – such as logs, trip sheets, delivery reports, etc. – can now be more effectively handled directly from the truck itself by the driver. Many of these devices operate via voice command, ensuring the driver can keep his or her eyes on the road and hands on the wheel.

Apps boost driver safety in other ways. Phone and Web apps enable drivers to quickly alert the main office of truck problems, show where to get help when needed, and provide diagnostic information to speed any repairs. Other truck-mounted electronic devices relay vital safety information to the driver, such as cameras, sensors, blind-spot warning and collision avoidance systems.

Data drives the trucking business today as much as Peterbilt or Mack. Thanks to digital technology, artificial intelligence and specialized programs, truckers can quickly determine how to make each delivery more efficient and productive. GPS trackers monitor rig locations, making dispatching easier and timelier than before. Such technology especially aids the small, independent trucker, making them more competitive with the big carriers in a way never possible before. The more efficient their operations, the better they can cut down on waste and boost their bottom line.

Finally, digital technology has aided truckers and trucking companies in recruitment and retention of employees. In an era of driver shortages, the last thing a carrier big or small needs is to not have personnel available to make deliveries. This costs the company money and potential future business. Apps have been developed that function like job boards once did at interstate truck jobs. This gives drivers instant information on what loads are out there and who is hiring. Cledus Snow depended on Bandit and his Trans Am driving far in front as blocker, and CB radio for key information on his run from Texarkana to Georgia. Today’s trucker, meanwhile, has an array of electronic and digital tools at his or her fingertips that can indicate where the next truck stop is located, the truck’s fuel efficiency, tire pressure and how many hours have been logged. Whether eastbound and down, westbound or any direction in between, it’s a new, better road from the 21st century trucker.

July 12, 2019
Put Some Wind in Your Sails During the Slow Season

Mariners once dreaded sailing the seas around the Earth’s equator. Not for the heat or the sharks or the waves. Rather for the lack of wind. Sailing ships would often become stuck for days or weeks, unable to move due to the shortage of any breeze. The nautical term for this area is the doldrums, meaning windless waters.

Nowadays, the doldrums carry other meanings, as well. One of the most used is to denote a period of stagnation or inactivity. Like an ancient sailing ship leaving the trade winds, businesses also go through doldrums. Often these doldrums occur during a specific season and can be forecasted in advance.

For example, new home construction slows during the winter months as bad weather makes work difficult. Furnace repair contractors don’t get many service calls during the summer. The hospitality business grinds to a halt after Labor Day and the end of vacation season. Companies need to plan and budget accordingly to make it through these slower times until their next peak season rolls around.

Your business probably also has its own doldrums or slow season. For you it may be in the spring. Or perhaps in the summer, when customers and employees alike take off for some needed escape from work. No matter when your doldrums occur, you need to have a plan of action to properly deal with them and to make sure your sails are in tip-top shape when the trade winds return, and business takes off. Here are some quick tips to get you going:

Work on your business instead of for it – When sales are popping, you’re often too busy to take care of some basic house… well, make that business-keeping chores. Now that times have slowed, it’s the perfect opportunity to take care of many tasks you just had to put off. Such as…

Update your marketing plan – A good marketing plan never stands still. It’s always moving, dynamic and flexible. Look back over the past 12 months. What didn’t quite go as planned with your marketing plan and could use some tweaking or revamping? What went right and should be done again? And, what went totally wrong and needs to be sent to Davy Jones’ locker at the bottom of the sea?

Give your website a fresh face – Have you looked at your website lately? Your customers do. Is it a proper and energetic reflection of your company that engages customers and encourages them to do business with you? Or is it a reflection that you really don’t know much about modern marketing? Even worse, is it a reflection that the last time you updated your website it was in the age of dial-up modems? A static, never-changing website can give your customers the impression that nothing’s going on with your company. A new, dynamic design, on the other hand, tells your prospects you’re a company on the move, ever striving to improve your products, services and your ability to help them. There’s no better time than your doldrum period to ask yourself these questions and act to ensure your site best showcases your firm’s knowledge, expertise and solutions-oriented approach.

Reconnect with old clients – There’s so little time to talk and interact in this fast-paced world of the early 21st century. The doldrums are a great time to reconnect with those with whom you’ve lost touch. No, not Aunt Mabel. In this case, your old clients. Give them a call, or better, stop by their office to catch up. If they still do business with you, let them know how important they are and update them on any new offerings that could help them. If they’re no longer clients, call anyway. Let them know you appreciated their business in the past and that you were thinking of them. Update them on your company’s progress and see if there’s any chance to rekindle a business relationship. Don’t forget, it’s much cheaper to get old clients to either do more business with you or come back to the fold than it is to prospect for new business.

Get organized – Remember last tax season when it took you two days to find that important documentation? And remember how you swore it would never happen again… you were going to get organized next time around. Well, guess what? Now’s your chance to do that. Organize your office, files, marketing materials, supply cabinet, and whatever cluttered, disorganized, and frustrating thing that has driven you to distraction.

Efficiency is the mother of success – Closely related to the above tip, the doldrums allow you to not only make your operation more organized but efficient as well. Every operation, no matter how perfect at its start, has inefficiencies creep in over time. Your boat’s engine may purr as you glide out of the marina, but overlook the occasional necessary tune-up, and you have an engine guaranteed to leave you stranded somewhere. Examine your operation; Look at each step from the moment you meet a prospect to the making of a product or until you deliver the service. Examine your billing process and your follow-up. No matter how many steps you have in your company’s process, there’s a good chance you need at least a little tweaking at best, or at worst, a complete overhaul. Make productive use of your slow season to get back on course!

Help your bottom line – Your finances may need a boost during the doldrums as business drops. This can cause cash flow problems for small businesses. If revenues drop more than expected or you haven’t set aside sufficient funds to tide you over, your business could be in jeopardy. In slow seasons, many small business owners may turn to small business loans, cash advances, or line of credit in an attempt to get working capital needed to keep their business afloat. If your cash-inflow is not where it should be, you may not have the money you need to pay suppliers, cover payroll, perform any maintenance, or buy equipment.

There is an option that could put some wind in your sails during these doldrums. This convenient alternative to a traditional business loan is called invoice factoring. Invoice factoring allows you to “sell” your accounts receivable invoices to a third party lender (factoring company) for a discount fee known as a factoring fee. This third party pays you upfront for outstanding invoices, giving you the working capital you need today to run your business, and eliminating the worry and hassle of slow pay collections.

In comparison to invoice discounting or invoice financing services, where you will still need to do the debt collection, invoice factoring offers you a more convenient cash-flow solution. After you go through a quick and easy application process on an online platform, the factoring agency will perform credit checks on your clients (not on you, so your personal credit history is not a problem) to determine any risk involved. Once the service has been approved, the invoice finance provider will pay you a percentage of the invoice amount, and collect on the invoices for you. Giving you more time to perform your business operations. 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 – the money for your unpaid invoices is usually paid into your bank account within as little as one business day.

You may ask yourself, “Who can use invoice factoring?” Invoice factoring services are best suited to B2B or service-based businesses and SMEs, which is why it is often used by those in industries like manufacturing, real estate, consulting, and healthcare.

If you would like to learn more about how invoice factoring works, simply call toll-free 1-877-960-1818 or email [email protected].

June 12, 2019
Considering Online Funding? Don’t Get Played for a Sucker

Considering Online Funding : As a small business owner, no one needs to tell you that getting a loan from traditional banks can be a real crapshoot, whether it’s a business or a personal loan. Far more often than not, when a small business rolls the dice and asks for a loan, they get double sixes and walk away empty-handed. Nationally, banks reject small business loan applications 80 percent of the time, on average.

A new form of online funding has arisen in recent years. This source promises to be more willing to loan small businesses the money they need to start a company, hire employees, pay your employees’ next paychecks, expand operations, and buy or lease new equipment. Online funding/loan and cash advances have filled a big gap in the capital pipeline, but in several cases, the payout has not been worth the gamble. Many small businesses have been stuck with high-interest loans laden with hidden fees and sky-high monthly payments.

This isn’t to say there aren’t good online lending companies. There are those who are more lenient with their repayment terms. But as with anything on the Internet, there are a lot of unscrupulous operators online and they aren’t looking to help you or your business. Quite the opposite… they’re out to scam you. Like a crooked card dealer, they want to deal you a bad hand so they can steal your credit, your good name and anything else they can grab before you catch on that you’ve been had.

No one likes being played for a sucker, especially when you are just trying to handle your business’s financial needs. So, how can you protect your small business and even the odds so that, when you make an online funding/loan application or apply for a cash advance, you’re not really funding someone else’s scam?

Here are five things to keep vigilant for when investigating any online funding or cash advance company:

No contact information:

Before you do anything else, the first sign to look for to see if an online lender is legit is the simplest task to perform. If you can’t easily find the company’s address and telephone number on the website, that’s a very bad sign. When you do find the info, if the address is only a P.O. Box, leave. If there’s a physical address, look it up on Google Maps Street View feature. Is it an office? Or is it a home, apartment or worst of all, an empty field? If an office, how many other companies share that same address? Believe it or not, there are firms that lease the same office suite to dozens of companies so that they will have a physical address. No one is ever in that office, of course.

Closely related to that is the email address. A legitimate company will have its own email address that matches the firm’s URL. If the contact information is for a generic address, such as g-mail, y-mail, Hotmail or some other free email service, bail out.

Guaranteed loan:

This should be an obvious red flag. No legitimate lender would ever guarantee a loan before knowing anything about you. Read the fine print… this loan is sure to come with an interest rate in the stratosphere or have fees for nearly everything under the sun. Even worse, they may promise a guaranteed loan but leave you instead with a guaranteed nightmare when they steal your information. Save yourself the trouble. Walk away from any “deal” like this.

Too aggressive:

Who hasn’t bought a used car at some point in their life? If you’ve ever had a pushy salesperson, what was your instinct? To run, right? Same with online loans. If you’ve contacted the lender and that person seems pushy, wants you to make a quick decision, seems hesitant to answer more than a few questions, or gets angry when you ask for additional options, then you’re very likely dealing with someone out to pad their bank account, not yours. Take a pass.

Money upfront:

If you’re asked for money upfront to get a loan, flee immediately. No legitimate lender will ask for money upfront before approving a loan. When you pay money upfront, what’s very likely to happen is that money – and the lender – will quickly disappear. Don’t do it. Ever.

The best advice of all – if it sounds too good to be true, it probably is:

We saved the best one for last. Actually, this is the only one you really need, isn’t it? Like any other business, lenders need to make money on their services. As a small business owner, you certainly don’t begrudge anyone for making money. But if someone offers you a “deal” that sounds like a dream come true, you need to ask yourself is it really a dream, or a nightmare waiting to happen. Why would someone offer a loan that seems to offer all the benefit to you? They wouldn’t. Any business needs to make a return. Even unsecured loans, which don’t ask for collateral, still look at your creditworthiness (if you have a good credit history) to determine risk.

If you’re staring at a loan deal that sounds to good to be true, you can bet it is. The lender will get something in return – something you may not have counted on. For example, online lenders often express interest as “simple interest.” The truth is “simple interest” is anything but simple and the actual APR (the annual percentage rate) can often be four to eight times the amount stated. And, in some cases even more! Make sure that your terms are not expressed as simple interest, so you know your true cost of borrowing. This is not to say every “too good to be true” deal is a scam. Just like not every online lender that matches one of these tips is a scammer. But do you really want to take that chance? Move on while you can.

If you are considering an online loan or cash advance, do your due diligence. If something doesn’t seem right, if you aren’t comfortable, then that’s your intuition warning you of danger. Heed those warnings.

There is another, less-risky way to raise money for your small business. This option is called invoice factoring. Invoice factoring allows you to “sell” your accounts receivable invoices to a third party. This third party pays you upfront for outstanding invoices, giving you the cash you need today to run your business, and eliminating the worry and hassle of slow pay collections, leaving you free to run your business.

Invoice factoring is a convenient alternative to a traditional commercial bank loan or fee-laden online loans. Factoring gives you the money you need when you need it with a flexible term length and no long-term obligations. You can also get cash quicker through invoice factoring – usually within a day or two. You also don’t need to worry about having excellent credit because factoring companies will look at your customers’ credit profiles rather than that of your business. A factoring company will also not require you to have a specific loan purpose: if you sell your invoices, you can spend the money on what your business needs, whether it be for payroll, equipment, or maintenance.

If you would like to learn more about how invoice factoring works, simply call toll-free 1-877-960-1818 or email [email protected]. You may find it to be the best hand you’ve been dealt in a long time.

May 21, 2019
Texas’ Strong Economy, Pro-Business Attitude Make It a Top State for Truckers

Keep on truckin’. That’s the message the Lone Star State sends over-the-road owner-operators looking to make it big in the transportation and logistics business.

In 2016, more than 3,000 trucking industry professionals throughout the U.S. were surveyed to determine the best and worst states to own and drive a truck. The survey revealed Tennessee as the nation’s best for truckers, with California “raking the leaves” at the back end of the convoy.

The survey factored several items to determine its rankings. These included cost of overnight parking, fees/regulations, if location in the U.S. mattered, and how friendly states were to drivers. Texas finished a solid fourth in the best state’s derby. Were there to be another survey, it’s likely the state could finish higher thanks to the state’s “put the hammer down” pro-business attitude and economy.

Texas benefits from a strong economic base that often booms when times are good and weathers slow times better than the rest of the nation. This creates and sustains demand for consumer and industrial goods and products, goods and products that must be transported over the road. Small trucking companies have plenty of opportunities to compete for these loads, even outfits new to the market. In addition, Texas is home to three of the nation’s largest cities and one of America’s biggest ports. It’s no surprise that Texas cities ranked among the Top 10 in several freight transportation categories in a 2018 trucking survey by DAT Solutions.

The Lone Star State also has a business-friendly agenda. This means fewer laws and regulations that add to costs, sap cash reserves and make doing business harder. These include complex labor and environmental laws that can be burdensome for trucking companies of all sizes, but smaller ones in particular.

In 2018, Texas won CNBC’s annual Top State for Business in America award. It was the fourth time Texas has won top prize in the award’s 12-year existence. Texas Gov. Greg Abbott explains:

“When given the freedom to aspire, Texans risk their own capital and invest in themselves and others by opening businesses large and small. And success is contagious. New business formation in Texas is at a five-year high. Start-ups are growing here right alongside Fortune 500 companies and more than 2.6 million small businesses. It’s no surprise that Texas is ranked by CEOs as the best state for doing business, now for the 14th year in a row. As one Texas entrepreneur puts it: ‘If you like big ideas … build your business in Texas.’”

Meanwhile, Texas placed third in a similar Forbes magazine survey of best states for business.

Texas’ low business taxes and lack of an income tax make it an attractive place to open a business of any size. It’s a top state in terms of access to the capital a business like a trucking outfit needs to expand and grow.

Texas is a big place with tens of thousands of miles of highways. The state has invested heavily in infrastructure and roads in both rural and urban areas. Better and less congested roads make a trucker’s job easier.

Whether you’re eastbound and down, westbound or any other direction, Texas should rank high on your list of places to locate a trucking firm.

Once you’ve set up shop in the Lone Star State, you may find you need to add employees, buy new equipment or improve your cash flow. If so, consider invoice factoring. Invoice factoring allows you to “sell” your accounts receivable invoices to a factoring company. The factoring company pays you upfront for outstanding invoices, giving you the cash you need today to run your business, and eliminating the worry and hassle of slow pay collections, leaving you free to run your business. Invoice factoring is a convenient alternative to a traditional bank loan or fee-laden online loans and risky crowdfunding. Each of these sources require a long-term contract. Factoring, however, 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. If you would like to learn more about how invoice factoring works and how it can put your cash flow into the fast lane, simply call toll-free 1-877-960-1818 or email [email protected].

May 6, 2019