The transportation network is comprised of almost 12 million locomotives, rail cars, trucks, and vessels. These vehicles are integral for transporting goods throughout the world. In the United States alone, the Federal Motor Carrier Safety Administration reported that there are roughly 5.9 million commercial motor vehicle drivers that provide transportation for these goods. Since many of these drivers may work for small trucking businesses, cash flow issues may sometimes arise. It’s important to note that there are solutions available for this, such as invoice factoring or invoice advance loans.
What Is an Invoice Advance Loan?
Small businesses may often experience outstanding invoices which in turn impacts their cash flow. Given this, invoice factoring can be a welcome solution. Basically, this is a type of accounts receivable financing. For example, when a small business has invoices due within 90 days, a factoring company would be able to convert these invoices into cash immediately.
Why Get an Invoice Advance Loan?
Many small businesses fail due to cash flow issues. A U.S. Bank study found that this applied to 82% of failed businesses. One of the major contributing factors to this situation is that almost 60% of invoices are not paid on time. In other words, they are paid late on a regular basis.
If every single invoice were paid on time, this would make a significant impact on small businesses within the United States. Estimates indicate that if this were the case, small businesses would be able to hire 2.1 million additional employees. As a result, unemployment rates in this country would be reduced by 27%.
Learn More About Service for International Factoring
Is your business experiencing cash flow issues due to outstanding invoices? If this is the case, it’s likely that you would like to learn more about service for international factoring and other invoice factoring services. Once you speak with a representative, they will be able to explain these services to you in more detail. At that time, you can also schedule a consultation to further discuss how a factoring company could provide you with a cash flow solution and assist you with building credit.