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If you want to know about invoice factoring, then you need to read this article. Every business needs working capital in order to survive. However, if your business regularly invoices customers then your cash can be tied up in your accounts receivables. We will discuss how invoice factoring can help your business to have a more consistent cash flow and the working capital it needs to compete in the global economy.

Invoice factoring is the process of selling your accounts receivable invoices as soon as you have obtained them for a discount. Selling your accounts receivables may not be the best option for you and your business. However, can you afford to wait 90 days and in some cases as long as 180 days for your customers to pay you? Many small and medium-sized businesses can’t afford to wait that long to get paid and consequently can’t afford to run out of the cash they need to keep their business operational. Invoice factoring allows these companies to have access to immediate cash to solve their cash flow problems.

Conceptually, the process of invoice factoring is simple. As the business owner, you would sell your invoices or accounts receivables to a factoring company. The factoring company would review the business credit and financial history of your customer and determine the likelihood of them actually paying their invoice on time. If the factoring company accepts the invoice, they would buy it from you at a small discount, known as the discount rate. There is a mutual benefit in this because you are granted access to the working capital that your business desperately needs, and the factoring company has just purchased an asset (your invoice) at a discount.

Invoice factoring can be used as a safety net that is provided by the factoring companies. This strategy can help many business owners get through the tough times of cash flow shortages that plague every business. Running a successful business is hard work, and savvy business owners know that they can never afford to run out of money. Invoice factoring allows these business owners to manage “cash crunches” with ease. If you are not already familiar with this strategy, it would be in your best interest to get acclimated to this capitalization strategy.

In conclusion, invoice factoring can offer many companies a variety of financial benefits. It can give companies access to capital when standard bank loans aren’t sufficient. Therefore, if you are in need of cash you need to utilize invoice factoring today.

More : Invoice Factoring Or Factoring Quotes

An accounts receivable factoring company is a business that will purchase your accounts receivable (i.e. invoices) from your business at a percentage of the invoice’s face value. Once purchased, the invoices pass into ownership of the factoring company, including all risks and rights linked to them.

It can be a very complicated and confusing task, but selecting the right factoring company for your business is essential in the establishment of a good working relationship. The points detailed below will help you to make an informed decision.

Factor’s Comfort Zone – Although on the face of it, the intricacies associated with the varied amounts of invoice factoring are similar even from a low level of $10,000 up to a few million dollars; this is not always the case in reality. Different companies have differing comfort levels with regards to the value of the invoices they are purchasing. It is good practice to ask a particular factor what value of invoicing their typical clients sell to them.

Monthly Minimums – Most factors will only accept new clients that are able to commit to a minimum value of invoice factoring each month. It is important to ensure that your company will be able to supply above this minimum level as if it is not met, your business could be liable for fees to make up the balance. Try and find a factoring company that has minimum levels that your business can easily meet.

Contract Duration – The contract length can have a bearing on the fees associated to your business’s account. Although most factoring companies require you to sign a minimum one year contract, if you were to sign for a longer duration, you may save money on the fees involved. If the situation occurs that your business does not need the use of a factoring company, make sure in the contract that you will be able to terminate the contract early without major financial loss.

Fee Structure – Different factoring companies offer different fee structures. Generally, a number of different aspects make up the fee, for which the levels range from 3% on invoice values of up to $30,000 down to around 1.5% for much higher volumes of accounts receivable.

Level Of Service – It is important to select a factoring company that can offer an appropriate level of service. Just because a company offers low fees, it does not mean that it will be able to offer a personable service. Most companies make the mistake of going for the cheapest option, but then learn to regret that decision. It may be best to pay a little more for a better service.

In summary, it is important to research all areas of the company you wish to be partners with and the contract that will bind you to them.

More : Factoring Companies Or Cash Flow Finance

Below are listed the 11 Major Attributes for good leadership adapted from Think and Grow Rich by Napoleon Hill. We have applied these attributes to customer service and submit to you that these characteristics also emulate good LTL freight shipping customer service. When looking for a 3PL, online freight quotes, freight forwarder, freight broker, or a logistics company, you should look for these attributes.

UNWAVERING COURAGE/CONFIDENCE -If the person you are shipping with isn’t confident in what they can deliver, it will be difficult for you to trust them. A good leader has courage and confidence in their abilities and their products.

This is a vital characteristic and the one most overlooked. Many modern companies are so big they have lost touch with what their customers are really feeling and experiencing with their product. This is true of large conglomerate shipping companies; that is why it is best to choose a medium sized 3rd party logistics partner. In leadership, a good leader must understand and know their followers well. SYMPATHY AND UNDERSTANDING

This characteristic can also be stated as in depth knowledge and skill of their products or services. A good shipping company will have great knowledge and details of the business, likewise a good leader will understand their business on a molecular level so to speak. When considering online freight quotes, make sure they give you full disclosure and detail of all charges, complete tracking, and detailed ability to view many carriers and their rates instantly. MASTERY OF DETAIL

DEFINITINESS OF DECISION -Companies who know their mission and their purpose don’t get sidetracked or bogged down with too many products or ideas beyond their scope and ability. One major mistake of companies is thinking they can be all things to all people. Companies that remain true to their core values and decisions are always more successful. Another business term to describe this is core competency. Companies create value in their product when they recognize and remain true to their “secret sauce” instead of becoming a buffet of all you can eat watered down products. In leadership, a leader must be strong enough to stand by their decisions; nothing stops production more than constantly changing directions. And nothing is more frustrating to customers than inconsistencies. No one will recommend a company they cannot count on consistent delivery. The same is true for online freight quotes and 3PL companies. Consistency of good pricing is what customers will value most.

The best products are ones where customers feel they were delivered more than promised. Under promise and over deliver is another mantra that states this attribute. This is the attribute that builds loyalty more than any other. As a leader when others see this they will also be inspired to rise above and perform at their top levels. There is nothing more demoralizing than a lazy leader.

A company with a good rudder to guide their ship will successfully navigate any difficult situations. Likewise a good leader will know where they are steering the ship. As Dr Stephen Covey says you have to begin with end in mind.

You need to like who you are giving your business too. Make sure you have a good personal relationship with your Freight forwarder or freight broker. In leadership plain and simple, you must be likeable.

This characteristic can also be stated as in depth knowledge and skill of their products or services. A good shipping company will have great knowledge and details of the business, likewise a good leader will understand their business on a molecular level so to speak.

Companies who know their mission and their purpose don’t get sidetracked or bogged down with too many products or ideas beyond their scope and ability. One major mistake of companies is thinking they can be all things to all people. Companies that remain true to their core values and decisions are always more successful. Another business term to describe this is core competency. Companies create value in their product when they recognize and remain true to their “secret sauce” instead of becoming a buffet of all you can eat watered down products. In leadership, a leader must be strong enough to stand by their decisions; nothing stops production more than constantly changing directions. And nothing is more frustrating to customers than inconsistencies. No one will recommend a company they cannot count on consistent delivery. The same is true for online freight quotes and 3PL companies. Consistency of good pricing is what customers will value most. DEFINITINESS OF DECISION

WILLINGNESS TO ASSUME FULL RESPONSIBILITY – Great customer service will take responsibility for mistakes and make them right. Many online freight quote companies will guarantee their rates and back you up when a shipment doesn’t go through as planned. A great leader will admit when they are wrong, correct the mistake and move forward with the plan.

Great customer service will take responsibility for mistakes and make them right. Many online freight quote companies will guarantee their rates and back you up when a shipment doesn’t go through as planned.

Spider Ship offers quick easy solutions to all your shipping needs. Try ouronline freight quotes system to discover great service and big savings. As professional Freight Movers We take pride in the quality of our service.

This list was taken from the 10 Major causes of Failure in Leadership adapted from Think and Grow Rich by Napoleon Hill. As a shipping company, we work mainly with business owners. We see a wide variety of leadership styles. We see many different sizes of business, from the owner operated, to the hundreds of employees. All companies have their own leadership styles. Here is a list of qualities to avoid when giving good customer service.

As soon as business thinks it is infallible, that is when sales decrease and numbers drop dramatically. Customers can tell when you humbly care about them and when you consider them just another paycheck in your pocket. Humility is crucial for good customer service. UNWILLINGNESS TO RENDER HUMBLE SERVICE

INABILITY TO ORGANIZE DETAILS – When a company is too “busy” or too inefficient to address emergencies they do not have all their ducks in a row. To provide good customer care they should have the resources to be organized and deal with any situation that may arise. A good leader will organize and not be inconsistent and chaotic in decisions or choices.

UNWILLINGNESS TO RENDER HUMBLE SERVICE – I have seen many companies fall into the invincibility category. As soon as business thinks it is infallible, that is when sales decrease and numbers drop dramatically. Customers can tell when you humbly care about them and when you consider them just another paycheck in your pocket. Humility is crucial for good customer service.

EXPECTATION OF PAY FOR WHAT THEY “KNOW” INSTEAD OF WHAT THEY DO WITH WHAT THEY KNOW – Great companies will back up their products with hard work and guarantees. Great companies will also be confident enough in their abilities that they will give full disclosure of what they do and not try and hide behind smoke screens, difficult terminology, or lock clients into long term contracts forcing loyalty rather than gaining loyalty from customers. A good online freight quote system will be free to access and have no other fees, and have no minimum volume requirements.

A good company can use their imagination to create a custom plan for unique needs. For example, Echo Global Logistics has a customizable web-portal that can be changed specifically to meet special needs. LACK OF IMAGINATION

LACK OF IMAGINATION – Imagination is critical for coming up with good solutions in sticky situations. A good company can use their imagination to create a custom plan for unique needs. For example, Echo Global Logistics has a customizable web-portal that can be changed specifically to meet special needs.

INTEMPERANCE – Intemperance means excess in anything, usually booze, but for our purposes it can mean excess of lifestyle in any form. A good leader will be disciplined and not over indulge in any activity. Likewise a good company will not over indulge in anything that does not benefit its customers.

Great companies will back up their products with hard work and guarantees. Great companies will also be confident enough in their abilities that they will give full disclosure of what they do and not try and hide behind smoke screens, difficult terminology, or lock clients into long term contracts forcing loyalty rather than gaining loyalty from customers. A good online freight quote system will be free to access and have no other fees, and have no minimum volume requirements. Transparency in business is important.

EMPHASIS OF THE “AUTHORITY” OF LEADERSHIP – Efficient leaders encourage, they do not lead by threats and creating fear. Likewise, a good business practice is not to threaten to revoke discounts for not meeting volumes. A better marketing strategy is to encourage good behavior by offering rewards. For example, if you don’t meet your monthly shipping volumes many companies will not give you their discount. This is a disadvantage to working directly with a carrier. If you work with a 3PL or online broker, there are no minimum requirements to receive your discounts. A better practice for carriers would be to charge a regular rate and incent more shipping volume by offering additional discounts for higher volumes rather than revoking discounts for not meeting pre-established quotas.

Make sure that you are using a company that is working for you and not against you. These characteristics also can be the downfall of any technology system, online freight quoting system, or any company you ship with.

Spider Ship offers quick easy solutions to all your shipping needs. Try ourUSPS Discounts system to discover great service and big savings. As professional Freight Movers We take pride in the quality of our service.

All freight forwarders and brokers focus on less-than-truckload freight. A freight forwarder is a broker who more specifically does exported shipping, handles international customs papers, provides inland tracking services, warehousing, preparation of shipping and export documents, and focuses on international shipments. A freight forwarder is often called a Customs House Broker. These brokers can also provide customs clearance, consolidation, storage and insurance.

Search online, or ask your friends. Avoid using the most generic national company. Your best bet for freight brokers is to run a local search online. Local companies will have the best pricing for your area, and the best relationships with local carriers. For example if I lived in Hawaii (I wish), I would search “Hawaii freight brokers”. This will bring up a good list of the top 20 in your area to pick from. Use your networks, if you are part of a chamber of commerce, or any networking group, ask around, someone will have a good trusted referral for you.

Avoid using the most generic national company. Your best bet for freight brokers is to run a local search online. Local companies will have the best pricing for your area, and the best relationships with local carriers. For example if I lived in Hawaii (I wish), I would search “Hawaii freight brokers”. This will bring up a good list of the top 20 in your area to pick from. Use your networks, if you are part of a chamber of commerce, or any networking group, ask around, someone will have a good trusted referral for you. Good word of mouth is the best advertising.

Freight brokers will have different pricing depending on their experience and the strength of their relationships with the carriers. Look for relationships with good strong reputable carriers. Also look for the quantity of carriers. If a broker only has a few carrier relationships, they do not have the depth to truly negotiate good rates. This is why looking for longevity is good too. Usually the longer they have been a broker, the more power in their pricing ability.

The best time to use a freight broker is always. They will always get you better pricing than your in-house shipping manager on the phone can get, unless your shipping manger used to be a broker, and most brokers will back up their shipments to provide good customer care. A broker does not want to lose your business so they will fight for you to make sure everything is running smoothly for you.

A common practice among freight brokers is to give you the actual air shipping price base rate and not the full shipment cost. For example you are sending a pallet from California to Canada. They quote you $78 for the 50 lb pallet. Awesome, you are thinking it is going to cost $78. Then when you get your invoice, you were charged, $20 for the lift gate to load the pallet on the airplane, another $20 for the lift gate to unload the pallet, another $35 for customs papers, $30 for broker fee, and then $25 for handling. Make sure that you know what price you are getting up front. A good broker will give you all inclusive pricing with no extra fees and charges except for duties and taxes. No one can fully predict duties and taxes when shipping internationally. An occasional unforeseen add on is acceptable and usually happens, but be careful it is not 3 additional charges every shipment. If you are using an online freight quote system, make sure all charges are itemized.

It is important to check if they have insurance. Some brokers feel that it is not their responsibility. This is why you want personal contact with your broker. Make sure it is a large enough company to have insurance. According to their licensing, brokers should have insurance to help cover costs, but many do not. Also, if you are shipping very valuable items, ask about surety bonds. All large companies will have surety bonds, this is additional insurance that helps cover expensive damages and ensures that the company is held to high standards. A good broker will only work with transportation companies that meet this standard of quality of service that qualifies for insurance.

The best time to use a freight broker is always. They will always get you better pricing than your in-house shipping manager on the phone can get, unless your shipping manger used to be a broker, and most brokers will back up their shipments to provide good customer care. A broker does not want to lose your business so they will fight for you to make sure everything is running smoothly for you. All freight brokers should have a license from the Federal Motor Carrier Safety Commission (FMCSA).

Spider Ship offer quick easy solutions to all your shipping needs. Try ouronline freight quotes system to discover great service and big savings. As professionalFreight Movers We take pride in the quality of our service.