3 keys to expansion
Here is where many get confused. You might pay pay 8 percent yearly for a truck loan or 18 percent yearly for a credit card. But don’t assume that an annual rate is comparable to a factoring fee, which is stated as a one-time fee or, if the collection drags out, on a monthly basis.
Many freight factoring companies will help in other ways, such as credit checks and collections, so your fees can yield more than just quick cash. Do your homework when it comes to factoring costs and, again, strive for quality freight, which should minimize the need for factoring.
Kevin Rutherford is an accountant, small-fleet owner and the host of “Trucking Business & Beyond,” which airs on Sirius XM Radio’s Road Dog Trucking Radio. Contact Rutherford through his website, LetsTruck.com.