TRANSFAC CAPITAL OPENS $2 MILLION LINE FOR STAFFING FIRM

Posted in: Business Factoring News, Freight Factoring News, Staffing Company Finance News, Staffing Faqctoring News, Trucking Finance News- Aug 07, 2013 No Comments

Salt Lake City, UT – (Marketwired) – August 7, 2013 – Transfac Capital, Inc., a specialty finance company providing accounts receivable financing to small and mid-sized companies, today announced the payroll financing of a multi-location staffing firm based in Georgia.

 

Financing the staffing industry is not new to Transfac Capital. With over eight locations nationwide, Transfac has been funding staffing company invoices for years.

 

Mari Dezham, Account Executive Manager of Transfac Capital, stated, “We’ve financed several staffing agencies throughout the years and are very familiar with their payroll challenges. This particular company  has 13 locations,  each of which generate a large number of invoices. Due to the high volume of invoices, it was obvious that smaller factoring companies didn’t have the resources to handle this account quickly and efficiently. We have appointed an account executive whose sole focus is this account, which is exactly the type of service we believe our customers deserve. With our newest client, we opened a line of credit at $2 Million and the first funding was close to $1 Million, which allowed for them to continue business without interruption.

 

“When these large staffing companies, or even the smaller ones for that matter, send out their invoices, they don’t always collect payment in time to be able to make payroll. We provide a seamless, simple solution to this problem by covering those expenses and collecting the invoices for them,” said Dezham.

 

With locations in Salt Lake City, San Francisco, San Diego, St. Louis, Louisiana, North Dakota and Ohio, Transfac Capital is earning distinction as a leader in invoice financing solutions for small to medium-size businesses.

 

If your staffing agency or firm has been challenged to meet payroll, call Transfac Capital at 800-458-6056 or go to www.transfac.com. 

About Transfac Capital, Inc.

Transfac Capital, Inc. has financed business since 1942.  With over 10 locations nationwide and growing, coupled with its team’s experience owning and operating companies in the oilfield, staffing and transportation industries, Transfac Capital has become one of the leading factoring and financial business solutions companies in the industry.  Transfac Capital offers competitive services in invoice factoring, account receivable management, account receivable financing, inventory financing, purchase order factoring and a fuel card program.

 

To learn more about Transfac Capital’s financing options for oilfield, transportation and staffing companies, please visit www.transfac.com  or call 800-316-4212.

 

To view career opportunities with Transfac Capital, visit www.transfaccareers.com.

 

Industry sites:

http://truckingbusinessfinancing.com/

http://staffingcompanyfinancing.com/

http://oilfieldbusinessfinancing.com/

www.fundmyfreight.com/

Forward-Looking Statements

This press release may contain forward-looking statements, including information about management’s view of Transfac Capital Inc.’s future expectations, plans and prospects.  In particular, when used in the preceding discussion, the words “believes,” “expects,” “intends,” “plans,” “anticipates,” or “may,” and similar conditional expressions are intended to identify forward-looking statements.  Any statements made in this news release other than those of historical fact, about an action, event or development, are forward-looking statements.  These statements involve known and unknown risks, uncertainties and other factors, which may cause the results of Transfac Capital, its subsidiaries and concepts to be materially different than those expressed or implied in such statements.  Unknown or unpredictable factors also could have material adverse effects on Transfac Capital’s future results.  The forward-looking statements included in this press release are made only as of the date hereof.  Transfac Capital cannot guarantee future results, levels of activity, performance or achievements.  Accordingly, you should not place undue reliance on these forward-looking statements.  Finally, Transfac Capital undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by Transfac Capital.

 

FOR MORE INFORMATION:

HANOVER|ELITE

Kathy Addison, Chief Operating Officer

407-585-1080 or via email at TFAC@hanoverelite.com

 

How to Finance Your Growing Oilfield Transportation Company

Posted in: Freight Factoring News- Jul 23, 2013 No Comments

ND Drilling rig

The Oilfield Transportation industry plays an important role as the backbone of the oilfield economy. Even in recessionary times, many companies in this oilfield industry can do very well if managed properly. One of the main challenges of oilfield transportation though is that it can be very cash intensive. Oilfield Trucking and logistics companies have to pay for drivers, trucks, repairs and fuel. All of these expenses tend to add up very quickly. To make matters worse, most shippers don’t pay on their invoices for 30-90 days. This creates a cash flow problem for many companies since they have immediate expenses but a delayed income.

If the company has a large working capital reserve, this cash flow is not a problem. This is rarely the case though and most oilfield transportation companies try to get traditional business financing to help them grow. Although business loans and other forms of financing are available to large companies, small companies don’t usually qualify for these traditional lines of credit or loans.

The best alternative solution to this problem that works very well is freight invoice factoring. It eliminates the payment wait and provides you with the cash flow to pay your business expenses and even grow your company. This gives you the necessary breathing room to pay expenses while you are waiting 30-90 days for your clients to pay their invoices.

Transfac Capital Oilfield Transportation Factoring is relatively easy to obtain, because of how the transaction is structured. Transfac Capital doesn’t lend money per se. Rather we buy your invoice at a small discount, providing an upfront payment. You usually get around 90% (this varies) upfront, and the remainder 10% (less the discount) once your client pays. Since the transaction is structured as a purchase rather than a business loan, the criteria for qualifying are different. For example, since Transfac Capital is actually buying your invoices from you, their biggest concern is the credit worthiness of your client. This means that small companies with a good list of clients can usually get this form of Oilfield Transportation business financing.

A few tips and direction of becoming an owner operator in the trucking industry

Posted in: Freight Factoring News- Jul 09, 2013 No Comments

Tired of working for a trucking company that makes you drive your own truck or are you need of work and ready to start your own thing? It isn’t as difficult as you might think, although it can get expensive to get up and running but it does not have to be. With the right tips and information you can start up for less cost than you think.

 

    •   Getting your permits and authorities. These can be types of licensing and permits that you will need in order to transport goods for others. These licenses and permits will differ depending on where you want to haul cargo to and from. You can hire a consultant or do the paper work yourself. Doing this yourself will save you thousands and give you a better understanding of your business and want guidelines you are expected to follow under the transportation act.

 

    • Equipment or hiring an owner/operator. This is essential for your business; you will need one or the other or have both. If you can and willing, working for yourself in the beginning will help your company get started if you are short on finances.

 

    • Insurance. Of course it is essential to protect you and your customers. You will need to insure your equipment, trucks and purchase cargo insurance as well. Shop the rates, and look at coverage vs. expense. The cheapest isn’t always the best.

 

    • Obtaining Business or loads and/or contracts. Using load boards and brokers will be the easiest way to start. You can also check with companies and sites that deal with owner/operators like fundmyfreight.com (finances owner operators and deals strictly with others in your field), Bakkensocial.com (social media site that will help you connect with others in the oilfields). There are several sites and avenues which will allow you to make connections and help you along the way.

 

    • Getting paid. If you do not have very much cash and you are unable to wait then I suggest that you use a factoring company like Transfac Capital. When you are starting a company sometimes you are not able to wait 30 to 90 days to get paid from your client. Using a factoring company can put money in your account right away at a minimum fee. The benefits include no contract, possible 24hour application and set up, quicker and less stressful than dealing with a bank (which might not give you a line of credit due to the size of your company)

 

There is a certain freedom that comes with running your own trucking business, and above are few tips to help you get there. There are many other items to take care of along the way, but with the right information and talking with people in the industry you’ll get to where you want to sooner than you think.

How does Trucking/Freight Factoring Work

Posted in: Freight Factoring News- Jun 28, 2013 No Comments

Factoring for the truckload carrier is when one company buys or lends you money on your freight invoices. This means that you will be paid immediately for the freight you haul rather than waiting for the customer or freight broker to pay you. This is a great way to finance a start up company or grow your existing company. Factoring your receivables allows a transportation company access to immediate cash for invoices and enables it to start up or grow quickly.

Factoring companies are becoming very customer service oriented and are able to provide valuable time saving services. In addition to a great finance tool a good factoring company will become your partner and perform the role of Credit Department, Accounts Receivable, Accounts Payable and Collections. One thing to look for in a great partner is what will they do for you and how will they help you to succeed. One time saving example is invoicing. Once you submit an completed shipment to the factoring company you are essentially done. The factoring company will invoice the customer and follow up to collect the payment. In a no recourse factoring solution you will have already received your payment for the shipment and will not have to do anymore to collect your invoice. Even before you book the shipment you can call and check the credit of the shipper or broker and find out if they have the necessary credit or if you need to make sure and get an upfront payment from the particular shipper.

A factoring company should be your partner
your factoring company’s goal should be to help you succeed and outgrow the need to use a factoring company. You may still like using the factoring company for all the benefits and time saving services they provide but after a while when your business grows you will not need the immediate access to money anymore. The sign of a great factoring company is that they want you to reach this point and celebrate when as a business owner you have grown to the point where you no longer need their services.

 

 

Changing attitudes – OOIDA rolls out new safety agenda

Posted in: Freight Factoring News- Jun 26, 2013 No Comments

The political game in D.C. can be vicious. Lobbying for any cause tends to have the opposition angling to portray your agenda in whatever negative light they can manufacture.

Small-business truckers, in their opposition to excessive regulation, have groups screaming that truckers are “anti-safety.”

The reality is that nothing could be further from the truth.

The membership of the Owner-Operator Independent Drivers Association is made up of some of the safest career truck drivers on the nation’s highways. The average member has more than a quarter-century of trucking experience and more than 2 million miles without a reportable accident. That’s equivalent to 80 times around the Earth.

The Association points out that these are men and women who have a vested interest in safety – their own and those they share the road with.

That focus on safety is the thrust behind a new white paper, “Truckers for Safety,” developed by the Association in an effort to promote a true safety-minded agenda in D.C. while countering overbearing regulations that do little to improve highway safety and that simply drive up the cost of business.

The industry has faced significant changes in the past two decades. Instead of more people opting for a career in trucking – something that inherently promotes professionalism and safety – it is turning into a stopgap job for many who enter into trucking.

Every few months, 20 percent of the drivers working in the industry either leave their jobs and move to a different trucking company or leave the industry all together, according to the white paper.

“This churn will result in more accidents, which in turn will lead to greater congestion, more fuel use, lost cargoes and greater inefficiency in our nation’s freight transportation network,” the paper states. “We can and must do better to make trucking once again a career that Americans want to join and stay in as a way to provide for their families.”

The white paper calls into question the agenda of the motor carrier safety enforcement and regulatory system.

“Our motor carrier and safety enforcement and regulatory system is structured in such a way that does nothing to incentivize safe driving, missing a major opportunity to improve safety,” the paper states.

The white paper promotes commonsense regulation such as driver training; building on Jason’s Law for more truck parking; improving the nation’s infrastructure; educating teen drivers and all passenger car drivers; enforcement by FMCSA that encourages safe driving; equipping the agency with appropriate funding to target unsafe motor carriers; and crash worthiness.

SMART Future Truck Drivers
OOIDA is proposing the Safe, Mentored and Responsibly Trained Future Truck Drivers Act – dubbed the SMART Future Truck Drivers Act.

The act “forges new ground” by starting every new long-haul tractor-trailer driver off with a strong safety foundation. The proposal includes behind-the-wheel training conducted by instructors who meet FMCSA certification requirements.

“Unlike airline pilots, railroad engineers and tugboat captains, there has never been a requirement that tractor-trailer drivers complete a basic training regimen that ensures they know how to operate the vehicle safety in real-world conditions,” the paper states.

Given that approximately 80 percent of all truck-involved collisions are the result of a “human factor,” OOIDA is pressing Congress and the Federal Motor Carrier Safety Administration to move forward on a training standard for new truck drivers. The proposal does not include bus and motor coach drivers, local delivery or CDL classifications lower than a Class A.

The training proposal includes requirements for certification of testers, minimum classroom and behind-the wheel training. Knowing there are situations, such as returning veterans, who have received alternative training, the proposal includes expedited training and proficiency tests to shorten the length of training.

Countering the industry norm of short training programs that filter inexperienced drivers quickly onto the road to be further “trained” by driver trainers with only a few months of experience themselves, the proposal offers a structured experience-building period.

Safe on the road
It tracks that, no matter how good truck drivers are, there’s only so much they can do to counter the crumbling roads and bridges and passenger car drivers who drive unsafely around them. The white paper tackles those issues as well.

“The highway is the workplace for truckers, and it is important that they have a safe workplace,” the paper states. “There is more that can be done … to focus investments in this area on countermeasures that will have a real impact in reducing heavy-duty truck crashes.”

The Association is proposing to build on Jason’s Law, which was passed into law with the last highway bill. To accomplish this, the Association is seeking to make truck parking a “performance measure” that will guide state investment of federal highway funding. It also proposes that state DOTs should increase their work with private truck stop operators to increase parking at existing truck stops.

Education of local, county and state transportation planners on the benefits of truck parking is also tackled. In addition to providing truckers a safe place to get needed rest, providing trucks places to park will reduce congestion at key times, improve safety and the environment.

The white paper also recommends that the Federal Highway Administration and state DOTs target spending on safety infrastructure on signage, guard rails, etc., in areas with high accident rates for heavy-duty trucks. It also proposes that the agencies develop a system for identifying “high risk rural roads.”

But even with all of the parking and smooth sailing roads in the world, truckers must share the road with passenger cars. With fewer and fewer schools offering driver training, the increase in passenger car drivers uneducated on how to share the road with big trucks is on the rise.

OOIDA proposes that the National Highway Traffic Safety Administration, Federal Motor Carrier Safety Administration, Commercial Vehicle Safety Alliance, state motor vehicle administration, truck drivers and other stakeholders come together to develop a model curriculum for teaching new drivers about how to drive safety with heavy-duty trucks and ensure greater focus on sharing the road as part of driver training and testing.

Safe inside
Over the past decade plus, passenger cars have become increasingly safer. While lighter weight materials are being used, the engineering of the cars has migrated the power of the crash around the passenger compartment. Advancements in air bag and seatbelt technology have also played a big role in decreasing fatalities.

But what about big trucks? The National Highway Traffic Safety Administration will begin studying crashworthiness of big trucks thanks to the most recent highway bill.

That’s a good start, but it is just a start, OOIDA says.

“The crashworthiness of a truck cab and its ability to protect the occupant trucker appears to be a low priority for NHTSA, even while it is conducting heavy-duty related rulemakings,” the paper states.

The Association is pressing for the agency to work together with truck manufacturers to implement recommendations for crashworthiness as a result of the study, either through voluntary action, industry standards or federal motor vehicle safety standards.

Purchasers of new trucks should also be informed of the standards and the manufacturers’ compliance with, or voluntary adaption, of those standards.

Catching the bad guys
The sad fact remains that there are bad motor carriers on the road. Safe truckers want them off the road just as much as the agency. In addition to posing a safety risk, when motor carrier take short cuts with equipment, they are likely hiring unsafe individuals and cutting rates.

The Federal Motor Carrier Safety Administration’s Compliance, Safety, Accountability system, while flawed in implementation, is rightly intended to focus enforcement efforts on bad actors and unsafe carriers. However current problems with the system are preventing it from doing that job, according to OOIDA.

The Association recommends an analysis of the safety effectiveness of motor carrier regulations. While some regulation clearly target unsafe behaviors, the lion’s share of regulations should be classified as “compliance” regulations. Separately, these two types of regulations for scoring purposes through CSA would narrow the field of at-risk motor carriers to those most likely to be exhibiting unsafe behaviors.

Equipping the agency with appropriate funding for investigations into the at-risk motor carriers should also be a priority. Building on the Operation Quick Strike motor coach crackdown, a properly funded motor carrier component of that enforcement should be a priority.

Advocacy for change
The white paper is a leaping-off point to lobby for real change in the regulatory mindset that governs truckers. As with any major piece of legislation or proposed regulation, OOIDA’s membership will be called on to be active in educating their lawmakers.

Resources on the Truckers for Safety agenda can be found at Truckersforsafety.com.
Copyright © OOIDA

How Freight Factoring Can Help grow your trucking company.

Posted in: Freight Factoring News- May 20, 2013 No Comments

Having a trucking company or freight brokerage can be very profitable. At the same time, transportation companies have cash problems. There are expenses like fuel, employees, repairs and many others that need to be paid constantly. However, most customers don’t offer quick-pays and usually pay their freight bills in 30 to 60 days.

This is an extreme business challenge. You have expenses that need to be paid quickly and customers that want to pay slowly. Unless your company has some available funds, you will most likely run into problems which eventually can damage your business.

Many trucking company owners try to address this cash problem by trying to get financing from their bank. Unfortunately, they soon learn that banks rarely provide business loans to small transportation companies. A business loan is not an option for most logistics and transportation companies. So what is the solution?

Today’s Trucking companies have an option that is better that a business loan. It is called invoice factoring. Factoring can provide trucking companies with the financing they need to meet their current expenses and grow as opposed to bank financing. Trucking Factoring is easy to obtain and can be setup in about a week.

What is factoring?

Factoring provides companies with an advance on your slow paying freight bills. This allows them to pay expenses while waiting to get paid by customers.

This is how it works:

1. You company delivers the load and invoices the customer

2. The factoring company provides you and advance of up to 90% of your freight bill

3. You can use the advance to meet all expenses

4. Once your customer pays, you’ll get the remaining 10% less a small factoring fee

The cost of factoring can be anywhere between 1.5% to 3% per month.

The cost is determined by your industry, the quality of your customers (who pay the freight bills)

The amount of financing you’re company requires.

Freight bill factoring is the perfect solution trucking companies or owner operators and can help bring your company to the next level.

To find out if factoring is the correct solution for you call 800.458.6056

 

Benefits of Truck Factoring

Posted in: Freight Factoring News- May 20, 2013 No Comments

Being a proud owner of any newly founded business venture will be a move in the right direction, trying to secure financial assistance from banks and other commercial lenders can be nothing short of an uphill struggle. You may find that you are unable to convince the lenders that you are a wise choice of investment. This is a dilemma that has become even more pronounced with the global credit crunch and so banks are now more skittish and cautious than ever before about the lending of money.

Banks/Venture capitalists are financial providers that specialize in the provision of startup capital and working capital to new businesses; however, the only problem here is that the venture capitalist firms tend to charge an astronomically high fee to finance you. Given that a your business which has just only recently been founded will need to ensure that it is as frugal with its money as much as possible, And venture capitalists offer such costly services that maybe a luxury that is just out of reach for you financially speaking.

These issues are not the just the issues of the newly founded businesses, and even established businesses such as transportation, freight and trucking companies can find themselves struggling to keep up with their own current liabilities by issues of the tardiness nature of their customers. Think about this scenario. A trucking company seeks to deliver some high value stock (such as livestock or oil) some 400 miles. Even if he fuel tank is full, the driver responsible for the delivery is going to have to refuel. The driver is not going to be able to fill up and then proceed to calmly tell the clerk:

“No problem, I have $150,000 of stock in my truck. I’ll send you a check when it is sold and the net value is released.”

It is for that exact reason that truck factoring is an excellent source of financial stability for trucking companies, as it helps to efficiently go around the majority of the frustration and logistical problems so often attributed to bank/venture capitalist’s sources of financing.

With truck factoring, the trucking company will receive a substantial portion of the net value of the accounts that are outstanding directly from the factoring company. Plus the factoring company will then proceed to take full responsibility for the billing process, ensuring that the trucking company can focus squarely on its business.

One of the major reasons that truck factoring is such a successful relied upon method for securing and raising sums of capital is for the fact that trucking companies will not be required to secure any of their assets of the business as collateral.

Plus, this method is not a loan and therefore, the actual credit score of the business means nothing to the process. And since they are actually giving the responsibility to the factoring company in this way, your company will actually be improving your credit score!