Freight Bill Factoring Keeps Many Truckers on the Road

It is a plain fact that many in the trucking industry are trying to simply survive until things turn around. And the members of the trucking industry have varied profiles. There are large national and regional carriers who are cutting expenses by letting drivers go, small to medium local and regional trucking firms who are following the same course of action and independent truckers with fixed expenses and no revenue if they are not on the road.ZOb42eJb

Each of these types of trucking entities is implementing specific measures to remain solvent until the economic storm passes. Some, unfortunately, will not make it. But one method many truckers use to keep their cash flow moving and their financial heads above water is professional freight bill factoring.

Factoring freight bills is a practice that is certainly not new to the trucking industry. I used to work in sales for a small trucking firm and the company could not have operated were it not for the practice of factoring their invoices. Factoring is, essentially, an agreement between a company and a “factor” whereby the factoring agent provides the company with cash advances in exchange for the company’s invoices or receivables. Depending on a variety of conditions, the factoring agent will advance to the company anywhere from 70 – 90% of the value of the invoices. Once the invoices are collected, the company receives the balance of the cash due less a small percentage that the factor is compensated for advancing the cash against the invoices. This rate is typically between 1-3%.

As any trucker will tell you, waiting to get paid by clients can be terribly frustrating. The customer wants the best possible terms for providing their freight business to the trucker and the trucking firm can wait anywhere from 30-90 days to get paid. In the meantime, there are drivers to be paid, trucks to be maintained, fuel to be purchased, etc. And those expenses must be paid right away. A driver is not going to wait up to 90 days waiting for the company to get paid so the company has to either have a large surplus of cash (which is not likely in a trucking enterprise) or access to a line of credit against which they can draw. And we all know what it’s like to get credit these days.

The fact is, the trucker does have an asset in the form of the receivables outstanding through the issued invoices. Eventually, they will get that money and the factoring agent knows that. Consequently, they are willing to “buy” these invoices at a discount from the trucking company and provide most of the cash value right away. This arrangement puts much-needed cash in the hands of the trucker and a few percentage points of the total value in the pocket of the factoring agent or company.

In the current economic climate, factoring is becoming more widespread as a form of financing. Factoring has been widely used by the trucking industry, healthcare and construction industries for quite some time. However, as credit becomes tighter and payment is even slower in coming, many companies are turning to factoring as a means of staying solvent and, in some cases, growing their business.

As I said, the trucking industry tends to be a leading indicator of economic trends. The use of freight bill factoring has made the industry has into one of the leading proponents of factoring receivables as a form of financing. Let’s hope both the trucking and factoring industries are trending in a positive direction for the foreseeable future.

How to Start a Weight Loss Camp for Kids

startup businessWith childhood obesity on the steady increase in America, parents are seeking any and all methods to keep their kids active and eating healthy. When dieting and exercise at home have not produced results, weight loss camps can be a useful tool to change the habits in overweight children before it is too late. Starting one of these camps can be a long and expensive process, but the legacy and impression you will leave on so many kids will be well worth the effort. Here’s how to begin planning for your weight loss camp for kids.



It is important to be able to explain the goals and ambitions of your business in great detail. Starting with a business plan for your weight loss camp will help you organize your program as well as lay out the details any investors or business partners will need to review. Business plans usually include a summary, company description,  service line description, market analysis, marketing and sales plan, financial projections, and a funding request. To ensure the success of your business you may want to hire a business specialist to help your through all the legal procedures and planning. Your weight loss camp’s success depends on the stability and execution of your plan.



Taking in all the general logistics of location scouting starting a weight loss camp is a big endeavor. You’ll want to find a large amount of acreage for your camp to provide space for outdoor activities as well as space for lodging, a cafeteria and medical center. Consider the kinds of activities your program will consist of and search for a location that will give you access to those activities. Keep in mind the goals of your program and the kind of experience you want for your campers.



Because you are starting a weight loss camp for kids, you have access to many financial tools. Special grants can be obtained for equipment and supplies, as well as scholarship grants to help your campers with the cost of attending. Investors and fundraising can also help you gain enough money to start your weight loss camp.

To start a weight loss camp for kids you need to consider paying your staff. It may be expensive to keep specialists and health professionals on staff but their presence at your weight loss camp with be essential to the success of your program. Review the feasibility of hiring volunteers for counselor positions to offset some of the payroll cost.


Taxes, Licenses and Permits

Preceding the launch of your weight loss camp, you’ll want to obtain all the necessary permits and licenses that are required to build and maintain your camp property. Check with state and federal organizations to make sure you are in compliance with all of their laws and regulations before breaking ground on your weight loss camp.



The weight loss camp you are starting will have to be insured to protect the business as well as the staff and campers. Consult insurance companies about the type of policy your camp will need. Your camp will need extensive coverage in the case of any illness or injury that could happen when camp is in session.


Hiring Staff
Seeking out trust health and nutrition professionals will help give your weight loss camp for kids the credibility it needs for success. While it may be expensive to staff these professional positions, they are essential to the success of your camp. As well as doctors and trainers, you’ll need counselors to lead and motivate your campers towards their goals. Consider hiring young adults as volunteers for the summer to offset payroll expenses. Perform thorough background checks and interviews before selecting your camp counselors.