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[O386]Owner Operator Trucking Company

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When we need to avail of trucking or freight services, some of the qualities were in search for from a trucking company are reliability and speed. Of course, coverage and rates are important, too. But if you want to end up with the right trucking company for your needs, you have to dig deeper than that.

1. Time critical decision

When it comes to delivering and availing trucking services, clients are always concerned about the time. And rightly so because on-time deliveries are a must when good money is paid. Thus, when interviewing the trucking company representative, make sure you zero in on the following points:

2. Guarantees

What guarantees can the trucking company give to assure you that deliveries will be made on time? Delay What happens if theres a delay in delivery and its the drivers fault? How much discount will be given? What happens if fortuitous circumstances are the cause for delay?

SOP What happens in between the signing of order forms and the moment the parcel is dropped at its intended destination? How many stages are passed before the parcels on its way?

Late Orders What happens to orders that come after office hours? Will they also be delivered on the same day or queued for the next morning? Do they provide round-the-clock service so that late orders are also given same-day-delivery guarantees?

Urgent Deliveries Do they accept urgent orders? What is the shortest delivery time possible and how much distance or area does such a request cover? How much is the extra cost for urgent deliveries?

3. Service

If you want an ironclad assurance that products or parcels will be delivered on time, some trucking companies can offer you such a deal, but at an extra cost. And if fortuitous circumstances cause even a second in delay of deliveries, freight costs are usually completely cancelled. Even if you have no need to avail of this option now, its still better to ask the trucking company representative about such services just in case you get to need them in the future.

4. Coverage

Offshore Do they accept offshore deliveries? If so, how much are they changing and how long will such deliveries take? Which offshore states are covered by the trucking company? If its Hawaii, for instance, will the trucking company accept delivery orders to any part of Hawaii? If theres any time difference between the two areas, that will be followed for orders to be properly classified: the time difference of the receiver or sender? What kind of package protection will be provided to ensure the safety of the products?

5. International

Does the trucking company accept international deliveries? If so, what type of international coverage does it have? Will it accept deliveries only for certain continents or for nations that are at a certain distance from its country of origin? What about countries that international agencies have deemed dangerous? Will they accept deliveries bound for such places? Lastly, does the trucking service employ multi-lingual employees to ensure that deliveries are made to the right person at the right time and place?

6. Their rates

Does the trucking company offer any promos or discounts for high-volume deliveries? What are the terms and conditions that may affect the service rates of the company?

7. Training and performance

What standards does the trucking company require its drivers and delivery handlers to meet? Do they undergo any special training or class to improve their performance?

One of the main challenges that trucking company owners face is that freight bills can take as long as 60 days to get paid. This puts them in a tough spot, because unless the company has a significant amount of cash in the bank, it usually cannot afford to wait to get paid.

Usually, the owner will try to go to the bank to obtain financing hoping that a loan or line of credit might solve the problem. Unfortunately, banks will seldom finance businesses that have less than three years of audited financials that show consistent profits. Of course, if the trucking company could provide three years of financials that show profits, it would not need financing.

A better solution is to use freight factoring. Freight bill factoring enables you to convert your slow paying freight bills into cash by selling them to a factoring company. This provides you with immediate financing and allows you to cover all your ongoing business expenses. Also, as opposed to bank lines of finance, freight bill factoring automatically grows as your sales grow, providing you with flexible financing.

The process is simple. The factoring company buys your invoices and pays for them up front. The transaction is typically done in two installments. The first installment is called the advance and the invoice factoring company provides you with up to 90% of the invoiced amount. The remaining 10% is held as a reserve to cover disputes or charge backs. The remaining 10% (less a fee) is rebated as a second installment, once the invoice is actually paid.

The factoring fee is based on how long the invoice is factored for and the monthly volume of factored invoices. Discount rates average between 1.8% and 4% per month based on these parameters.

Most factoring companies buy invoices using a non-recourse factoring. Under a non-recourse agreement, the factoring company bears the risk of non-payment if your client becomes insolvent or goes out of business. This is a nice benefit of factoring and increases the peace of mind of business owners.

Freight bill factoring is an ideal solution for a new and emerging trucking company, and provides you with the necessary financing to operate and grow your business.

Article Source : Water Trucks For Sale

Marco Terry has sinced written about articles on various topics from Debts Loans, Business Loans and Finances. . Marco Terry's top article generates over 60500 views. to your Favourites.