Every business requires an uninterrupted flow of cash to meet all related expenses and this is especially true in the trucking business. There are drivers' salaries to be paid, fuel and repair bills to be cleared and you might also need to keep a tidy amount ready for unexpected expenses, in case any of your trucks breakdown en-route to their destination.
Freight factoring can solve all these problems. In this process, a freight factoring company will 'buy' off your credit invoice that you have issued to your client and pay you the amount of your invoice minus a 'factoring fee', which could range between 1.5% to 5%. These companies can also take over your collection activity by collecting the payment from your clients on the due date and thus this method of finance is flexible and can provide you with an opportunity to flourish in your trucking business. However, there are some pros and cons to be kept in mind, before you rush to tie-up with any freight factoring company.
Pros:
The biggest advantage of entering into a freight factoring arrangement is that you will get your invoice amount immediately, even if you have issued a credit invoice. This will improve your cash flow and help you to meet your expenses, take on larger and longer hauls and even put into action any expansion plan that you might have nurtured. You will also require fewer documents and no collateral, without which you would not have gotten a bank loan anyway, even if you did wish for one.
The freight factoring company could, at an additional cost, also handle your receivables department, thus freeing your mind and staff from the trouble of running after your clients for your money. Since the incoming amount only depends on the value of the invoices that you 'sell' to the factoring company, you will not need to worry about any monthly installments or interest rates, which would have been the case, if you had taken a traditional loan.
Cons:
It is essential to conduct a thorough survey of the freight factoring industry, before you tie-up with a particular factoring company. The factoring company should be able to handle your account efficiently and should make your payments within the stipulated time for you to enjoy the benefits. Their staff should be available to hear your queries and should also be courteous and polite, while handling your queries. Some of your clients too might not like the idea of answering to a third party in financial matters.
You will therefore need to placate them, if you do not wish to lose them as your clients. If you are already working on wafer-thin profit margins, then by paying the 'factoring fee', you will only end up transferring your profit to your factoring company. This might prove to be disastrous for your business in the long run. If the factoring company is retaining a certain amount of the invoice as security against bad debt, then that too could prove to be troublesome, in case of any dispute with the company or your client.
Therefore, even though freight factoring seems to be an answer to all your financial woes, by not paying heed to the above points, you could end up in even more trouble.
Thus, it is important to study the pros and cons of this mode of finance, in order to avoid any pitfalls associated with it.
Pros And Cons Of Hitch Hiking
Having owned a painting contractor business for over 26 years, I can safely say that one of the most common questions I have been asked is whether to use flat, satin or gloss paint on the interior walls. Usually the homeowner is looking for durability in paint finish because they have children or moisture problems. Other homeowners want the enriched color tones that are attainable through paints that have sheen. Some homeowners try to create special effects in their home environment that is only attainable with glossy paint.
Most painting contractors would agree that one could certainly make a valid argument for using paints with sheen; however, most homeowners are not aware of the downside to using glossy paint on their walls.
Below are problems associated with using gloss paint.
1. One of the most common problems with using gloss paint is it causes minor defects in your walls to become visible. Defects that are not visible with flat paint suddenly become visible with satin or gloss finishes. If you receive a fair amount of sunlight through windows in the room, it will become even more noticeable. Sheetrock tape joints that are slightly raised or depressed can become obvious. Texture variations in the existing wall paint can become visible, etc.
2. Paints with a sheen are notorious for causing a halo effect around trim. When you roll the walls in a room, the roller nap leaves a texture. This texture is different than the texture left by the brush you use to cut in wall paint around doors, windows, baseboard, and crown moldings. Light reflects differently from the texture left by the brush than from the textures left by the roller nap. This halo effect is annoying and will ruin the appearance of your room.
3. If you are planning to paint gloss paint over existing flat walls, you really need two coats of paint to avoid flashing (unevenness of sheen throughout the wall). Two coats improve consistency of sheen and enhance color tone. This of course, increases your cost.
If you still would like the look that sheen can bring, then follow these suggestions.
1. Use very low sheen paint. To minimize the problems associated with gloss paint, Consider using low sheen eggshell or satin finishes.
2. Prep your walls very well. Some of the wall problems may be beyond the scope of what you or the painter you hire can do. A Sheetrock contractor may be your best option for major wall repair.
3. Be sure and cut your walls in with a brush before you roll the walls. After the walls have been cut in with a brush, then roll the wall paint within a quarter of an inch of your trim. Another solution is to apply blue tape to all the trim which will allow you to roll the paint against the trim. This will go a long way in reducing the halo effect. Make sure you have a small roller frame and nap on hand to reach areas where a standard size roller frame can't reach. If you touch your trim with the roller, then immediately clean the paint off the trim with a cloth.
4. Be sure and budget for two coats of paint to achieve the look and feel you want.
Low sheen paints can give you the richness and dept of color with reduced problems, especially in rooms that do not get a lot of light. If your are going to use flat paint, then realize not all flat paints are alike. Top of the line flat paints will clean with much less damage to the wall than cheaper paint. Be sure the paint you purchase is a scrubbable paint. When you clean flat paint you should use a sponge with water and soap. Never use a cloth. Cleaning with a cloth will buff the surface causing sheen to appear at that spot. My recommendation as a painting contractor is plan your project well. Consider the quirks of gloss paint and budget accordingly. Weigh the pros and cons of using sheen on your walls.
Both Kris Koonar & Nicky Taylor are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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