- Closely examine “Introductory Interest Rates.” A “Low Introductory Interest Rate” is a great way to get consumers to use a card. Introductory rates are temporary and may increase drastically in a short period of time, locking you into exorbitant payments that can bury you financially.
- Review all variable interest rates and fees that apply to your account. Your credit card company may charge fees and higher interest rates for cash advances, making a past due payment or going over your credit limit. In addition to late fees and over limit fees, your credit card company may also charge annual fees, as well as fees for balance transfers, use of ATMs and other actions. Know all of the potential fees and avoid them whenever possible.
- Take note of when your payments are due and the penalty for late payment. Make sure you understand the due date for your payments and the penalties and interest imposed for late payments. They may be large, cumulative and disastrous for you.
- Understand your payment options. You may be able to pay online, by phone or by mail. Some options may carry fees, while others do not. Understand the options and only use the cards that do not impose a separate fee for making a payment.
- Know your credit limit and stay below it at all times. Your credit limit is the maximum debt you are authorized to carry on your credit card account. Most credit card companies will let you exceed your credit limit, but many impose substantial fees for doing so. These fees can accumulate quickly and can result in fee debt larger than your credit debt. Additionally, exceeding your limit may be reported to credit agencies and substantially damage your credit score.
- Check the fine print in your cardholder agreement. Credit card companies know that virtually no cardholder reads the cardholder agreement. It is always very long and printed in nearly unreadable small print. When you accept the credit card you are bound by the cardholder agreement regardless of its length, print size or whether you read it. For the sake of your financial health, take the time to read the cardholder agreement and understand all the obligations and penalties you are subject to BEFORE you accept the credit card.
The holiday shopping season means you will likely receive many credit card offers online, in the mail or at the checkout of major retailers. Accepting a credit card without understanding the terms can leave you paying huge fees and staggering interest rates.
Black Friday, Small Business Saturday and Cyber Monday are the biggest retail and online shopping days of the year. While there are many great deals to be had it is important to do your homework to make sure you protect your holiday budget. The following tips will help ensure you are able to focus on holiday fun rather than legal disputes with retailers or losing money to scammers.
We have yet to work with a freight factoring client that did not want their business to grow. Invoice factoring is one of the tools that is particularly well-suited to the trucking industry, especially for those that want to add more trucks to their fleet, take on new business more quickly or attract the attention of larger shipping clients.
Freight factoring refers to the act of selling freight bills and/or customer receivable invoices.. By factoring freight bills, the trucking company does not have to wait for customers to pay and they can make instant reinvestments that allow them to get back on the road and take on new business, add trucks or leverage their availability and reputation to serve bigger freight accounts.
1. Freight Factoring Eliminates the Cash Flow Slow-Down
Growing companies need consistent cash flow to meet operational needs, take on new business, make needed repairs or invest in new equipment. Our clients commonly cite slow-paying customers or customers with extended terms as one of the reasons that freight factoring is beneficial to their trucking business.
2. Factoring Invoices Facilitates Competitive Advantages
By extension, getting payment on customer invoices the same day they are issued – without waiting for them to pay – can create an instant competitive advantage for a trucking company. Since slow-paying freight customers or customers with extended terms no longer affects their cash flow, they can extend better payment terms that can help them bring on new accounts.
3. Factoring Freight Bills Frees Up Working Capital
No business can grow without access to working capital. If working capital is locked down in customer receivables, it cannot be put to work to pay operating expenses, meet payroll, cover the cost of taking on new business or be put to work to add new trucks to the fleet. Lack of cash flow can stall your growth; access to working capital lets you reinvest in your business more quickly!
Trucking companies that factor invoices get instant access to the working capital that could otherwise be locked down for weeks – or even months – while waiting for customers to pay. You can calculate how much working capital may be tied up in your receivable invoices using our freight factoring opportunity cost calculator.
4. Factoring Invoices Provides a Trucking Company with Financial Leverage
Not only factoring freight bills give you the ability to become more attractive to potential customers, it also gives you leverage with suppliers and vendors. With working capital in hand – instead of locked down in customer receivables – you can negotiate more favorable terms and savings. This type of cost savings means improved profitability for your trucking business.
5. Factoring Freight Bills Reduces Operational Costs
Saving money with vendors and suppliers is only one way that factoring produces a cost-savings for a trucking company. In addition, operational costs associated with bookkeeping for accounts receivables and any associated collections activities are reduced – or even eliminated altogether.
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