Small businesses are incredibly common here in the United States, and are therefore incredibly important. After all, there are as many as 28 million of them just within this country alone, which means that nearly all United States based businesses (more than 99.5% of them, as a matter of fact) are small ones, with 50 employees or even less. But when a business is small, it is more likely to face certain struggles that larger companies – particularly large corporations – will not typically have to deal with.
For instance, the typical large company will not need to worry so much about cash flow, but cash flow is often a major concern for your typical small business. After all, the data that has ben gathered on the subject more than backs up this claim, showing that cash flow is the reason more than 80% of the time that businesses (of all sizes, but primarily small businesses) fail. And there are many reasons that cash flow can very quickly become an issue, sometimes not even at the hand of the people running or owning the business in question.
For instance, invoices can lead to a considerable amount of financial distress for small businesses, as most invoices are actually paid late, after their original deadline. In fact, more than half of them are late, if paid at all, a percentage that actually reaches around 60% in total, at least at the time that this data was first gathered. In addition to this, this is money that is typically very much necessary for any given small business here in the United States and if the small business in question is not able to get ahold of the right funds that they are owed, they can run into many difficulties.
And the funds that are obtained from invoice payments are very important ones indeed. In fact, it has even been estimated that paying all invoices on time could make a considerable difference for many a small business here in the United States, as according to some of the data that has been gathered in recent years. This recently gathered data shows that more than 2 million new employees would be able to be hired if all invoices were pain promptly and without delay, meaning that issues surrounding employment would likely even begin to drop considerably, something that is typically always a necessary thing here in the United States.
Unfortunately, however, this is not really the reality for small businesses surrounding invoice payments (no matter what the invoice payments might be for) and cash flow here in the United States. So what can really be done to combat this and to keep small businesses from going under because of a lack of invoice payments being paid on time? Fortunately, freight bill factoring services, along with other small business factoring services, can make a world of difference for small businesses all throughout the country.
In fact, freight bill factoring services might even be able to keep a small business afloat while it waits for the necessary invoice payments to come in. But how do these services such as freight bill factoring services and transportation factoring services really work? It’s simple – a loan is typically given out to cover a period of time and the unpaid invoice amounts that fall within it. Freight bill factoring loans and services will differ from case to case, but these freight bill factoring loans usually cover a period of time such as 60 days (around two full months), 90 days (around three full months), or even, in some cases as many as 120 days (around four full months). The duration that the freight bill factoring services cover will be dependent on a number of factors, such as the invoice factoring company or trucking factoring service that is offering freight bill factoring as well as the needs of the clients themselves.
For many small businesses – found all throughout the United States – factoring services such as freight bill factoring services are very much important to the success of the business and the avoidance of cash flow problems, as unpaid invoices are common for many businesses.