Are you a freight broker looking for same-day working capital to expand your business, acquire more shippers, or upgrade your systems?
Do you already make $5,000 a month in revenue, have a business checking account, and been in business at least six months?
If so, a business cash advance might be the perfect fit for your freight broker working capital.
There are over 18,000 freight brokers in the United states, accounting for $350 million a year in revenue. Freight Brokering is a booming industry and is expected to grow by 4% annually the next 4 years. How can more freight broker working capital help your business?
What is Freight Broker Working Capital?
The best financial alternative to bank loans right now is called Merchant Cash Advances and Business Cash Advances. These are short-term business advances that look at your business revenue to determine what you can borrow. For instance, if you make $10,000 a month with your freight broker business, you can probably get 75% of that as an advance, $7500.
Merchant Cash Advances usually withdraw your payments from future credit card transactions, whereas a Business Cash Advance will draw from your business checking account revenue through daily or weekly ACH withdrawals.
Both options are great if you have a low credit score, have only been in business six months, and can’t get a bank loan. These advances are usually less than a year in length and use factor rates instead of interest rates. A typical lower-end factor rate is around 1.19, meaning you pay back 1.19 times the funded amount: 10,000 times 1.19 equals $11,900 if paid back in 30 days. The longer it takes to pay back the factor rate increases. You also can usually get a trucking business cash advance the same day.
Using your Business Advance for Your Freight Broker Company
Here’s the top 5 Ways to Use Your Working Capital Advance:
One) Account Receivables: The most obvious reason to use freight broker working capital is to float the expenses until you receive account receivables from your customers or shippers.
You usually have to give the truck owner or driver an advance until he or she makes the delivery and the client pays. This payment might not be received for up to 30 days. If you have a lot of unpaid account receivables out there, that means you are deeply in-debt and your broker business could fail.
Two) Software/Hardware: You will also have monthly payments to software and hardware services, like paying for a Transportation Management System can be $50 to $200 per month; a Load Board Dat or Truckstop system can cost $140 per month, and contingent cargo insurance can cost $200 to $400 per month.
You will also need a fast computer ($1200), high-speed internet ($150/mo.), and develop a business website which will be around $1500 right there.
Three) Upgrade Management: This is the second biggest area of freight brokers that can end your business prematurely. Poor management is a big business killer and is usually not obvious to the freight broker owner until it’s too late.
Hire the best, even if it will cost you more money. In the end, you will make more money with top talent. You can use a hiring platform, like Indeed or Zip Recruiter, and only look at applicants that have transportation experience, ideal freight brokering, of no less than one year, ideally 5 years.
Four) Freight Broker Advanced Training: You got where you are as a freight broker because you took the necessary steps to get incorporated and get your Modal License, but advanced training from a freight broker consultant could double or triple your revenue.
Five) Working Capital: 82% of all businesses die because of lack of capital. Money makes the wheels turn. Without capital, you cannot find decent freight providers to make the shipments for your clients, or you’ll sink from having too many unpaid receivables. Working capital is crucial and having enough of it could save your business.
Working with Us for your Freight Broker Working Capital
Getting Transportation Working Capital is crucial if you want to remain in business, profitable, and above the competition. There’s over 18,000 freight brokers out there that are vying for the same customers you are.
We offer same day funding up to $25,000. You simply need to be in business for six months, make $5,000 a month in revenue, and have a credit of 450. You also shouldn’t have any other outstanding loans or liens.
Simply apply and view your offer, if you get approved. You can accept or decline the offer. No hard credit pull either.
I wish you all the success in the world! Thanks for reading. We are committed to keeping every business in America alive and well. God bless!
Erik C. Johnson
Independent DAC Agent