The highly competitive marine transportation business can be challenging for a small- or medium-sized company. The euphoria you feel after winning a big contract to provide marine transportation services for an offshore oil drilling company quickly subsides when the contract arrives.
Slow to Pay Customers
In the marine industry, it’s not uncommon for contracts to come with extended payment terms. Even after delivering top-notch marine services, companies might find themselves waiting up to 45 days or more for payment. Expecting crew members, fuel suppliers, and other essential partners to hold off on their dues isn’t feasible.
While large marine entities might have the financial reserves to tide them over during these waiting periods, smaller marine businesses often don’t have such a luxury. Without a substantial cash buffer, these companies can find themselves grappling with cash flow challenges, especially when payments are delayed.
Factor Funding Co. offers invoice factoring solutions to meet your marine transportation company’s cash shortage challenges. Factoring involves converting your unpaid invoices into immediate cash that your company can use in any way it wishes including:
- Meeting current payroll expenses
- Paying operating costs and expenses
- Financing advertising for expansion into new markets
- Meeting capital needs to expand and grow your business
Factoring means your company can receive up to 80 percent of your outstanding invoices right away. Unlike bank loans that must be repaid through monthly payments that can burden your accounts payable, there are no monthly payments with factoring. Your customer repays the advance you received when your invoice is paid in full.
Factoring is Quick,
Conventional borrowing takes time and frequently involves questions about the use of the money and the creditworthiness of the owners of your company. Factoring is not a loan, so the process is quicker and less time-consuming. These are important considerations when your company needs money to keep its day-to-day operations going. The money your company receives can be spent as you see fit. There are no restrictions imposed by a lender.
GET IN TOUCH WITH FACTOR FUNDING
What better way to get the peace of mind you need for you and your family than from an expert with decades of experience helping countless others in exactly the same way?
Reach out for assistance to ensure that your feeling of being in a rut over awaiting settlement doesn’t last long. We get plaintiffs the cash they need.
Waiting around won’t help you pay your expenses. We look forward to chatting about your financial needs and how we might be able to partner up to assist in achieving your goals. Here’s to your success!