‍The Situation

Frank is the owner of carrier company WOW Trucking Inc. which he grew from the ground up into a profitable business turning an annual net profit of $165,000. His success earned him a new opportunity to work with a shipper who paid 35% higher rates than his existing clients but had longer payment terms - of up to 60 days. Despite having the ability to handle this additional work, Frank had been running WOW Trucking based on 30-day payment terms and wouldn’t be able to cover costs for 60 days. 

Frank recognized the potential to significantly increase WOW Trucking’s annual revenue by taking on this new customer, so he decided to explore invoice factoring as a solution. 

The Solution 

Frank researched factoring companies and met with a few of them to explore the differences between the contracts they offered. Frank made the decision to work with ABC Funding because they were: 

Transparent
‍There was no application fee, and ABC Funding walked him through the contract over the phone.

‍Flexible
‍WOW Trucking would be able to factor just the 60-day invoices with ABC Factoring, as opposed to all of their invoices, which other factoring companies required.

‍Competitive
‍ABC Funding offered a 3% Factoring Fee, compared to other companies which were going to charge him up to 5%.  

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Financial Impact

Compare WOW Trucking’s finances before and after agreeing to a factoring contract with ABC Funding:

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Frank was able to immediately take on the workload for his new client, resulting in an increase of $175,000 in total annual sales. After factoring in WOW Trucking's annual expenses, the net profit for the year rose by $84,750. With a 3% factoring fee amounting to $20,250, Frank realized an impressive 419% Return on Investment (ROI) in the first year of his factoring contract with ABC Funding.

By partnering with ABC Funding, Frank was able to capitalize on his new opportunity, significantly increasing WOW Trucking's revenue and net profit. This extra profit allowed Frank to reinvest in WOW Trucking, fueling further growth and compounding returns through expanded operations and increased opportunities.

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If you're looking to grow your trucking business and need a reliable factoring partner, Contact Us for a free quote and more information. Let us help you achieve financial stability and growth with our transparent and flexible factoring solutions.

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