Businesses need cash to operate, grow, and thrive. Any gaps in funding can wreak havoc on a company’s cash flow. Without consistent and fast funding, covering continuing obligations like wages or rent can be challenging. If your bank account needs a cash infusion, Porter Freight Funding offers an array of short-term, working capital solutions to help your firm stay afloat.
Who is Porter Freight Funding?
Established in 1991, Porter Freight Funding is a financial services firm headquartered in Birmingham, Alabama. The company specializes in accounts receivable financing and asset-based lending– plus a fuel card! They offer a wide variety of working capital solutions, including invoice factoring, supply chain financing, and business loans.
Which Industries Does Porter Freight Funding?
Porter Freight Funding provides financial solutions through a variety of loan programs targeting diverse industries.
Transportation and Trucking
Freight financing is a critical trucking and transportation funding tool. A company will send a bill for the cost of transporting a shipment, but then the company will find that it takes weeks, even months, to get paid. Porter Freight Funding provides cash flow in the gap between the accepting shipment and when the invoice is paid. Invoice factoring can improve a company's short-term cash flow.
Manufacturing
Porter Freight Funding provides working capital to manufacturers through supply chain financing. This form of funding requires the manufacturing company and the buyer to work together through a supply chain financing company, such as Porter Freight Funding.
Once the goods are delivered, and the buyer has confirmed that they approve the bill, the manufacturing company gets paid. The buyer then pays Porter Freight Funding directly. Manufacturers have other funding options such as factoring and asset-based lending.
Distribution
Distribution companies can receive instant funding through Porter Freight Funding by financing inventory purchases. This form of asset-based lending advances funds based on asset value, which can then be used to pay for business expenses or inventory replenishment. This type of financing can be repaid as the company sells its inventory.
In addition, distribution companies may also factor their accounts receivable invoices or get cash through supply chain financing.
Staffing
Staffing companies need funds to cover payroll and contractor checks. Porter Freight Funding provides funding to staffing firms through accounts receivable factoring, where companies sell their accounts receivables to get faster cash.
Oil and Gas Services
Porter Freight Funding provides accounts receivable factoring and asset-based lending to oil and gas companies. By factoring invoices, companies in the oil and gas industry won’t have to wait months before getting paid.
Oil and gas companies can take advantage of asset-based lending. Using assets like inventory, and equipment as collateral, the company can take out a loan or obtain a credit line.
Industrial and Business Services
Porter Freight Funding has plenty of financing options for industrial and service companies. Factoring accounts receivable provides cash to companies so that they can pay business expenses. Asset-based lending, inventory financing, and working capital loans may be available.
Need cashflow resources for your business? Learn about additional funding with Porter Freight Funding.
How Has Porter Freight Funding Improved?
Since it was founded in 1991, Porter Freight Funding has expanded to become a leading provider of accounts receivable financing and asset-based lending solutions. As a direct lender and factoring company, Porter Capital has offered over $6 billion in funding since its inception.
Get the Cash You Need
Your profit and loss statement may look healthy, but if you don’t have enough money in your bank account, there may be a problem. Slow-paying customers and seasonality can stifle a company’s operations.
Porter Freight Funding provides working capital solutions for companies that need to cover overhead costs. With financial services like accounts receivable factoring and asset-based lending, you can get the cash you need to stay afloat. If a lack of cash is damaging your business, find out how Porter Freight Funding can help you.
Cost
Pricing for Porter Capital working capital solutions varies. Inquire within for a custom quote.
Pros & Cons
Why Porter Capital Is Beneficial
Porter Capital makes it easy to get cash for your company. The company has financing solutions designed to fit the needs of all companies, both large and small.
Helps Improve Cash Flow
Rather than waiting 30 days or more to get paid, a company can receive cash quickly when they factor accounts receivable invoices with Porter Capital. This form of financing helps companies cover payroll costs and other business expenses.
With inventory and supply chain financing, working capital loans, and asset-based lending, a company can tap into much-needed cash to pay bills. These financing options also help stabilize cash flow peaks and valleys caused by slow-paying customers or seasonal industries.
Immediate Cash
Flexible financing options through Porter Capital can offer quick cash. According to Portal Capital’s website, you can receive funding in as little as 24 hours. A fast receipt of funds can be critical if a company needs to pay its employees or suppliers immediately and cannot wait for traditional financing.
Good for Companies that Cannot Get Traditional Bank Financing
Porter Capital provides solutions to companies that may be unable to obtain traditional bank financing. With its Debtor In Possession (DIP) program, bankrupt companies that show a plan to get back on their feet may be eligible for working capital loans based on their assets, not credit.
Invoice factoring may be a good financing option for a small or rapidly-growing company that may not qualify for bank financing.
Choose Which Invoices to Factor
A company can pick which accounts receivable invoices they want to factor. For example, companies can choose to factor invoices of a specific dollar amount or those of a slow-paying customer.
Drawbacks of Porter Capital
Porter Capital can be a convenient and quick way to get cash for your company. However, using Porter Capital may have a few drawbacks:
Recourse Factoring Can Be Risky
When a company factors their accounts receivable with recourse, they will have to pay the finance company back if the customer doesn’t pay their bill. Since the finance company bears less risk, it costs less to factor invoices with recourse. However, your company also runs the risk of having to repay the finance company.
On the other hand, non-recourse financing means that your company is not liable if the customer does not pay. This type of factoring typically comes at a higher fee since the finance company carries more risk. Approval for a non-recourse factoring arrangement may be more difficult.
Fees Embedded
Porter Capital doesn’t specifically list the fees that you pay with their funding solutions. You may find this form of financing costlier than if you went through a bank.