Tuesday, November 8, 2011

Shaw Capital Management and Financing - Freight Bill Factoring to Fund Your Need

Using Freight Bill Factoring to Fund Your Transportation Company by Marco Terry.

Most transportation company owners have to constantly juggle responsibilities. They have to handle vehicle repairs, driver payments, insurance payments, office expenses and more importantly - collecting invoices. Collections can be source of problems for many transportation companies (or freight brokerages) since most clients pay their invoices in 30 to 60 days . Few can afford to wait that long.

Shaw Capital Management and Financing provide same-day-funding. We can help you meet your cash flow needs immediately without entering into a long term factoring relationship. The money you get for the freight bills we purchase is payment in full. Shaw Capital helps you to avoid costly mistakes, online scam, fraud and other identity theft transactions before you knew it.

One way to handle slow payment is to try and negotiate a quick pay - basically asking your clients to pay quickly. Some will do it. Others won't, or at least will only offer it if you give them a discount. Although they are not always reliable, negotiating a quick pay can be beneficial in most cases.

Shaw Capital Management and Financing offer a complete line of factoring services, purchase order funding, and asset based financing, accounts receivable management, and other related financial services.

If quick pays won't work, your best alternative is to secure business financing to ensure you always have funds on hand to cover business expenses. This can be difficult for most owners since institutions require that all applications have stellar credit, assets that can be held as collateral and many years of experience. This will rule out business loans as an alternative for most small and midsized trucking companies. However, this is not necessarily a big problem since a business loan is not always the solution to this problem.

For many, freight bill factoring will be the better alternative. Freight factoring, as it is commonly known, can provide the equivalent of a quick pay by using an intermediary. The intermediary, called a factoring company, advances you funds against your freight bill. The transaction is settled once your client pays the invoice in full.

One of the advantages of freight factoring is that it provides predictable cash flow, enabling you to comfortably handle your business expenses. It eliminates having to worry about when your clients will pay.



To qualify for freight factoring you need to work with credit worthy clients. Also, your company needs to be free of liens, judgments and other encumbrances. Because of this, freight bill factoring is an ideal solution for small and growing trucking companies and freight brokers.

Shaw Capital Management and Financing offer funding for a wide range of industries and flexible funding requirements that most businesses can easily qualify for.
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Shaw Capital Management Korea: Fresh Pressure on BOJ for Adopting an Inflation Target. A recent study by Daniel Leigh, an economist at the IMF, shows that had Japan introduced inflation target in the 90’s its economy’s performance would have substantially improved and the BOJ would have avoided the zero lower bound on nominal interest rates. But the essence of the question is to what extent the introduction of inflation targeting will enhance credibility of the BOJ’s reflation policy in a deflationary phase and help economic recovery. More importantly, whether or not the BOJ monetary policy is credible enough for inflation expectations to be anchored to an inflation target.  Takehiro Sato of Morgan Stanley says that, unlike the Federal Reserve, which has won a high degree of respect for its handling of monetary policy, Japan’s central bank is not yet trusted by markets because of its past moves. “The BOJ’s policy track record is bad.

A target for inflation helps to anchor future expectations of monetary policy, but BOJ lacks credibility. The mere announcement of an inflation target would not change expectations”, he said. Indeed, the introduction of inflation targets among advanced countries tends to be accompanied by an institutional framework that makes inflation targeting credible and accountable. In several countries, including New Zealand and Australia, inflation targeting is an agreement between the government and the central bank, and both are committed to policy that is consistent with the inflation target.

Shaw Capital Management Korea: Fresh Pressure on BOJ for Adopting an Inflation Target. In several countries, including New Zealand and the UK, when inflation exceeds the target by a wide margin, the Governor is required to provide an explanation to the parliament. With accountability and commitment, inflation targeting does become credible.

A central bank in a deflationary environment is subject to a time-inconsistency problem: it cannot credibly commit to “being irresponsible” and so continue to shoot for high inflation.

Furthermore, there is a concern that once the Japanese economy has emerged from a deflationary spiral and starts to recover, the central bank will be tempted to renege on its commitment to a high inflation target, because it would like the economy to return to an inflation rate consistent with price stability. Thus a central bank in a deflationary environment is subject to a time-inconsistency problem: it cannot credibly commit to “being irresponsible” and so continue to shoot for high inflation. The result of the time-inconsistency problem is that the markets would not be convinced that inflation would remain high, and inflation expectations would not be high enough to lower real rates sufficiently to stimulate the economy out of the deflation trap. To overcome deflation and restore economic activity Japanese policymakers may not need to adopt an inflation target. They could simply use unconventional instruments, such as purchases of riskier assets and foreign assets, more aggressively so to persuade the markets and the public that there will be higher inflation.

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