#131 June

Page 1

June 2014 Issue 131

—S e rvi ng All of Ontar io—

J D Factors

Flexible Financing Solutions for Transportation Companies By Marek Krasuski

C

ommercial transportation is an industry that faces many challenges, among them the need to pay for operating expenses before receipt of payment for rendered services. Indeed, receivables for deliveries typically range from 30 to 90 days, terms which often undermine a carrier’s capacity to meet immediate operating costs such as fuel, insurance, repairs and salaries. Commercial carriers have sought out traditional lenders such as banks to address accounts payable obligations, but these alternatives are typically attached to restrictive covenants which, if broken, negatively affect the credit worthiness of a company and result in the termination of the loan. In addition, such agreements require proof of equity J D Factors, page 4 >>

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