[{"id":410886,"date":"2024-11-27T09:31:17","date_gmt":"2024-11-27T16:31:17","guid":{"rendered":"https:\/\/dev.tabbank.com\/?p=410886"},"modified":"2024-11-27T09:32:48","modified_gmt":"2024-11-27T16:32:48","slug":"starting-a-trucking-business-checklist","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/blog\/starting-a-trucking-business-checklist\/","title":{"rendered":"How to Start a Trucking Company in 13 Steps"},"content":{"rendered":"\n<p>Opening a business is no easy feat, especially in the trucking industry. The transportation industry is highly competitive and continues to grow. If you are interested in starting a trucking business, there are a few things you need to be aware of. Before you can get your freight on the road making deliveries, several government requirements must be met. Our checklist on how to start a trucking company will help you navigate the necessary steps to get your trucking business launched. In order to succeed, it is important to set up your business correctly and be informed of the federal and state regulations that apply to your company.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-1 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<h2 class=\"wp-block-heading\"><span style=\"color: #58a618;\"><span style=\"color: #58A618;\" class=\"ugb-highlight\">1. Make a Business Plan<\/span><\/span><\/h2>\n\n\n\n<p>The first step in starting a trucking business is to make a plan for how your business will operate. Consider things like financing, partners, the potential size of your company, and how you will handle issues that may arise. Don\u2019t let the concept of a business plan scare you, it is simply to guide you through the process of starting your company and serve as a road map for where you would like things to go. <\/p>\n\n\n\n<p>If you want to go the extra mile, consider performing market research to gain a better understanding of your competition and the businesses you will serve. The more information and details you include in your business plan, the better prepared you will be to speak to investors and start your business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"color: #58a618;\"><span style=\"color: #58A618;\" class=\"ugb-highlight\">2. Set Up an LLC<\/span><\/span><\/h2>\n\n\n\n<p>Once you\u2019re ready with your business plan, the next recommended step is to set up an LLC with the Secretary of State in your home state. Once you\u2019ve established your LLC, you\u2019ll be able to get an Employer Identification Number, which will be required for federal tax filing and reporting purposes. You can learn more at <a href=\"https:\/\/www.irs.gov\/businesses\" target=\"_blank\" rel=\"noreferrer noopener\">irs.gov\/businesses<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"color: #58a618;\"><span style=\"color: #58A618;\" class=\"ugb-highlight\">3. Make a Plan to Obtain Insurance<\/span><\/span><\/h2>\n\n\n\n<p>Any trucking company operating in the United States is required to obtain liability and cargo insurance. Providing proof of insurance is required to receive many of the licenses and permits that you will need in the next steps, so it\u2019s recommended that you have a plan for your insurance before moving on. Visit the <a href=\"https:\/\/www.fmcsa.dot.gov\/registration\/insurance-filing-requirements\" target=\"_blank\" rel=\"noreferrer noopener\">FMCSA<\/a> for specific information on the insurance requirements and how to file and submit proof of insurance.<a id=\"_msocom_1\"><\/a><\/p>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-green-color has-text-color\"><span style=\"color: #58a618;\">4. Get a Commercial Driver’s License (CDL)<\/span><\/h2>\n\n\n\n<p>Before operating any commercial vehicle, you (or your drivers) will need to get a commercial driver\u2019s license. The process to get a commercial driver\u2019s license consists of a background check, training, a written permit exam, and a driving test. In addition to having the correct license to operate commercial vehicles, drivers will also need to maintain a clean driving record and pass drug screenings. There are different classes of CDL, so you should first decide what freight transportation you plan to drive. This is important because specific types of cargo you transport will require certain CDL endorsements. To get information about your state\u2019s requirements, visit your state licensing office or the <a href=\"https:\/\/www.fmcsa.dot.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\">Federal Motor Carrier Safety Administration (FMCSA)<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-green-color has-text-color\"><span style=\"color: #58a618;\">5. Apply for Permits and Registrations<\/span><\/h2>\n\n\n\n<p>Before you can start operating your business you will need to obtain the required permits and registrations. <\/p>\n\n\n\n<p>The permit or registration you need depends on the service you operate and where your trucking business will be located. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 Designate Process Agents<\/h3>\n\n\n\n<p>In each state that you will be operating, it\u2019s required that you designate a process agent that can manage any legal paperwork that may be served in the state they manage. Each process agent must file a BOC-3 Form on behalf of the trucking company. After filing, one copy of each state\u2019s form must be kept at the trucking company\u2019s place of business. More information on process agents can be found at <a href=\"https:\/\/www.fmcsa.dot.gov\/registration\/process-agents\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.fmcsa.dot.gov\/registration\/process-agents<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 Apply for Federal DOT and Motor Carrier Authority Number<\/h3>\n\n\n\n<p>In order to operate freight transportation in the United States, you need to apply for a Federal DOT number and a motor carrier authority number. These numbers are unique identifiers assigned to your trucking business. The USDOT number is used to track your company\u2019s compliance with rules and regulations, and to track your company safety records. The Motor Carrier (MC) authority is used to show what type of trucking business you run and the types of things that your business is allowed to transport. <\/p>\n\n\n\n<p>The FMCSA is one of the places where you have to provide proof of insurance; the FMCSA must receive proof of liability and\/or cargo insurance within 90 days of filing your MC authority. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 Unified Carrier Registration (UCR)<\/h3>\n\n\n\n<p>For freight trucks that travel between multiple states or for international commerce, the Department of Transport (DOT) requires that you apply and register with the federal Unified Carrier Registration Agreement (UCR). UCR fees are based on the size of your fleet and must be renewed annually. To register you must use your Federal DOT number and your Motor Carrier (MC) Authority number. For more information about Unified Carrier Registration (UCR) visit the Department of Transportation website for your home state. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 International Registration Plan (IRP)<\/h3>\n\n\n\n<p>An International Registration Plan (IRP) is a license plate issued by your home state. This license plate allows you to operate your truck in other states. The license plate requires an annual fee. You can find more information <a href=\"https:\/\/www.irponline.org\/default.aspx\" target=\"_blank\" rel=\"noreferrer noopener\">here<\/a>, or visit the Department of Transportation website in your home state. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 Register for the Standard Carrier Alpha Code (SCAC) <\/h3>\n\n\n\n<p>The Standard Carrier Alpha Code (SCAC) is a code that identifies what transport carriers are authorized to haul. Having this code helps create a system of trust for all stakeholders. If you are transporting any of the goods listed here you should apply and register for the SCAC with the National Motor Freight Traffic Association (NMFTA). The goods that require SCAC registration include:<\/p>\n\n\n\n<p>\u2022 Military<\/p>\n\n\n\n<p>\u2022 Government<\/p>\n\n\n\n<p>\u2022 International<\/p>\n\n\n\n<p>\u2022 Intermodal<\/p>\n\n\n\n<p>\u2022 Railyard cargo<\/p>\n\n\n\n<p>\u2022 Chemicals\/hazardous materials<\/p>\n\n\n\n<p>\u2022 Port cargo<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ugb-highlight\" style=\"color: #58A618;\">6. Make Sure You Are in Compliance<\/span><\/h2>\n\n\n\n<p>Operating in the trucking industry comes with strict regulations, so compliance is non-negotiable. Here are some things you’ll need to consider:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>USDOT Number<\/strong>: If you\u2019re crossing state lines or operating large vehicles, a USDOT number is required. It tracks your safety record and compliance history.<\/li>\n\n\n\n<li><strong>Motor Carrier Authority (MC Number)<\/strong>: This allows you to transport goods across state lines. The application can be done via the FMCSA.<\/li>\n\n\n\n<li><strong>International Registration Plan (IRP)<\/strong>: Required for trucks traveling across state lines, the IRP distributes registration fees based on the distance your truck covers in each jurisdiction.<\/li>\n\n\n\n<li><strong>International Fuel Tax Agreement (IFTA)<\/strong>: This license simplifies fuel tax reporting across states.<\/li>\n\n\n\n<li><strong>BOC-3 Form<\/strong>: This designates a process agent in every state where you operate, required for interstate commerce.<\/li>\n\n\n\n<li><strong>Heavy Vehicle Use Tax (Form 2290)<\/strong>: If your trucks weigh more than 55,000 pounds, you\u2019ll need to file this form annually to stay compliant.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ugb-highlight\" style=\"color: #58A618;\">7. Get an EIN<\/span><\/h2>\n\n\n\n<p>An Employer Identification Number (EIN) is crucial for tax purposes and separating your personal finances from your business. It’s a simple process\u2014you can apply for an EIN directly through the IRS website. With an EIN in hand, you’ll be able to set up payroll, file taxes properly, and create a business bank account.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ugb-highlight\" style=\"color: #58A618;\">8. Set Up a Business Bank Account<\/span><\/h2>\n\n\n\n<p>To manage your business finances and ensure everything is organized for tax season, open a dedicated business bank account. This separates personal and business expenses, streamlines accounting, and builds your company\u2019s financial credibility. TAB Bank offers specific accounts designed for small businesses, with lower fees and <a href=\"https:\/\/www.tabbank.com\/trucking-invoice-factoring\/\">freight factoring services<\/a> tailored to trucking companies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ugb-highlight\" style=\"color: #58A618;\">9. Purchase the Necessary Equipment<\/span><\/h2>\n\n\n\n<p>A key part of this process includes acquiring the trucks and other necessary equipment. Based on your business plan, you should have an idea of what cargo or freight you want to haul and the different areas you will serve. From this, you can determine the quantity, weight limit, cab style, and weather resistance it will take to get the job done. <\/p>\n\n\n\n<p>Beyond trucks, you will also need other equipment such as electronic logging devices to keep track of your vehicle’s whereabouts and mileage. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ugb-highlight\" style=\"color: #58A618;\">10. Finance Your Business<\/span><\/h2>\n\n\n\n<p>Now that you have your business plan and an idea of the startup costs, you might be adding numbers up in your head and stressing out. <em>Don\u2019t panic.<\/em> There are plenty of ways to gain access to the capital needed to start your business. <\/p>\n\n\n\n<p>TAB Bank offers <a href=\"https:\/\/www.tabbank.com\/equipment-financing\/\">equipment financing<\/a> and <a href=\"https:\/\/www.tabbank.com\/trucking-invoice-factoring\/\">invoice factoring for trucking companies<\/a>. These are dynamic financing options that will cater to your needs as your business grows and changes. Whether you plan to start with a few trucks or a full-fledged fleet, TAB is ready to help your company\u2019s needs become a reality. <\/p>\n\n\n\n<p>Other ways to access capital include pursuing <a href=\"https:\/\/www.tabbank.com\/smb-term-loans\/\">small business term loans<\/a> or <a href=\"https:\/\/www.tabbank.com\/business-line-of-credit\/\">lines of credit<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ugb-highlight\" style=\"color: #58A618;\">11. Set Pricing<\/span><\/h2>\n\n\n\n<p>Your pricing will be one of the critical factors that determines your profitability. Start by calculating operational costs, including fuel, maintenance, insurance, and driver wages. Then, compare with the going rates in the industry. Flexibility helps too\u2014offering different pricing models like per-mile or flat-rate pricing can allow you to stay competitive.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ugb-highlight\" style=\"color: #58A618;\">12. Hire Drivers<\/span><\/h2>\n\n\n\n<p>Finding qualified, reliable drivers is key to scaling your trucking business. Ensure that every driver has the appropriate licenses, including a CDL, and adheres to industry regulations. Consider running background checks, and drug screenings, and ensuring drivers meet FMCSA compliance standards to protect your business and reputation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ugb-highlight\" style=\"color: #58A618;\">13. Market Your Business<\/span><\/h2>\n\n\n\n<p>Building your brand and establishing relationships in the industry are crucial to long-term success. Set up a professional website, create a presence on social media, and consider advertising on load boards to get your name out there. Networking with brokers and shippers, along with offering quality service, will ensure you stay top of mind when new opportunities arise.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"color: #58a618;\">Other Things to Keep in Mind<\/span><\/h2>\n\n\n\n<p>Here are some other things to consider while you\u2019re working through this checklist for starting a trucking business<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 Learn about Heavy Highway Vehicle Tax<\/h3>\n\n\n\n<p>For trucks that are heavier than 55,000 pounds, your business will need to pay a heavy highway vehicle tax. This tax is paid annually and you are required to file a 2290 tax form with the IRS.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 International Fuel Tax Agreement (IFTA)<\/h3>\n\n\n\n<p>The International Fuel Tax Agreement (IFTA) is a decal that helps with the reporting of fuel consumed by trucks operating in the United States. This decal gives your trucking business a single fuel license and, from there, you are required to file fuel usage tax returns each quarter with the state where you are registered. For additional information on the International Fuel Tax Agreement (IFTA), visit your state\u2019s website for the Department of Transportation. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 New Entrant Safety Audit<\/h3>\n\n\n\n<p>As a new trucking company, you will be required to complete a new entrant safety audit within the first 12 months of operation with the DOT. There are many service providers that can help you prepare for the audit, but you should be prepared with all paperwork and fees required well in advance of the audit. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 Continued Compliance<\/h3>\n\n\n\n<p>You should also remember that many of these federal regulations are not a one-stop-shop. They require constant compliance and some require additional testing monthly or yearly. For your business to be successful, be sure that you are staying up-to-date with current regulations and frequently checking that your company is still meeting all of the standards and regulations. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">\u2022 Additional Business Insurance<\/h3>\n\n\n\n<p>While the legal side of setting up your business is critical, there are additional things you should keep in mind as well. In addition to the required equipment and cargo insurance required to start your business, consider additional general business insurance. Starting and operating any type of business is a risk, so you should ensure that you have the proper insurance and financial security in place to take that risk so your business is covered in case of emergency.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"color: #58a618;\">Conclusion<\/span><\/h2>\n\n\n\n<p>Starting a trucking business has many steps to consider and, even after establishing it, there are dates and filing requirements that you may still need to be aware of. As you begin your venture, you may want to refer back to this trucking business checklist to ensure you are not missing any crucial steps along the way.<\/p>\n\n\n\n<p>At TAB Bank, we have experience working with and financing the trucking industry for over 25 years. We offer financial solutions for both large and small fleet trucking companies and individual owner-operators. If you are trying to start a trucking company, <a href=\"https:\/\/www.tabbank.com\/business-banking\/\">check out TAB\u2019s business banking services<\/a>\u2014built with you and your business\u2019s unique needs in mind. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong><span style=\"color: #58A618;\" class=\"ugb-highlight\">Frequently Asked Questions<\/span><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How much cash do you need to start a trucking company?<\/strong><\/h3>\n\n\n\n<p>New trucking companies can expect to invest $10,000-$20,000, though the exact costs of starting a trucking company vary from state to state. Startup costs also depend on your business plans such as how many trucks you\u2019d like to use, routes, and cargo.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Is it hard to open a trucking company?<\/strong><\/h3>\n\n\n\n<p>Opening a trucking company is not too difficult to start, it just takes proactive planning and researching the necessary licenses and state regulations, such as acquiring a CDL.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How do I start a trucking company and get loads?<\/strong><\/h3>\n\n\n\n<p>There are a handful of ways to start picking up freight. A few options include cold calling manufacturers to see if they need help transporting their items, working with freight brokers who will connect you to shippers in search of transportation, and searching for jobs through online load boards.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n\n\n\n<p>Disclaimer: The content provided does not constitute legal advice and should be used for informational purposes only. Readers should consult with their attorney regarding any applicable legal matter.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Opening a business is no easy feat, especially in the trucking industry. The transportation industry is highly competitive and continues to grow. If you are interested in starting a trucking business, there are a few things you need to be aware of. Before you can get your freight on the road making deliveries, several government […]<\/p>\n","protected":false},"author":1,"featured_media":410974,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[23,27],"tags":[],"class_list":["post-410886","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-trucking"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/410886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=410886"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/410886\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media\/410974"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=410886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=410886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=410886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}},{"id":412282,"date":"2024-11-27T09:17:35","date_gmt":"2024-11-27T16:17:35","guid":{"rendered":"https:\/\/dev.tabbank.com\/?p=412282"},"modified":"2024-11-27T09:17:37","modified_gmt":"2024-11-27T16:17:37","slug":"understand-sponsor-financing","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/blog\/understand-sponsor-financing\/","title":{"rendered":"What is Sponsor Financing?"},"content":{"rendered":"\n<div class=\"wp-block-columns pt-0 mt-0 pb-4 is-layout-flex wp-container-core-columns-is-layout-2 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p><em>Reviewed by Matthew Brunson, SVP of Strategic Partnerships at TAB Bank<\/em><\/p>\n\n\n\n<p>A sponsor bank is a financial institution that provides a broad range of services to businesses and organizations. It acts as a conduit between the customer and the banking system. By supplying access to banking services and products, sponsor banks give a client organization the ability to meet its financial goals, providing a safe and secure option for the business to manage funds. This is made possible through <em>sponsor financing<\/em>.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns py-4 is-layout-flex wp-container-core-columns-is-layout-3 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading mb-32\"><strong>What is Sponsor Financing?<\/strong><\/h3>\n\n\n\n<p>Sponsor financing is an increasingly popular option for businesses looking to receive capital or other finance-related support. By working with a sponsor banking partner, organizations can receive an influx of funding without necessarily going through the traditional banking-loan route. <\/p>\n\n\n\n<h3 class=\"wp-block-heading mb-32\"><strong>How does Sponsor Financing Work?<\/strong><\/h3>\n\n\n\n<p>Through sponsor financing, a business instead partners with an investor (such as a sponsor bank) who provides supplemental capital and money movement and compliance oversight to help the organization meet its financial needs.<\/p>\n\n\n\n<p>Typically, sponsor banks are state or federally chartered, meaning that they are members of established credit card associations. This allows them to license credit cards and process credit transactions for their partners. As part of the sponsor-financing service, the bank will assume responsibility for ensuring that its clients adhere to regulatory compliance standards.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns py-4 is-layout-flex wp-container-core-columns-is-layout-4 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading mb-32\"><strong>Who is the Sponsor?<\/strong><\/h3>\n\n\n\n<p>In general terms, a sponsor can be any individual or entity that provides support for a person or organization. In business, the term <em>sponsor<\/em> is sometimes used synonymously with <em>investors<\/em>, as both are invested in the success of the sponsored party. That said, sponsors can go further than simply providing capital; sponsors may underwrite mutual fund shares, promote publicly traded securities, advocate for a brand, or otherwise help advance the goals of their partner.<\/p>\n\n\n\n<p>More specifically for sponsor financing, a sponsor is an organization (generally a sponsor bank) that offers financial services to non-financial companies.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns py-4 is-layout-flex wp-container-core-columns-is-layout-5 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading mb-32\"><strong>Examples of Sponsor Financing<\/strong><\/h3>\n\n\n\n<p>Given the range of support and investment options available, sponsor financing can take many different forms. In the broadest sense, sponsor financing encompasses any kind of monetary backing provided to either an organization or an individual customer. This can include providing startup capital, underwriting mutual fund shares for public offerings, issuing investment funds for trade on the stock exchange (<em>exchange-traded funds<\/em> or <em>ETC<\/em>), and more. But perhaps the most important form of sponsor financing for many organizations is in providing money-movement services.<\/p>\n\n\n\n<p>Money movement describes services that involve the transfer of digital funds from one account to another. This includes direct deposit, P2P transactions, accounts payable capabilities, disbursement to vendors or sub-merchants, and otherwise facilitating card payments.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns py-4 is-layout-flex wp-container-core-columns-is-layout-6 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h3 class=\"wp-block-heading mb-32\"><strong>Sponsor Financing with TAB Bank<\/strong><\/h3>\n\n\n\n<p>Whether you\u2019re an organization looking for additional support or an individual who could benefit from better banking services, TAB Bank is ready and available to help. With 25 years of experience as one of the first branchless banking solutions in the United States, TAB is committed to helping you achieve your financial goals.<\/p>\n\n\n\n<p>TAB Bank sponsorship programs include access to major credit-card networks, as well as co-branded programs, private label programs, and commercial and consumer programs. Reliable, resourceful, and capable, TAB Bank is here to help you build a strategic, TAB Bank sponsorship programs include access to major credit-card networks, as well as co-branded programs, private label programs, and other commercial relationships. Reliable, resourceful, and capable, TAB Bank is here to help you build a strategic, mutually beneficial partnership. <a href=\"\/partners\/\">Learn more about becoming a TAB Bank partner<\/a>, and find the flexible sponsorship options to meet your unique needs. Whether you\u2019re an established enterprise, a burgeoning startup, or anything in between, we can provide the resources to help you reach success.<\/p>\n\n\n\n<p>Ready to get started? Take the next step by contacting us today!<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>From what Sponsor Financing is, to understanding it completely, we dive in to give you an explanation of the process.<\/p>\n","protected":false},"author":1,"featured_media":412825,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[23],"tags":[],"class_list":["post-412282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/412282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=412282"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/412282\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media\/412825"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=412282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=412282"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=412282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}},{"id":413366,"date":"2024-11-27T09:03:14","date_gmt":"2024-11-27T16:03:14","guid":{"rendered":"https:\/\/dev.tabbank.com\/?p=413366"},"modified":"2024-11-27T09:14:51","modified_gmt":"2024-11-27T16:14:51","slug":"checking-account-vs-savings-account","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/blog\/checking-account-vs-savings-account\/","title":{"rendered":"What’s the Difference Between a Checking Account vs Savings Account?"},"content":{"rendered":"\n<div class=\"wp-block-columns mt-0 pt-0 is-layout-flex wp-container-core-columns-is-layout-8 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column mt-0 pt-0 is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"mt-0 pt-0\">Checking accounts and savings accounts are both beneficial tools for managing your money. Checking accounts, also known as spending accounts, are primarily for day-to-day withdrawals, while savings accounts are often used to set money aside toward a specific financial goal or general financial security. Keep reading to determine if you should open a checking account vs savings account, or both.<\/p>\n\n\n\n<h3 class=\"wp-block-heading py-4\"><strong><span class=\"ugb-highlight\" style=\"color: #58A618;\">The Difference Between Checking and Savings Accounts <\/span><\/strong><\/h3>\n\n\n\n<p>Checking accounts are designed to facilitate daily financial transactions, providing easy access to your funds for everyday use. Unlike checking accounts, savings accounts are intended for setting aside money towards future goals and typically earn interest on the balance maintained. While most checking accounts do not offer interest, those that do often provide very low rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><strong>Key Features of Each Account Type<\/strong><\/h3>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-kadence-infobox kt-info-box413366_375d09-3a\"><span class=\"kt-blocks-info-box-link-wrap info-box-link kt-blocks-info-box-media-align-top kt-info-halign-left\"><div class=\"kt-infobox-textcontent\"><h3 class=\"kt-blocks-info-box-title\">Checking Accounts<\/h3><p class=\"kt-blocks-info-box-text\">\u2022 Primarily used for daily spending<br>\u2022 \n Offer multiple methods for payments and withdrawals<br>\u2022 Usually low or no interest on balances<br>\u2022 Includes features like direct deposit and access to mobile and online banking<\/p><\/div><\/span><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-kadence-infobox kt-info-box413366_3455d2-24\"><span class=\"kt-blocks-info-box-link-wrap info-box-link kt-blocks-info-box-media-align-top kt-info-halign-left\"><div class=\"kt-infobox-textcontent\"><h3 class=\"kt-blocks-info-box-title\">Savings Accounts<\/h3><p class=\"kt-blocks-info-box-text\">\u2022 Aimed at saving money for future needs<br>\u2022 Offers interest on stored funds<br>\u2022 Access is somewhat restricted to discourage impulse spending<br>\u2022 Supports features like automatic transfers to help build savings effortlessly<\/p><\/div><\/span><\/div>\n<\/div>\n<\/div>\n\n\n\n<p>If opened at a Member FDIC bank, both types of accounts are federally insured up to $250,000 per depositor, per ownership category, per institution. This ensures the security of your deposits. Both accounts also provide the convenience of digital banking, allowing you to manage your finances efficiently online.<a id=\"_msocom_1\"><\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading py-4\"><strong><span class=\"ugb-highlight\" style=\"color: #58A618;\">What is a Checking Account? <\/span><\/strong><\/h3>\n\n\n\n<p>A checking account, sometimes called a spending account, is meant to be used for everyday transactions since the money is easy to withdraw. Both checking and savings accounts allow you to access your funds, but checking accounts are commonly connected to a debit card, may provide a checkbook, and can be added to virtual wallets such as Apple Pay or Samsung Pay. Checking accounts add a level of convenience when it comes to daily transactions because money can be withdrawn through various forms of payment. <\/p>\n\n\n\n<p>Keep in mind that some financial institutions have age restrictions on who can open an account. Banks typically require the account holder to be 18 years of age unless accompanied by a guardian who signs on to be a co-owner of the account. <\/p>\n\n\n\n<p><strong>Benefits of a Checking Account Include: <\/strong> <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Money is secure in the account yet easily accessible for daily transactions<\/li>\n\n\n\n<li>Funds in the account are accessible through a debit card, checkbook, ATM, or a virtual phone wallet<\/li>\n\n\n\n<li>Online bills can often be automated & paid from the account monthly<\/li>\n\n\n\n<li>May accrue interest (typically lower interest rates than savings accounts) or cashback on purchases <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading py-4\"><strong><span style=\"color: #58A618;\" class=\"ugb-highlight\">What is a Savings Account? <\/span><\/strong><\/h3>\n\n\n\n<p>Savings accounts are perfect for, well, saving! Savings accounts are a great place to put your money if you are saving up to reach a long-term goal. Many people open savings accounts to create an emergency or \u201crainy day\u201d fund, save for a vacation, or build toward any other large transaction or purchase. Savings accounts pay interest on the balances kept in the account, so your money can grow over time. If you are looking for a savings account with a competitive interest rate, consider a <a href=\"https:\/\/www.tabbank.com\/high-yield-savings\/\" target=\"_blank\" rel=\"noreferrer noopener\">high-yield savings account<\/a>, as your money will grow faster over time compared to a standard savings account. <\/p>\n\n\n\n<p>Some savings accounts place limits on how many withdrawals are permitted each month. This can be beneficial to discourage spending money on daily expenses that was intended to be saved toward a future goal. Some institutions also offer savings accounts specifically for children with parents as co-owners. <\/p>\n\n\n\n<p><strong>Benefits of a Savings Account Include:<\/strong> <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Secure way to store your money for a future need<\/li>\n\n\n\n<li>Interest accrues to grow your money over time<\/li>\n\n\n\n<li>Fewer withdrawal methods to encourage saving habits<\/li>\n\n\n\n<li>An account dedicated to reaching your financial goals <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading py-4\"><strong><span style=\"color: #58A618;\" class=\"ugb-highlight\">Benefits of Having a Checking <em>and<\/em> Savings Account <\/span><\/strong><\/h3>\n\n\n\n<p>Is a checking account or a savings account better? The reality is that checking and savings accounts perform best together. When you open both checking and savings accounts at the same bank, you can quickly and easily transfer money between the two accounts. This allows you to reap the benefits of saving for your financial goals without sacrificing the ability to use your money for daily transactions.<\/p>\n\n\n\n<p>If you create an <a href=\"https:\/\/www.tabbank.com\/resource-center\/blog\/emergency-funds\/\" target=\"_blank\" rel=\"noreferrer noopener\">emergency fund<\/a>, you want to ensure you can access the money easily in case an unfortunate event occurs. Having a savings account that is linked to your checking account allows you to easily withdraw the money necessary to aid in your emergency. <\/p>\n\n\n\n<p>Additionally, many companies allow employees to directly deposit all or part of their paycheck into specified accounts. If a part of your savings plan is to set aside a percentage of earnings each pay period, the ability to portion your direct deposit or automatically transfer money to your savings account will make this practice more efficient. <\/p>\n\n\n\n<p><strong>Benefits of Having a Checking and Savings Account Include:<\/strong> <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Seamless transfer between accounts opened at the same bank<\/li>\n\n\n\n<li>Creating a savings plan is simpler<\/li>\n\n\n\n<li>More convenient to develop an emergency fund<\/li>\n\n\n\n<li>Easier to avoid penalties for checking overdraft or insufficient funds <\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading py-4\"><strong><span style=\"color: #58A618;\" class=\"ugb-highlight\">Which is Best For You?<\/span><\/strong> <\/h3>\n\n\n\n<p>When determining if you should open a checking account vs savings account, consider your banking needs. If you would like to save money for a later date or larger expense, a savings account will do the trick. If you need access to your money for day-to-day expenses, a checking account is the best option. Overall, opening both checking and savings accounts is what will give you the most flexibility in reaching your financial goals and meeting your daily transactional needs. <\/p>\n\n\n\n<p>If you are looking to open up a new checking or savings account, consider opening your accounts with TAB Bank. Not only does TAB Bank offer secure, online banking, but it also offers other banking services that provide solutions to your personal or business financial needs. If you\u2019re interested in growing your savings account at a faster rate, consider opening a high-yield savings account. Click below to explore the premiere online banking opportunities of TAB Bank.<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\" style=\"margin-top:var(--wp--preset--spacing--40);margin-bottom:var(--wp--preset--spacing--40)\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"\/personal-banking\/\">More About TAB Checking & Saving Accounts<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Understand the difference between a checking account vs savings account and find the best fit for you with TAB Bank. <\/p>\n","protected":false},"author":1,"featured_media":413369,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[23,30],"tags":[],"class_list":["post-413366","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-personal-banking-tips"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/413366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=413366"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/413366\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media\/413369"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=413366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=413366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=413366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}},{"id":414142,"date":"2024-08-21T09:17:01","date_gmt":"2024-08-21T15:17:01","guid":{"rendered":"https:\/\/www.tabbank.com\/?p=414142"},"modified":"2024-08-21T09:17:03","modified_gmt":"2024-08-21T15:17:03","slug":"top-8-truck-stops-in-the-us","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/trucking\/top-8-truck-stops-in-the-us\/","title":{"rendered":"Top 8 Truck Stops in the US"},"content":{"rendered":"\n<p>Most truck stops you come across will probably be pretty similar to each other. Some truck stops you\u2019ll avoid at all costs. But here are some of the most highly rated truck stops in the country to look out for next time you\u2019re on the road. These stops not only provide essential services but also offer a range of amenities that can make your journey more comfortable and enjoyable. Plus we\u2019ve included popular food items to look out for at each stop.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>1. Iowa 80 Truck Stop<\/strong><\/h2>\n\n\n\n<p>Located in Walcott, Iowa, the Iowa 80 Truck Stop is often hailed as the best truck stop in the U.S. It’s the <a href=\"https:\/\/iowa80truckstop.com\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">world’s largest truck stop<\/a> and offers a wide range of amenities to cater to every trucker’s needs.<\/p>\n\n\n\n<p>Top 3 words mentioned in reviews: Museum, food court, and dentist.<\/p>\n\n\n\n<p><strong>Food to look for:<\/strong> Pork chops<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Highlights:<\/h3>\n\n\n\n<p>\u25cf 8 restaurants<br>\u25cf Chiropractor<br>\u25cf 900 truck parking spots<br>\u25cf Dentist<br>\u25cf CAT scales<br>\u25cf 20 showers<br>\u25cf Laundry facilities<br>\u25cf Truck maintenance and washes<br>\u25cf Movie theater<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>2. Big Horn Travel Center<\/strong><\/h2>\n\n\n\n<p>Found in Fort Worth, Texas, the Big Horn Travel Center is one of the best truck stops in the state, known for its convenience and unique amenities.<\/p>\n\n\n\n<p>Top 3 words mentioned in reviews: Restrooms, grill, and gas.<\/p>\n\n\n\n<p><strong>Food to look for:<\/strong> Brisket<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Highlights:<\/h3>\n\n\n\n<p>\u25cf Multiple diesel fuel lanes<br>\u25cf Truck parking<br>\u25cf Showers<br>\u25cf Wifi<br>\u25cf Wildlife exhibit<br>\u25cf Food court<br>\u25cf Service facility<br>\u25cf CAT scales<br>\u25cf Laundry facilities<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>3. Pedro\u2019s Truck Stop (South of the Border)<\/strong><\/h2>\n\n\n\n<p>Pedro\u2019s Truck Stop in Dillon, South Carolina, (aka Porky\u2019s) is a popular stop for both truckers and tourists. It offers a variety of attractions and services that make it a fun place to rest and refuel.<\/p>\n\n\n\n<p>Top 3 words mentioned in reviews: Showers, clean, and BBQ.<\/p>\n\n\n\n<p><strong>Food to look for:<\/strong> Ribs<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Highlights:<\/h3>\n\n\n\n<p>\u25cf Ice cream shop<br>\u25cf Fuel stations<br>\u25cf Mini golf course<br>\u25cf Amusement park<br>\u25cf Restaurants<br>\u25cf Motel<br>\u25cf Shopping<br>\u25cf Motocross training facility<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>4. Keystone Restaurant & Truck Stop<\/strong><\/h2>\n\n\n\n<p>Located in Loretto, Pennsylvania, the Keystone Restaurant and Truck Stop is renowned for its delicious meals and welcoming atmosphere.<\/p>\n\n\n\n<p>Top 3 words mentioned in reviews: Fuel, old\u2013school, and home-cooked.<\/p>\n\n\n\n<p><strong>Food to look for:<\/strong> Bottomless french fries<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Highlights:<\/h3>\n\n\n\n<p>\u25cf Showers<br>\u25cf Deli<br>\u25cf Trailer drop<br>\u25cf Convenience store<br>\u25cf Truck parking<br>\u25cf Delicious food<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>5. Big Apple Travel Center<\/strong><\/h2>\n\n\n\n<p>Situated in Joplin, Missouri, the Big Apple Travel Center is known for its variety of food options and great facilities for truckers.<\/p>\n\n\n\n<p>Top 3 words mentioned in reviews: Indian food, pizza, and samosas.<\/p>\n\n\n\n<p><strong>Food to look for:<\/strong> Indian food<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Highlights:<\/h3>\n\n\n\n<p>\u25cf Free wifi<br>\u25cf Charging stations<br>\u25cf Take-out cafe<br>\u25cf Convenience store<br>\u25cf Dog park<br>\u25cf Weight scales<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>6. Jubitz Travel Center<\/strong><\/h2>\n\n\n\n<p>Jubitz Travel Center in Portland, Oregon, is ranked <a href=\"https:\/\/www.freightwaves.com\/news\/drivers-rate-best-truck-stops-in-america\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">number two in a FreightWaves lineup of best truck stops<\/a> in the U.S. It provides a wide array of amenities designed for comfort and convenience.<\/p>\n\n\n\n<p>Top 3 words mentioned in reviews: Movie theater, deli, and amenities.<\/p>\n\n\n\n<p><strong>Food to look for: <\/strong>Fudge<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Highlights:<\/h3>\n\n\n\n<p>\u25cf 250 truck parking spots<br>\u25cf Dog wash<br>\u25cf Driver lounge<br>\u25cf Barbershop<br>\u25cf Movie theater<br>\u25cf Post office<br>\u25cf Lounge and grill<br>\u25cf Fleet services<br>\u25cf Weight scales<br>\u25cf Jacuzzi and showers<br>\u25cf Towels<br>\u25cf Deli and convenience store<br>\u25cf Overnight accommodations<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>7. Little America Travel Center<\/strong><\/h2>\n\n\n\n<p>The Little America Travel Center in Little America, Wyoming, is one of the best in the country and is known for its comprehensive commercial truck services.<\/p>\n\n\n\n<p>Top 3 words mentioned in reviews: Remodel, ice cream cones, and grill.<\/p>\n\n\n\n<p><strong>Food to look for:<\/strong> Ice cream<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Highlights:<\/h3>\n\n\n\n<p>\u25cf Driver\u2019s lounge<br>\u25cf Post office<br>\u25cf Laundry facilities<br>\u25cf Commercial truck services<br>\u25cf Showers<br>\u25cf Hot grill and deli<br>\u25cf 16 fueling islands<br>\u25cf Convenience store<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>8. Kenly 95 Petro<\/strong><\/h2>\n\n\n\n<p>Kenly 95 Petro in Kenly, North Carolina, is the <a href=\"https:\/\/kenly95.com\/about-kenly-95\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">largest truck stop on the East Coast<\/a>, offering extensive amenities and services. They are also the host of the annual East Coast Truckers Jamboree.<\/p>\n\n\n\n<p>Top 3 words mentioned in reviews: Iron Skillet Restaurant, food court, and gift shop.<\/p>\n\n\n\n<p><strong>Food to look for:<\/strong> Chicken fried steak<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Highlights:<\/h3>\n\n\n\n<p>\u25cf Driver den<br>\u25cf Laundry facilities<br>\u25cf Truck showroom<br>\u25cf Service center<br>\u25cf Truck wash<br>\u25cf Barbershop<br>\u25cf Weight scales<br>\u25cf 350 truck parking spots<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Where\u2019s your next stop?<\/strong><\/h2>\n\n\n\n<p>Each of these truck stops offers unique amenities and services that go beyond the basics, making them worth a visit on your next haul. Whether you’re looking for a place to relax, get a good meal, or take care of some maintenance, these top-rated stops have got you covered. Happy trucking!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Most truck stops you come across will probably be pretty similar to each other. Some truck stops you\u2019ll avoid at all costs. But here are some of the most highly rated truck stops in the country to look out for next time you\u2019re on the road. These stops not only provide essential services but also […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"single-with-sidebar","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[27],"tags":[],"class_list":["post-414142","post","type-post","status-publish","format-standard","hentry","category-trucking"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=414142"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414142\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=414142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=414142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=414142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}},{"id":414043,"date":"2024-07-31T11:39:21","date_gmt":"2024-07-31T17:39:21","guid":{"rendered":"https:\/\/www.tabbank.com\/?p=414043"},"modified":"2024-11-14T14:49:11","modified_gmt":"2024-11-14T21:49:11","slug":"inventory-financing","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/blog\/inventory-financing\/","title":{"rendered":"Inventory Financing: What Is It And How Does It Work?"},"content":{"rendered":"\n<p>Keeping cash flow consistent and inventory stocked can be difficult for small businesses, especially during the off-season. When it comes to loans or financing as a solution for your business, the options can feel overwhelming and, at times, unattainable. One often-overlooked option is inventory financing. Inventory financing can be great for businesses looking for a flexible loan option. Read more to find out if inventory financing is right for you and your business needs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>What is Inventory Financing?<\/strong><\/h2>\n\n\n\n<p>Inventory financing is a line of credit or short-term loan that companies use to purchase inventory now and sell it later. The products or inventory are then used as collateral, meaning you won\u2019t need to pledge other assets. Inventory financing is used to help businesses and wholesalers during slow seasons when there is little cash flow, and allows them to prepare for busier seasons that may include high-volume orders. Some reasons why businesses choose inventory financing are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maintaining steady cash flow throughout the year<\/li>\n\n\n\n<li>Stocking up and preparing for busier seasons<\/li>\n\n\n\n<li>Buying more inventory as customer demand increases<\/li>\n\n\n\n<li>Updating products<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>How Does Inventory Financing Work?<\/strong><\/h2>\n\n\n\n<p>Inventory financing is a type of <a href=\"https:\/\/www.tabbank.com\/asset-based-lending\/\">asset-based lending<\/a>. Businesses will utilize inventory financing loans to stock up on inputs and materials needed to create the final product. The inventory itself will act as collateral to the loan. If your business cannot pay off the debt, the lender will seize the remaining inventory and sell it to cover the loss. Many lenders will offer a percentage of the total cost of the inventory as the loan. This percentage will vary depending on the inventory resale value and the lender.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>Types of Inventory Financing Loans<\/strong><\/h2>\n\n\n\n<p>There are two main types of inventory financing to choose from:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Inventory Loans<\/strong><\/h3>\n\n\n\n<p>An inventory loan provides the entire loan amount upfront, which the business repays over a specified period with interest. This option is ideal for financing one-time large inventory purchases. Consider the repayment period and how long it will take to sell your inventory for a profit when choosing this type of financing.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Inventory Lines of Credit<\/strong><\/h3>\n\n\n\n<p>An inventory line of credit gives your business access to a credit limit to draw upon as needed. You repay it monthly and only pay interest on the borrowed amount. Since the credit is revolving, once the debt is repaid, you can borrow up to the maximum approved amount again. Businesses that consistently purchase inventory should consider this type of financing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>Pros and Cons of Inventory Financing<\/strong><\/h2>\n\n\n\n<p>When deciding whether or not you should invest in inventory financing, you want to have a clear understanding of the pros and cons.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Pros<\/strong><\/h3>\n\n\n\n<p><strong>Self-collateralizing<\/strong>: Because your inventory is acting as your collateral, other elements may not be the main factor in qualifying for the loan. Business owners won\u2019t have to put up other assets to acquire the loan. Things like how long your business has been in operation or your personal credit score may not be considered since your inventory is being pledged, making inventory financing more accessible to smaller or newer businesses.<\/p>\n\n\n\n<p><strong>Simpler applications: <\/strong>Inventory financing offers a simpler application than traditional business loans. Many business loans take a great deal of time and resources to acquire. Since the requirements for inventory financing are more lenient, it is easier to apply and get your loan faster. As long as you are structured and organized with your inventory, the application process should be straightforward.<\/p>\n\n\n\n<p><strong>Extended sales period: <\/strong>With inventory financing, businesses can sell more products over a longer period of time. They are able to prepare for busier seasons, update their products, and maintain a steady cash flow even in the slower months.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Cons<\/strong><\/h3>\n\n\n\n<p>Like any commitment, you will want to consider the potential disadvantages that could come along with it. Inventory financing is no exception.<\/p>\n\n\n\n<p><strong>Partial coverage: <\/strong> Depending on the lender, you will likely only receive a percentage of the total cost of inventory. This might make it harder to prepare or secure all the products that your business may need.<\/p>\n\n\n\n<p><strong>Higher interest rates: <\/strong>Since the inventory serves as the collateral for the loan, the risk associated with the financing may be higher than other forms of lending. This can mean higher interest rates which leads to a more expensive loan repayment. For new businesses or businesses with pre-existing debt, inventory financing may make it harder to run operations smoothly as you repay your loan, making other lending alternatives more appealing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>How to Acquire Inventory Financing<\/strong><\/h2>\n\n\n\n<p>Once you have decided to pursue inventory financing for your business needs, you will need to follow the proper steps to apply for the loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Ensure You and Your Business are Eligible<\/strong><\/h3>\n\n\n\n<p>Make sure that you and your business qualify for inventory financing. The requirements will vary depending on the lender, but here are a couple of key differences to look out for:<\/p>\n\n\n\n<p><strong>Business operation duration: <\/strong>Different lenders have varying requirements for how long a business must be in operation. Since the inventory purchased is what is used as collateral, many institutions have slightly less rigid conditions for your business history when applying for inventory financing. Some lenders will offer loans to new businesses after 6 months, others require at least a year or more. The longer you have been in business, the more likely you are to be approved.<\/p>\n\n\n\n<p><strong>Credit score: <\/strong>Although it is possible to be accepted for inventory financing with a lower credit score, it is recommended that you have a higher credit score. This can increase your chances of being approved as it highlights your ability to pay back debt.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Compare Different Lenders<\/strong><\/h3>\n\n\n\n<p>When deciding on where to apply for inventory financing, it is important to consider all your options. Look at things like their requirements for application and approval, the average borrowing amount offered, and the different interest rates offered. Prioritize an institution that has experience working within your specific industry.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Obtain All Necessary Business Documents<\/strong><\/h3>\n\n\n\n<p>The documents needed will vary depending on the lender and their requirements. Commonly requested documents for inventory financing include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Inventory List<\/strong>: An inventory list will showcase what inventory you currently have and an estimate of the resale value. Lenders need to know this information in the event of default and reselling your inventory.<\/li>\n\n\n\n<li><strong>Business Bank Statements<\/strong>: A business bank statement will provide a summary of your transactions within a certain time period. The exact period of time to cover will depend on the length of the loan you are applying for. Lenders may need to confirm with your bank that the statements belong to you and verify the income source.<\/li>\n\n\n\n<li><strong>Balance Sheets<\/strong>: Balance sheets will likely be requested to better understand your company\u2019s financial position.<\/li>\n\n\n\n<li><strong>Profit and Loss Statements<\/strong>: A profit and loss statement (also referred to as an income statement, statement of operations, or statement of earnings) will outline your business\u2019s profits, costs, and expenses during an allotted period of time. This will help the lender understand your business\u2019s net income. Lenders will need to determine if you have the potential earnings and resources to repay the debt.<\/li>\n\n\n\n<li><strong>Business Tax Returns:<\/strong> To further verify your revenue and earnings, you may need to provide your business tax returns to the lender for inventory financing.<\/li>\n\n\n\n<li><strong>Future Sales Forecast<\/strong>: Future sales forecasts\/projections will help the lender understand your potential for profit and ability to repay your debt.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Apply For Your Loan<\/strong><\/h3>\n\n\n\n<p>Once you have established your eligibility, decided on a lending institution, and acquired all the necessary documentation, you are ready to apply for inventory financing. Be sure to read through and understand the terms and conditions of your contract. Once you have been approved and signed your contract, you should receive your inventory financing loan within a few business days, but this also varies depending on the lender.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>Inventory Financing Alternatives<\/strong><\/h2>\n\n\n\n<p>Inventory financing has a lot of advantages; however, it may not be the best option for your business. Here are a few other options that can help increase <a href=\"\/resource-center\/blog\/working-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">working capital<\/a> so you can keep your business operating.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Invoice Factoring<\/strong><\/h3>\n\n\n\n<p><a href=\"\/factoring\/\" target=\"_blank\" rel=\"noreferrer noopener\">Invoice factoring<\/a> is the process of selling your business\u2019s unpaid invoices to a factoring company or bank in exchange for a cash advance while waiting for your customers to pay. The factor collects the customer payment for you, typically keeping a portion as a fee for the service. This helps resolve issues with delayed payments, increases working capital, and also allows you to invest your capital into growth opportunities. Factoring is a great solution if one of your biggest assets is your accounts receivable, and the capital unlocked can be utilized anywhere in your business operations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Asset-Based Lending<\/strong><\/h3>\n\n\n\n<p><a href=\"\/resource-center\/blog\/what-is-abl\/\" target=\"_blank\" rel=\"noreferrer noopener\">Asset-based lending <\/a>(ABL) is a type of financing where business assets\u2014such as accounts receivable, equipment, and inventory\u2014are used as collateral against the loan. Like inventory financing, ABL can take the form of a revolving loan or line of credit. While inventory financing secures the inventory against the loan, asset-based lending allows for a broader selection of collateral.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Purchase Order Financing<\/strong><\/h3>\n\n\n\n<p>Purchase order financing is very similar to inventory financing. Your company receives a loan to pay for your products. The main difference between the two is that purchase order financing is specific to your purchase orders instead of your inventory as a whole.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>SBA Loans<\/strong><\/h3>\n\n\n\n<p>An <a href=\"https:\/\/www.sba.gov\/funding-programs\/loans\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">SBA (Small Business Association) loan<\/a> is guaranteed by the U.S. Small Business Association. This loan can cover many different expenses for your business, including your inventory. The interest rates on the loans are determined by the Federal Reserve. However, due to it being a governmental loan, the application process can be tedious and it may take a while to receive the loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Business Term Loans<\/strong><\/h3>\n\n\n\n<p>Traditional <a href=\"\/smb-term-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">business term loans<\/a> are another alternative to inventory financing and SBA loans. These loans are set over a period of time and can pay for a lot of different business costs. Unlike the SBA loan, you can receive the money much sooner. Since it is a cash flow-based loan, you will not be required to leverage your assets, which is helpful if you don\u2019t have available collateral to put up.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>Discover the Perfect Loan for Your Business<\/strong><\/h2>\n\n\n\n<p>Looking for the right loan to grow your business? TAB Bank offers a wide range of financing options tailored to your unique needs. Whether you need asset-based lending, invoice factoring, or lines of credit, TAB Bank is here to help you succeed. Check out our commercial lending guide to explore your options and find the perfect fit for your business today!<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-2 wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-text-align-center wp-element-button\" href=\"\/resource-center\/ebooks\/tab-commercial-lending-guide\/\" target=\"_blank\" rel=\"noreferrer noopener\">Download Our Guide Today<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Inventory financing is a line of credit or short-term loan companies use so they can purchase inventory to sell later. Learn more with TAB Bank.<\/p>\n","protected":false},"author":3,"featured_media":414040,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[23,37,32,13],"tags":[],"class_list":["post-414043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-asset-based-lending","category-factoring","category-financing-options"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=414043"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414043\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media\/414040"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=414043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=414043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=414043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}},{"id":414048,"date":"2024-07-31T11:32:43","date_gmt":"2024-07-31T17:32:43","guid":{"rendered":"https:\/\/www.tabbank.com\/?p=414048"},"modified":"2024-10-16T08:36:52","modified_gmt":"2024-10-16T14:36:52","slug":"small-business-invoice-factoring-guide","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/blog\/small-business-invoice-factoring-guide\/","title":{"rendered":"The Small Business Owner\u2019s Guide to Invoice Factoring"},"content":{"rendered":"\n<p>Small business owners often face the challenge of maintaining a steady cash flow, which gets <em>especially<\/em> hard when clients take up to 90 days to repay invoices. This delay can hinder growth, create stress, and limit operational capabilities. <a href=\"\/resource-center\/blog\/how-does-factoring-work\/\" target=\"_blank\" rel=\"noreferrer noopener\">Invoice factoring<\/a> offers a practical solution by providing immediate cash in exchange for outstanding invoices.<\/p>\n\n\n\n<p>This guide will explore what invoice factoring is, how it works, its benefits and drawbacks, and help you determine if it\u2019s the right choice for your business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-xx-large-font-size\"><a><\/a><strong>What is Invoice Factoring?<\/strong><\/h3>\n\n\n\n<p>Invoice factoring is when a business sells its outstanding invoices to a third party, known as a factor, at a discount. In return, the business receives immediate cash, which can be used to manage day-to-day operations, invest in growth opportunities, or cover unexpected expenses. The factor then takes on the responsibility of collecting payment from the business\u2019s customers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-x-large-font-size\"><a><\/a><strong>Invoice Factoring Is Growing in Popularity<\/strong><\/h3>\n\n\n\n<p>In recent years, <a href=\"https:\/\/capstonetrade.com\/key-trends-shaping-the-future-of-invoice-factoring-in-2024\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">invoice factoring has gained traction as a popular financing option<\/a> for small and medium-sized businesses. Factoring\u2019s growth can be attributed to the flexibility it offers and the increasing awareness among business owners about alternative financing methods. Traditional loans and lines of credit often come with stringent eligibility criteria and lengthy approval processes, making them less accessible for many small businesses. Invoice factoring, on the other hand, provides a quicker and often more attainable solution.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-large-font-size\"><a><\/a><strong>How Does Invoice Factoring Work?<\/strong><\/h2>\n\n\n\n<p>Invoice factoring involves several steps. First, a business delivers goods or services to a customer and issues an invoice. Instead of waiting for the client to pay it off, the business transfers the invoice to the factor. The factor advances a significant portion of the invoice amount, typically between 70%-90%, to the business. Once the customer pays the invoice, the factoring company pays out the remaining balance to the business, minus their fee.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Finding Your Factor<\/strong><\/h3>\n\n\n\n<p>Finding the right factoring partner is crucial. Business owners should look for factors that specialize in their industry and have a strong track record of reliability and customer service. Note that both standalone factoring companies and banks can offer this service. Recommendations from peers, online reviews, and consultations with financial advisors can help identify suitable factoring companies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Factoring an Invoice<\/strong><\/h3>\n\n\n\n<p>When a business decides to factor an invoice, the process begins with notifying the customer that payments should now be made directly to the factoring partner. This is typically done through a notice of assignment, which informs the customer of the change and ensures that future payments are directed to the factor.<\/p>\n\n\n\n<p>Once the customer acknowledges and agrees to this arrangement, the business can submit the invoice to the factor. The factor will review the invoice and advance a portion of the invoice amount to the business. This advance provides immediate <a href=\"\/resource-center\/blog\/working-capital\/\" target=\"_blank\" rel=\"noreferrer noopener\">working capital<\/a>, which may be used for various business needs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Invoice Collection<\/strong><\/h3>\n\n\n\n<p>The factor takes on the responsibility of collecting payment from the customer. Once the customer pays the invoice, the factor deducts their fee and any additional charges before sending the rest of the balance to the business. This arrangement allows the business to focus on operations rather than worrying about collections.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>The Pros and Cons of Factoring<\/strong><\/h2>\n\n\n\n<p>Like any decision, some advantages and disadvantages come with factoring invoices. Here are a few of the pros and cons you might consider:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Pros<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Unlock Working Capital<\/strong>: One of the most significant advantages of invoice factoring is the ability to unlock working capital currently tied up in unpaid invoices. The immediate influx of cash can be used to manage expenses or invest in growth opportunities.<\/li>\n\n\n\n<li><strong>Increased Flexibility for Customers: <\/strong>By utilizing invoice factoring, businesses can maintain or even extend repayment terms for their customers. This flexibility can strengthen customer relationships and potentially lead to increased sales and loyalty.<\/li>\n\n\n\n<li><strong>Delegation of Collections<\/strong>: Managing collections can be time-consuming and stressful for small business owners. Invoice factoring transfers this responsibility to the factor, allowing the business to concentrate on core operations.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Cons<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Associated Fees: <\/strong>Invoice factoring can be costly, with fees typically ranging from 1-5% of the invoice value. Some lenders may also add charges for late payments, processing, and other services, which can add up. This typically makes factoring a more expensive option compared to traditional financing.<\/li>\n\n\n\n<li><strong>Less Control Over Client Relationships:<\/strong> When a factor takes over the collection process, businesses lose some control over how customer interactions are managed. This can impact customer relationships, especially if the factor\u2019s approach to collections differs from the business\u2019s usual practices.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>Invoice Factoring: Do You Qualify?<\/strong><\/h2>\n\n\n\n<p>Although the final decision on your eligibility rests with each factoring lender, we’ve identified a few key elements they are likely to assess before making their decision.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Do You Have Invoices to Factor?<\/strong><\/h3>\n\n\n\n<p>For businesses to utilize invoice factoring, they\u2019ll need invoices to factor! This payment structure is most common in B2B service industries, making it a popular solution for trucking companies, staffing agencies, manufacturers, wholesalers, and additional service providers.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><a><\/a><strong>Following Best Invoice Practices<\/strong><\/h4>\n\n\n\n<p>Adhering to good invoicing practices is crucial for qualifying for invoice factoring. This includes issuing accurate, detailed, and timely invoices, as well as maintaining clear records of all transactions. Proper invoicing ensures transparency and reduces the risk of disputes, making your business a more attractive candidate for factoring.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Your Invoices Must Be Free of Any Liens<\/strong><\/h3>\n\n\n\n<p>For a factor to consider your invoices, they must be free of any existing liens or claims. This means that no other entity should have a legal right to the payments associated with your invoices. Clean, unencumbered invoices are essential for establishing trust and ensuring a smooth factoring process.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Positive Gross Profit Margins<\/strong><\/h3>\n\n\n\n<p>Lenders prefer to work with businesses that demonstrate positive gross profit margins. Positive margins indicate that your business is profitable and capable of sustaining operations. Healthy profit margins provide confidence to factors that your business can thrive and repay any advances made against your invoices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Customer Reliability<\/strong><\/h3>\n\n\n\n<p>Factors prioritize the creditworthiness and payment history of your business\u2019s customers. Reliable customers with a strong track record of timely payments will make your business more attractive to factors.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><a><\/a><strong>Customer Payment History<\/strong><\/h4>\n\n\n\n<p>A history of prompt payments by customers indicates a lower risk for the factor, increasing the likelihood of approval and favorable terms.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><a><\/a><strong>Client Reputation and Credit Score<\/strong><\/h4>\n\n\n\n<p>The factor may also assess the reputation and credit score of your business\u2019s clients. A strong reputation and high credit score are positive indicators for approval.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><a><\/a><strong>Client Debt and Legal Issues<\/strong><\/h4>\n\n\n\n<p>Factors also consider any existing debt or legal issues that involve your business\u2019s clients. Significant debt or ongoing legal problems can negatively impact eligibility, as it indicates there may be issues getting repaid in the future.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>The Cost of Invoice Factoring<\/strong><\/h2>\n\n\n\n<p>The cost of invoice factoring typically includes a discount rate and various other fees. The discount rate, often between 1-5% of the invoice value, is the primary cost. This rate can vary based on factors such as the creditworthiness of the business\u2019s customers, the industry, and the invoice amount.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Additional Costs<\/strong><\/h3>\n\n\n\n<p>In addition to the discount rate, factors may charge additional fees for services such as credit checks, late payments, and minimum volume requirements. These should be communicated upfront, but you may need to inquire if a factor\u2019s fee structure is unclear. It\u2019s essential for businesses to thoroughly review and understand the fee structure before entering into a factoring agreement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>Additional Considerations for Invoice Factoring<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Selecting Recourse vs Non-Recourse Factoring<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Recourse factoring<\/strong> means your business remains responsible for any unpaid invoices. If the customer fails to pay, your company must buy back the invoice from the factor. This option often has lower fees because your business is retaining some of the risk.<\/li>\n\n\n\n<li><a href=\"\/resource-center\/blog\/non-recourse-factoring\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Non-recourse factoring<\/strong><\/a> shifts the risk to the factor. If the customer does not pay, the factor absorbs the loss. While this option provides more security for your business, it typically comes with higher fees.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><a><\/a><strong>Factor Experience<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Industry-Specific Experience: <\/strong>Factors with industry-specific knowledge understand the unique challenges and opportunities within your sector. This expertise can lead to more favorable terms and better overall service.<\/li>\n\n\n\n<li><strong>Factor Reputation: <\/strong>Researching the factor\u2019s reputation is essential. Online reviews, testimonials, and industry recommendations can provide valuable insights into the factor\u2019s reliability and performance.<\/li>\n\n\n\n<li><strong>Bank vs Factoring Company: <\/strong>Factoring with a bank can provide additional stability and lower rates, since banks often serve as their own source of funds. Banks also offer other financial services and accounts that can make the factoring process quicker and more convenient.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>Is Invoice Factoring Right for Your Small Business?<\/strong><\/h2>\n\n\n\n<p>Determining whether invoice factoring is suitable for your business depends on several elements. Assessing your need for working capital, the creditworthiness of your clients, and the costs involved will help you make an informed decision.<\/p>\n\n\n\n<p>Invoice factoring can be an excellent solution for businesses needing immediate cash flow and who work with reliable customers. However, the associated costs and potential impact on customer relationships should be carefully considered. By thoroughly evaluating your business\u2019s needs and exploring multiple factoring options, you can find a solution that supports your financial goals and operational requirements.<\/p>\n\n\n\n<p>With the right factoring partner, such as TAB Bank, businesses can leverage this financial tool to overcome cash flow challenges and achieve their growth objectives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>TAB Bank: The Factor That Goes Further<\/strong><\/h2>\n\n\n\n<p>When considering factoring partners, TAB Bank stands out for its commitment to going further for its clients. With a deep understanding of trucking, manufacturing, staffing industries, and more, TAB Bank offers tailored solutions that meet the unique needs of small businesses. Our customer-centric approach and competitive rates make us a preferred choice for many business owners looking to leverage invoice factoring.<\/p>\n\n\n\n<p><strong>Learn more about TAB Bank\u2019s <\/strong><a href=\"\/factoring\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Invoice Factoring<\/strong><\/a><strong> and <\/strong><a href=\"\/trucking-invoice-factoring\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Trucking Invoice Factoring<\/strong><\/a><strong> today!<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a><\/a><strong>Frequently Asked Small Business Invoice Factoring Questions<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Is Invoice Factoring a Type of Loan?<\/h3>\n\n\n\n<p>No, invoice factoring is not a loan. Unlike traditional loans, which require repayment with interest, invoice factoring involves selling your invoices at a discount to receive immediate cash. This means there are no monthly repayments or accumulating interest. The factor advances you the funds and then collects payment directly from your customers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Why Do Businesses Like Working with Factoring Companies?<\/h3>\n\n\n\n<p>Businesses appreciate factoring companies for several reasons:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li><strong>Improved Cash Flow:<\/strong> Factoring provides immediate access to cash tied up in unpaid invoices, which helps manage operational expenses and invest in growth opportunities.<\/li>\n\n\n\n<li><strong>Reduced Collection Burden:<\/strong> Factoring companies take on the responsibility of collecting payments, allowing business owners to focus on running their business rather than chasing down payments.<\/li>\n\n\n\n<li><strong>Flexible Financing:<\/strong> Factoring is not based on the business’s credit score but rather on the creditworthiness of its customers, making it accessible to businesses with less-than-perfect credit.<\/li>\n\n\n\n<li><strong>Speed of Funding: <\/strong>The approval and funding process for factoring is typically much quicker than traditional loans, providing faster access to needed funds.<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\">What Kinds of Companies Use Factoring?<\/h3>\n\n\n\n<p>A wide variety of B2B companies use invoice factoring, a few popular industries include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Manufacturing<\/li>\n\n\n\n<li>Transportation<\/li>\n\n\n\n<li>Staffing Agencies<\/li>\n\n\n\n<li>Service Providers<\/li>\n\n\n\n<li>Wholesale and Distribution<\/li>\n<\/ul>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Invoice factoring is a form of financing where a business will sell its unpaid invoices to a factor at a discount in exchange for immediate cash.<\/p>\n","protected":false},"author":3,"featured_media":414041,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[23,25,32,13],"tags":[],"class_list":["post-414048","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-c-suite","category-factoring","category-financing-options"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=414048"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414048\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media\/414041"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=414048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=414048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=414048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}},{"id":414047,"date":"2024-07-31T11:28:13","date_gmt":"2024-07-31T17:28:13","guid":{"rendered":"https:\/\/www.tabbank.com\/?p=414047"},"modified":"2024-11-27T08:49:16","modified_gmt":"2024-11-27T15:49:16","slug":"cash-flow-solutions","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/blog\/cash-flow-solutions\/","title":{"rendered":"5 Cash Flow Problems and Solutions"},"content":{"rendered":"\n<p>Effectively managing cash flow is crucial for the success of any organization, whether you are a small business or an established company. Cash flow problems can cripple operations, stunt growth, and lead to financial distress. Proper cash flow management can be the difference between your business booming and barely getting by. In this article, we’ll explore common cash flow problems businesses face and solutions that can help address these issues.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-x-large-font-size\"><strong>What Are Cash Flow Problems?<\/strong><\/h2>\n\n\n\n<p>Cash flow problems occur when a business struggles to manage the inflow and outflow of money. This can lead to struggling with covering expenses, paying debts, or investing in growth opportunities. These issues stem from a variety of factors, including poor financial planning, slow-paying clients, high operational costs, and unexpected expenses. Properly identifying and understanding these issues is the first step toward finding effective cash flow solutions for your business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-x-large-font-size\"><strong>5 Common Cash Flow Problems<\/strong><\/h2>\n\n\n\n<p>Cash flow problems manifest in several ways, impacting different aspects of business operations. Here are some of the most prevalent issues:<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\">1. Lack of Cash Reserves<\/h3>\n\n\n\n<p>A lack of cash reserves is one of the most significant cash flow problems businesses face. Without adequate reserves, companies struggle to cover unexpected expenses or periods of low revenue, leading to financial instability. This problem can arise from things like inadequate financial planning or a failure to set aside funds for emergencies. Experts recommend maintaining cash reserves that can cover at least three to six months of operating expenses\u200b to avoid issues like this\u200b.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\">2. Outstanding Receivables<\/h3>\n\n\n\n<p>Outstanding receivables happen when clients delay payments, creating a gap between the time products or services are delivered and when payment is received. This delay can severely impact cash flow, as businesses still need to cover operational costs while awaiting the arrival of earned revenue. Businesses with long billing cycles or slow-paying clients run a higher risk of cash flow disruptions\u200b\u200b due to outstanding receivables.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\">3. Debt and Borrowing Costs<\/h3>\n\n\n\n<p>Debt and borrowing costs can strain cash flow, especially if a business relies heavily on loans to finance operations. High interest rates and monthly repayments can consume a significant portion of the company’s revenue, leaving little room for other expenses. This issue can be exacerbated if the business does not generate sufficient profit to cover both operational costs <em>and<\/em> debt repayments.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\">4. Unexpected Growth<\/h3>\n\n\n\n<p>Unexpected growth, while often seen as a positive development, can pose significant cash flow challenges for businesses. Rapid expansion demands increased inventory spending, additional staffing, and enhanced operational capacity to meet rising customer demand. Without proper cash flow, businesses may struggle to keep up with demands, leading to operational bottlenecks and customer dissatisfaction. Unexpected growth can stretch resources thin, resulting in higher operational costs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\">5. Seasonality<\/h3>\n\n\n\n<p>Seasonal variations can also create cash flow problems for businesses. In industries with high seasonal dependencies, such as retail, tourism, and agriculture, it can be difficult to maintain consistent cash flow. During peak seasons, businesses experience a surge in sales, leading to increased inventory purchases, additional staffing, and heightened marketing efforts. During down periods, reduced sales can lead to excess inventory and underutilized resources, straining the cash flow needed to cover fixed costs and increasing waste.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-x-large-font-size\"><a><\/a><strong>What Are Some Cash Flow Solutions?<\/strong><strong><\/strong><\/h2>\n\n\n\n<p>There are several strategies and financial tools available to help businesses manage cash flow more effectively. These solutions can provide immediate relief or long-term stability, depending on the problem it is solving.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Expense Management<\/li>\n\n\n\n<li>Sales Forecasting<\/li>\n\n\n\n<li>Invoice Factoring<\/li>\n\n\n\n<li>Inventory Management<\/li>\n\n\n\n<li>Business Line of Credit<\/li>\n\n\n\n<li>Profit Margins<\/li>\n\n\n\n<li>SMB Term Loans<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>Expense Management<\/h3>\n\n\n\n<p>Effective expense management is critical for maintaining healthy cash flow. Businesses can achieve this by negotiating costs with suppliers, cutting unnecessary spending, and optimizing operations to reduce waste. Reviewing and adjusting the budget helps identify areas where savings can be made. Expense management ensures that funds are allocated efficiently for your business operations.<\/p>\n\n\n\n<p>For instance, adopting energy-efficient practices, such as using LED lighting and optimizing HVAC systems, can significantly reduce utility costs. Additionally, renegotiating supplier contracts can lower procurement expenses\u200b. The first step to managing cash flow is to ensure no unnecessary costs are incurred.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>Sales Forecasting<\/h3>\n\n\n\n<p>Accurate sales forecasting allows businesses to adjust their operations and financial strategies by predicting future sales. Effective forecasting involves analyzing past sales data, market trends, and economic indicators to estimate future revenue. This approach allows businesses to plan for potential shortfalls and avoid unexpected cash flow disruptions.<\/p>\n\n\n\n<p>Sales forecasting can be an intimidating effort, particularly for owners and executives already balancing strategic, operational, and financial demands of their business. TAB Bank equips all commercial deposit customers with an embedded Business Insights tool to help with forecasting of sales income and expenses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>Invoice Factoring<\/h3>\n\n\n\n<p>Invoice factoring is a financial transaction where a business sells its accounts receivable to a third party (a factor) at a discount. This solution provides immediate cash flow, helping businesses to continue their operations without waiting for clients to pay their 30-, 60-, or 90-day invoices. Factoring is particularly beneficial for businesses that experience slow payment cycles or need quick access to funds for operational expenses. <a href=\"\/factoring\/\" target=\"_blank\" rel=\"noreferrer noopener\">TAB Bank offers factoring services<\/a> that can help businesses quickly convert their invoices into cash.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>Inventory Management<\/h3>\n\n\n\n<p>Effective inventory management is essential for maintaining cash flow. Businesses should regularly review their inventory levels to ensure they are not overstocking or understocking products. Excess inventory traps your cash in products that aren’t selling, while low stock can lead to missed sales.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>Business Line of Credit<\/h3>\n\n\n\n<p>A <a href=\"\/business-line-of-credit\/\" target=\"_blank\" rel=\"noreferrer noopener\">business line of credit<\/a> offers flexibility and accessibility, making it an excellent tool for managing cash flow. Unlike traditional loans, a line of credit allows businesses to draw funds as needed, up to a pre-approved limit. This revolving credit facility ensures that businesses have access to funds for short-term needs, such as covering payroll, purchasing inventory, or managing seasonal fluctuations. The advantage of a line of credit is that interest is only charged on the amount borrowed, providing a cost-effective way to maintain liquidity\u200b\u200b.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>Profit Margins<\/h3>\n\n\n\n<p>Regularly revisiting and adjusting pricing strategies is vital for optimizing profit margins. Businesses should analyze their cost structures and market conditions to set competitive prices that maximize profits. Adjusting accounts and implementing cost-saving measures can also enhance profit margins. By focusing on improving profitability, businesses can generate more revenue, helping maintain a positive cash flow\u200b.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>SMB Term Loans<\/h3>\n\n\n\n<p>Small and medium-sized business (SMB) term loans are designed to meet the specific needs of smaller enterprises. These loans provide a lump sum that businesses can use for various purposes, such as expanding operations, purchasing equipment, or refinancing existing debt. Term loans typically come with fixed interest rates and repayment schedules, offering predictability and ease of budgeting. TAB Bank provides <a href=\"\/smb-term-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">SMB term loans<\/a> with competitive rates and flexible terms, helping businesses address their financial needs and improve cash flow\u200b.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-x-large-font-size\"><a><\/a><strong>How Can TAB Bank Help?<\/strong><strong><\/strong><\/h2>\n\n\n\n<p>TAB Bank offers a range of tailored lending solutions that help businesses like yours manage their cash flow effectively. From asset-based lending to invoice factoring, or term loans and lines of credit, we have what it takes to get your business back on track.<\/p>\n\n\n\n<p>Contact TAB Bank today and <a href=\"\/business-banking\/\" target=\"_blank\" rel=\"noreferrer noopener\">explore our customized financial solutions.<\/a><\/p>\n\n\n\n<p>If you are not sure what option is best for your business needs, read more about different cash flow solutions in our <a href=\"\/wp-content\/uploads\/2024\/05\/T00907__TAB_CommericalLending-Guide_2024.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">commercial lending guide<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-x-large-font-size\"><a><\/a><strong>Cash Flow Solutions FAQ<\/strong><strong><\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>Which businesses are most likely to have cash flow issues?<\/h3>\n\n\n\n<p>Businesses that are most likely to encounter cash flow issues are typically those with high overhead costs, irregular income, or long invoice payment cycles. This includes industries like construction, retail, hospitality, and startups that may have significant upfront costs or seasonal variations in revenue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>What are cash flow issues?<\/h3>\n\n\n\n<p>Cash flow issues occur when a business does not have enough cash on hand to cover its expenses. This can result from delayed income, excessive spending, or poor financial management. Cash flow problems can affect a company’s ability to pay bills, salaries, and other operational costs on time.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-large-font-size\"><a><\/a>What happens when small businesses have cash flow issues?<\/h3>\n\n\n\n<p>When small businesses experience cash flow issues, they may face several challenges including the inability to pay creditors, which can damage business relationships. Limited cash can also restrict growth opportunities, such as hiring needed staff or expanding operations. In severe cases, ongoing cash flow problems can lead to bankruptcy or business closure.<\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Maintaining cash flow can be difficult. Learn more about common cash flow problems and their solutions with the experts at TAB Bank. <\/p>\n","protected":false},"author":3,"featured_media":414042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[23,32,13,33],"tags":[],"class_list":["post-414047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-factoring","category-financing-options","category-general-business-tips"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=414047"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414047\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media\/414042"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=414047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=414047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=414047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}},{"id":414046,"date":"2024-07-31T11:23:48","date_gmt":"2024-07-31T17:23:48","guid":{"rendered":"https:\/\/www.tabbank.com\/?p=414046"},"modified":"2024-07-31T11:29:56","modified_gmt":"2024-07-31T17:29:56","slug":"how-to-save-money-on-fuel-for-your-trucking-company","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/trucking\/how-to-save-money-on-fuel-for-your-trucking-company\/","title":{"rendered":"How to Save Money on Fuel for Your Trucking Company"},"content":{"rendered":"\n<p>Fuel costs are the number one expense for trucking companies. Fuel is an essential component for the operation of trucks, but there are several strategies you can employ to reduce your fuel expenses significantly. Here are a few practical tips that can help you save big on your fuel costs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Use Cruise Control<\/strong><\/h2>\n\n\n\n<p>Constantly accelerating and braking can drain your fuel quickly. Using cruise control in appropriate areas can keep your truck at a steady speed and help you save up to 6% on fuel consumption. Maintaining a consistent speed helps your truck operate more efficiently and avoids the fuel-wasting spikes associated with rapid acceleration and deceleration. Additionally, cruise control can help maintain speeds that are more fuel-efficient compared to higher, fluctuating speeds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Keep Tires Properly Inflated<\/strong><\/h2>\n\n\n\n<p>Tires that are even slightly deflated can cause significant drag, making your truck work harder and reducing fuel mileage. Properly inflated tires ensure that your truck operates efficiently and can improve fuel efficiency by up to 3%. Make it a habit to check and fill your tires on a weekly basis. Not only will this save on fuel, but it will also extend the lifespan of your tires, providing additional cost savings.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Apply for a Fuel Discount Card<\/strong><\/h2>\n\n\n\n<p>Many fleets partner with companies that offer fuel discount cards. These cards can provide substantial savings on fuel purchases. Additionally, fuel cards offer added security and control over fuel expenses, allowing you to monitor and restrict fuel purchases as needed. For instance, TAB Bank offers a comprehensive fuel discount program that can help you save on every fill-up. <a href=\"https:\/\/www.multiservicefuelcard.com\/lp\/tab-bank-fuel-now\/?utm_source=Alliances&utm_medium=TAB+Bank\" target=\"_blank\" rel=\"noreferrer noopener\">Check out TAB Bank\u2019s fuel discount program here<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Make Aerodynamic Adjustments<\/strong><\/h2>\n\n\n\n<p>Improving the aerodynamics of your truck can significantly reduce drag and improve fuel efficiency. Consider installing side skirts, mud flaps, and wheel covers. These modifications might involve an initial investment, but they will pay for themselves over time with the fuel savings they generate. Reducing wind resistance means your truck uses less fuel to maintain speed, which translates into considerable savings on long hauls.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Educate Your Drivers<\/strong><\/h2>\n\n\n\n<p>One of the most effective ways to save on fuel costs is to educate the drivers in your fleet. Small habits, such as avoiding excessive idling, maintaining consistent speeds, and reducing unnecessary weight, can lead to substantial fuel savings. Implementing a driver training program focused on fuel-efficient driving techniques can result in thousands of gallons of fuel saved per year. Set clear standards and provide ongoing training to ensure that all drivers are contributing to the goal of improved fuel efficiency.<\/p>\n\n\n\n<p>By implementing these strategies, your trucking company can significantly reduce fuel expenses and improve overall profitability. Remember, small changes can lead to big savings in the long run.<\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Fuel costs are the number one expense for trucking companies. Fuel is an essential component for the operation of trucks, but there are several strategies you can employ to reduce your fuel expenses significantly. Here are a few practical tips that can help you save big on your fuel costs. Use Cruise Control Constantly accelerating […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[27],"tags":[],"class_list":["post-414046","post","type-post","status-publish","format-standard","hentry","category-trucking"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414046","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=414046"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414046\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=414046"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=414046"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=414046"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}},{"id":414044,"date":"2024-07-31T11:22:23","date_gmt":"2024-07-31T17:22:23","guid":{"rendered":"https:\/\/www.tabbank.com\/?p=414044"},"modified":"2024-07-31T11:29:43","modified_gmt":"2024-07-31T17:29:43","slug":"pets-for-truckers-adorable-co-pilot-or-absolute-chaos","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/trucking\/pets-for-truckers-adorable-co-pilot-or-absolute-chaos\/","title":{"rendered":"Pets for Truckers: Adorable Co-Pilot or Absolute Chaos?"},"content":{"rendered":"\n<p>Around 40% of all truck drivers have a pet that travels with them on the road. If you are considering adding a furry friend to your truck cab, here are a few pros and cons to consider.<\/p>\n\n\n\n<h2 class=\"wp-block-heading is-style-default\"><strong>Pros:<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Alleviate Loneliness and Improve Health<\/h3>\n\n\n\n<p>Pets, both inside and outside the trucking world, have been proven to improve mental and physical health. Just petting a dog can elevate your happy hormones, decrease stress, and promote low blood pressure. While there are countless ways a pet can enhance your overall health, one of the biggest benefits for truckers is companionship. The road can be a lonely place, and a pet can be an amazing companion, providing someone to talk to on those long days.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Promote Exercise and Routine<\/h3>\n\n\n\n<p>Some truckers might see this as a con, but having a pet can encourage you to exercise and establish a more solid routine on the road. If you have a pet that needs walking, you\u2019ll be walking too. Suddenly, you\u2019re getting more exercise than you might have ever had as a trucker. Taking regular breaks for your pet\u2019s needs also means you\u2019re taking breaks to rest, eat, and use the bathroom, which can be a crucial safety measure against fatigue.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">They\u2019re Just So Cute<\/h3>\n\n\n\n<p>Do we really need to elaborate?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Cons:<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Trucking Company Rules and Regulations<\/h3>\n\n\n\n<p>Many trucking companies allow pets in their fleets, but there are usually regulations and sometimes fees. Typically, there are limitations on the kind and size of pets allowed, and you may need to pay a deposit to cover potential damages. If your chosen pet doesn\u2019t meet your company\u2019s requirements, you\u2019ll need to find another solution.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Choosing the Right Pet<\/h3>\n\n\n\n<p>Along with your fleet\u2019s regulations, consider what kind of pet you actually want. Pets come in all sizes, temperaments, and traits. Some drivers prefer training a puppy for life on the road, while others may opt for an older dog that enjoys long periods of relaxation. Consider the exercise needs, grooming requirements, and personality of the pet to ensure it\u2019s a good fit for life in a truck.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Significant Responsibility<\/h3>\n\n\n\n<p>Pets are a big responsibility and can be costly. They need training, grooming, supplies, food, and regular vet visits. You\u2019ll be responsible for their safety, keeping up with their documents, and cleaning up after them. It\u2019s essential to decide if the added work and responsibility are worth it for you.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Many truck drivers love having their cuddly companion on the road, while others find it isn\u2019t the right fit. Make sure to consider all the pros and cons before making this big decision.<\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Around 40% of all truck drivers have a pet that travels with them on the road. If you are considering adding a furry friend to your truck cab, here are a few pros and cons to consider. Pros: Alleviate Loneliness and Improve Health Pets, both inside and outside the trucking world, have been proven to […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[27],"tags":[],"class_list":["post-414044","post","type-post","status-publish","format-standard","hentry","category-trucking"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=414044"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414044\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=414044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=414044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=414044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}},{"id":414045,"date":"2024-07-29T15:51:51","date_gmt":"2024-07-29T21:51:51","guid":{"rendered":"https:\/\/www.tabbank.com\/?p=414045"},"modified":"2024-07-31T11:28:58","modified_gmt":"2024-07-31T17:28:58","slug":"how-to-eat-healthy-as-a-trucker","status":"publish","type":"post","link":"https:\/\/www.tabbank.com\/resource-center\/trucking\/how-to-eat-healthy-as-a-trucker\/","title":{"rendered":"How to Eat Healthy as a Trucker"},"content":{"rendered":"\n<p>As a trucker, you face a unique set of challenges, and maintaining a healthy diet on the road is one of the biggest. Here are some tips and tricks to help you eat healthier and feel better while traveling.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Pack Your Own Food<\/strong><\/h2>\n\n\n\n<p>It’s easy to grab meals from restaurants or truck stops when you’re on the road. They\u2019re convenient and often taste better than what you might make yourself. However, these options are usually high in calories and low in nutritional value. Packing your own food might seem like a hassle initially, but it can significantly improve your health and even save you money in the long run.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tips for Packing Food:<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Plan Ahead<\/strong>: When you\u2019re home, make a list of your favorite easy meals that can be eaten cold or reheated in a microwave. Include your favorite snacks, too. Create a grocery list based on these meals. Then shop!<\/li>\n\n\n\n<li><strong>Invest in Containers and Coolers<\/strong>: Get microwave-safe containers and a small cooler or fridge. Prepare your meals in these containers and store them in the cooler while you\u2019re on the road. This minimizes prep time on the go. Here are some great meal prep ideas: <a href=\"https:\/\/www.myplate.gov\/myplate-kitchen\/recipes\" target=\"_blank\" rel=\"noopener\">https:\/\/www.myplate.gov\/myplate-kitchen\/recipes<\/a>.<\/li>\n\n\n\n<li><strong>On-the-Road Cooking Appliances<\/strong>: Consider investing in a mini-fridge or electric cooler and a microwave. While these might be an initial cost, they will save you money over time. Don\u2019t forget to bring silverware!<\/li>\n<\/ol>\n\n\n\n<p>Even if you can\u2019t commit to eating homemade meals all the time, aim to cook two meals a day and limit restaurant meals to once a day. This balance can help you achieve your health goals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Stay Hydrated<\/strong><\/h2>\n\n\n\n<p>Energy drinks might seem like the go-to for a quick boost, but they don\u2019t count as hydration. Water is essential for maintaining energy and overall health. Caffeinated and sugary drinks can lead to headaches, fatigue, and long-term health issues like heart conditions. They are also high in calories, which can contribute to weight gain.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Hydration Tips:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cut Back Gradually<\/strong>: If you can\u2019t give up energy drinks completely, try reducing the amount you consume gradually.<\/li>\n\n\n\n<li><strong>Increase Water Intake:<\/strong> Drink more water each day. Yes, you might need more bathroom breaks, but your body will thank you.<\/li>\n\n\n\n<li><strong>Multiply Hydration<\/strong>: Try adding a hydration or electrolyte powder to your water to increase your hydration in a shorter amount of time. This tip also helps if you don\u2019t enjoy water on its own, as you can add flavored powders to your drink.<\/li>\n\n\n\n<li><strong>Invest in Water Bottles<\/strong>: Buy a pack of water bottles or get an insulated water bottle. For an extra challenge, use a water jug with time markers to track your daily intake.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Truck Stop Swaps<\/strong><\/h2>\n\n\n\n<p>Small changes can lead to significant improvements in your health. When you stop for food, think about how you can make healthier choices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Healthy Swap Examples:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Restaurants<\/strong>: Instead of a burger, fries, and soda, try a smaller burger, a side salad, and a diet soda or water.<\/li>\n\n\n\n<li><strong>Snacks<\/strong>: Choose nuts over chips and a protein bar over a candy bar.<\/li>\n\n\n\n<li><strong>Fast Food<\/strong>: At McDonald\u2019s, opt for apple slices and a chocolate chip cookie instead of fries.<\/li>\n<\/ul>\n\n\n\n<p>These small adjustments can make a big difference. With so many healthy alternatives available, you can still enjoy delicious food while being health-conscious.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Keep the Balance<\/strong><\/h2>\n\n\n\n<p>We\u2019ve been working with truck drivers for over 25 years, and we understand that your lifestyle comes with unique challenges. Eating healthy is difficult for everyone, and it\u2019s okay to treat yourself occasionally.<\/p>\n\n\n\n<p>Focus on a few health goals at a time, and gradually incorporate more healthy habits into your routine. Remember, progress is better than perfection. We hope these tips make healthy eating feel more achievable for you.<\/p>\n\n\n\n<div style=\"height:80px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a trucker, you face a unique set of challenges, and maintaining a healthy diet on the road is one of the biggest. Here are some tips and tricks to help you eat healthier and feel better while traveling. Pack Your Own Food It’s easy to grab meals from restaurants or truck stops when you’re […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[27],"tags":[],"class_list":["post-414045","post","type-post","status-publish","format-standard","hentry","category-trucking"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/comments?post=414045"}],"version-history":[{"count":0,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/posts\/414045\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/media?parent=414045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/categories?post=414045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tabbank.com\/wp-json\/wp\/v2\/tags?post=414045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}]