Information for the city of Newark
More than 100,000 people commute to Newark on weekdays, making it the state's largest employment center with many white collar jobs in insurance, finance, import export, health care, and government. As a major courthouse venue including federal, state, and county facilities, it is home to more than 1,000 law firms. The city is also a ""college town"", with nearly 40,000 students attending the city's universities and medical and law schools. Its port and rail facilities make Newark the busiest transhipment hub on the East Coast in terms of volume.Though Newark is not the industrial colossus of the past, the city does have a considerable amount of industry and light manufacturing. The southern portion of the Ironbound, also known as the Industrial Meadowlands, has seen many factories built since World War II, including a large brewery. The service industry is also growing rapidly, replacing those in the manufacturing industry, which was once Newark's primary economy. In addition, transportation has become a large business in Newark, accounting for more than 17,000 jobs in 2011.
Newark is one of nine cities in New Jersey designated as eligible for Urban Transit Hub Tax Credits by the state's Economic Development Authority. Developers who invest a minimum of $50 million within 0.5 miles of a train station are eligible for pro rated tax credit. Since the election of Cory Booker there has been millions of dollars of public private partnership investment in Downtown development but persistent underemployment continue to characterize many of the city's neighborhoods. Poverty remains a consistent problem in Newark. As of 2010, roughly one third of the city's population is impoverished.Newark is the third largest insurance center in the United States, after New York City and Hart. The companies originated in the city. The former, one of the largest insurance companies in the world, has its ""home office in Newark and is constructing a new office tower. Many other companies are headquartered in the city, In addition to other benefits to encourage employment within the Zone, shoppers can take advantage of a reduced 3�% sales tax rate (versus the 7% rate charged statewide) at eligible merchants. While for years there was a dearth of supermarkets, since the millennium new ones have opened or are planning to, (1990 pop. 275,221), seat of Essex co., NE N.J., on the Passaic River and Newark Bay; settled 1666, inc. as a city 1836. It is a port of entry and the largest city in the state. Located only 8 mi (13 km) W of New York City, Newark is a transportation, industrial, commercial, and manufacturing center. Its leather industry dates from the 17th cent., and its still significant jewelry manufactures and insurance businesses began in the early 19th cent. Among the city's many other products are beer, cutlery, electronic equipment, textiles, pharmaceuticals, fabricated metal items, and paints.
Newark International Airport is one of the nation's busiest, and the important seaport is operated by the Port Authority of New York and New Jersey. The city has a large minority population; over 50% of its residents are African Americans and about 30% are Hispanic. Newark's educational institutions include a campus of Rutgers Univ., the New Jersey Institute of Technology, a campus of the Univ. of Medicine and Dentistry of New Jersey, and a preparatory academy founded in 1774. The New Jersey Devils professional hockey team plays in the city.Landmarks include Trinity Cathedral (1810, with the spire of a church built in 1743); the Sacred Heart Cathedral (begun 1899, completed 1954); the First Presbyterian Church (1791); the Newark Public Library (founded 1888); the Newark Museum (1909); and the county courthouse (1906), with Gutzon Borglum's statue of Lincoln in front. Other points of interest include Borglum's large group Wars of America (1926) in Military Park (a Revolutionary War drilling ground and a Civil War tenting area) and many historic homes. Aaron Burr and Stephen Crane were born in Newark.
The city was settled (1666) by Puritans from Connecticut under Robert Treat. It was the scene of Revolutionary skirmishes. Industrial growth began after the American Revolution, aided by the development of transportation facilities. The Morris Canal was opened in 1832, and the railroads arrived in 1834 and 1835. A flourishing shipping business resulted, and Newark became the area's industrial center. In the late 19th cent. its industry was further developed, especially through the efforts of such men as Seth Boyden and J. W. Hyatt. Newark Port opened in 1915, and the city's shipbuilding played an important role in World War I.During the latter half of the 20th cent., Newark's economy and living standards greatly declined. Many residents fled to the suburbs, which were marked by a boom in corporate development, shopping center growth, and housing construction. Poverty and unemployment plagued Newark, which in July, 1967, was the scene of a major race riot. Two bright spots have been the port, which since 1985 has had a steady increase in volume of exports of containerized cargo, and Newark International Airport, which has expanded greatly. As part of an effort to revitalize the downtown, the New Jersey Performing Arts Center opened in 1997; an indoor arena and outdoor stadium have been constructed since then
Information for the state of New Jersey
"Only four states are smaller in size than New Jersey, yet New Jersey ranks ninth in the nation in population and has the highest population density of any U.S. state, facts owing in part to its proximity to both New York City and Philadelphia but also indicative of its economic importance. New Jersey is a major industrial center, an important transportation corridor and terminus, and a long-established playground for summer vacationers. The state is noted for its output of chemicals and pharmaceuticals, machinery, and a host of other products, including electronic equipment, printed materials, and processed foods.
Bayonne is the terminus of pipelines originating in Texas and Oklahoma, and there are oil refineries at Linden and Carteret. New Jersey has been a leader in industrial research and development since the establishment in 1876 of Thomas Edison's research facility in Menlo Park. Color televison, the videotape recorder, and the liquid crystal display were invented in New Jersey corporate research labs. Today telecommunications and biotechnology are major industries in the state, and the area near Princeton has developed into a notable high-tech center. Finance, warehousing, and ""big box"" retailing have also become important to the state's economy, attracting corporations and shoppers and to a large extent reversing New Jersey's onetime role as a suburb for commuters to New York City and Philadelphia.
In addition to being a center of industry, transportation, and tourism, New Jersey is a leading state in agricultural income per acre. The scrub pine area of the southern inland region is used for cranberry and blueberry culture. North of the pine belt the soil is extremely fertile and supports a variety of crops, most notably potatoes, corn, hay, peaches, and vegetables (especially tomatoes and asparagus). Dairy products, eggs, and poultry are also important. Commercial and residential expansion, however, has taken over much of the state's farmland, and New Jersey is now almost one third developed."
If you need capital right now or are looking to expand then factoring is the way to go.
Factoring Companies In New Jersey
Why not start considering to use factoring businesses as a way to change your motive and give yourself a more comfortable future in the eyes of your staff and your bank balance? -Factoring Companies In New Jersey
HOW I IMPROVED MY PROFITS IN ONE EVENING
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Factoring: An Overview
What Is Factoring?
‘Factoring’ is when a third party commercial finance company purchases the Invoices or Accounts Receivable from a business. The finance company concerned is called a ‘Factor’ and the transaction is known as ‘Factoring’. Factoring is also known as ‘Accounts Receivable Financing’ because factoring occurs when a business needs to access cash quickly, quicker than if it had to wait the 30 to 60 days (or longer) to receive payment from a customer.
The majority of factoring companies purchase invoices and advance cash within 24 hours, although the terms and nature of factoring can differ between industries and different financial service providers. Depending on the industry, the customers’ credit histories, and various other criteria, the advance rate can range from between 80% and 95%. The business also receives back office support from the factor. Once the factor has collected from the business’s customers, the business will be paid the reserve balance of the invoices, less a nominated fee for assuming the collection risk.
The main benefit of factoring is that a business is not required to wait one or two months (sometimes more) for payment by a customer – the business will receive cash in hand to operate and grow their business. It’s important to note that factoring is not a loan: there’s no debt with factoring. Funding is unrestricted, which means that a business has more flexibility than borrowing from a bank.
The Five Simple Steps of Factoring
1. As a business, you provide a service to your customer;
2. The invoice for this service is sent to a factoring company;
3. On this invoice, you’ll receive a cash advance from the factoring company;
4. It’s now up to the factoring company to collect full payment from your customer;
5. Once payment has been received, you’ll receive the balance of your invoice account from the factoring company – minus their fee.The Advantages of Factoring
There are many reasons why factoring has become a popular and valuable financial tool for businesses today. The key benefit of factoring is that a business receives a quick boost to its cash flow: in fact, many factoring companies offer cash on their Accounts Receivable within 24 hours! The factoring company takes responsibility for collecting customer payments, and may also evaluate the payment and credit histories of a business’s customers.
Other Benefits Include:
• When a business needs access to cash, factoring can be customized and managed in order to provide the necessary capital;
• The business balance sheet will not show this financing as a debt;
• Factoring is not based on the company’s credit or business history: it’s based on the quality of its customers’ credit;
• Factoring is not determined by the company’s net worth: it provides a Line of Credit based on sales;
• There’s no limit to the amount of financing through factoring, unlike a conventional loan;
• Factoring is an ideal solution for start up businesses that often require immediate cash flow.
Is the Concept of Factoring New?
No, it’s not! In fact, the origin of factoring comes from overseas trade among nations and dates back several centuries to the 1400s when it became part of doing business in England. In the year 1620 it arrived in America with the Pilgrims. Like other financial tools, factoring has improved and evolved over the years. It became an effective way of creating cash flow in the United States at a timewhen companies faced strict limitations when trying to secure loans in the country’s damaged banking system.
Who Uses Factoring?
Factoring is available for companies of all sizes, ranging from a one person business to Fortune 500 companies. Every business can use factoring as an effective way of increasing their cash flow. In addition, factoring spans all types of industries, from transportation, trucking, textiles, manufacturing and distribution, staffing agencies, and oil and gas.
The cash generated from factoring is used by companies to purchase new equipment, pay for inventory, expand operations, add employees, and basically cover any expenses related to the running of their business. The beauty of factoring is that it allows companies to make quick decisions and to expand at a faster pace.
How Does Factoring Work?
For the purpose of this post, we’ll describe a fictional example as a way of illustrating a common factoring situation.
XYZ Transport is a trucking company: their intention is to double their fleet size over the next two years in order to service more clients in the West. The company has just successfully won a new customer on the West Coast who requires freight to be shipped from Oklahoma to Los Angeles. This new customer is more than happy to pay for the service within 30 days; however, that won’t cover all the immediate costs involved, like payroll, fuel, and maintenance costs of running the route.
This is a familiar situation for the owners of XYZ Transport: the lack of available cash flow in the past has prevented the company from accepting new business. So now XYZ Transport has turned to a factoring company: they have agreed to sell the West Coast customer’s invoice to the factoring company in exchange for a 90% advance on the total amount – within 24 hours! This much needed influx of cash will replenish the trucking company’s reserves and allow it to continue running the Oklahoma – Los Angeles route. In addition, XYZ Transport now has the added flexibility of taking on new customers.
How Much Do Companies Factor?
Each company has its own unique business needs, so somecompanies only factor invoices for customers that are slow in paying, whilst other companies factor all of their invoices. Companies can factor receivables ranging from a few thousand dollars right through to millions of dollars each month.
What’s the Difference between Factoring and a Traditional Bank Loan?
Factoring, also known as Accounts Receivable Financing, is a quick, flexible and effective way for businesses to create a steady cash flow stream. See below for how factoring is different to a Line of Credit at a bank or a traditional business loan
If you need capital right now or are looking to expand then factoring is the way to go.
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The Advantages of Trucking Factoring for Trucking Companies
Around the country, many owners of small trucking companies are running into the same problems when trying to expand their business. While the trucking business can be quite lucrative, it can take many weeks or even months to finally get paid on hauling invoices. This puts trucking companies in a real bind by having to play catch-up while trying to pay bills and salaries of their drivers.
We caught up with Jason Kind, an owner of a small trucking business that he created just a few years ago. Like many trucking owners, Jason was trying to expand his company to meet the needs of his clients, but was running into money issues that were holding him back. We asked him about his situation, the challenges he faced and how Trucking factoring played a real role in helping his company to expand without being burdened by paying back high interest loans.
Jason, it’s good to have you with us.
Jason Kind: “Thanks, I appreciate being here.”
Tell me a little about your trucking company and how it got started.
JK: “I had been driving trucks for years when in 2011 I decided to start my own trucking business. I went through the loan process, purchased a couple of trucks and got started. At first, it was really exciting because I had made a few connections as a driver and I picked up some early business. It seemed like everything was starting to snowball as I was getting requests from other businesses, but I was running into a cash problem.”
It seems rather strange that being successful was causing you to be short on cash?
JK: “I know. You see in the trucking business we charge invoices which means that it could take weeks or even months before the cash would roll in. A typical invoice takes anywhere from 45 to 60 days before the payment comes through. Here I was getting offers from other businesses and I didn’t have the cash on hand to buy trucks and hire drivers.”
So, what did you do?
JK: I’ll admit I was at my wit’s end because I thought by the time I had the cash to expand that the interest would dry up first. I didn’t want to take out another loan because I would just be putting off that debt until later and I had nothing to sell or any additional way to make more money. It was around that time when I heard from one of my friends in the trucking business about Trucking factoring.”
What exactly is Trucking factoring?
JK: “Well, Trucking factoring is a way for trucking companies like mine to get paid quickly for the loads we are hauling. Instead of having to wait weeks or even months sometimes to get paid for hauling, Trucking factoring lets us get money right away for the work that we’ve done.”
How does Trucking factoring work?
JK: “Well, there are companies out there who are willing to purchase the invoices that trucking companies like mine get when we perform a job. I managed to find a good, reputable company that actually purchases the invoices we get after performing a job along with other bills that we charge in our business. In return, they pay us cash that I not only use to cover my payroll, fuel costs and expenses, but I was able to put back enough money to purchase another truck a lot more quickly than if I had simply waited for the invoices to be paid.”
It seems like you stumbled on a pretty good deal when it comes to Trucking factoring. Are there any other benefits that you’ve enjoyed by using this service?
JK: You bet, because the invoices act as the means to pay the company. It is not a loan where I have to pay back any money. The Trucking factoring company simply takes a very small percentage off each invoice or bill as their fee and I get the rest in cash right away. It’s really worked out for me because not only was I able to get the cash needed to expand my business I was able to pay off my original loan a lot more quickly as well.
In fact, I was able to leap onto new business offers more quickly because the Trucking factoring allowed me to start purchasing new trucks and hire drivers months before I could even consider doing that simply waiting on the invoices.
This Trucking factoring sounds almost too good to be true, surely there must be a catch somewhere?
JK: I’ll admit, I was a little skeptical at first, but it’s all pretty straightforward. The Trucking factoring company I use didn’t even charge me a sign up fee nor did they sign me to any long term contract. I just took a few minutes with them to set everything up and when I turn in an invoice, they pay me cash right on the spot.
You said you didn’t have to sign any long term contracts. Are there a minimum number of invoices or amounts that you have to turn in each month?
JK: Actually, no. When I first started with them I was turning in practically all of my invoices so I could generate some cash up front. Now, when I need some cash to pay off bills or make quick purchases, I go to the company with my invoices. Some months I’ve turned in quite a few invoices, other months not so much.
It really sounds like you found a great deal in Trucking factoring?
JK: You bet. I have even used their fuel advances and discount cards to help me save money which really helped out in the first year of my business. I’ve had other trucking owners call me up and ask me how I was able to expand my company as fast as I did. I tell them all the same thing, if you have invoices, then Trucking factoring is the way to get fast cash without having to take out loans or put yourself in a deeper hole.
Jason’s business continues to grow and Trucking factoring was a big reason why he was able to expand so rapidly. If your trucking business is short of needed cash with invoices that have yet to be paid, then you should consider Trucking factoring as a way to put money into your hands right away.
Factoring Companies In New Jersey Articles
Oilfield Services Factoring Services
Running a company in the oilfield services industry is no easy business, especially with payrolls to meet, equipment to purchase and deadlines that must be met. The sheer complexity of combining the geological research and modeling, imaging and exploration and finally the drilling to see whether oil is really present can take a lot of investment before any payoff can be seen.
For those who own a Frac Sand Hauler for example, the efforts that must be put in to start such as business can be considerable. But arguably the biggest challenge is paying the expenses as the invoices come in. A Frac Sand Hauler often has expenses that must be met immediately, but their invoices can take up to 60 days before they see the money.
What follows is an interview with Ray McClerand, a man who owns a Frac Sand Hauler business and ran into the same difficulties that many new companies of his type face. How Ray overcome some of the challenges in paying his bills through oil service factoring are explained in the interview.
“Welcome Ray, I’d like to know first why you decided to start up a Frac Sand Hauler company and how you prepared for the challenges it created.”
Ray McClerand (RM): “I’ve been in the oil business for the past 15 years or so working on different jobs from roughneck to foreman to deskwork for different companies. A few years ago I saw the potential of having a Frac Sand Hauler business in this area and got together with a couple of partners to create a company. We sat down, went over the details and decided that this would be a real good time to build a business that was serving a particular need in this industry.”
“So, I take it you created a business plan and took out the appropriate loans in order to purchase the equipment and hire the personnel necessary to get your company started?”
RM: “Exactly. Because I had been around this business for a while, I understood what was needed in terms of personnel and equipment. Plus, I had some contacts with others in the business that needed the type of services that a Frac Sand Hauler provides, so I felt that there was some real potential to make a profitable business work.”
“How did it go over the first six months or so?”
RM: “At first, we were really thriving as my contacts had lined up some business my way. Our loans covered the first six months or so of operations and we were doing quite well with the business we had. My partners and I were certainly happy and everything was going good when something really strange happened.”
“Could you elaborate on what you mean by “strange”?
RM: “Yes, after the first five months or so I started getting requests to have our company work with several other businesses in the area. This would mean having to expand our company through buying new equipment and hiring more people. But we did not have the cash on hand to make such a move. We were getting invoices from the businesses that we worked with, but it was taking up to 2 full months before we actually got the cash.”
“So, you were making enough money to expand, but you didn’t have it on hand because of the invoice system?”
RM: “You got it. Add to that our initial money from the loan was running out and we needed to start paying it back as well. I knew that if we didn’t expand and accept the new business that others would step in and we would lose that money. So, we were in a real pickle until I heard about oil service factoring companies.”
“Tell us a bit about oil service factoring and how it helped you out?”
RM: “Well, one of my partners had heard about factoring companies, so we checked it out and decided to go with one that was best suited for our needs. A factoring company buys our invoices with cash so we have money on hand to pay our bills and do what we need accomplished immediately. The factoring company then collects the money from the invoices when they become due. It’s really been a win-win for what we do.”
“That’s interesting. I wonder if you could you explain a little further just how factoring has helped your company?”
RM: “Sure, instead of having to wait up to 60 days before we could collect on the invoices, we were able to have the cash on hand immediately to purchase some new equipment and hire some more people to expand our business. This meant that we could accept the new offers that other businesses were providing for us and not having to pass. I cannot say enough about how factoring really benefitted us when it came to expanding our business.”
“So, it seems like factoring really paid off for you. Do you still use factoring today?”
RM: “Yes we do. Although for the most part we still cash our own invoices, whenever we need money quickly so we can buy some new equipment or expand our business a little further, we go back to the factoring company and cash in our upcoming invoices. It really has worked wonders for our company.”
“Tell me, what would have happened if factoring was not an option?”
RM: Frankly, I don’t know how we could be in the position we are today without factoring. In this business, you have to take advantage of new opportunities quickly because there are other companies out there who will step in if you don’t. Basically, I don’t think we would be anywhere near the company we are today if it had not been for factoring.
There is little doubt that Ray’s company would not be where it was without oil service factoring that allowed him to expand his company when he needed. For those in the oil industry, having your invoices cashed immediately by factoring companies allows greater flexibility so you can grow your business a lot more quickly and take advantage of opportunities.
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