Information for the city of New Orleans
New Orleans, the largest city in Louisiana, is located in the southeast part of the state, between the Mississippi River and Lake Ponchartrain. It is coextensive with Orleans Parish.One of the few cities of the nation that has been under three flags, New Orleans has belonged to Spain, France, and the United States. The French founded it in 1718 and named it in honor of the Duke of Orleans. In 1762, France ceded the city and the territory to Spain. In 1800, the territory was returned to France, but government authorities did not take over until 1803, just 20 days before the region became part of the United States in the Louisiana Purchase.New Orleans is famous for its French Quarter, with its mixture of French, Spanish, and native architectural styles. The Mardi Gras > a week of carnival held in New Orleans before the beginning of Lent is the most spectacular festival in the U.S. and is a popular tourist attraction.
Despite Hurricane Katrina, the 2006 Mardi Gras was still scheduled to be held.New Orleans has one of the world's greatest international ports and it is a major focus of the city's economy. New Orleans is home to the corporate offices of oil companies with major offshore operations in the Gulf of Mexico, as well as the distribution and service centers of offshore equipment suppliers and fabricators. The manufacturing industry is a significant part of the economy, with petroleum, petrochemical, shipbuilding, and aerospace industries all playing a role. The New Orleans region also functions as a mining, processing, and transportation center for other minerals, principally sulfur. Service industries are playing a larger role, with health care and telecommunications leading the way. The New Orleans region is widely regarded as a leading center of medicine and health care in the South.On Aug. 29, 2005, the Category 4 Hurricane Katrina hit New Orleans, flooding the city on Aug. 30 and disabling its pumps.
This was followed by the breaching of the levees holding back Lake Pontchartrain, flooding 80% of the city. Federal and local officials were widely criticized for their slow and inadequate response. A year after the disaster, many evacuees had not returned to the city and the city population had dwindled to about half of its pre Katrina numbers.Today, New Orleans is making strides on the path toward recovery. Always hospitable, the city has opened its doors extra wide as part of the city's revitalization efforts; Mayor : ""We have hosted an unmatched string of major events in the last two years including the Championship, Final Four and Navy Week, and now we get ready to welcome the world to New Orleans for the world's biggest show"" 2013's XLVII ""we couldn't be more excited.""New Orleans has one of the largest and busiest ports in the world, and metropolitan New Orleans is a center of maritime industry. The New Orleans region also accounts for a significant portion of the nation's oil refining and petrochemical production, and serves as a white collar corporate base for onshore and offshore petroleum and natural gas production.New Orleans is a center for higher learning, with over 50,000 students enrolled in the region's eleven two and four year degree granting institutions.
A top 50 research university, Tulane University, is located in New Orleans' Uptown neighborhood. Metropolitan New Orleans is a major regional hub for the health care industry and boasts a small, globally competitive manufacturing sector. The center city possesses a rapidly growing, entrepreneurial creative industries sector, and is renowned for its cultural tourism. Greater New Orleans, Inc. (GNO, Inc.) acts as the first point of contact for regional economic development, coordinating between Louisiana's Department of Economic Development and the various parochial business development agencies.PortNew Orleans was developed as a strategically located trading entrep�t, and it remains, above all, a crucial transportation hub and distribution center for waterborne commerce. The Port of New Orleans is the 5th largest port in the United States based on volume of cargo handled, and second largest in the state after the Port of South Louisiana. It is the 12th largest in the U.S. based on value of cargo. The Port of South Louisiana, also based in the New Orleans area, is the world's busiest in terms of bulk tonnage. When combined with the Port of New Orleans, it forms the 4th largest port system in volume handled. Many shipbuilding, shipping, logistics, freight forwarding and commodity brokerage firms either are based in metropolitan New Orleans or maintain a large local presence.. The largest coffee roasting plant in the world, operated by is located in New Orleans East.Like Houston, New Orleans is located in proximity to the Gulf of Mexico and the many oil rigs that lie just offshore. Louisiana ranks fifth among states in oil production and eighth in reserves in the United States. It has two of the four Strategic Petroleum Reserve (SPR) storage facilities: West Hackberry in Cameron Parish and Bayou Choctaw in Iberville Parish. Other infrastructure includes 17 petroleum refineries, with a combined crude oil distillation capacity of nearly 2.8 million barrels per day (450,000 m3/d), the second highest in the nation after Texas. Louisiana's numerous ports include the Louisiana Offshore Oil Port (LOOP), which is capable of receiving ultra large oil tankers. Given the quantity of oil importing,.
Several major energy companies have regional headquarters in the city or its suburbs, Numerous other energy producers and oilfield services companies are also headquartered in the city or region, and the sector supports a large professional services base of specialized engineering and design firms, as well as an term office for the federal government's Minerals Management Service.BusinessThe city is the home to a single Fortune 500 company: Entergy, a power generation utility and nuclear powerplant operations specialist. In the wake of Hurricane Katrina, the city lost its other Fortune 500 company, Freeport McMoRan, when it merged its copper and gold exploration unit with an Arizona company and relocated that division to Phoenix, Arizona. Its McMoRan Exploration affiliate remains headquartered in New Orleans. Tourism is another staple of the city's economy. Perhaps more visible than any other sector, New Orleans' tourist and convention industry is a $5.5 billion juggernaut that accounts for 40 percent of New Orleans' tax revenues. In 2004, the hospitality industry employed 85,000 people, making it New Orleans' top economic sector as measured by employment totals. The city also hosts the World Cultural Economic Forum (WCEF). The forum, held annually at the New Orleans Morial Convention Center, is directed toward promoting cultural and economic development opportunities through the strategic convening of cultural ambassadors and leaders from around the world. The first WCEF took place in October 2008
Information for the state of Louisiana
The total gross state product in 2010 for Louisiana was US$213.6 billion, placing it 24th in the nation. The state's principal agricultural products include seafood (it is the biggest producer of crawfish in the world, supplying approximately 90%), cotton, soybeans, cattle, sugarcane, poultry and eggs, dairy products, and rice. The seafood industry directly supports an estimated 16,000 jobs. Industry generates chemical products, petroleum and coal products, processed foods and transportation equipment, and paper products. Tourism is an important element in the economy, especially in the New Orleans area.
The Port of South Louisiana, located on the Mississippi between New Orleans and Baton Rouge, is the largest volume shipping port in the Western Hemisphere and 4th largest in the world, as well as the largest bulk cargo port in the world. Tourism and culture are major players in Louisiana's economy, earning an estimated $5.2 billion per year. Louisiana also hosts many important cultural events, such as the World Cultural Economic Forum, which is held annually in the fall at the New Orleans Morial Convention Center
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New Orleans Factoring Companies
Companies of all different sizes, including start ups, use factoring; and today factoring has become common business practice across many industries. -New Orleans Factoring Companies
FACTORING AT LOW COST IF YOU'RE CAREFUL WITH..
New Orleans Factoring Companies Articles
The Difference between Accounts Receivable Financing and Factoring
Today, it’s not as easy for businesses to access finance as it was in past years, and more companies are being forced to look for alternative, non banking financing options in order to access the capital they require to help their business grow.
Two of the more popular tools available to cash strapped business owners are Accounts Receivable Financing (A/R Financing) and factoring. Some business owners believe these two are the same, but there are, in fact, some small yet significant differences.
What Is Factoring?
Factoring is when a commercial finance company, also known as a factor or factoring company, purchases a business’s outstanding accounts receivable. At that time, the factor will typically advance the business somewhere between 70% and 90% of the invoice’s value. Then, once the invoice is collected from the customer, the remaining balance – minus a factoring fee – is released to the business. The factoring fee could range from between 1.5% and 5.5%. It’s calculated on the total face value of the invoice and depends on how many days the funds are in use and other aspects, like the collection risk.
When a business has a factoring contract they can usually choose which invoices they want to sell to the factor: it’s not generally an all or nothing process. Once the factor has purchased an invoice they become responsible for managing the receivable until the account has been paid. Essentially, the factor becomes the business’s accounts receivable department and credit manager, analyzing credit reports, performing credit checks, mailing invoices, and documenting payments.
What Is Accounts Receivable Financing?
Accounts Receivable Financing is more similar to a traditional bank loan, however there are some key differences. Bank loans are secured with collateral; which might be real estate, the business owner’s personal assets, or plant and equipment; whereas Accounts Receivable Financing is backed by the business’s assets related to the Accounts Receivable. When a business has an Accounts Receivable financing agreement, a borrowing base is established at each draw against which the business is able to borrow money: this would typically be between 70% and 90% of the qualified receivables.
Between 1% and 2% is typically charged as a collateral management fee against the outstanding amount, and interest is only calculated as and when the money is advanced. An invoice must be less than 90 days old in order to count towards the borrowing base, and the finance company must deem the business credit worthy. There may also be other conditions to fulfil.
So, you can see that there are many similarities between Accounts Receivable financing and factoring; however, one is the sale of an asset (receivables or invoices) to a third party, while the other is actually a loan. In many ways, though, they do act similarly. Below we’ve listed the main features of each so you can determine which would be the best fit for your company.
Accounts Receivable Financing
• Generally, Accounts Receivable Financing is not as expensive as factoring;
• It can be easier to move from this type of financing to a traditional bank line of credit once a business becomes bankable again;
• Typically, a minimum of $75,000 per month is required in sales to qualify, so this type of financing may not be available to small companies;
• Due to the fact that the business will be required to submit all of its Accounts Receivable to the finance company, this type of financing can be less flexible than factoring.
• It’s quite easy to qualify for factoring, and factoring is the ideal solution for start ups and financially challenged companies;
• Because businesses can decide which invoices they want to sell to the factor, factoring offers more flexibility than Accounts Receivable Financing;
• The company is able to track total costs on an invoice by invoice basis because factoring has a simple and straightforward fee structure.
Today we see both Accounts Receivable Financing and factoring as traditional sources of financing; effective when traditional bank financing is not an option. Factoring can carry a business through a period when an immediate cash input is required.
Somewhere between 12 and 24 months most companies are generally able to repair their financial situation and once again become bankable. However, some companies in certain industries continue factoring their invoices indefinitely.An example of this is the trucking industry, which relies heavily on factoring for cash flow injections.
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New Orleans Factoring Companies Articles
Healthcare Staffing Factoring
The healthcare field is arguably one of the most rapidly growing industries in the United States. With the baby boomers, the largest section of our population, reaching retirement age the need for expanding healthcare services has never been more pronounced.
At the center of this growth are healthcare staffing agencies that hire for hospitals, clinics, doctor’s offices and a wide range of medical facilities. However, while business is booming the ability for these staffing agencies to expand is inhibited by the customer invoice system. Fortunately, there are healthcare staffing factoring companies around to help them in their time of need.
We asked the owner of a local healthcare staffing agency, Joy Reed, to talk to us about how factoring companies helped expand her business and provide a much needed boost at a critical time for her company.
“Hello Joy and welcome. I was hoping you would tell us a little about how healthcare staffing factoring companies helped your business, but I suppose we should begin by how you got started in this business?”
Joy Reed (JR), “Thanks for having me. I actually have been a part of several start-up businesses in my recent career and was looking for a field that would show a lot of promise. It was pretty clear to me that medical staffing was a big need in the healthcare field so I set about to start my own business. I had experience in starting up businesses before, so I drew up a business plan, took out a loan, rented the offices and hired a staff to get started.”
“So, you did what most people do in starting up a business. How did it do?”JR: “I actually got off to a pretty good start. I had made a few contacts and managed to get some business right away. This was really helpful because as you might know our clients use invoices for payments and it can take up to 90 days before we actually get the cash in hand. Around four months in we were facing a real crossroads as new opportunities opened up for our business, but we didn’t have the cash on hand to take advantage.”
“I’m a little confused. You say you were doing well, but you didn’t have the ability to expand your business?”
JR: “That’s right. The problem was back to the invoices that were making up wait up to 3 months before we had the cash. I really wanted to expand my staffing business to handle the new opportunities I was being presented, but I couldn’t because I was still waiting on the invoices to finally turn to cash. So I was asking my accountant about what could be done when the suggestion of a healthcare staffing factoring company was introduced.”
“Tell us a bit more about factoring companies.”
JR: “Basically, factoring companies purchase the invoices right on the spot so you can have cash on hand immediately instead of waiting up to three months. For healthcare staffing factoring companies, they will then collect the money from the business when the invoice is read to be fully paid. It really worked out for me because I was able to get cash quickly to add new personnel and even expand my offices to include another section of the building I was renting in.”
“I understand that factoring companies are there for many different kinds of businesses, including medical staffing. Was it difficult to get set up with a factoring company?”
JR: Actually, it was pretty easy once we found a company that met our needs. I just filled out a short form and they looked over a few of the invoices I had to see what companies that I worked with. It really didn’t take long at all before they agreed to cash some of the invoices and I got the money I needed to expand.”
“Could you tell me a little more about the advantages of using a factoring company like this?”
JR: “Sure, I was not only able to hire a couple of new people and rent additional space, I’ve been able to cash my invoices when unexpected bills come up or if I need to make a purchase quickly for a new piece of equipment. This has come in really handy recently when I decided to move to a new location and needed some cash on hand to make the transition. The factoring services are really quite good with reasonable rates and fast service.”
“What’s the differences in using factoring companies over getting a new loan?”
JR: “It is frankly much better than getting a loan because with factoring there is nothing to pay back. We are basically getting our own money from the invoices we’ve earned up front and paying only a small fee. With a loan, I would not only have to pay it back but with interest as well. Factoring for us has really been a godsend when it comes to making decisions about how to expand my business. I’m no longer tied down to waiting 2 to 3 months to get paid when I can take what my business has earned and get cash immediately.”
“I take it that you are happy with how healthcare staffing factoring has worked out for you?”
JR: “You would be correct. I cannot imagine how my business would have expanded at that critical time without factoring companies to buy my invoices. This is a great service that has helped me in my time of need and now my medical staffing business is bigger than ever. I’d recommend factoring companies to anyone running a business that relies on invoices if they need to get cash quickly.”
There is little doubt that Joy Reed has been quite happy about the services she received working with a factoring company. Perhaps factoring is right for you and your needs, be sure to search for the type of factoring business that works in your field so that you can get the right services in helping your company to succeed.
New Orleans Factoring Companies Articles
The Basics of Trucking Factoring
Whether you’re the owner of a 50-truck fleet or an independent owner/operator, we all know that controlling your cash flow is vitally important to growing your business. Perhaps like many business owners you’ve become pretty clever at making creative use of your credit cards, because it’s certainly preferable to going to your banker and begging for a business Line of Credit! Fortunately, there is another viable option for owner-operator businesses and small trucking fleets. The answer to the age-old cash flow problem is Freight Bill Factoring!
If Freight Bill Factoring is an unfamiliar term to you, then here’s a brief explanation:
Freight Bill Factoring is the simple process of assigning your unpaid freight invoices to a third-party company (factoring company) for an amount that’s less than you would receive if you were to bill your customer direct. The bonus of Freight Bill Factoring is that it enables you to get paid almost immediately upon completion of a run, thus giving you access to much-needed cash required for the day-to-day running of your business operations.
Here’s a step-by-step explanation of how Freight Bill Factoring, or Trucking Factoring, works :
Once you’ve booked a load, you immediately email or fax details about the load, your customer, and your rate confirmation to the factoring company;
The factoring company will quickly respond by advising if that particular customer has been approved for load factoring;
You pull the load;
When the load has been delivered, you email or fax your load-related documents, including the Bills of Lading, to the factoring company;
Within 24 hours the factoring company will make a direct deposit into your Comdata account or your bank account for the amount of approved charges: this could be anywhere between 60 and 90% of your billing;
Once the invoice has been paid by your customer, you’ll receive the balance.
It’s true that Freight Bill Factoring is not for everyone, but it is an ideal way of accessing the cash you need to provide stability to your trucking business and keep your wheels turning whilst you wait for your customers to pay their accounts.
Obviously, the best option for any business is to invoice your customers directly and wait to receive payment, but unfortunately many customers are painfully slow when it comes to paying their invoices. If you’re experiencing a cash flow problem, then working with a factoring company could well provide the financial cushion you need to keep your trucks on the road. It’s up to you to do your own research and determine whether factoring makes sense for your business. We trust that the information we’re providing here will provide you with enough knowledge to help you make a wise decision.
The Cost of Freight Bill Factoring
As explained above, there’s a cost involved with Freight Bill Factoring, and it’s up to you as the business owner to determine whether it’s worth the cost. The cost of Trucking Factoring can vary from as little as 1.5% up to around 5% of the line haul revenue.
You also need to be aware that there could be a number of fees, charges, and other expenses if you employ the services of a Freight Bill Factoring company. Generally, when you’ve assigned your Bills of Lading to a Trucking Factoring company, you’ll receive an immediate advance of between 60 and 90% of the anticipated revenue: of course, this figure will depend upon the factoring company you use. Once your customer has paid their invoice, the balance will be remitted to you.
It’s also important to note that all Freight Factoring companies are not equal, so here are some key questions a business owner should ask when considering hiring the services of a Trucking Factoring company:
Recourse or Non-Recourse: Which Freight Factoring Service Do You Provide?
You may not be familiar with these terms, but you need to be, because the ramifications of not understanding these terms could seriously affect the profitability of your business.
means that, should your customer fail to pay the factoring company, the factoring service can come back to you for reimbursement; while
means that you have your money whether the invoice does or doesn’t get paid.
Will You Bill My Customer for All Future Loads or Can Factoring Be Done on a Load-by-Load Basis?
Let’s say you have a temporary cash shortfall problem that you’re trying to resolve by hiring the services of a Freight Factoring company: many businesses require that the factor handle all future collections owed to you by that specific customer. However, depending upon the customer, this may not be the path you wish to take. You should be aware, though, that some factoring companies are very rigid with this requirement.
There are Freight Bill Factoring services out there that allow you to choose on a load-by-load basis as to whether you’d like them to handle the collection on your behalf or whether you prefer to deal with the process of billing and payments yourself. And these services generally let you decide whether you want to receive payment when the invoice is actually paid or whether you want immediate payment. This can be very useful for small businesses because it can save a lot of time by allowing you to use the Freight Factoring service as a kind of de-facto billing service.
Is There a Price Difference If the Factoring Company Bills a Customer for All Loads Pulled?
Some Freight Factoring companies require that all billings originate through them, while others allow you to decide on an invoice-by-invoice basis whether you want the factoring company to do it, or whether you’d prefer to bill your customer yourself. If you choose to use their services on a spot-usage basis and choose not to have a certain invoice factored, you’ll probably still have to pay the $15-$20 billing charge. You’d then receive payment once the customer has settled their account.
Are Extra Fees Payable for Additional Services?
It’s not usual for a freight factoring company to automatically pay your customer’s invoices: they need assurance that your customer is a reliable, good-paying customer, so they’ll typically require a credit check to ensure they’ll be paid. Most Freight Factoring companies will arrange for a customer’s credit check on your behalf, and this credit check could incur a nominal fee. On the other hand, there are factoring companies out there that are happy to provide you with access to a list of customers that are already pre-approved – these are companies that currently meet the factor’s credit requirements. This can be very useful information to a trucking company, particularly if you need to know the credit rating of a prospective customer prior to booking a load.
How Much of the Freight Bill Do You Advance; and Do You Require a Deposit?
It’s very rare that a Freight Factoring service will advance 100% of your freight invoice, and that’s just one of the reasons why it’s imperative that you take the time to do your own research and find out what your chosen factoring company’s policy is. You also need to know if this will change from load to load or if the same policy applies to all your customers and all freight bills. p> Regarding deposits, some freight factoring services do require deposits, while others don’t. Again, before you finalize any contract with a Trucking Freight Factoring company, be very sure that you know exactly what you’re signing up for. p>
You Can Find More Information at http://receivablesfinancing.net/
and at www.account-receivable.org/