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Digg It - Freight Broker Financing Alternatives
Owing a freight brokerage business can be very rewarding and profitable. But as a freight broker, you know that
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
your business is very cash intensive. Your drivers depend on you to be paid on time. However, clients can take
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
up to 60 days to pay for their loads.
So you end up caught in the middle. Caught between drivers that need ca
So you end up caught in the middle. Caught between drivers that need ca
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
sh now and clients that want to pay slowly. The math does not work. And unless you have a nice cash cushion in
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
the bank, something has to give.
Trying to get a business loan won’t help. Banks only give business loans to c
Trying to get a business loan won’t help. Banks only give business loans to c
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ompanies that have a great history and solid track record. But what if your track record isn’t great or if you
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
are a startup? What if you have no history but have a great future potential? If that is your situation, your f
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
nancing will need to come from another source- a factoring company.
Factoring companies are experts at financi
Factoring companies are experts at financi
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
ng businesses with little past history but great future prospects. Basically, the factor eliminates the 30 to 6
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
0 days it takes to get your freight bills paid. With factoring, you get your freight bills paid in about 2 days
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
. That gives you the cash you need to pay drivers and meet other business expenses.
Factoring is flexible and
Factoring is flexible and
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
grows with your company. As opposed to having arbitrary limits like business loans or lines of credit, factorin
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
g limits are driven by your sales. The more you sell, the more financing you qualify for.
Here is how factorin
Here is how factorin
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
g works:
1. You submit a copy of your freight bills to the factoring company
2. The factor advances you betwe
1. You submit a copy of your freight bills to the factoring company
2. The factor advances you betwe
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
n 90% to 98% of your freight bills (sometimes they hold a small reserve)
3. Your get immediate use of the fund
3. Your get immediate use of the fund
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
s. The factor waits to get paid.
4. If the factor held a reserve, the reserve is rebated as soon as your custo
4. If the factor held a reserve, the reserve is rebated as soon as your custo
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
mer pays the freight bill
Factoring costs are driven by three variables: a) monthly financed volume, b) your c
Factoring costs are driven by three variables: a) monthly financed volume, b) your c
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
ustomer credit worthiness and, c) how long the freight bill goes unpaid. As a rule of thumb, rates go between 1
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
.6% to 3% per month, depending on these variables.
Factoring freight brokers is a specialty type of factoring
Factoring freight brokers is a specialty type of factoring
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
and not all factoring companies offer it. However, those that do will help you succeed beyond your expectations
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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