Our freight factoring service makes sure you can haul high-paying loads even if you have a low credit score.
The trucking industry is the backbone of the nation’s economy. But the challenge is you don’t get paid right away. The industry-standard average is 40 days, and some companies might take up to 90 days to pay invoices. But you have a running business where cash flow is necessary, hence you can’t afford to wait 60 – 90 days for that load you delivered last night. Freight Factoring companies exist to close the gap between completing a load and getting paid for it.
With freight factoring, truckers get the payment right away after the invoice is raised. A Freight Factoring company deals with the invoice payment processing and collection by purchasing the invoice from you at a slightly reduced rate, so you can focus on hauling loads instead of worrying about collecting payments. In exchange for this service, the truck driver gives up a small percentage of the invoice amount to the freight factoring company.
We help you find truck loads, manage your truck dispatch, and improve your cash flow, so you have more capital for hiring drivers, purchasing new trucks, marketing and other investments to grow your trucking business.
How Freight Factoring Works
Freight factoring, which is also sometimes called transportation factoring or trucking factoring can help you get a handle on your business finances and credit. Here’s a quick overview of how freight factoring works.
- You need to submit a factoring application, once the application gets approved, a factoring agreement will be issued that lays out the specifics of the factoring contract, including the fees.
- Determining the creditworthiness of the customer and approving those that will qualify.
- Receiving invoices to be factored in, the percentage of the invoice’s value provided as an advance and later work with the client to collect the amount owed.
- The dedicated account executive will make collection calls as needed to collect the outstanding invoices.
- When the invoice is paid, the driver can receive up to 98% of the original value of the invoice, the factoring fee gets deducted and return any reserves back to the customer.
Benefits of Transportation Factoring
- Get same-day pay- Immediate access to the cash owed, which allows for uninterrupted cash flow and operating capital for small or startup businesses. It also helps large companies maintain positive cash flow.
- Overhead Cost- costs associated with processing invoices and handling collecting eliminated
- Reduce accounting workload- You don’t need to spend time invoicing, making follow-up calls, checking on payments, or chasing collections. Factoring companies handle all of this for you, including resolving any disputes.
- Helps you take on more loads/shippers
- Factoring and fuel advances help ensure you have enough cash on hand so you can take new loads – and shippers – with confidence. You no longer have to decline a load (or new shipper) because you don’t have enough funds to service them.
- Capital- The only source of financing is Factoring which grows with your sales.
- No Set Limits- Bank lines have limits, and companies have to request increases that take time for approval. However, factoring lines are dynamic. As long as the freight company works with credit-worthy brokers and shippers, the factoring company can grow quickly with the freight company.
Not only you will get your money on time but all your Paperwork will also be taken care of by us.
You just have to focus on safe driving.