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Low, Flat Rates from 1%. No Reserves, No Long Term Contract.

SamDefinition of Freight Factoring

Freight factoring, also known as factoring services, is a financial solution that allows trucking companies to sell their invoices at a discount to a factoring company in exchange for immediate cash. This service helps manage cash flow by providing same-day payments, personalized account management, and additional offerings such as fuel advances and financing options. By using factoring services, trucking companies can access funds quickly and maintain operations without incurring debt.

What is Freight Factoring?

Definition of Freight Factoring

Freight factoring is a financial service that allows trucking companies to receive payment for their invoices quickly, typically within 24 hours. Essentially, a factoring company buys invoices from a trucking company at a discount and advances payment once the order or load is delivered to the customers. This process, also known as transportation factoring or trucking factoring, helps trucking companies maintain a steady cash flow without waiting for customers to pay their invoices.

How Freight Factoring Works

Here’s a step-by-step explanation of how freight factoring works:

1. A trucking company delivers a load to a customer and generates an invoice.
2. The trucking company submits the invoice to a factoring company.
3. The factoring company verifies the invoice and advances a percentage of the invoice amount to the trucking company.
4. The factoring company then collects payment from the customer.
5. Once the customer pays the invoice, the factoring company deducts its fee and returns the remaining balance to the trucking company.

This streamlined process ensures that trucking companies can access the funds they need quickly, without the hassle of chasing down payments.

Benefits of Freight Factoring for Trucking Businesses

Freight factoring offers several benefits to trucking businesses, including:

• Improved Cash Flow: Freight factoring provides trucking companies with quick access to cash, which can be used to pay drivers, cover fuel expenses, and manage operational costs.
• Reduced Administrative Burden: Factoring companies handle the paperwork and collections process, freeing up trucking companies to focus on their core business.
• Increased Financial Stability: Freight factoring can help trucking companies manage their finances more effectively, reducing the risk of bankruptcy and improving their credit score.
• Flexibility: Freight factoring companies often offer flexible contract terms and competitive rates, allowing trucking companies to choose the best option for their business.

By leveraging the services of freight factoring companies, trucking businesses can ensure a consistent cash flow and focus on growth and expansion.

Same Day Funding for Trucking Companies with Freight Factoring

Tired of waiting to be paid? Stop waiting and turn outstanding freight bills into instant cash. Truck factoring provides the cash you need to haul more lucrative loads, cover fuel and repair costs, and keep trucks on the road where they belong.

• Rates as low as 1%
• Flat fee structures (why pay more?)
• No minimums (truck factoring on your terms – you choose which customers to factor, when you need to factor)
• No long-term contracts
• Same funding on copies (because sending originals is a hassle)
• Fuel advances before delivery (up to 50%)
• Fuel discount cards (save big on fuel costs at all major truck stops in the US and Canada)
• Non-recourse factoring programs available (transfer the risk of customer non-payment to us)
• No application fees
• No hidden fees
• Unparalleled customer service

Factor when you want, how you want, whom you want, and for however long you want with Factoring Services!