Get Instant Cash With Transportation Factoring
Running a transportation business is costly. Cash flow crunches happen to even the most successful transportation businesses, especially when many brokers and shippers pay on 30, 45, or even 90 day terms.
For owner-operators and small to mid-sized trucking companies, cash on hand can be the difference between staying afloat and sinking into debt. Cash is essential to taking on new opportunities and clients, keeping trucks on the road, and maintaining your fleet. Don’t let erratic payment or a slow season wreak havoc on your business. Choose transportation factoring and you’ll always have cash to cover your expenses and move your business ahead.
Improve your cash flow overnight. Factoring companies for trucking provide same day cash for freight bills. The process is simple:
- Driver hauls and delivers load for customer
- Truck driver submits copy of freight bill to the transportation factoring company for verification
- Factoring company pays driver within 24 hours
- Customer sends payment to the transportation factoring company
Learn more: How does transportation factoring work?
Transportation invoice factoring ensures your fleet remains competitive by offering a steady source of working capital. With factoring, your trucking company will always have cash to cover fuel, payroll, repairs, tolls, taxes, and day-to-day operations.
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Transportation Factoring Services with Total Flexibility
Every trucking business is different, so it’s important to find a truck factoring company that will meet your unique needs. Know what it is that you need from a factoring arrangement and don’t settle for a program that isn’t what you’re looking for. With so many transportation factoring companies vying for your business, you get to be choosy. Give us a call today if you’re looking for a freight factoring company with the following services:
- Same day funding on copies
- No minimum volume requirements
- Month-to-month contract terms
- No reserve funding
- Recourse and non-recourse freight factoring programs
- Fuel advance programs
- Fuel cards
- Freedom to choose which transportation invoices to factor
- Absolutely no hidden fees
With no long term factoring contracts, a transportation factoring company has to continually work to earn your business by delivering exceptional service. Flexibility is important when it comes to your business finances. Contact us now and we’ll help you access the quick cash you need with the low fees and terms you want.
Transportation Invoice Factoring Programs
With a recourse program, your company takes on the liability for customers who default on their payments. The benefit is that factoring rates are lower than they would be without liability (non-recourse). Recourse factoring is a good option for trucking companies who have the resources to cover bad debt expenses should they come up, or for companies who haul for reliable clients. Depending on volume, recourse transportation factoring fees can range from less than 1% to around 3%. Some factoring companies for transportation offer flat fees, while others offer variable fees. Let us help you determine which program works best for your needs. Call us now and we’ll get you started.
Non-recourse transportation factoring means the factor is liable for all bad debts with respect to invoices. However, it also means higher overall rates in order to offset the liability cost for the transportation factor. This method is usually best for smaller companies who can’t afford a bad debt out of pocket. The cost of non-recourse freight factoring? Companies who choose the non-recourse option should expect a flat factoring fee between 4% – 5%.
Cash Flow Concerns? Transportation Factoring Companies Can Help!
Factoring transportation invoices is fast and approval is easy. Even if you’ve been turned down for other forms of financing, you’ll likely be approved for transportation factoring. Since transportation factoring companies collect payment from your customers, funding approval is based on their ability to pay. Not to mention, when you partner with a transportation factor, you’ll have access to free credit checks for your prospective customers to protect your business from unreliable customers. If you’re concerned about your credit score, freight factoring can fund businesses with bad credit or no credit.
Unlimited Cash Flow for Unlimited Opportunities
The amount of available funding is unlimited with transportation factoring. Funding grows right along with your trucking business. The more freight bills you factor, the more cash you’ll receive. There are no maximums to funding potential. Oh, and did we mention that there is no debt added to your balance sheet with transportation factoring?
Focus on the Road Ahead with Factoring
Transportation factoring companies provide back office support to allow trucking businesses to focus on what truly matters: growth. Rather than chasing customers for payment, truckers are free to haul more lucrative loads and focus on growing their fleet.