Transportation Factoring Companies for Trucking

Trucking Companies Use Transportation Factoring for Expansion

Trucking Companies Use Freight Factoring for Expansion

The trucking industry has experienced unprecedented growth over the last two years, and despite projected difficulty over the next two years it is likely that many trucking companies will continue to expand to meet their customers’ freight needs. However, with payment terms extending from 30 to 60 days and beyond it will prove difficult for truckers to maintain cash on hand for the everyday expenses to keep them on the road.

A freight factoring company can provide immediate cash flow solutions, helping trucking businesses manage their expenses effectively.

Benefits of Using a Factoring Company

Using a factoring company can provide numerous benefits for trucking companies. Some of the most significant advantages include:

• Improved Cash Flow: Freight factoring provides immediate cash to trucking companies, allowing them to continue operating and growing their business.
• Reduced Administrative Burden: Factoring companies handle the collections process, freeing up trucking companies to focus on their core business.
• Increased Financial Stability: Freight factoring provides a source of consistent cash flow, reducing the risk of financial instability.
• Access to Additional Services: Many factoring companies offer additional services, such as credit checking and verification, invoice preparation and submission, and collections and follow-up on unpaid invoices.

Transportation Factoring Made EZ

Transportation factoring can eliminate the cash crunch and close the window on slow payers. It is crucial to thoroughly review the factoring agreement to understand the terms and conditions, including funding limits, invoicing requirements, and potential penalties. A transportation factoring company will purchase your freight bills and advance you a percentage of the face value in cash. Then, once your customer has paid the invoice the factor will send you the remainder of the invoice value, less their fees.

The Process of Factoring for Transportation with a Factoring Company

The transportation factoring process is fast and simple, giving owner-operators and brokers more time to schedule and haul their loads through invoice factoring:

• Complete delivery of the load
• Send your invoices to the factor (many will accept copies)
• The factor will verify the invoices and send you cash via wire/ACH to a registered bank account

There are no minimum or maximum amounts to factor, so trucking companies can factor their invoices as much or as little as needed to maintain a positive cash flow. Because transportation factoring is based on your actual receivables, funding potential grows with your trucking company.

Fast approval and immediate access to cash make transportation factoring an appealing alternative funding option for owner-operators and freight brokers. Cover your expenses, build client confidence, and take advantage of back office support with EZ Invoice Factoring’s transportation factoring program – contact us today so we can build the ideal funding package for you!

Freight Factoring for Trucking Companies with Bad Credit

Freight factoring is a viable financing option for trucking companies with bad credit. Because freight factoring is not a loan, it does not require a good credit score. Instead, factoring companies focus on the creditworthiness of the customer, not the trucking company.

Non-recourse factoring is a popular option for trucking companies with bad credit. With non-recourse factoring, the factoring company takes on the risk of collecting payment from the customer, and the trucking company is not responsible for repayment if the customer does not pay.

Recourse factoring is another option for trucking companies with bad credit. With recourse factoring, the trucking company is responsible for repayment if the customer does not pay. However, recourse factoring often has lower fees and more flexible terms than non-recourse factoring.

Overall, freight factoring is a flexible and accessible financing option for trucking companies with bad credit. By providing quick access to cash and eliminating the need for a reserve account, freight factoring can help trucking companies with bad credit improve their financial stability and grow their business.