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. Freight factoring services will help solve many issues like this.
Get Instant Cash With Transportation Factoring
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 the cash to cover your expenses and move your business ahead.
Improve your cash flow overnight. Unlike a traditional bank loan, trucking factoring companies provide same day cash for freight bills. If you’re not an expert at factoring, no problem! The process is simple:
- Driver hauls and delivers loads for customers
- Truck driver submits a copy of freight bill to the transportation factoring company for verification
- Factoring company pays the 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 the cash to cover fuel, payroll, repairs, tolls, taxes, and day-to-day operations.
What is Freight Factoring?
Freight factoring is a financial service that allows trucking companies to sell their outstanding invoices to a factoring company for immediate cash. This service provides a solution to cash flow problems common in the transportation industry. Freight factoring companies buy invoices from clients to pay them immediately, usually within 24 hours of receiving the freight bills. This process helps trucking companies improve their cash flow, reduce debt, and increase working capital.
How Freight Factoring Works
The freight factoring process starts when a trucking company delivers a load and submits the corresponding invoice to the factoring company. The factoring company then buys the invoice and advances a percentage of the invoice value to the trucking company. The factoring company collects the payment from the customer and pays the remaining balance to the trucking company, minus a small fee. This process allows trucking companies to receive immediate payment for their services, rather than waiting for their customers to pay.
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. Understanding the factoring agreement is crucial, as it outlines the specific contractual obligations and terms, including minimum funding limits, requirements to factor entire ledgers, potential penalties, and options for early termination. 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:
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.
Benefits of Freight Factoring
Freight factoring offers several benefits to trucking companies, including:
- Improved cash flow: Freight factoring provides immediate payment for outstanding invoices, allowing trucking companies to manage their cash flow more effectively.
- Increased working capital: By receiving immediate payment for their services, trucking companies can increase their working capital and invest in their business.
- Reduced debt: Freight factoring eliminates the need for trucking companies to take on debt to manage their cash flow.
- Simplified accounting: Freight factoring companies often provide accounting and bookkeeping services, simplifying the financial management process for trucking companies.
Choosing a Freight Factoring Company
When choosing a freight factoring company, trucking companies should consider the following factors:
Contract terms: Review the contract terms and ensure that they meet your business needs.
Reputation: Research the company’s reputation and read reviews from other customers.
Fees: Compare the fees charged by different factoring companies and choose the one that offers the best rates.
Services: Consider the services offered by the factoring company, such as accounting and bookkeeping services.
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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:
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
Recourse Factoring
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 Factoring
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 that 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 Services 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.
