Trucking Factoring with Bad Credit FAQ

Phil Cohen

Is your trucking company thinking of partnering with an invoice factoring company but you’re worried about your poor credit? Freight carriers use factoring as a way to get paid sooner for loads delivered. Trucking factoring with bad credit provides the cash flow solutions without the hurdles existing by other forms of lending, like bank loans.

Truck factoring services can provide a unique and simple cash flow solution, even if you don’t have perfect credit. We’ve put together a list of truck factoring with bad credit FAQ’s to help you determine if our truck factoring services are the solution for your business.

Truck Factoring with Bad Credit or No Credit Questions and Answers

What is trucking factoring?

Trucking factoring, also known as freight factoring is the process of selling your unpaid freight bills to a factoring company in exchange for a cash advance.

Is trucking factoring a loan?

No. Trucking factoring or any other form of invoice factoring is NOT a loan. Invoice factoring for trucking unlocks the cash you’re waiting to receive from your unpaid invoices. With factoring, you aren’t incurring any more debt–you’re selling a valuable asset. Therefore, there is no debt to repay.

How can an invoice factoring company for trucking help my business?

Trucking factoring companies provide you with advanced cash in exchange for your invoices so you can keep your trucking company moving forward. Truck factoring allows you to grow your business, take on more loads, and add trucks and drivers to your fleet.

Do I need good credit to qualify for trucking factoring?

No. your credit history doesn’t affect your ability to factoring. Funding your trucking business is possible with bad credit or other financial problems. With freight factoring, decisions are based on the credit history of your customers and brokers, since they are the ones responsible for freight bill payments. Not your personal or company credit score.

What does this mean for my trucking company?

Because truck factoring companies collect payments from your customers, those with poor personal credit can still qualify for invoice factoring. Truck factoring with bad credit is still possible.

How can trucking factoring help build my credit?

There are many benefits of invoice factoring. One of the best things about truck factoring with bad credit is you can actually use it to improve your credit. You can use the funds you receive through truck factoring to pay down your existing debt and pay your bills on time. With truck factoring, you’ll always have a steady source of working capital to support your financial needs.

How long does the trucking factoring process take?

The truck factoring process is a fast process. With initial paperwork process generally taking only 3-5 days for approval. After approval, your trucking company can receive funds in as little as 24 hours.

Can I choose which freight bills I want to factor?

Yes. With trucking factoring, you can choose which clients you’d like to factor and how often. Factor Finders offers both recourse and non-recourse truck factoring programs.

Will I be stuck in a long-term contract with trucking factoring?

No. Factor Finders promises no long-term contracts. If you want to stop factoring, you will just need to give the truck factoring company a notice based on the terms stated in the factoring contract.

I am not satisfied with my current factor. Can I switch Trucking factoring companies?

Yes, you have the option of switching factoring companies. The process of switching freight factoring companies can be confusing but that’s why we’re here. Factor Finders can learn about what sort of contract you are in and help you get out of it. We’ll help match you with a freight factoring company that meets your demands and exceeds your expectations.

Never used trucking factoring? What are you waiting for!?

To start truck factoring fill out our quick online form or give us a call for a free quote. We’ll help match you with the perfect truck factoring company, despite having bad credit.

Let Us Transform your Trucking Business

We are experts at getting trucking companies the working capital they need despite financial problems. Truck factoring with bad credit is a great funding option. We know which freight factoring companies can get your company funding, despite poor credit, past bankruptcies, or even tax liens (provided there is an agreement in place with the IRS).

Don’t waste time and energy looking for a truck factoring company to fund your business. We’ll set you up with the perfect one for your financial situation.

Photo of author

Phil Cohen

Phil is the owner of PRN Funding and sister company Factor Finders. He has been an authority in the factoring industry for over 20 years, serving on the board of directors for several factoring associations.


Get Started Now

Secure the funds you need today.