Freight Bill Factoring – Same Day Cash for Truckers
Truckers face an abundance of upfront costs. Expenses like fuel, tolls, licensing requirements and insurance pile up quickly, while freight bill payments often trickle in slowly. It’s no secret that shippers don’t always pay right away. This leaves truckers with a gap in cash flow between the time the load is delivered and when the customer pays the freight bill.
That’s where transportation factoring companies can help. Transportation factoring, also referred to as freight bill factoring, helps truckers get paid immediately for loads delivered. Factoring is a commonly used method of funding for trucking companies. Basically, it’s a cash advance for your accounts receivable. You deliver the load and submit the freight invoice to the factor. The factor verifies the load has been delivered and advances you the cash within 24 hours. If you’re looking for a reliable cash flow solution, count on a freight factoring company to keep your trucks on the road.
Additionally, freight factoring services often come bundled with attractive perks tailored specifically for the transportation industry. For instance, they might include benefits like same-day financing options and fuel or gas cards. These cards enable truckers to refuel their vehicles quickly and efficiently, saving time and simplifying logistics.
Furthermore, these companies assist with more than just immediate cash flow needs; they also help trucking businesses manage essential paperwork related to insurance and regulatory compliance. This support is vital for keeping operations smooth and avoiding bureaucratic delays that can hinder business progress.
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Deliver the Load Today. Get Paid Today.
The trucking industry moves quickly. When it’s time to pick up the next load, owner-operators don’t have the leisure of waiting to be paid. When you need to keep your wheels turning, count on us to help you find a funding solution that ensures your trucks stay on the road where they belong. Partner with a trucking factoring company and get the peace of mind that comes with always having cash to cover the next haul.
Why Work with a Freight Factoring Company?
Everyday, trucking companies across the USA partner with transportation factoring companies. Freight factoring is a debt-free way to get paid on the same day the load is delivered. Factoring is not a loan. It’s an advance on your outstanding freight bills. If you’re tired of waiting 30, 60 or more days to be paid for your services and could benefit from extra cash, it’s time to consider partnering with a freight factoring company. Factoring can help cover your costs of doing business and ensures your trucks stay on the road where they belong. If you’re not currently factoring loads, we’ve got five solid reasons for you to get started.
1. Slow paying customers
If you’re waiting to get paid for loads you hauled weeks (maybe months?) ago and could use additional cash on hand to take on new loads, freight bill factoring can help.
2. You’ve just started your business or you’re looking to add trucks to your fleet
Transportation factoring is a smart solution for carriers that need a stable source of cash flow to build a successful business and expand without worrying about invoices getting paid.
3. The ability to go after better-paying loads
Get the financial confidence you need to go after more lucrative loads by factoring your freight bills.
4. You don’t want to add to your debt
Maybe you took out a loan to finance a new truck or cover other expenses. Factoring is simply a cash advance on your invoices. Therefore, there’s nothing to pay back.
5. Your credit history is far from perfect
Bad credit or no credit history doesn’t impact your ability to factor. Approval is based on your customers’ credit background, since they are the ones responsible for payment.
How Factoring Works
Same Day Funding
- Funds within 24 hours or less
- Copies and scans are accepted
Fuel Discounts
- Save on fuel at thousands of truck stops
- Free fuel card enrollment
Fuel Advances
- Advances before delivery to cover fuel
- Advances between 40%- 50%
Easy and Flexible
- Same day decisions
- Month-to-month contracts
- No minimum volume requirements
Low Rates
- Factoring fees from 1%
- No reserve funding available
- Flat rate structures
Additional Features
- Recourse and non-recourse factoring
- Free online credit checks
- 24/7 online account access
Factoring for Trucking Companies of Every Type
The trucking industry moves quickly. Carriers need a fast-paced cash flow solution to go along with a fast-paced industry– and that’s why working with a freight factoring company is a smart solution. We help nearly anyone in the transportation industry, including:
- Owner-Operators
- Freight Brokerages
- LTL Freight
- Hot Shot Hauling
- Oilfield Transport
- Heavy Equipment Hauling
- 3PL
- Freight Forwarders
Types of Freight Factoring
Freight factoring is an essential financial service for transportation companies, allowing them to maintain cash flow despite delays in payments from customers. There are two primary types of freight factoring that businesses can choose from, depending on their financial needs and risk management strategies.
Non-Recourse Freight Factoring
Non-recourse freight factoring is particularly appealing for companies looking for a more secure form of factoring. With this arrangement, the factoring company assumes most of the risk of non-payment by the debtor. Essentially, if the customer fails to pay the invoice, the transportation company is not required to repay the factored amount. This type of factoring is generally more expensive due to the higher risk taken on by the factoring company.
Recourse Freight Factoring
In contrast, recourse freight factoring is less costly but involves more risk for the transportation company. With this type of factoring, the company retains the risk of non-payment. If the client does not pay the invoice, the transportation company must repay the advanced funds to the factoring company. This option is more common and can be favorable for companies with a strong customer payment history.
Both types of freight factoring provide valuable financial leverage, but the choice between non-recourse and recourse factoring depends on the company’s risk tolerance and financial goals. By understanding and choosing the right type of freight factoring, transportation companies can optimize their cash flow and maintain steady operations.
Factoring for Trucking Companies is Simple
We help trucking companies of all sizes and stages. It doesn’t matter if you’re an owner-operator that received your motor carrier authority yesterday or if you manage a sizable fleet with a large driver payroll. The approval process is easy, fast and straightforward. Here’s a quick overview of how the freight bill factoring process works.
Deliver
Haul your load and deliver it like usual
Submit
Submit a copy of the freight bill to the factor
Verification
The factor verifies the load was delivered
Get Paid
Get paid within a few hours of delivery
Transportation Funding FAQs
Have more questions? Check out our general invoice factoring FAQ page
Q: What is recourse and non-recourse transportation factoring?
A: Recourse factoring is when your business is held accountable to pay back receivables that your customers have not paid. Non-recourse is when your business would pay an extra charge to ensure that if your customers do not pay for an invoice, the factoring company will take the hit and your business will not be held accountable.
Q: What types of transportation companies benefit from invoice factoring?
A: The benefits are endless with trucking factoring. Some businesses that use factoring are owner-operator factoring and hauler factoring, among others.
Q: Am I required to factor all of my transportation invoices?
A: No. Trucking companies can pick and choose which invoices they wish to factor.
1200000
Trucking Companies in the United States
Additional cash flow for better hauls. Find out how factoring can give your business a competitive edge.
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