TRANSPORTATION FACTORING COMPANIES
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.
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.
Benefits of Transportation Factoring Services
Same Day Funding
- Funds within 24 hours or less
- Copies and scans are accepted
- Save on fuel at thousands of truck stops
- Free fuel card enrollment
- Advances before delivery to cover fuel
- Advances between 40%- 50%
Easy and Flexible
- Same day decisions
- Month-to-month contracts
- No minimum volume requirements
- Factoring fees from 1%
- No reserve funding available
- Flat rate structures
- Recourse and non-recourse factoring
- Free online credit checks
- 24/7 online account access
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.
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:
- Freight Brokerages
- LTL Freight
- Hot Shot Hauling
- Oilfield Transport
- Heavy Equipment Hauling
- Freight Forwarders
Transportation Funding FAQs
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.