Freight Bill Factoring
Do your freight bills take up to 60 days to pay? Do you need money sooner? We can help you. Our factoring program finances slow-paying freight bills and provides you with funds quickly. It helps you handle cash flow problems due to slow-paying shippers and customers. You can use the funds to pay for drivers, fuel, and repairs. More importantly, however, you can use these funds to take on more loads – and grow your business.
How does freight bill factoring work?
Our freight bill factoring plans are simple to use and quick to set up. And once a plan is set up, it provides you with predictable cash flow. Here is how our plans work:
- You deliver the freight load to your customer
- You send the freight bill to the customer and submit a copy to us (this step varies)
- We send the advance to you by wire or direct deposit
- Once your client pays, the transaction finishes
Up to 90% advances
We know that cash flow is important to your business, which is why we do our best to give you the highest possible advance. Our advances range from 70% to 90%, based on your situation. We can provide higher advances to select clients.
Rates as low as 2%
But high advances aren't everything. To be successful in the trucking industry, you need to watch your costs as well. Our plans have low costs and are easy to understand. Our rates – start from as low as 2% per month – can be prorated and are based on the size of your trucking company.
Short-term contracts
We understand that you don't want to be tied to a freight factoring company for any longer than is necessary, so we can structure short-term contracts to meet your needs. We want you to be with us only for as long as we are helping you grow.
Take us for a test drive
We want the chance to earn your trust – and your business.
Optional fuel advances for small carriers
We can also provide fuel advance factoring to select small and growing trucking companies. This program provides you with an advance that allows you to fuel your trucks and deliver more loads.
Works with fuel cards
Our program works with fuel cards. This flexibility gives you and your drivers an easy way to pay for fuel and maintenance expenses. It also gives you an easy way to control how money is spent.
Benefits of freight bill factoring
- Predictable cash flow
- Funds to pay for drivers, fuel, and repairs
- Quick approvals
- Credit checks
- Fuel cards
Select the right factoring company
You must select a factoring company carefully. Make sure that they are the right fit for you and your business. Once you start interviewing companies, consider asking the following questions:
- How long have they been in business?
- How are they funded?
- How quickly can they set up an account?
- How quickly can they fund your first freight bill?
- How quickly do they approve new shippers/brokers?
- Can they finance copies or do they need originals?
- Do they provide fuel advances?
- How long are their contract terms?
- Do they specialize in transportation and logistics?
Negotiate the best terms
Profit margins in the trucking industry are very tight due to competition. You must partner with a factoring company that will offer the lowest cost. Remember that the rate is only one part of the total package and is only one component of cost. The total cost of factoring is based on:
- The factoring rate
- The factoring advance
- Extra fees
- Credit of your shippers and brokers
Keep these four items in mind when negotiating your factoring contract, as they all affect the total cost.
To get the best terms, work with a factor that has experience in your industry. Additionally, show the factor that financing your business is a low risk for them. For example, demonstrate to the factor that you work with reliable shippers and that you keep good records.
What we offer:
- Low rates: As low as 2% per 30 days for qualifying clients. And, yes, our rates can be prorated
- High advances: As high as 90%
- Fuel cards: Get better fuel pricing and cost control
- Short terms: Usually 90 days with automatic renewal
- Simple termination process: Drop us if you no longer need us
- Quick setup time: We do our best to get your account set up quickly
- Quick funding: We do our best to fund you the same day we get your invoices