You are here: Home / Trucking Factoring

Trucking Factoring

What is Trucking Factoring?

Trucking factoring is also known as truck factoring, road factoring, or a variety of other names.

Essentially factoring, of any form, is when a finance company purchases an invoice, freight bill, or other type of account receivable for cash.

Finance companies, or factors, make their decision to purchase an account receivable based upon the credit worthiness of your customer – not you, which is very different from banks.

Factoring will put cash in your hands now – not in 30, 60, or 90 days whenever your customer decides to pay you.

Want to see if trucking factoring is right for you?

Just click below and fill out the form on the next page – don’t worry if you don’t have all the answers, someone will call you back to help you through the process.

Trucking Factoring Quote

Trucking Companies Factoring can Help Keep up with Regulatory Compliance & Driving Legalities

August 14, 2011 By

Trucking Factoring Solutions Can Help Keep up with Regulatory Compliance & Driving Legalities

As a little commercial trucking company owner, you have quite a few crucial responsibilities, not only to your own company, but to public safety concerns as well. When hiring drivers, you should make certain that you select those who are qualified for the job demands and whose backgrounds do not offer any reason why they ought to not be employed by you. Beyond this, you need to ensure that your trucks are correctly maintained and that your vehicles and their uses are in compliance with state and federal regulations. Keeping up with compliance requires time, and time equals cash. With the help of trucking companies factoring companies your company might never face the issue of not having the funds (or time) to preserve up with the myriad regulations that apply to intrastate and interstate freight hauling.

  • Trucking Companies Factoring Solutions Help Preserve Required Money on Hand

No matter how diligent you are in your hiring and training process, sometimes a driver might fail to observe relevant traffic laws, reporting, or other necessary functions which could result in costly fines, penalties, and litigation expenses for you and your tiny trucking firm. This sort of scenario could seriously hinder your freight hauling operation’s success, or even bankrupt it altogether. Trucking companies factoring companies can help you keep the resources on-hand to deal with unexpected costs. Money on hand is imperative when these types of situations arise.

  • Trucking Companies Factoring Companies Help Your Drivers Stay on the Street

When a compliance issue arises with one of your drivers you have to make certain that the funds is there to take care of the difficulty. Gradual having to pay invoices mean less money on hand. Trucking companies factoring companies can solve the difficulties associated with a gradual spending invoice by using a solution that gives the equivalent of a quick payment. It works by utilizing a financial intermediary (Freight Factoring Company), who advances funds against your freight bills. They settle the transaction once your client actually pays the bill. A single advantage of utilizing trucking companies factoring providers is that it offers the equivalent of a speedy payment, with out requiring your clients to pay quicker. This makes it straightforward to integrate in most organizations and can help maintain money on hand and drivers on the street.

Filed Under: Trucking Factoring Tagged With: , , ,

How Trucking Factoring can help you preserve your trucking dream

April 8, 2011 By

How can trucking factoring keep you on the road to realizing your trucking dreams?

It only requires one non-paying or slow to pay freight customer to wreck an independent truck driver’s dream of owning a productive and profitable trucking company.

As soon as the cargo has been loaded on your truck and delivered per the terms of your agreement, you have already incurred expenses upholding your end of the agreement. Even when a freight customer is not technically slow to pay, it is an industry average of 43 days before your freight bill get paids.  This creates a difficult situation for a small company to preserve  cash flow and keep sufficient dollars on hand for the next truck load. Making use of trucking factoring companies can be an essential tool to keep a small business growing.

  • Bridge the Gap in between Sluggish Payments & Steady Cash Flow with Factoring for Trucking

Sustaining cash flow is essential to operating a business, but especially critical for a start-up company.  The very first 12 months of a new trucking company it is especially tough to obtain bank financing as you have no “track record”.  Satisfactory hard cash flow is also a concern at occasions when enterprise growth opportunities appear.

Following delivering that very first load, you can expect to wait 30 to 45 days or longer to get compensated on your freight bill. A single late payment or uncollected freight bill could make it impossible to cover your fuel, insurance, and other overhead expenses for that upcoming truck load.  Factoring trucking freight bills is a versatile solution that ought to be utilized by new and developing transportation companies.

  • Direct Rewards of Trucking Factoring

Factoring freight bills can remedy the problematic delay between having to pay invoices before getting paid for that last load.  Truck road factoring works by employing a finance company (Freight Factoring Company), who advances funds against your company’s freight payments. The freight factoring company settles the transaction once your customer pays the bill to the factoring company.

A single benefit of factoring for trucking is that it provides you fast cash regardless of when your freight bill actually gets paid. Other direct advantages of trucking factoring include: quick cash for much of an unpaid invoice’s value; your energies and time do not have to be wasted in tracking down a non-paying consumer; and these hard cash inflows will let you carry on with normal business operations allowing growth without road blocks.

More Trucking Factoring Articles

Filed Under: Trucking Factoring Tagged With: , , , , , ,

What is Truck Factoring?

April 7, 2011 By

One solution to assist trucking companies in staying productive is called freight bill factoring or commonly truck factoring.

In an ideal world, you would get paid as soon as your completed work. However, the reality is we aren’t always paid immediately for the goods or services that we render. Unfortunately for trucking companies, that can be difficult. There are expenses such as insurance, tags, and fuel that require cash and if you aren’t paid quickly for your freight bills, it can be a big hassle for your business and jeopardize your progress.

Truck freight bill factoring pays cash to trucking companies for a percentage of their invoices immediately.  Factoring invoices can provide peace of mind for companies because it means that the stability and progress of their company doesn’t depend on the timeliness of their clients’ payments

After all, when a client is billed, even if they are extremely responsive and pay quickly, there is still a lag between the completion of the job and the payment. An accounts receivable factoring account can increase cash flow while reducing the headache of credit or collections problems. In essence, a truck factoring company acts as something of a financial mediator between your clients and your company.

They front money to your company and allow you to focus on developing your company as opposed to tracking down debtors. The factoring company takes care of that aspect of your business. Additionally, if a factoring company factors an invoice on a “non-recourse” basis, the ‘Factor’ takes the credit risk of the customer, protecting you from credit loss. When an invoice is factored “with recourse,” it means that the client is responsible for payment if the customer does not pay.

From that standpoint, utilizing truck factoring reduces credit risk to your company. With the difficulty of obtaining bank credit, not only can loans be risky, it is also increasingly difficult to get the funding that is vital to your business. Using a truck factoring company also is good for employee morale because it ensures that they receive regular pay, as opposed to being paid whenever the money from their jobs arrives in your pocket. Many factoring companies can send money within 24 hours of receiving invoice.

Factoring companies also don’t leave you in limbo, wondering whether or not your accounts are reconciled. Instead, many factoring companies offer a 24 hour online client center so you can see current aging, cash applications, and anything else you might want to know about your factored accounts receivables online, at any time that you need.

Many truck factoring companies have been strongly committed to providing businesses with convenient invoice factoring to solve their cash flow challenges. They have served thousands of successful companies, spanning a wide range of industries, who have entrusted them with their invoice financing needs. Their accounts receivable factoring service has helped manufacturing, distribution and service companies, including freight transporters, grow and prosper.

When it comes to growing your truck transportation company – consider freight bill or trucking factoring.

Filed Under: slider, Trucking Factoring Tagged With: , , , , , ,

Answers to Common Questions about Truck Factoring Services

March 28, 2011 By

In this article, we offer answers and advice to both the trucker and factoring company on how road and truck factoring could be of benefit.  At the outset, for someone who has a trucking business, it is not always a smooth ride. It is quite a tough business to run and risky too, sometimes. And then if they have to approach a factoring company, then there are questions raised. Every person wants to know the risks involved before they jump into an agreement with a stranger. It is only natural to want be sure before you decide on the best factoring company for you. Factoring means that the company gives you credit by purchasing your invoices or receivables and taking the said payment from the customer directly.
Chasing invoices is a tiresome and lengthy process for any trucker, so they taking care of it, it works well for you. The only thing that is important is that the customer you have should meet their credit standards. There is also the agreement factor. Normally, it is made for a year and then renewed. But it is better if you opt for the short term contracts. So that in case you are unhappy with the way they function, it is easier for you to opt out of this professional arrangement and look for a new factoring company.
The factoring fee could be anything from 5% to 7%. But it is still lower than what a bank would charge you. If you have a larger volume of load, there are factoring companies that give a discount or reduce the rate of interest, if it is a recurring benefit to them. The other option is that the interest remains the same, but on the overall amount you get a rebate or the extra money is credited to you. It could really work very well for you.
Secondly, if you want to get into truck factoring, it is a brilliant idea and also could be a very financially beneficial to you. It is not difficult to get into factoring. You just need to do a little advertising so you could find the loads that you are looking for. Meet the right sources and ask around, it could help. Also, online a lot of professionals have instruction manuals and kits to help you set up the business.
Please remember that a trucker will only come to you if he is assured that he will have a constant flow of cash against his invoices, to meet with his expenses. You need to guarantee that. And that means you need to be financially sound and stable if you want to get into this business. Since it is difficult to get loans from the banks because of the credit line problems, it is easier for them to come to you. You must check out whether their freight customers are credible or not. That is important for you. After all you are in the business for the money, so ensure you do not take any unwanted risks.

Find More Trucking Factoring Articles

Filed Under: Trucking Factoring Tagged With: , ,

Your Guide to Truck Factoring Services

March 18, 2011 By

In this article we look at how there are so many services available to guide you on how to go about truck factoring.
Truck factoring is a great arrangement, especially for the owner of the vehicle. It is a relaxing arrangement and reduces the amount of stress and tension that normally would leave any trucker worried. The flow of money is constant as long as they have assured business. For any person who runs his own business, finance is always the most strained factor to content with. There are bills, and bills and bills. So truck factoring companies are more beneficial that banks and even their interest rates are on the lower side compared to banks or other financial institutions. It increases your ability to haul additional load because of the credit facility offered by them to customers. Most customers are very happy with the arrangement, where in they do not have to make the payment upfront.
There are some considerations that can guide you in making the right decision. Always find the right kind of load that meets the credit standards of the factoring company. Even the customer or client you choose should be credible. There are many customers who are bad paymasters and hence this affects your relationship with the factoring company. Ensure that they are listed with the factoring company and if not, then it would take a few hours to get them listed. Most factoring companies require your original invoices or bills. And there are two methods of payment. One is card and the other is cash. It is better to use the card as you can keep a track of the expenses and control the outflow to a certain extent.
This is one of the best options when it comes to maintaining a steady cash flow and also having time on your hands to attend to more important matters, like the maintenance of the fleet of vehicles. And if you also drive your own trucks then you need a break as you can get physically exhausted. Spare yourself the agony and give the company the headache of going after payments. Factoring companies are a boon to truck and freight companies as they were started with a reason and that reason is very valid. Even their interest rates are better compared to banks. Depending on the credibility of the customer, it could be anything from 1.5 to 5%. Their quick disbursement and no need for guarantors is another crowd puller, oops truck puller.
Please ensure that before you decide to do business with a factoring company, you should conduct a little background check on them. You should consult friends or other freight owners, so that you do not go into a loss and get cheated. Also do not go in for a long term contracts, so that if you are unhappy, you can leave anytime. Never get cornered with anything. Always remember, as much as you need them, they need you too. It sure works both ways. Be smart and build up your cash balance so that some day you won’t need the factoring service anymore.

Filed Under: Trucking Factoring Tagged With: , , , , , , ,

Transportation Factoring Services For Freight Funding

March 10, 2011 By

www.interstatecapital.com Interstate Capital has been funding transportation fleets of all sizes for nearly 20 years. Whether your customers are freight brokers or direct shippers, we have the automation, and technology to fund your freight bills at a fraction of the cost you might expect. Did you know our fees are just a few pennies to the dollar and for larger fleets EVEN LESS? Our clients may upload their freight bills directly to our system on-line or bill their customers directly through an EDI interface. Interstate Capital sends automated statements to your freight brokers and shippers to reduce the average days outstanding for your invoices. You have access to virtually any information you need, including images of your freight bills, load confirmation, and invoices on-line 24 Interstate Capital is on every major freight broker and 3PL list of approved factoring companies. www.interstatecapital.com

Filed Under: Trucking Factoring Tagged With: , , , ,

The Benefits of Truck Factoring

February 28, 2011 By

As the proud owner of any newly founded business venture will be quick to inform you, trying to secure financial assistance from banks and other commercial lenders can be nothing short of an uphill struggle as they find that they are unable to convince the lenders that they are a wise choice of investment.  This is a dilemma that has become even more pronounced with the global credit crunch and so banks are now more skittish and cautious than ever before about the lending of money.

Venture capitalists are financial providers that specialize in the provision of start-up capital and working capital to new businesses; however, the only problem here is that the venture capitalist firms tend to charge an astronomically high fee for their services. Given that a business which has just only recently been founded will need to ensure that it is as frugal with its money as possible, such costly services maybe a luxury that is just out of reach for them financially speaking.

Such issues are not the sole property of the newly founded business, and even established businesses such as freight and trucking companies can find themselves struggling to keep up with their own current liabilities by virtue of the tardy nature of their customers. Imagine the following scenario. A trucking company seeks to deliver some high value stock (such as whiskey or laptops) some 500 miles. Even with a full tank of gasoline, the truck driver responsible for the delivery is going to have to refuel. The driver is not going to be able to use the fuel pump and then proceed to calmly tell the clerk:

“Don’t worry, I have 10,000 units in my truck. I’ll wire you the money when it is sold and the net value is released.”

It is for that precise reason then that truck factoring is an excellent source of financial aid for a trucking company as it helps to neatly evade the majority of the teething and logistical problems so often attributed to mainstream sources of financing.

With truck factoring, the trucking company will be able to receive a substantial portion of the net value of the accounts that remain outstanding directly from the factoring company. In addition, the factoring company will then proceed to assume full responsibility for the collection process thereby ensuring that the trucking company can focus squarely on its business.

One of the major reasons that truck factoring is such a commonly relied upon method for securing and raising sums of capital is due to the fact that the trucking company will not be required to secure any of the assets of the business as collateral.

In addition, this method is not a loan and therefore, the actual credit score of the business means absolutely nothing to the process. In fact, by delegating the responsibility for the collection of the accounts to a factoring company in this manner, the trucking company will be able to actually improve their credit score as they can pay their own vendors on time, and in full!

Truck Factoring has many benefits – click here to find out more.

Filed Under: Trucking Factoring Tagged With: , , , , , ,

What to Look For In a Truck Factoring Company

February 18, 2011 By
Truck Factoring

Factoring is a simple and inexpensive tool which helps sort out the cash flow pressure caused due to non-paying or slow paying customers. It is a way to get immediate cash when your trucking company is in need. By giving your invoices and accounts receivables to the factoring companies you may even get up to 96% of the face amount in cash. The credit risk lies upon the truck factoring company who takes up the risk, depending upon the creditworthiness of the amount receivable.

 
Selecting a truck factoring company
Choosing the appropriate company which suits the needs of the organization is highly relevant to ensure smooth cash flow. The lowest cost is not the only criteria for selecting a factoring company. If they have a good track record and are specialists in the truck factoring business, they should be given consideration.
Check the track record of the truck factoring company
Check if the factoring company has a proven track record in the industry for the level of service you require. If the company has been in business for long, it would have seen many business cycles which can form a basis for proof of its strength in handling tough situations. You can have these things clarified from the company representatives or get references about them and the financial conditions they can handle.
Is the factoring company a specialist in the truck factoring industry?
You need to check if the company specializes in the truck factoring business. A truck factoring company is aware of the practices of freight brokers and the shippers as opposed to a general invoice factoring company. They will have hands-on experience in dealing with transportation companies.
Does the company have a collection department?
You may check out if the truck factoring company has a collection department. Most of the companies may not have a collection department and the job is mostly done by the accounts representative. Having a separate department for collection is of help as the same person may not be able to do the two jobs very well.
Does the company have a credit department?
Similar to a collection department, a credit department that looks into credit related matters should also be useful. A credit team who takes care of the entire credit needs of the customer is better than one which does not have a credit department. The companies may expose you to inappropriate levels of risk by not having a credit department.
Is the company size suited for your trucking business?
There are companies of various sizes, large and small, handling truck factoring services. A company which is small enough to provide personalized services as well big enough to provide financial stability may be ideal for you. A company which is very small may not be enough to satisfy your financial needs effectively. They may even prove to be insufficient to purchase all the freight bill account receivables.
Is the company using technology?
A truck factoring company which is updated with the latest technological advancements is generally best. A company which allows credit quotes, account maintenance for both you and your customers is generally going to be better than one does everything the “old fashioned way.”
Such factors should be considered when you are selecting a truck factoring company. With such details, you will be able to get the maximum possible benefit of the factoring to help you with your cash needs.

Related Trucking Factoring Articles

Filed Under: Trucking Factoring Tagged With: , , , , ,

Truck factoring provides a needed solution in the transportation industry

February 6, 2011 By

Most of us know that trucking companies are one particular of the most crucial features to maintaining the national financial system transferring.  Just about every single products bought by a buyer is moved at some level by a transport company.  Several of the trucking outfits are more compact companies grasping the possibility to run with the massive canines.  This seems like a wonderful enterprise product until eventually it comes time to pay the bills for fuel and labor.  What most buyers do not recognize is that the individuals that furnished the transport of the item they purchased nevertheless have not been paid for the service when the products is sold to the customer.  This brings up the want for truck factoring which is a money circulation instruments utilized by transportation companies.

Truck factoring or freight bill factoring is the approach of a firm promoting the invoice for instant cash to a transportation industry factoring firm.  This allows the trucking organization to receive up to 99% of the invoice total the day the factoring agency is supplied the signed bill of lading or proof of delivery.  This is a major money circulation tool as it enables the truck firm to have the funds up to 45 days sooner than waiting for the terms of sale which are generally 30 to 45 days.  The transportation and trucking business is a really money intensive marketplace with the price of fuel on the rise and the truck drivers will need to be compensated as nicely.  They also will need to hold up with all the additional charges from uncle very same and insurance coverage.

Often truck factoring gets to be a way of enterprise for the trucking business.  They submit invoices weekly to the factoring business to get the cash back in the company considerably faster.  The charge of truck factoring can assortment from .59% to five%, based on how considerably organization your trucking company generates and the credit high quality of your customers.  It also depends significantly on which factoring company you use as the fees can very by 90% relying on who you make a decision to do organization with.  This helps make the factoring evalutation crucial to obtaining the very best match for the trucking organization.  It often tends to make sense to use the solutions of a factoring broker to come across the very best overall cost and solution for your trucking firm.  The factoring broker can appear at numerous feasible solutions that match best for your transportation organization and typically this does not expense the trucking firm something.

Truck and transport factoring offer a wonderful alternative for the companies that keep our economy transferring forward.  In the transportation business moving freight signifies waiting for your payments.  Invoice factoring indicates getting paid when you total the job and reducing the wait for payments.

Bankers want to get to know your money, not necessarily your business. When it comes to factoring, it pays to operate with individuals who understand the transportation marketplace like the excellent folks at Advance Enterprise Money – a business founded by truckers. Test them out !

A lot more Trucking Factoring Articles

Filed Under: Trucking Factoring Tagged With: , , , , , , ,

Factoring Partner you can trust

February 5, 2011 By

Apex Capital is America’s Favored Factor. When you element with Apex you know specifically what you are acquiring. No bait-n-switch, no nickel-n-dime charges and no volume minimums – check us today.

Filed Under: Trucking Factoring Tagged With: