Freight Factoring
Freight factoring companies provide same-day cash for freight bills. Trucking factoring services can help you obtain the necessary capital for fuel, insurance, repairs, equipment, and all your on-the-road expenses today. It features low, flat rates without long-term contracts or minimum volumes. Factoring your freight can also help you gain access to fuel advance and fuel discount programs.
Unpaid Invoices? Get Paid Today with Freight Factoring!
Tired of waiting for your freight invoices to be paid? Need money for fuel? Consider freight factoring.
Freight factoring companies provide same-day cash for freight bills. Our freight factoring services can help you obtain the necessary cash for fuel, insurance, repairs, equipment, and all your on-the-road expenses today. With the most competitive factoring rates and no monthly minimums, Factor Finders is a leading invoice factoring service provider to freight companies across the United States.
- Low, Flat Rates from 1%
- Month-to-Month Contracts
- Fuel Advance Programs
- No Minimum Volumes
- Free Discount Fuel Cards
- Free Credit Checks
- Recourse and Non-Recourse Available
Get Started Now
Secure the funds you need today. Complete the form or call.
It’s your money, we just help you get it faster.
Owner-operators shouldn’t have to bypass high paying loads because they’re short on cash. With freight factoring, truckers can haul every load with confidence. If you run a large fleet of trucks or operate a single truck, we’ve got your cash flow needs covered. You can rely on Factor Finders to help secure the funding you need with our fast and competitive freight factoring services. Freight broker factoring is also available.
The Factoring Process
Recourse Vs. Non-Recourse Factoring
Recourse Factoring
Thankfully, there are different types of factoring for the different industries and businesses. Recourse factoring is the standard structure of invoice factoring. With this type of factoring, “recourse” refers to how long a factoring company will leave an invoice open before they require it to be paid. That said, your business will be required to close the invoice if the recourse period ends. Other characteristics of this type of factoring include:
- Lower fees, higher reliability
- Ranges from 1-3%
- Advances can be as high as 95%
Non-Recourse Factoring
On the other hand, non-recourse factoring includes one key difference; the timeframe, or lack thereof, for your invoice to be closed. Because there is no time frame, it is a higher level of risk for the factoring companies. If your customer is unable to pay the invoice amount, the factoring company will not charge it back to your account. So, you’ll have more security but you’ll be paying a premium. Here are some of the other characteristics:
- Higher fees, lower reliability
- Ranges from 3-5%
- Advances can be as high as 100%
Signup & Application Process
Factor Finders knows how busy your freight business can be, and understands how important your time is. The signup and application process for freight factoring is quick and easy. To initiate the application process, all you need to do is fill out the form above, and one of our dedicated sales team members will reach out to start the process.
Grow Your Trucking Company with Freight Factoring
Flexible Trucking Factoring Services
Flexible Trucking Factoring ServicesWhen choosing factoring company for trucking – flexibility is key. Whether you want non-recourse freight factoring, the freedom to choose which clients to factor, or no monthly volume requirements – you can have it all. Factor freight bills when you want and for however long you want. No long-term contracts are required.
How does freight factoring work?
The freight factoring process is pretty simple.
To apply for freight factoring, you’ll need to complete an application and submit the following documentation:
- Operating authority
- Proof of insurance
Once you’ve been approved, you submit copies of the freight bills you wish to factor, then receive cash within 24 hours.
Freight factoring for all types of transportation businesses:
- Owner-Operators
- Small to Mid-Sized Fleets
- Freight Brokers
- Auto Haulers
- Dump Truck Services
- Oilfield Transportation
- Hot Shot Trucking
- OTR & Local Carriers
- Intermodal & Containerized Freight
Pros and Cons of Freight Factoring
Pros
- Improved Cash Flow: Freight factoring gives you the ability to receive instant payments. This will increase your cash flow and allow you to make pay bills, make payroll, fill up your tank, and be able to move onto your next job quicker.
- Faster Payment: The worst part about doing a job is waiting to get paid. In the trucking industry, some companies can take 30, 60, even 90 days to pay you. If you have a customer who consistently pays late, factoring can fix that problem.
- No Debt: Unlike a traditional bank loan, factoring does not add any unwanted debt.
- Bad Credit? No Credit? No Problem?: Also contrary to a bank loan, factoring approval is based on the credit rating of your customer. Not you or your business
Cons
- Cost: Depending on your industry, the type of factoring, and your customers credit history, factoring fees can vary.
- Customer Relations: Since you are selling your invoice to a factor, your customer will now be required to pay that factoring company, not you. This may cause confusion with some customers and cause a rift in your relationship. They also may be opposed to paying a factor because their payment information is now being shared with someone other than you.
Eligibility Requirements: Sometimes your customer’s credit won’t be good enough for the factoring company to approve you. The factoring company may also have a minimum invoice amount to work with your business. With that, you might have to do some shopping around with different factors.
Reduced Profit: When you sell your invoices to a factoring company, you won’t be getting the same amount you would if you waited for that customer to pay. Yes, the factoring company will give a large percent of the invoice but, not 100%.
Additional freight factoring benefits include…
Fuel advances up to 50% are available for trucking companies. Factoring companies will provide between 40 – 50% of the freight bill amount upon pick up of the load. This means you’ll always have money to cover any upfront costs.
When you start working with a freight factoring company, you’ll be eligible to enroll in a free discount fuel card program. Fuel cards offer big discounts on fuel at all major truck stops in the U.S. and Canada.
Truck Factoring Rates – What Should Carriers Expect?
Flat fee factoring is popular with carriers. With this program, truckers pay a one-time fee (for example, 3%) and receive a full advance of the remaining amount (97%). No reserve is held. It doesn’t matter if your customers pay in 25 days or in 60 days. You’ll always know what you’re paying.
Factoring rates are based on various factors, including your monthly billing volume and type of program (recourse or non-recourse) and fee structure (flat or variable). When it comes to volume, a company with 10 trucks billing $100,000 per week will likely pay a lower fee than a company with 1 truck billing $3,000 per week. Most factoring companies for trucking offer volume discounts, so your rates will come down as you grow.
Find a Factoring Broker
Secure the funds you need today by connecting with a factoring broker.
Fill out the form below or give us a call at (216) 282-9732 and we’ll reach out to you within 10 seconds.