Getting into a freight factoring agreement is a critical decision: it can spell the difference between success and failure. Unfortunately, getting the truth about freight factoring can be difficult for trucking companies and freight brokers if you just read advertisements and take a factor’s word as gospel.
Short-term contracts? That’s a long shot.
Most factors advertise seemingly short contracts. Actually, some factors do offer true short-term contracts – but most don’t.
Many factoring companies offer short-term contracts for the first 30 or 90 days, as a “hook.” After that, they automatically switch you to a long-term contract. As a result, you can get stuck with a factoring company that has long outlived its usefulness.
Super low rates? Only if your clients pay soon
One of the most common advertising tactics is to show extremely low factoring rates. What they fail to tell you is how those rates work. Very low rates are often valid for a week or so, sort of like a “teaser” rate. The rates go up if your client takes longer to pay.
The truth is that most shippers pay in 30, 45, or even 60 days. That’s why we quote 30-day rates that can prorate to accommodate faster and slower payments. We don’t try to disguise your cost. We are upfront.
Same-day funding? Sure, but not today.
Same-day funding is another common promise. Most factors won’t say this out loud, but when they say “same-day funding” they often mean that they may finance your freight bills the same day they get them AFTER your account has been set up. And how long does it take to set up an account? It varies, but it can take a few days. But you will not see that in their ads.
Don’t take our word for it. Call a factor that promises same-day funding for your trucking company and tell them that you need to get funded today. If they can’t deliver – today – hang up.
They fund on copies? Maybe…
Most freight factoring companies that fund on copies often require that you send the originals promptly. If you don’t, you risk penalties because the factor won’t be able to start the collections process. This practice is a source of “fee revenue” for many companies. And if this mistake happens too often, the factor may move your account to “originals only.” Sadly, this happens often.
The end result: you pay fees and penalties and still end up with an “originals-only” program.
Again, don’t take our word for this. Call and ask them for references and insist that they only provide references that have been sending copies for more than one year.
No gimmicks. Get the facts. Decide intelligently.
We don’t want to use a gimmick to turn you into a customer. That’s not how we work. We prefer to give you the facts so that you can decide intelligently and work with someone that is upfront about things.
What we offer
- Low rates: As low as 1.15% per 30 days for qualifying clients. And yes, our rates can be prorated
- 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
- Copies: Sometimes, we can even fund on copies
Take us for a test drive
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