Freight bill factoring enables trucking companies to finance their invoices from shippers and freight brokers. It improves your cash flow and provides the working capital to pay essential expenses like payroll, fuel, and repairs.
Commercial Capital offers competitive rates, high advances, and customised programs for transportation carriers. We have been in the industry for over 20 years and are a leading provider in Canada.
Fill out this form for an instant quote, or call (877) 300 3258 to speak with an expert.
How does it work?
There are two ways to structure a freight factoring transaction. Full advance transactions are typically used by owner-operators and small carriers. These transactions maximise the upfront funds your carrier gets.
Midsized and larger carriers typically use two installment transactions. These have a lower advance and typically have a lower fee. To learn more, read “What is Freight Bill Factoring?”
a) Full advance factoring
A full advance factoring transaction is done in a single instalment. The factoring company finances your freight bill in a single payment that covers 94% -98% of the invoice.
The payment is deposited into your account shortly after the factor processes the invoice. The percentage that was not advanced becomes the factoring company’s fee. The transaction concludes once the shipper or broker pays the invoice on their usual terms.
b) Two-instalment transactions
A two instalment transaction breaks out your payments into two deposits. The first installment, the advance, covers 90% – 95% of the invoice. It is deposited into your account shortly after you submit the invoice to the factoring company.
The remaining 5% – 10%, less the factoring fee, is deposited into your account once the shipper or broker pays the invoice. This payment settles the transaction.
High advances
A high advance is essential to the success of an owner-operator or small carrier. We offer high advances that range from 90% – 98%. The advance is flexible and determined by your company’s size, needs, and overall risk.
Competitive costs
Profit margins for trucking companies can be tight. Consequently, a competitive factoring rate is as important as a high advance. The program’s cost varies based on the volume of your transactions and the credit quality of your shippers and brokers. The factoring fee ranges between 1.5% and 4% per month.
Fill out this form to get an instant quote. Call (877) 300 3258 to speak with an expert.
Works with fuel cards
The freight bill factoring program works with fuel cards. Your factoring advances can be loaded directly onto the fuel cards. This feature gives you greater control over your expenses and how you use your funds.
Clear benefits
The most important advantage of a freight factoring program is that it can improve your cash flow quickly. Predictable cash flow provides a platform for growth.
The program has other advantages. These include the following:
- Fast account setup
- Quick approvals
- Flexible lines that grow
- Simple qualification
- Additional services such as fuel cards
We finance freight brokers as well
Our program can also be used to finance freight brokers. Freight bill factoring provides brokers with funds and allows them to pay carriers and other expenses.
Essential reading
We have a comprehensive learning centre where you can learn about our services. This will help you make an educated decision about using factoring. Popular articles include:
- How to Find High-Paying Freight Loads
- How to Grow a New Trucking Company
- How to Make a Successful Trucking Company
- How to Use a Load Board to Grow Your Trucking Business
- What to do if Your Shippers Don’t Offer Quick-Pays
- Owner-Operator Financing Alternatives
As a leading factoring company, we offer services in provinces across Canada. For specific information, please visit: