Managing the cash flow of a trucking company is always challenging for its owners. Shippers and brokers usually take 30 to 60 days to pay their invoices. However, most owner-operators and small trucking companies need the funds sooner to pay for business expenses. This situation creates a cash flow problem.
Freight bill factoring solves this cash flow problem quickly and effectively. We finance slow-paying freight bills and deposit funds into your account quickly. This funding provides you with the liquidity to pay expenses and grow the business. We finance carriers and brokers in the US and in Canada.
Note: Carriers that invoice at least $300,000/month should also consider sales ledger financing, a customized receivables financing program designed for larger carriers.
1. How does freight factoring work?
Our factoring plans are simple to use and can be set up quickly. Once a plan is in place, it provides you with predictable cash flow so you can focus on delivering loads and servicing shippers. Here is how our programs work:
- You deliver the freight load to your customer
- You send an invoice to your customer (with a copy to us)
- We deposit the advance in your bank account
- The transaction settles once your client pays
Need more information? Read “How Does Freight Bill Factoring Work?”
2. Advances up to 95%
Cash flow is essential to the operation of your trucking company, which is why carriers often ask for the highest advance rate. We can provide advances as high as 95%, and we can offer higher rates in some cases.
3. Rates as low as 1.15%
A high advance is only part of the solution. To be successful in the trucking industry, you need to watch your costs as well. Our plans are simple and have low rates that are easy to understand.
We can offer rates as low as 1.15% per month. Rates can be prorated and are based on the size of your trucking company. Want to know your rate? Fill out this form.
4. Short-term contracts
We understand that you don’t want to be tied to a freight factoring company for longer than necessary. We can structure short-term contracts designed to meet your needs. Work with us only for as long as we are helping you grow your trucking company. Note that some exceptions apply to companies with complicated financial/tax situations.
5. Ask us for references!
The only way to see if a factoring company is reliable is to ask their clients directly. This is why we suggest you speak to our clients before becoming a client yourself. We are happy to provide you with references so that you can hear what our clients say about us. To learn more about references, ask one of our representatives.
6. Take our plan for a test drive
We want the chance to earn your trust and, hopefully, your business. This is why you have the option to test-drive our plans to see if we are a good fit for you. This way, you can choose to stay on only if we are a good option for you. Ask your representative for details about the test drive option and how it works.
Want to test-drive a plan? Fill out this form to get a quote in seconds.
7. Optional fuel advances for small carriers
Do you have a load that you are ready to deliver but need funds to get your trucks moving? Our program provides fuel advances to select carriers. A fuel advance provides you with funds once you have a rate confirmation sheet, so you can fuel your trucks and deliver more loads.
8. Works with fuel cards
Our program integrates 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.
9. Benefits of freight bill factoring
A good factoring plan provides several benefits and helps companies that need to improve their cash flow. Here are some of the most important benefits:
- Improves your cash flow quickly
- Provides predictable funds
- Provides fuel advances
- Allows you to offer net-30 terms with ease
- Easy and fast qualification process
- Available to new and growing carriers
- Short-term contracts
- Less bad debt with our credit checks
- Fuel cards
10. Select the right factoring company
Working with a factoring company is an important business decision. Make this decision carefully to ensure the factor you choose is a good fit for your company. Here are some of the questions you can ask the freight factoring companies you interview:
- Do you specialize in transportation?
- How quickly can you set up an account?
- How quickly can I get my first funding?
- How quickly do you approve shipper credits?
- Do you provide fuel advances?
- Do you provide a trial (or test drive) period?
- How long have you been in business?
For more information and strategies about choosing a factor, read “How to Select the Best Freight Factoring Company.”
Need a factoring quote?
We can provide high advances at low rates to truckers and freight brokers. For an online quote, fill out this form. You can also call us toll-free at (877) 300 3258.
What we offer:
- Low rates: As low as 1.15% per 30 days for qualifying clients. Our rates can be prorated
- High advances: As high as 95%
- Fuel advances: Competitive fuel advances to get you started
- 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
Want to learn more?
Are you looking for a freight bill factoring company? We believe in giving you as much information as you need to make an informed decision. We have a resource center where you can learn everything about financing freight bills. Useful articles include:
- Owner-Operator Financing Options
- How Does Fuel Advance Factoring Work?
- How to Get High-Paying Freight Loads
- How to Find Truck loads
- How to Make a Successful Trucking Company
- How to Grow Your Trucking Business
- How to Calculate your Cost Per Mile
- How to Set your Company Rate Per Mile
- How to Lower your Diesel Costs
- Trucking Insurance Basics (owner-operators and small fleets)