Being a successful auto hauler can be tough when customers take up to 60 days to pay. Upfront costs like fuel and maintenance can really add up, limiting your business. Freight factoring can help quickly connect you with the cash you’ve already earned. Read through the following guide to learn how auto transport factoring can help your business, then fill out this form or give us a call to get started today!
Freight Factoring Auto Transport Invoices Frequently Asked Questions
Auto transporters, also known as car haulers, transport automobiles from one location to another. The hauling is typically done by semi-truck with a specialized trailer.
Freight factoring is the process in which trucking companies sell their outstanding invoices to a freight invoice factoring company for immediate cash. It’s a simple and quick way to improve your auto transport company’s cash flow.
Freight factoring is a great way to maintain a healthy cash flow for your trucking business. With freight bill factoring, you won’t have to wait the typical 30-60 days for payment to keep your business rolling.
The working capital provided by factoring will allow your auto transport company to haul more loads, hire more drivers, pay for maintenance, repairs and have cash available to take on new opportunities. Once approved for factoring, you can also enroll in a fuel card program. Freight invoice factoring can do all this while keeping your business debt free.
The process of auto transport factoring is simple:
1. Tell us about your business by either calling us or filling out an online form.
2. We’ll match you with the factoring company best able to meet your needs.
3. The factoring company will guide you through a quick approval process.
4. Deliver the load to your customer.
5. Submit a copy of the freight bill(s) to the factor.
6. Receive your cash advance within 24 hours.
7. Your client will then pay the freight bill in full to the factoring company directly. Once the payment has been received, the remaining amount will be released to your auto hauling company, minus a small factoring fee.
Freight factoring is quick and simple. Once approved, factored invoices are typically paid within 24 hours.
Typically, there are two ways your rates can be structured: tiered or flat rate.
• An example of a tiered rate would be 1% for the first 10 days, 2% for the next 10, 3% after that, etc.
• An example of a flat rate would be 3% for 60 days.
Which method is right for you depends on how quickly your customer pays. For quick paying customers, a tiered rate might be best. If your customer is typically slow to pay, a flat rate may be your best option.
No, freight factoring is not a loan. Factoring unlocks the money sitting in unpaid invoices, giving you cash while avoiding debt. The approval process is fast, and, unlike a loan, it is based on the credit history of your customer, not your personal credit score.
Yes! Freight factoring eligibility is based on the credit history of your customer, not you. For those with bad credit, factoring your invoices can even help free up cash to pay off debt and improve your credit score.
Freight factoring is much easier to qualify for than a bank loan. The most important factor is the creditworthiness of your customer. Factoring companies do not fund businesses that service customers directly. For auto transporters with commercial or government customers, factoring is a great option to get access to cash quickly.
Yes, independent auto transporters are eligible for freight invoice factoring.
Absolutely! It doesn’t matter how new you are to the industry. As long as you have outstanding invoices, you’re eligible for freight factoring.
No, auto transporters are not locked into long-term contracts with freight factoring. Factoring is flexible and does not require any lasting commitments.
Money is typically sent directly into your account electronically by bank wire or ACH, providing immediate cash. You can even request to have funds sent directly to fuel card accounts for convenience.
To get started, simply fill out our quick online application or give us a call. Our experienced staff will ask a few questions to make sure we match you with the factoring company that best fits your auto transport business. Every auto hauler has different needs, and we understand that. Let Factor Finders help you start factoring today.