Being an auto hauler can be tough if your customers aren’t paying you for up to 60 days. Auto hauling has quite a few upfront costs – you haul the vehicles and pay the gas and other expenses well before you get paid.
Freight Factoring Auto Haul Bills FAQ
A freight factoring company can provide your auto transportation business with immediate cash for your freight bills. The trucking industry and factoring is not a new concept. If you have questions about freight factoring for auto-haulers, you can find your answers here. Can’t find your question and answer? Give us a call and we can help.
What does an auto hauler do?
What is freight factoring?
What is the process of freight factoring for auto haulers?
1. Deliver the load to your customers.
2. Once the shipment is received by your client, you will fax the auto transport bill to the factoring company.
3. Within a 24-hour period, the factoring company will advance you up to 95%, the rest will be held in reserve.
4. 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 factoring fee.
How does freight factoring benefit auto haulers?
Freight factoring is beneficial for an auto transport company because it gives you immediate cash to keep your business going. Use the working capital to take out more auto loads, pay employees, pay for fuel, repairs and any other expenses.
It’s fast and easy approval, no hidden costs and no long-term contracts. Freight factoring for auto haulers also provides fuel advances and fuel cards, free credit checks, load board access, and other administrative services to your auto transport company free of charge.
Does my credit history matter?
How does an auto hauler qualify for freight factoring services?
Is freight factoring a loan?
What if I’m an independent auto hauler?
What if I’m a new auto hauler?
Am I locked into a long-term contract with freight factoring?
What are factoring rates for auto haulers?
· Tiered rates could be 1% for the first 10 days, 2% for the next 10 days, 3% for the following 10 days, 4% for the next, etc.
· Flat rates could be 3% for 60 days.
Either option could work for you. If your clients pay fairy quickly a tiered rate might be best. If your customers don’t pay on time or irregularly, a flat rate fee might be the better choice.
How long does it take for an auto hauler to get paid with freight factoring?
How do I get paid?
How do I start factoring my auto transport bills?
Simply call us now or fill out an online form for a free quote. Once we determine a factoring company that is best suited for your needs, we will make an introduction either right then on the phone or through e-mail.
This hands-free concept is great for busy auto haulers that want the best rates but don’t know the time to do the heavy online research. Every auto-hauler has different needs and we understand that. Allow us to do the hard part for you.
Learn more about auto transport.