Do you have an auto transport company that is in need of immediate funding to accept a new haul?
Freight bill factoring might be the right route for you (no pun intended). 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. A freight factoring company can provide your auto transportation business with immediate cash for your freight bills.
Once your car hauling business is approved for freight factoring, the process is as follows:
- Deliver the load to your customers.
- Once the shipment is received by your client, you will fax the auto transport bill to the factoring company.
- Within a 24-hour period, the factoring company will advance you up to 95%, the rest will be held in reserve.
- 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.
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Fuel Advances & Fuel Cards
Fuel advances are a special type of advanced funding that truckers can use to their advantage. A fuel advance is when a driver picks up a load and shoots over a verification document to the factoring company that shows that the load was picked up.
The factoring company will advance your auto transport company a portion of the invoice at this time. These funds can be used on fuel to get your haul to its destination. Once your haul makes it to the destination, the remaining amount of the freight bill will be advanced to minus a fee.
Fuel cards can be useful for companies that have multiple drivers. They are similar to debit cards that are given to drivers for fuel. Instead of the advancement from the factoring company going directly into a bank account, it is dispersed onto special cards for truckers that they can use for fuel on their routes.
Factoring Rates for Car Haulers
There are a couple of ways that your rates can be set up: tiered or flat rate.
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.
Depending on the pay patterns of your customers, either of these rate styles might be a good fit for you. If your clients pay fairy quickly a tiered rate might be best. If your customers don’t pay in a timely matter or might be sporadic, a flat rate might be the better choice.
*No two freight businesses are factored the same. Each business gets a specialized rate for their business based on certain variables*
What risks should I be aware of in the car hauling business?
In the world of car hauling, it is crucial to be aware of the risks that come along with the potential for good earnings. One significant risk is the delayed or non-immediate payment. However, there is a solution to the cash flow headache – Apex freight factoring. This service can help ease the burden of under payment, which is unfortunately quite common in the auto hauling industry. Instances such as vehicle damage during transportation or last-minute changes in the number of cars to be hauled often lead to under payment.
Moreover, it is important to note that car hauling inherently involves higher risks compared to other types of freight transportation. Due to the nature of this business, paying close attention to factors like weather conditions, driving conditions, and precise routes is of paramount importance. These elements directly contribute to the potential for damage to the vehicles being transported. Therefore, it is crucial to carefully assess and verify the credibility of the parties involved to minimize risks. Apex Capital further provides an added layer of reassurance by offering credit checks on freight brokers.
In summary, aspiring car haulers should be aware of the risks associated with delayed payments, under payment due to damage or changes in contracted hauls, and the higher level of risk involved in this particular line of work. Taking precautions and using services like Apex freight factoring and credit checks can help mitigate these risks, ensuring smoother operations and peace of mind in the car hauling business.
What are some different trailer configurations and their pros and cons?
There are several different trailer configurations that offer unique advantages and disadvantages. One common configuration is the hi mount trailer, which consists of two trailers. While this setup offers versatility, allowing for different load configurations, it may not be ideal for all workloads. A drawback of the hi mount trailer is that it lacks weight on the steering in bad weather conditions, leading to potential handling issues. Additionally, the back end of the trailer can become heavy quite quickly, which can affect stability.
Another aspect to consider is the overhang of the trailer. In some jurisdictions, such as Washington, overhang is not allowed. This restriction poses a challenge for certain trailer configurations that have an overhang, as they may not be permitted to operate within those areas.
It is important to note that regulations regarding trailer configurations can vary among different jurisdictions. While some configuration setups may be suitable for certain workloads in one region, they may not be allowed or may present challenges in another. Ultimately, it is crucial to carefully consider the unique pros and cons of each trailer configuration based on the specific requirements and regulations of the jurisdiction where they will be used.
What challenges can arise when hauling used cars?
Hauling used cars can present a variety of challenges that require careful consideration and expertise. One of the main difficulties is dealing with the diverse configurations of vehicles, particularly SUVs and pickups, many of which have lifted suspensions, making them taller than usual. This poses a challenge when it comes to loading them onto trailers, as the optimum fit needs to be determined. Experienced haulers, with their knowledge and intuition, can sometimes anticipate the specific requirements of a vehicle based on a customer’s list. However, trial and error is often necessary, even for seasoned professionals. Forgetting to inquire about factors such as lifted suspensions, dual rear wheels, or whether the vehicle is in working condition can lead to issues later on.
The nature of the vehicles being transported can also affect the rates charged by haulers. For instance, an eight-car high-mount trailer can accommodate eight sedans or smaller cars, but only five pickups. In such cases, the per-car rate would need to be adjusted accordingly. Additionally, if a car is non-operational or its working condition is unknown, it cannot be loaded, resulting in an empty spot on the truck. This loss of revenue affects both the hauler and the driver. In such instances, efforts may be made to find a nearby car to pick up and fill the vacant spot.
Another challenge when hauling used cars is encountering unfamiliar vehicle configurations. Even for experienced owner-operators, there will always be loads that present new and unique challenges. For example, not having specific details about the vehicles at the pickup location, known as blind dispatching, can make it difficult to determine if something will fit until the actual loading process begins.
Knowing the specific characteristics of each vehicle is crucial to successfully hauling used cars. This includes understanding its dimensions, weight, and any special features such as oversized tires or accessories. Failing to account for these factors can lead to setbacks and delays during the loading and transportation process. Thus, hauling used cars requires a keen eye, problem-solving abilities, and strong attention to detail to navigate the mental game that comes with the job.
How to Start Factoring Auto Haul Bills:
We can get you set up with the right factoring company that specializes in working with auto transport. Give us a call or fill out a form and let us know what you are looking for. We are your trucking concierge for factoring and will get your partnered with the right company that understands your needs.
You let us know what you are looking for in a freight factoring company we will match you with the perfect one from our nationwide network. 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. We are experts in the factoring industry and know that every trucking company has different needs.
We have trusted relationships with several factoring companies that specialize in factoring for auto transporters. These relationships allow us to get your business the lowest rates in the industry. You are the boss in this operation! We just make sure you get in touch with the right fit.
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Freight Factoring for Auto Transport and Car Haulers FAQ
Being an auto hauler can be tough if your customers aren’t paying you for up to 60 days. Freight factoring companies can provide immediate cash for auto haulers by advancing funds based on their invoices. Auto hauling has quite a few upfront costs – you haul the vehicles and pay the gas and other expenses…
