Factoring for Refrigerated Trucks
Trucking companies that need fast funding for their refrigerated loads use factoring to boost their cash flow. Refrigerated truck factoring allows carriers to receive a cash advance on their unpaid invoices with no long term contracts. The application process is quick and easy and truckers can expect their cash advance within hours of approval.
Reefer trucking, a vital yet cash-intensive sector, faces unique financial challenges – from maintaining the fleet to managing fluctuating fuel costs and navigating seasonal demands. One tool that’s revolutionizing cash flow management for reefer truckers is invoice factoring. This innovative financial solution not only ensures a steady flow of cash but also helps you focus more on what you do best – delivering temperature-sensitive goods efficiently and reliably. Here, we’ll explore how invoice factoring can be a game changer for reefer trucking companies, providing them the financial agility needed to thrive in a competitive and dynamic industry.
On top of all these costs, slow-paying customers can put a major dent into your working capital. With strong cash flow, some of these headaches can be avoided. A truck factoring company provides you with the upfront cash you need to pay employees, perform maintenance on your reefer trucks, pay for fuel, and anything else. Truckers can use the extra cash from factoring however they please.
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Advantages of Factoring for Reefer Loads
Improve your trucking business’s cash flow with refrigerated truck factoring. Besides helping your business grow, factoring has many benefits. Once you deliver your reefer load and send the factoring company your invoice, you will be sent a cash advance. You can use the money however you’d like! Some more benefits include:
- Flexibility
- No long term contracts
- No minimums
- Same day funding
- No hidden fees
- No application fees
- Fuel advances
- Fuel cards
- Recourse and non recourse factoring
Factoring for Refrigerated Trucks
Once your reefer trucking business is approved for factoring, the process is quick, easy and hassle-free!
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Deliver the load to your customers as usual. The factoring company will check to ensure the product has been received.
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Once the reefer shipment is received by your client, you’ll send the invoices you wish to factor to the factoring company.
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Within hours, the factoring company will advance you up to 97% of the invoice amount. The rest will be held in a reserve account.
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Your client will pay the freight bill in full directly to the factoring company. Once the payment has been received, the remaining amount will be released to you minus a small factoring fee.
How can reefer drivers identify temperature requirements for their loads?
In order to successfully identify temperature requirements for their loads, reefer drivers can utilize the following guidelines:
1. Obtain advance information: Prior to embarking on a journey, it is crucial for reefer drivers to gather accurate information regarding the temperature requirements for their specific load. This includes understanding whether the cargo needs to be refrigerated, frozen, or heated, as well as determining the acceptable temperature range.
2. Pre-program the refrigeration unit: Reefer drivers should take the initiative to program their refrigeration units with the appropriate temperature settings based on the specific requirements of the load. By doing so ahead of time, they can ensure that the cargo remains within the specified temperature range throughout the entire duration of transportation.
3. Consider perishability: It is essential for reefer drivers to evaluate whether the cargo is perishable. Different perishable goods may have varying time constraints in terms of their expiry dates, and it is important to ascertain if the receiver of the cargo has any specific requirements regarding freshness or shelf life.
4. Review lading instructions: Reefer drivers should thoroughly review the lading instructions provided to them. These instructions typically contain important details about the temperature requirements, time restrictions, and any additional guidelines or specifications that need to be followed for successful delivery. It is crucial to be familiar with these instructions in order to avoid any discrepancies or issues upon arrival.
5. Conduct cargo inspection: Prior to departure, reefer drivers should thoroughly inspect the cargo to ensure that it meets the temperature requirements set by the receiver. This step is necessary to guarantee that the delivery will be accepted without any complications or rejections.
What are the three main categories of temperature controlled freight?
The three main categories of temperature controlled freight are frozen, refrigerated, and maintained (heated). Each category serves a specific purpose in ensuring the safe transportation of perishable goods. Frozen freight refers to items that are kept at extremely low temperatures to maintain their frozen state, preventing any spoilage or degradation. Refrigerated freight, on the other hand, involves goods that are stored in controlled environments with slightly higher temperatures, typically above freezing, to extend their shelf life without freezing them completely. Lastly, there is maintained or heated freight, which pertains to items requiring a consistent temperature above room temperature to prevent any damage or spoilage due to cold conditions. These three categories play a crucial role in maintaining the quality and integrity of temperature sensitive products during transportation.
How much does a reefer truck cost?
Reefer trucks come with varying price tags, typically ranging from $30,000 to $200,000. The cost is influenced by factors such as the size of the truck and the features it offers. Additionally, it’s essential to consider the expenses associated with maintaining the refrigeration unit as part of the overall ownership cost.
How much does it cost to run a reefer trailer?
The cost of running a reefer trailer can vary significantly depending on various factors. These factors include the specific size and type of the reefer trailer, the distance it needs to be driven, and the current fuel prices in the area. Due to these variables, there is no definitive answer to how much it will cost.
However, it is worth noting that modern reefer units generally consume between half a gallon to a gallon of reefer fuel per hour of engine runtime. Based on current diesel fuel prices, the estimated annual cost for running a reefer trailer can range from $5,000 to $10,000. It is important to keep in mind that this is just an approximate calculation and actual costs may differ depending on the specific circumstances and market conditions.
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