Transportation factoring, or freight factoring, is a quick and reliable way to get instant cash for freight bills. Rather than wait weeks or even months for payment, transportation factoring can advance the cash from your outstanding freight bills within 24 hours.
Truckers often turn to transportation factoring to cover expenses and accept new loads without worrying about having enough cash flow on hand to cover it. Factoring is not a loan, so there is no debt to repay. It’s simply an advance on your freight bills. You’ve hauled the load, why wait for the cash?
Trucking companies of all sizes are eligible for factoring – from one to one-thousand trucks.
How does transportation factoring work?
Here’s how transportation factoring works for trucking companies big and small:
1. Complete Application
First, freight factoring companies need basic financial information about your trucking business and the customers you deal with to assess whether they will be able to factor your invoices.
This is usually a quick process and getting approved is easy. Since transportation factors collect payment directly from your customers, trucking companies with poor credit may still be able to receive freight bill factoring.
2. Submit Freight Bills
Choose and deliver loads. Scan or fax a copy of the invoice, rate sheet and bill of lading to the transportation factoring company.
3. Get Cash
After submitting the freight bills for funding, the freight factoring company will provide cash (typically up to 98%) within 24 hours. Wire transfer, direct deposit, fuel card deposit are some of the quick options for funding.
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