Freight Factoring

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Factoring for Trucking Companies.

Haul and deliver the load. Get paid right away. Freight factoring for trucking companies ensures carriers are paid immediately for loads delivered. It doesn’t matter if your shipper or broker pays on 30+day terms, your trucking company receives the cash in 24 hours or less.

What is Freight Factoring?

Freight factoring is an easy way to boost your cash flow by selling your invoices to a factoring company for an instant advance. Once you’ve delivered your load, a factoring company purchases your invoices and advances your company the cash on the same day.

Funds can be received via direct deposit or placed right onto your fuel card if you prefer. Advances range between 95%-98% of the invoice amount.

Freight Factoring for Trucking Companies of Any Type

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How it Works

– 1 –

Haul and deliver a load

– 2 –

Submit freight bill copy to factor

– 3 –

Receive your cash advance within 24 hours


Why Work With a Freight Factoring Company?

It’s Flexible – No long-term contracts and no minimum volumes are required for transportation factoring. Use truck factoring for a short-term funding option, or for the long haul.

It’s Fast – Approval decisions are made in 24 hours or less.

It’s Easy – Submit a copy of the freight invoice and proof of delivery to the factor. You’ll have the funds on the same day.

We Know Your Customers

Factor your freight invoices using EZ Freight Factoring for fast approval, no hidden fees, no long-term contracts, and funding within 24 hours or less! Less waiting on payment means you’ll get the funds to cover your expenses faster.

Our freight bill factoring solutions will get you the cash you need, without any hassle. EZ Freight Factoring has years of experience working in trucking factoring, and we are very familiar with the invoice requirements you need.

How Do I Qualify for Truck Factoring?

Have customers with good credit

While your own company’s credit may not need to be exceptional, your customers’ creditworthiness is crucial. Factoring companies expect your customers to have a solid track record of paying bills on time since they will be paying the factor directly.

Have unpaid invoices

In order to be qualified for truck factoring, your company needs to have unpaid invoices. The number or age of the invoices is not as important as their existence within a reasonable time frame. As long as you have outstanding invoices, regardless of the quantity, you meet the basic criteria.

Have a clean background

Whether you’re a trucking business owner or owner-operator, you need to have a clean background in order to qualify for truck factoring. Whether you are a trucking business owner or an owner-operator, a clean background without any criminal records or past tax issues is typically preferred by factoring companies. This is seen as a positive signal of your credibility and reliability.

Have either commercial or government clients

As long as you serve either other business or government entities, you qualify for truck factoring. Factoring companies typically do not fund businesses that provide services directly to individual customers. Serving other businesses or government entities demonstrates a level of stability and professionalism that factoring companies value.

How long has freight factoring been around?

Freight factoring has a longstanding history, contrary to the misconception that it is a recent phenomenon or a predatory industry. Its existence spans a considerable period, positioning it as a proven financial solution for truck drivers and freight company owners. This traditional practice has been utilized by numerous small trucking companies to obtain the necessary working capital. The continued growth and popularity of factoring can be attributed to various factors, including the current global economic conditions and the rising expenses associated with freight transportation. In essence, freight factoring has proven to be an effective and reliable financial tool over the years, solidifying its position as a valuable resource within the trucking industry.

Perks of Factoring for Owner-Operators

Lots of owner-operators use factoring to meet their short-term or long-term cash flow needs. Factoring companies offer truckers more than just funding.  Here are just some of the perks included when you use factoring for your trucking business:

Free fuel card programs – EFS and Comdata fuel cards provide truckers with discounted fuel options at all major truck stops and refueling stations across the US and Canada. Manage driver spending and reload cards at any time to control your fuel costs. Once you’re approved for factoring, you’ll be able to enroll right away.

Access to online load boards – maximize profits by finding the best loads to haul. More sales = greater factoring potential.

Free credit check services – you can run free credit checks on your potential customers so you can haul with confidence.

Fuel advances upon load pickup – receive up to a 50% advance on your freight bill when you pick up a load to cover fuel costs and other expenses for the haul.

Same day funding – when you submit your invoice, you’ll have the funds within 24 hours. Less waiting means you can cover your expenses faster.

No minimums – trucking factors offer competitive rates to fund even the smallest freight bills.

No setup fees – start today, free of charge.

No long-term contracts – factoring for trucking is flexible and does not require any lasting commitments.

Non-recourse factoring   – let the factor assume the risk of non-payment with non-recourse factoring. Even if customers fail to pay their freight bills, the factoring company will take the loss. Learn more about the differences between recourse and non-recourse factoring.

Easy submission options –Invoices can be funded on copies sent by email or fax.

Five Reasons Smart Truckers Choose Factoring:

Slow Paying Customers

If you’re waiting to get paid for loads that have already been hauled, your trucking business could be missing out on new opportunities to make money.

Seasonal Fluctuations

Every business experiences highs and lows. It can be difficult for small businesses to deal with a downturn in profits without cutting spending and releasing staff. Luckily, trucking businesses can counteract a lapse in earnings by factoring freight bills.

Competition

Start-ups and small businesses are always looking for ways to compete with their larger rivals. But, initial success is rare and businesses often lose a lot of money before they make it back. Small trucking businesses get the funding they need when factoring freight bills. Transportation factors provide cash immediately so trucking companies can invest their funds forward and compete against bigger businesses

Bad Credit

Trucking businesses and owner-operators with bad credit may still be eligible for invoice factoring because factoring companies collect payment directly from your customers. Truck factoring companies are only concerned with the credit of your customers so you don’t have to worry about your personal or business financial history.

No Debt

Banks loans can take months to get approved and charge high-interest rates, leaving small businesses in debt and despair. Fortunately, unlike a bank loan, trucking factoring provides businesses and owner-operators money without putting them in debt later. Get funding that is fast, reliable, and all yours by factoring for your trucking company.

Turn Freight Bills Into Same Day Cash!

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