Trucking Factoring Companies
Factoring For Trucking Companies
Truckers are an essential force to keep the US infrastructure and economy going. Whether you’re an owner operator or a small to mid sized fleet your work is seen in everyday life. As a result, freight factoring companies make up the largest portion of the factoring industry. They have a highly specialized understanding of the trucking world and are there to keep your business moving forward. To keep your fleet going fuel, repairs, vehicle leases, and other expenses are a weekly concern when freight is constantly on the move. Trucking factoring companies are there to help you support those cash flow needs and offer many other benefits listed below.
Freight companies benefit greatly by using a trucking factoring company. By getting your cash instantly instead of waiting 30, 60, or even 90 days for payment you can continue to operate your day to day without worrying about when your shipping customers are going to pay. Additionally, a trucking factoring company can offer even more benefits such as fuel cards, fuel advances, payroll services, and roadside assistance services. Their knowledge of the industry will also help when it comes to dealing with freight brokers, invoice creation, and back office support. Some even have a direct relationship with freight brokers and can offer priority loads.
Freight Factoring Rates and Terms
Freight factoring companies offer some of the industries most competitive rates. Rates as low as 1% for larger fleets are not uncommon. Owner operators and smaller fleets can expect a rate between 2-3%. Advance rates as high as 95% and even 99% for large fleets are not uncommon. Smaller fleets and owner operators can still 85%, 90%, and even 95% advance rates. Some factors will offer a flat rate with no reserve held and no criteria for payment terms. You could be paid in 30 or 60 days and the rate would be the same. This may or may not be favorable over a traditional factoring rate so make sure to compare based on your payment terms.
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Benefits of Invoice Factoring For Truckers
Factoring is a readily available solution to your cash flow crunch. Whether you’re waiting 30, 60, or even 90 days to get paid there is a freight factoring company for you. Check out some of these other benefits from the factoring companies we work with: