Freight Financing from FactorLoads
Why Freight Financing
Skyrocketing insurance costs, constantly fluctuating fuel prices and a poor economy are wallet-busting issues for independent drivers and small- and mid-sized trucking companies. Waiting for 30 or 60 days or more for customers to pay exacerbates the issue of poor cash flow. Spending time re-billing and dunning slow-to-pay or deadbeat customers takes away from time with family, friends and more productive business uses of your time. By working with us you won't have to deal with these issues any longer.
What Is Freight Financing?
In these tough times, freight financing – or factoring -- may be a viable means for staying afloat. Simply put, factoring is the process whereby a trucking company “sells” their invoices to a company that pays them immediately then takes over the collection process for a nominal percentage of the invoice.
Freight Financing Benefits
Working with a reputable freight financing factoring company has significant benefits: you get paid very quickly and in some cases are freed from worry about when or even if your customer will pay. Moreover, by removing the invoicing and collection process, truckers are freed to go out and increase their business.
Freight Financing Costs
In most cases, you can expect to pay between 1.9% and 5% of the invoice amount to the factoring company for any given load. While it may sound like a lot, most agree the benefits outweigh the costs. On a load that pays $1000, for instance, the carrier would likely forego less than $50 of his or her pay, and will be paid within minutes of delivery.
Things to Look for in a Factoring Company
Since the greatest benefit to working with a factoring company is its ability to pay for the work immediately, be certain your factoring company explains how and when they pay. For instance, FactorLoads loads your pay onto your Comdata card on the day we receive the invoice.
It’s also important to know who you are working with. Unlike its competitors, FactorLoads has a breadth of experience in the trucking industry. Our company was founded by trucking industry professionals who saw the need for startups and small trucking companies to get factoring. Because we factor only for the companies involved in trucking, we understand the needs of companies like yours and have created factoring programs designed with you in mind.