Spot Factoring
What is Spot Factoring?
Spot factoring, sometimes called single-invoice factoring, is the practice whereby a trucking company sells one invoice to a factoring company to gain some short-term working capital.
Companies look to spot factoring because when they invoice loads to shippers, they may not be paid for 30, 45, 60, 90 or more days. For small companies, the burden of waiting for payment can make or break them.
By spot factoring, you can factor the invoices you need to factor when cash flow demands it. Bill the rest of the loads on your own and keep your factoring fees at a minimum. Other freight factoring companies require that once you factor one invoice for a customer you must factor all future invoices for that customer. With FactorLoads you can factor what you need to factor and bill the rest. No other freight factoring company offers this level of control with your factoring account.
Spot Factoring for Truckers
In freight bill factoring, FactorLoads is unique in being able to offer a spot factoring service. Our competitors require that once you sign on a customer for factoring, you must factor every bill for that customer which forces you to factor more than you need.
How is it Spot Factoring Done?
The reason other freight factoring companies don't offer spot factoring is that factoring some loads and self-billing other loads for the same customer can be disruptive to the customer’s accounts payable department.
The FactorLoads spot factoring program avoids this disruption. As with all other factoring programs, once you begin factoring invoices from your customer through FactorLoads, all future invoices to that customer must come from us. The same is true for payments; your customer must remit payment through FactorLoads. That makes the accounting processes easier for everyone. However, our billing option gives you the freedom to factor on a load-by-load basis, choosing which loads to factor and which to simply bill through FactorLoads for a low flat rate of $5. In either case – whether the load is factored or billed -- FactorLoads bills your customer, makes collection calls and loads your payment on your Comdata card. The difference is that the payment is loaded on the same day for a factored load and after payment arrives for a billed load.