FactorLoads Billing Options
What Is Spot Factoring?
At FactorLoads we pride ourselves on knowing what matters to carriers and we know that control over your money probably tops the list. As part of the FactorLoads billing options, we have created a true spot factoring option for you. Our spot factoring option lets you choose on an invoice-by-invoice basis what to factor -- depending on your cash flow needs at the moment. This gives you ultimate control over your finances. Spot factoring may be commonplace in some other industries, but until FactorLoads created this option it was non-existent in truck freight factoring. That means all of our competitors require that once you sign on a customer for factoring, you must factor every bill for that customer.
In contrast, FactorLoads wants you to factor only what you need to factor. We know that if we give you the freedom to manage your finances and use us only when you need us that you will always use us for your factoring.
How Does Spot Factoring Work?
Spot factoring in theory is quite simple. However, factoring some loads and self-billing other loads for the same customer can be disruptive to the customer’s accounts payable department. That’s why we have created our own FactorLoads workaround.
Here’s how our spot factoring program works: as long as you want to factor 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. However, FactorLoads billing options give 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 $15. 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.
Carriers should note that when considering the bill-through-FactorLoads option, our special Non-Recourse Factoring protection from bad debt does not apply.