Are you looking for a factoring company just now? Or, are you unhappy with your current factoring service for trucking and want to switch to a better one?
Whatever the case, you’ll want to work with one of the most reliable freight factoring companies that can help grow your trucking business. You should choose the one with years of experience as a transportation specialist and who knows the ins and outs of the industry. Aside from those two details, you must also check if they offer additional services such as fuel card programs, free credit checks, and insurance assistance, to name a few.
It seems overwhelming at first, but we’re here to help. We’ve put together this guide to help you choose the best factoring service for trucking that can help you get a reliable cash flow to grow your business.
Factoring Service Can Help Your Trucking Business
If you’re still unfamiliar with factoring service, then you might be wondering how it can help your freight business.
What is a factoring company? Factoring companies offer a type of accounts receivable financing called invoice factoring that can help turn your outstanding invoices due within 90 days to a reliable cash flow that your small business can use immediately.
These factoring companies aid small businesses like your trucking company to close the gaps between invoice payments by providing upfront payments of up to 90% of the original invoice.
Simply put, it’s a way to get paid immediately for freight invoices that haven’t been paid by your customers yet. The factoring financing will provide instant cash at a discount for your invoices, reducing the amount of time from weeks or months to days, or even a day.
Choose the Industry Experts
There are various transportation factoring companies you can accept that offer freight bill factoring. However, you must choose the one with great expertise in the transportation industry and not just one who claims to be a transportation specialist.
One way of finding out is by researching the company. You can check testimonials and recommendations from other freight companies in the industry.
Another way is to cross-examine them directly. You’ll be able to analyze it yourself if they are familiar with the terminology used in trucking or if they are knowledgeable with paperwork requirements in delivering a load.
The company you’ll want to provide your factoring service for trucking must know the twists and turns of the transportation industry.
Go With the Experienced Company
Going with an inexperienced factoring company can end you up with more problems rather than a fluid partnership. To prevent the move from becoming a grave liability, you should choose a company that has been around for a while, at least five years, in the industry.
Additional Services Are a Must
This point is critical in your selection process and will help you make a wise decision. While it’s crucial for a factoring company to be experienced and have extensive expertise in the trucking industry, you can’t just go with them right away.
Offering the best rates is important, as well as the additional services provided. They should include a fuel card program, fuel advances, complimentary credit checks, and professional collections services. You can also check if they provide free load board access and if you’ll be able to access your account online.
If you’re a new trucking company, you can also inquire if they offer insurance assistance. These additional services, while they might seem insignificant at first, will go a long way in helping you grow your business.
Don’t Be Afraid To Ask Questions
Without a doubt, this is a crucial step you’ll have to do before choosing a factoring service for trucking. If you’re unsure which questions to ask, start with the following:
- Do you have a quick approval process?
- Can you provide the cash in as little as 24 hours?
- Do you offer both recourse and non-recourse factoring?
- What are the additional services you offer?
- Do you have flexible contract terms?
- Is there a minimum volume requirement for your factoring?
Grow Your Business With the Best Factoring Company
When you consider the key points we’ve enumerated, selecting a freight invoice factoring company will be a breeze. Now that you know how outstanding an invoice funding company should be, make a wise decision and choose the factor that can help grow your business.