Know About Truck Factoring CDL Drivers Truck factoring, also known as freight factoring is a popular financing option for the transportation industry. Knowing the ins and outs of truck factoring will help your trucking company thrive. This cash-flow problem-solver gives truckers fast cash to pay for fuel, cover payroll, fund any on-the-road expenses, and gives you the ability to take on more loads.
Rather than waiting months to be paid for loads you’ve already hauled, trucking factoring puts cash in your wallet today.
If you want to start factoring your trucking invoices there are a few major things you need to know.
What Truck Factoring is Exactly and the Process
Truck factoring is a form of invoice factoring designed for those in the trucking industry. It is NOT a loan. It is the process of selling your outstanding freight invoices to a factoring company for a cash advance of up to 98%.
The transportation factoring process is far more simple than traditional financing. Applications for freight factoring typically process with a fast turnaround. After that, you can receive cash for factored freight bills in as little as 24 hours.
To apply for transportation factoring, you’ll need to complete an application and submit the following documentation: 247 truck dispatch
- Operating authority
- Proof of insurance
Truck Factoring Rates and Fees.
There are a few questions to ask yourself when deciding if truck factoring fits your needs. If you own a truck business and you have to wait for shippers and brokers to pay, you’re an excellent candidate for freight factoring. If you can’t haul the next load because you’re waiting for customers to pay you, you’re an excellent candidate for transportation factoring. Bridging the gap between what you’re owed and making money is where invoice factoring comes in. Freight factoring presents the opportunity to grow your trucking business.
Freight factoring is suitable for all types of transportation businesses:
- Owner-Operators
- Small to Mid-Sized Fleets
- Freight Brokers
- Auto Haulers
- Dump Truck Services
- Oilfield Transportation
- Hot Shot Trucking
- OTR & Local Carriers
- Intermodal & Containerized Freight
- Know About Truck Factoring CDL Drivers
Some things to remember about truck factoring while deciding are:
- Bad credit or no credit history is OK. Truck factoring approval relies on your customers’ creditworthiness.
- No need to worry about cash flow patterns slowing you down.
- Initial funding does not dictate your credit line.
- Amount of available cash is unlimited and grows with your business
- Cash is available on the same day.
- Fuel advances & fuel card programs are available for trucking companies & freight brokers.
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