More than 1.3 million U.S. trucking companies keep our freight rolling and our economy moving. Behind the scenes, hundreds of factoring companies help those businesses and thousands of freight brokers speed up their cash flow and keep their trucks on the road. Whether these trucking businesses are long-established freight operations or small startups, invoice factoring is the tried-and-true cash flow solution for the transportation industry.
Here’s a quick guide to how factoring your freight bills and invoices works:
- Select the right factoring partner. Look for a company that specializes in freight bill funding for motor carriers and freight brokers.
- Submit your application and paperwork. For instance, trucking companies send in the typical financials required in a broker’s packet.
- Receive approval within a day or two. Factoring firms look at your customers’ credit histories, not your credit scores or collateral.
- “Meet” your account manager by phone. A top-tier factoring company will assign a dedicated expert to get you paid fast.
- Scan and send your invoice/documents. When your manager receives invoices, bills of lading, etc., your funds are released.
- Receive advances on your invoices. You decide the method: direct deposit, wire transfer, ComChek, etc. Brokers decide when and how much the factoring company should pay carriers.
The process all starts with that first step: finding the right factoring partner for your company. When you’re ready to get paid upfront for your loads, rather than wait 30 to 90 days for customers to pay, download Your Guide to Freight Bill Factoring for motor carriers or Factoring for Freight Brokers to learn more. These guides will guide you through the process as you select the factoring company with low factoring rates and high advances that will offer you the best customer service and best benefits.
One special benefit to look for: a free load board to help motor carriers find loads and freight brokers find carriers. Sign up now at FreeFreightSearch.com, the world’s largest FREE load board. It just takes a moment and the site will never ask for your credit card number – this freight matching service is completely free.