Trucking companies all across the country use trucking factoring, also referred to as freight factoring, to get cash for their delivered loads as soon as possible. Independent owner operators, small fleets, large fleets and nationwide carriers use trucking factoring for cash flow, so they can run and operate their businesses more efficiently.
Rather than waiting the typical 30 to 45 days for customers to pay their freight bills, truckers can get paid as soon as they drop their freight delivery. They just send their bill of lading (BoL) or freight bill to their truck factoring company, and the factoring company sends them cash within a day or two.
Factoring Freight Bills
Freight bill factoring is simple. The trucking company delivers the load, submits their delivery paperwork and receives cash.
- Deliver the load for your shipper or freight broker.
- Email or fax a copy of your freight bill to your factoring company.
- Your factoring company sends you cash, often within 24 hours.
- The factoring company collects payment from your shipper or freight broker.
Freight factoring companies often have mobile apps for you to send your freight bill, bill of lading, and rate confirmation sheet. They will make it as convenient as possible for you to get your paperwork to them quickly. Some offer scanning, faxing, emailing or even FedEx delivery. They know that you’re busy delivering truck loads and you don’t have a lot of time for handling administrative paperwork.
Freight Factoring Benefits
Many freight factoring companies provide additional benefits to go along with their invoice factoring services. These are perks that trucking companies enjoy.
- Free credit checks
- Free online load boards
- Fuel cards
- Fuel advances
- Maintenance discount programs
Fuel costs are the single most expensive cost for trucking companies, so it’s very common for trucking companies of all sizes to utilize fuel cards. Fuel cards offer a variety of benefits, but the most common is fuel discounts, convenience at the pump, and tracking fuel costs.
Almost all trucking factoring companies help their factoring clients by checking their customers’ credit. Free credit checks are an invaluable service for the trucking company, as well as the factoring company. It protects both companies from non-payment, fraud and bad debt losses.
Load boards help truckers find new loads or return loads. Free load boards are especially useful for startup owner operators that are looking for loads at minimum costs. These load boards aren’t a long-term solution but provide some benefits for small truckers getting started in the business.
Trucking Factoring Companies
If you’re trucking business is looking for factoring services, then a great place to find the right trucking factoring company is an online factoring directory or factoring broker such as FactoringClub. FactoringClub works with most trucking factoring companies in the U.S. and Canada. You can visit their website or contact Mazon Associates for our referral services – call Lisa at (800) 442-2740. Lisa is the President of Sales and Marketing for Mazon Associates.