Category: freight factoring company

Use Factoring To Get Paid The Same Day

Posted on March 8, 2017 by - ”trucking company”, factoring, Fleet Owners, freight factoring company, new truckers, Owner Operators, rookie truckers, truckers, veteran truckers

The trucking industry can be hard to break into. You need a good cash flow to get your business started and to keep it going. Just because you’ve established yourself as an owner-operator doesn’t mean that you won’t face slow periods where you need a little extra cash flow to get by. Now, this doesn’t mean give up, it simply means consider the option of factoring to get cash fast for your business.

Factoring

Factoring can be the solution to helping you manage your cash flow for your company because it helps you get cash fast because factoring is an advance on accounts receivable.

Basically factoring companies give you a cash advance by paying you for the invoices on loads that you’ve already delivered. Usually, once you deliver a load you won’t get paid for it until 30 to 90 days later, so factoring cuts that time out by paying you the same day.

Drivers and owner-operators tend to turn to factoring as a way to keep their business afloat or to get their business started for a variety of reasons. For example, factoring could be the best option to get paid the same day when drivers can’t cover their bills, when they have a major fuel invoice, or need to pay their drivers. Different companies have varying amounts of time on when drivers actually get paid, and factoring will help drivers get paid the same day instead of waiting.

When you’re just starting out and want lease a new truck factoring can provide the cash that you need to cover business-related purchases in order to get your owner operating business going.

Before you get paid you will negotiate an agreement with the factoring company. The money you get upfront will be a percentage of the amount the load your client owes you. In the factoring agreement, your customer will pay the factoring company for the load you delivered and the factoring company will keep an agreed upon percentage, then you’ll receive the rest.

Our Top Factoring Companies

Here at ExpressTruckTax we pride ourselves in providing quality service and helping truckers out in any way we can, that’s why we’re telling you about two trusted, and outstanding factoring companies that you can turn to for cash advances.

Since 1994 TCI Capital has been helping those in the trucking industry and more get the cash they need on the same day instead of waiting for it. TCI has experienced and knowledgeable representatives to help serve clients with even the most unique funding needs.

Also, TCI offers the credit history and payment trends of potential clients to help companies take on new customers with confidence, and provides online reporting to keep you informed about your transactions at all times.

FleetOne has 28 years of experience in trucking finance and will work hard to get you funding within 24 hours. By providing credit checks and offering an experienced support team to answer all of your questions, FleetOne makes the factoring process quick and simple.

The FleetOne mobile app can be used to make factoring even easier, by providing you with the ability to take a picture of invoices, documents, and more to instantly scan and upload to your FleetOne account. The app also keeps all of your documents and transactions in one convenient location.

ExpressTruckTax is Here To Help

If you have any questions about factoring or about what we can do to help you e-file your HVUT and accurately calculate your IFTA totals please don’t hesitate to contact our dedicated support team at ExpressTruckTax via live chat, phone, or email.

Things Freight Factoring Companies Won’t Tell You

Posted on December 16, 2010 by - Benjamin Bellville, express 2290, freight factoring companies, freight factoring company, non recourse factoring, quick pay freight brokers, recourse factoring, Tax 2290

Featured Blogger
Benjamin Bellville

Freight factoring companies are sometimes a necessary evil if you own a small trucking company. If you are running an operation that needs to have the cash rolling in on a more regular basis than the industry average days to pay of 30-45 days then at some point you will do business with freight factoring companies. Before you get too tied up with one though you need to have a good understanding of some things they will never be upfront and voluntarily tell you and also know that they for the most part do not care about your success.

For any small trucking company I highly recommend hauling freight for a quality quick pay freight broker whenever possible if you are in need of constant quick money flow, but there will be times when a quality quick pay freight broker does not have freight available where your truck is, this is when you will need to do business with freight factoring companies. On average for a small trucking company business they are going to charge you 4-5% of the total invoice for pay on the same day that they receive the originals.

There are two types of factoring, recourse and non-recourse. To qualify for a recourse deal you will have to have stellar credit and/or do millions in sales as this means that if a customer fails to pay that you will owe any money previously paid out to you on that load back to the factoring company. It does not matter why the customer did not pay just know that the factoring company will take their money back in full immediately.

For non-recourse freight factoring you need to understand that each load does not stand alone as a separate business deal like it legally should in my opinion. Whenever you get paid for loads you have factored if at any time the customer on the load refuses payment on that load to the factoring company they will withhold money from completely different customers to cover those lost funds. In my experience of dealing with 3 different freight factoring companies they also will not have the class to call you and alert you to the situation.

Instead you are expecting much needed money and it simply never shows up. They also will not work with you to ensure you have funds available to operate. They take all funds that they claim you owe them as soon as it’s available. It’s all just a fancy advertising scheme to draw you into their web of lies and deceit. So tread carefully when dealing with them and have the understanding that they are out for themselves and not you, use them sparingly and protect yourself by having legal representation on retainer.

Do you know who does care about your businesses well being and success? That’s right Express2290. Be sure to visit them and see how they can make your life easier by handling all of your 2290 needs.