What is Freight Bill Factoring?

Freight bill factoring is the financial lifeline your trucking business needs to maintain a healthy cash flow. Instead of waiting 30, 60, or even 90 days for customer payments, you can sell your unpaid invoices to us and receive up to 95% of the invoice value upfront, usually within 24 hours. We take care of the payment collection from your customers, so you can focus on what you do best—delivering loads and growing your business.

Freight bill factoring is made easy at factoringfast.com. We provide freight bill factoring programs in which your freight bills are purchased, and we advance you the cash within 24 hours. If you have a load factor now why not see how much we can save you with a free quote?

When you work with us, you know you’re getting advance rates up to 99% with fee structures that are fair and reasonable. Our rates start as low as .59% for our largest customers and top-out at 3% for our one truck customers. We want to be your load factor by earning your business with great service, not by locking you into some long term contract like many of the load factoring companies try to do.

We also allow our customers to choose which bills of lading they want to factor, providing the flexibility that most trucking companies need. We also welcome carriers and freight brokers who want to increase cash flow with factoring.

Our state-of-the-art technology enables us to provide you with 24 hour real-time load credit checks and reporting. When running a trucking company, you cannot afford to only have factoring approval on your loads during business hours. Who only works business hours in trucking? We understand you need freight bill factoring that can work the hours you work, not bankers hours.

We can handle a wide range of bill of lading factoring needs. We have programs for one truck owner operators, but we can also handle monthly freight bills factoring needs in excess of $25 million for larger customers. Load factoring is how we keep truckers moving so they can keep freight moving across the country.

Unlike traditional bank credit lines, our factoring financial service reviews your receivables and verifies your client’s credit worthiness, then we pay you cash for those receivables in as little as 24 hours. Just think what cash in 24 hours for your receivables could do for your business. Meet payroll, pay suppliers, take on new customers or get those much needed repairs to equipment. You decide where the money goes. Our factoring financial service is here to help you get the cash you need.

Freight bill factoring is often used by trucking and transportation companies to deal with cash flow gaps caused by waiting for payments. In the trucking business working capital is needed daily for fuel cost and other expensed incurred while hauling loads to their destination. The shippers often want immediate payment while the carrier does get paid until weeks after the goods are delivered.

Its common for a trucking business to use a freight bill factor to offset this cash flow crunch. The service allows them to get immediate payment after the delivery has been made and confirmed so they have cash on hand for the next load. The paperwork involved with getting set up with a freight bill factoring company is much lower that what is needed for a bank business loan.

Unlike a traditional invoice factoring company, a freight bill factor normally provides a higher cash advance amount on the invoices. It’s common for the factor to offer an advance rate in excess of 95% to trucking company clients. The slim margins and the need for cash flow make this a commonly seen program offered by factoring companies in the trucking industry.

How a Freight Bill Factor can help a freight business:

– Provides funds to cover fuel expense, driver payroll, and other vehicle maintenance.
– Stronger cash flow allows for a better ran operation.
– Cash on hand to bid jobs quickly.
– Get additional loads by having fuel cost covered.
– Attract drivers to hire by offering quick payment.

Freight bill factoring generally cost between 1% to 4% of the invoiced total. This charge is known as the discount fee. Typically, the more volume you give the freight bill factor the lower the discount fee. For example, if you factor 1 million dollars per month with your factor your discount fee may be around 1%. If you are a one truck operation factoring less than 20,000 per month your discount fee may be in the 3% rage.

Most trucking and transportation companies can qualify for freight bill factoring services and can take advantage of this cash flow tool.

Questions? Call us (toll free). We are available to talk 7 days per week.