If you own a trucking company, then you may have heard of freight factoring. Instead of lending funds as a bank would do, freight factoring companies purchase overdue invoices and exchange them for a cash advance that can be used to improve your company’s cash flow.
Factoring is right for your trucking company if you have to wait 30, 60 or 90 days for your customers to process payments. Even if your clients are great payers and you have an excellent working relationship with them, this long waiting period can pose problems seeing as you have to pay fuel, driver fees and other normal expenses as they occur. Factoring your invoices gives you the ability to meet all your obligations when you need to.
There are many different freight factoring companies to choose from, so it’s vital that you compare what the companies are offering so that you are able to choose the best one for your unique situation. Here a few value-added services that you should look out for:
- Fuel advance programs that offer funding before delivery.
- Flexibility. Freight factoring should provide you with the option to factor invoices long term or just as a once-off service. Make sure ask about minimum invoice requirements and contracts to ensure you don’t get locked into a service that you don’t need long-term.
- Fuel cards that give you access to discounts when refueling.
- Competitive factoring rates. Getting money upfront is important, but you don’t want to be spending to much on factoring costs in order to receive an advance on your payments.
- Same-day funding. This will enable you to use your cash immediately for daily overheads or other expenses that you incur to make your trucking business run smoothly.
- Tailored solutions for you industry. Some factoring companies specialize in the financial sector, professional services or specific industries like oil and gas or construction. A factoring company that specializes in the freight industry will understand you pain-points and challenges. This is the type of expertise and in-depth industry knowledge that you should look for in factoring company.
- Exceptional customers service. Your clients are going to be dealing with the factoring company, so you want to partner with a company that is not only professional, but goes out of their way to provide a great customer service.
At Charter Capital, we offer customized funding that fits your business needs with zero hidden fees. With industry specialists who understand your unique business problems and goals. We are true partners to help you overcome financing hurdles and put in the extra work to make factoring work for you, all with fast response and no added layers in an approval process. These are only a few ways that we have tailored our factoring services for the freight industry,
For more information about factoring agreements and rates, get and instant quote factoring today.