Transportation Factoring – Deal of the Month
For the month of January, we’re highlighting a new client who was searching for the perfect Transportation Factoring solution. This client operates a fleet of 14 trucks, hauling refrigerated freight, and averages approximately $175,000 in monthly revenue. This particular carrier was searching for a factoring company to provide a competitive fuel card program along with equipment financing and working capital to help facilitate his rapid growth. By gaining access to working capital and additional financing to purchase newer equipment, our client found himself in a perfect position for expansion.
Freight Factoring Companies Provide Fuel Card Programs
Before setting up his factoring account, our client was struggling to provide his carriers with a simple solution for fueling up their trucks. They were all using company credit cards and missing out on the savings that a true fuel card program offers. By establishing the fuel card account, our client was able to begin seeing substantial savings at the pump, control costs among all of his drivers, and issue Comchecks to those drivers who were in need of settlements while on the road.
Some Transportation Factoring Companies are Capable of Providing Equipment Financing
Our new client did not have the greatest credit history and, as a result, was forced to pay astronomical fees to lease several power units and trailers. He was unable to obtain equipment financing through any traditional lender in the market. However, our transportation factoring specialist was able to facilitate the purchase of a used truck and reefer trailer for the client. Furthermore, he now has the capability of fulfilling his long term goal of converting the leased equipment into actual owned assets. This will help reduce his monthly overhead so he can continue the upward growth trajectory.
The Top Freight Bill Factoring Companies Offer Competitive Pricing
The factor our client was previously working with had only been around for a short time, did not have a firm grasp on the nuances of transportation factoring, and did not have a competitive fee structure. When our client started out, his fees were accurately in line with his monthly volume. However, as he began to grow rapidly, his existing factor found that they were unable to offer lower rates in order to retain his business. In addition to this, his volume increase led to additional back office needs that the first invoice factoring company was unable to provide.
When he came on board with our experienced freight factoring specialist, our client was able to take advantage of much more competitive rates (including a full advance rate) as well as a more robust back office support team. These lower fees and additional manpower provided our client with the perfect environment to continue his expansion. These benefits also gave him the ability to pay carriers quickly upon delivery of each load and focus more on growing his operations…without unneeded stress.
Trucker Factoring Conclusions
While this client happened to be on the larger side, we help carriers of all sizes ranging from single truck owner operators to fleet owners of 100+ power units. If you would like to learn more about how we can help your organization specifically, feel free to contact us. We’ll be happy to answer your questions and provide you with the information needed to help you make your final factoring decision.