The Upside to Freight Bill Factoring
Factoring for trucking companies and freight brokers is a highly efficient means to obtain up-front cash for loads that have already been delivered. By selling receivables, transportation companies are immediately able to cover the cost of fuel, repairs, driver wages, and any other operating expenses that arise without waiting the typical 35-40 days it takes collect from their customers. To learn more, visit our Freight Bill Factoring page. Following are just a few of the many benefits to working with our trucking specialists:
Competitive Advance Rates
While typical advance rates fall between 90 – 95% in the transportation industry, advances of the full invoice amount (less the factoring fee) are available. In other words, there is no reserve account required! This can be especially helpful for companies who need to pay their owner operators on a more frequent basis.
Competitive Factoring Fees
Rate options are primarily dependent on monthly factoring volume. In many cases, we are able to secure rates as low as 0.49% for our clients.
Same-Day Funding on Copies
Carriers no longer have to wait 24 hours for payment – funds can be advanced as soon as the paperwork is received. The best part is that same-day funding is available simply by submitting copies of documents – originals are no longer required!
Fuel Cards
Utilizing fuel cards not only helps trucking companies manage expenses, but fuel programs also provide savings at the pump in addition to other benefits such as discounts on tires, hotel rooms, cell phone plans, and more.
Fuel Advances
Carriers are no longer required to take their fuel advances from freight brokers. Fuel advances up to 50% of the gross settlement amount are now available.
No Long-Term Contracts
We feel that one of the best ways for a factor to stand behind their service is to offer month-to-month agreements with no termination penalty – these 30 day terms are exactly what you can expect.
Freight Broker Factoring
Freight brokers can experience several benefits by working with us. These include quick pay services to carriers, comprehensive payables management, as well as same-day funding for brokerage commissions, and more.
Free Credit Checks on New Customers
The last thing you or any factor wants is to enter into a relationship with a customer who does not pay. Our services include free credit check databases, available 24/7. Now you will know, before you book a load, if the customer is someone worth working with.
Recourse and Non-Recourse Options
While recourse factoring fees are typically more competitive than non-recourse fees, we do have both options available depending on your needs. To learn more about the difference, visit our FAQ page.
Getting the Freight Bill Factoring Upside
There are many different options to consider when selecting a freight bill factoring company. As a result, it’s always best to work with an organization that specializes in the transportation sector. If you’re ready to start factoring, we’d be happy to help. Feel free to give us a call at (888) 515-7501 or send us an email at sales@orionbusinesscapital.com.