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A Bit About Trucking Factoring

Factoring is one of the quickest methods for trucking and transportation companies to raise working capital. Used by almost every industry, factoring allow companies to raise the needed capital in just a few short days for expansion/growth, restructuring or survival!  Why wait 30-60-90 days for your customers to pay your invoices/freight bills?

Trucking factors can advance funds on freight bills very quickly, normally in a day or two after you contact them, and in some cases that same day. The factor then gets paid back when your customers pay in 30 to 90 days! Factoring is converting your freight bills/accounts receivables/invoices for cash, thus allowing your company to receive the needed capital now, not weeks or months from now! It does not require additional collateral and does not create debt!

Here's a bit of interesting information about factoring, did you know that the origin of factoring has been traced back to the days of the Roman Empire or even earlier, but the industry as we know it today in the United States goes back only about 200 years to the early nineteenth century.

Share your thoughts.

Comments

  1. TheDriverDecember 16, 2012 at 1:42 PM

    I just got my truck 5 months ago and started factoring for the first time, I can see the benefits if the factor would stick to their contract. I was expecting to pay no more than 5%, now I am at 7%.

    ReplyDelete
    Replies
    1. AnonymousDecember 16, 2012 at 5:43 PM

      You should at look at your contract again, the 5% was probably based on flat rate for certain days, if collection is not made within those days the fee would increase.

      Delete
  2. Trucking FactoringApril 12, 2013 at 3:51 AM

    Thanks to share this valuable information because as a trucking factoring it is very important that how and from where get the loans for new purchase.

    ReplyDelete
  3. AnonymousAugust 29, 2013 at 8:36 PM

    Qualifying for factoring is based on the creditworthiness of your customers.

    Source: www.accutraccapital.ca

    ReplyDelete

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