Transportation Factoring and Freight Factoring
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Freight Industry Overview
The transportation industry is made up of both independent owner-operators and large trucking companies. Owner-operators are entrepreneurs that own their vehicles and are contracted to both freight brokers and directly with corporations. Larger trucking companies own the vehicles and employ drivers to provide services on larger contracts they have with corporations. In both of these circumstances trucking businesses tend to work with large companies that require 15-90 terms to be given on their contracts. Because of this, many transportation companies turn to freight factoring to get paid faster on invoices. Speak with an SMB transportations specialist today to learn more about our transportation factoring programs.
Freight companies have daily, and weekly expenses associated with day to day operations. Between fuel expenses, repairs, and payroll, there are many bills that have to be paid while waiting on invoices. Invoice terms range from 15-90 days and result in a big cashflow gap between expenses that are incurred and invoices that are paid. To bridge that gap, freight factoring is the best solution. By utilizing freight factoring, also known as transportation factoring, transportation companies can get paid within 24 hours of invoicing clients. By accelerating payments on invoices, transportation companies are able to keep up with daily and weekly expenses.
Benefits of Transportation Factoring
Advance Rates up to 97%
For new applications, we can have your freight factoring line of credit set up in just 24 hours. Once the application is received and invoices are verified your trucking company can receive up to 97% of billed invoices within one day of being approved.
Limited Application Documents
No Setup Fees
No Minimum Volume Requirements
Same Day Funding
Fuel, Tire and Repair Discounts
Increased Working Capital
Improved Business and Personal Credit
Many business owners rely on personal and business credit cards and trade lines to operate their businesses. Freight factoring is off balance sheet financing, which means you can pay down all of your trade lines and remove debt from you as an individual and from your business. This will increase both personal and business credit and improve your credit profile moving forward.