What is Freight Factoring?

When you’re first researching freight factoring, you might find it under numerous names, including transportation factoring, trucking factoring, or invoice factoring. No matter what you call it, the end result is still the same — you get paid for your work sooner. Nearly every trucking company out on the road today has experienced cash flow issues of one kind or another. When cash is tight, running another load of freight can be nerve-wracking. The source of these cash flow issues largely stems from the invoicing system that many businesses use to request money from their clients. In some cases, clients have up to 90 days to pay their invoice which can leave truckers feeling strapped for cash.

Don’t feel panicked about how you’ll pay for your drivers, fuel, tires, and repairs. Freight factoring is an easy way to address your cash flow issues quickly. Freight factoring is the process of selling your existing invoices to a third-party, like Financial Carrier Services. Rather than waiting 30-90 days to get paid on your invoice, the factoring company pays you immediately for the work you’ve already done. A percentage of the invoice is taken as a fee, but you still get the cash you need when you need it the most.

Freight factoring is great for truck drivers and companies alike. Whether you’re an independent owner-operator or manage a smaller fleet, you can get more capital to keep your rig rolling. With freight factoring, you’ll be able to cover operational costs and help your trucking business grow faster.

Do You Need Freight Factoring Services?

All trucking companies can benefit from using a freight factoring service. For smaller operations, a service like this helps you get paid immediately, allowing you to take on more work. This allows you to expand quickly, and grow as a business. For larger trucking outfits, a freight factoring service can essentially act as their accounts receivable or frees up cash on outstanding invoices.

If you’re trying to decide if you’re in need of a freight factoring service, here are a few things to keep in mind:

  • Will a service like this address my problems?
  • Are my clients reliable enough to pay their invoices?

Answering “yes” to questions like these means that freight invoice factoring could play an important role in the financial success of your trucking business.

Why Reliable Clients Make a Difference

In most industries, when you ask for an advance, the lender might be interested in your credit history. In the case of freight factoring, we’re more focused on the credit of your clients. We want to make sure that the shippers and brokers you work with actually pay their invoices. We want to see a steady record of on-time payments to ensure that both our business and yours gets paid by your clients.

What Freight Factoring Does For You

There are a lot of reasons to work with a factoring company like Financial Carrier Services. For many companies, it’s the fastest and most effective way to get paid for the work you’re already doing. Here’s how this service benefits you:

Fast Cash When You Need it Most

At Financial Carrier Services, we can provide you with a cash advance for your invoice on the same day that you submit it. We offer generous advances and keep our fees minimal. Everything is laid out in our agreement, so that means no hidden fees, and no long-term contract. You’ll get more money more quickly when you work with us.

Fill Your Tank and Your Bank

We offer more than just cash advances, we also have a fuel advance program as well. For trucking companies that are struggling to move their cargo from point A to point B. We offer fuel advances and fuel cards that help you get discounts on fuel. This is a great way to limit your fuel costs, which is one of the biggest parts of any company budget.

We Base Our Factoring on Your Clients

When you work with a bank or other lender, they’ll often examine your credit score or the creditworthiness of your business before they make any lending decisions. Under the freight factoring system, we look at your client’s credit instead. This makes it easy for trucking companies with less-than-ideal credit to get access to cash faster.

Flexible Funding, No Matter the Size

There are some days where you might need to factor one invoice or a dozen. Thanks to our quick approval process and lack of long-term contracts, you’re able to factor as many invoices as you need to keep your business going. We’re happy to work with smaller trucking companies, from one owner-operator to midsize fleets of vehicles and drivers.

Experienced Support Just For You

Financial Carrier Services is unique in that our staff has experience in trucking. We understand the challenges you face, so we’re here to support you every step of the way. You’ll have a dedicated professional associated with your account to ensure that every invoice you factor is paid quickly.

What Makes Financial Carrier Services Unique

At Financial Carrier Services, we’re dedicated to helping our friends in the trucking industry who operate small to medium-sized trucking businesses. That’s because with experience in trucking ourselves, we recognize that the current level of support offered to these businesses is lacking. We experienced complex systems that used hidden fees, sizable reserves, slow payments, and crummy customer service.

Financial Carrier Services was founded on the idea that all trucking companies deserved high-quality, reliable factoring. It might seem like a simple idea, but it’s one that’s changing the way trucking companies think about factoring, and it’s why we’ve received an A+ Rating from the BBB, and are recognized by institutions like Inc. 5000 and Women in Trucking for our efforts.

Our Services

There’s no denying that trucking can be challenging. Long hours, hundreds and thousands of miles spent behind the wheel, plus maintenance, loading, unloading, and more. It can feel like a thankless job sometimes — that’s why we’re committed to your success.

At Financial Carrier Services, we pride ourselves in being able to support trucking companies of all sizes with a complete complement of services, including freight invoice factoring, equipment financing and truck warranties, free credit checks, fuel cards and advances, and even industry discounts.

Get Started Today

No matter if you operate one truck or more, Financial Carrier Services is here to support you. We develop a personalized factoring plan just for you and assign each account a dedicated specialist to ensure that you always have the support you need.

Contact us today to get started and see how we can help your trucking business grow!