In this a-z guide to freight factoring, we have compiled all the answers to the questions that owner-operators and trucking companies have about invoice factoring and how it can help them run their businesses:
If you are curious about factoring, you’ve come to the right place. Read our guide to freight factoring for an in-depth explanation of freight factoring and its many benefits to owner-operators and trucking companies.
Many new owner-operators have misconceptions about what freight factoring is and how it can help them streamline their trucking business. In this guide, we explain freight factoring and provide more information about this essential service. We also touch upon those things to watch out for when considering signing up with a freight factoring company.
But first things first.
Many companies take anywhere from 30, 60, or sometimes 90 days to pay their invoices. This can cause serious cash-flow problems for owner-operators who need money to pay for fuel and other expenses to keep on driving. Luckily, there’s a solution.
Companies like Pay4Freight that offer factoring services understand the unique needs of truckers and owner-operators.
Anyone working in the freight transportation industry as an individual independent contractor or as a company can take advantage of factoring programs.
In addition to large companies with extensive fleets, freight factoring can help smaller companies with a single truck too.
Every person is different, and each company is unique. There are many things to look out for when choosing a freight factoring company.
We urge all people interested in factoring to do their homework. Most of all do not sign long-term contracts without reading the fine print.
We structure our contracts so they are easy to understand. All the important terms are on the front page, which shows you that we are honest and transparent in our business dealings.
Freight factoring can make a big difference to a company, but it’s so important to factor with a reputable company.
As you can see from reading this guide to freight factoring, you get different kinds of factoring, and it is essential to understand the pros and cons of each type factoring. For more information, read more about recourse vs non-recourse factoring.
Recourse factoring is when the invoice reaches a specific determined date you have to repurchase the invoice.
Non-recourse factoring is when the financial risk shifts to the factor instead of the client, for example, when a company goes bankrupt or insolvent.
At Pay4Freight, we have helped many owner-operators and small t0 mid-sized trucking companies grow year-over-year. Many of our clients (who we refer like to as “partners” have stayed with us for years and years and that says something about how we do business).
If you are interested in working with a company with strong ethics, find out more about what drives us every day or give us a call at 888-479-4378 or send us an email.
Take a look at what is required to get your authority, if you haven’t done so already. Read about our promise to our partners here.