Some of you are new to factoring. Factoring is selling your accounts receivables at a discount in order to control your cash flow. According to industry statistics, the average timeframe a freight invoice is settled is 36 days. That is a long time to wait to be paid. Please contact us and we will be happy to answer any questions you may have that are not covered in the FAQs section below.
Freight factoring, also known as invoice factoring, is selling your invoices or better known as accounts receivable at a discount in order to obtain immediate cash and better control your company’s cash flow needs.
There are two types of factoring available to carriers.
Pay4Freight.com takes on the credit risk. Should the account fail to pay due to a financial reason, not carrier performance, Pay4Freight.com will then take the full loss.
The carrier takes all risk of the broker or shipper not paying the factor for any reason, including credit loss. Typically, all recourse factors require the carrier to reimburse the factor in full after 90 days from the initial advance.
In order to move forward quickly, we need the application that’s attached completed for all owners over 25% and returned with the following:
Once we receive all the required information we’ll quickly process for approval and sending out the factoring agreement and other forms. It’s very possible you could get approved and funded all in the same day, but normally within 24 hours. After that, your funded same day when your loads are received by 12:00 p.m. CST
No, Never! A freight Factoring agreement will need to be signed since a secured financial transaction is taking place. You can stop at any time without penalty. If you ever want to cancel your contract, all we ask is that you give us written notice. We must collect all outstanding receivables prior to full cancellation. Once your outstanding balance is at zero, a release letter is sent to you. There will be a $50.00 fee to cover the cancellation of the UCC filing.
EFS Fuel Card: We will fund your Fuel Card account for a small $5 fee. You obtain the “cash price” at the pump at over 6,000 locations. Each transaction is $3 for fuel and/or cash or Transchecks plus rebates from 5 1/2 cents up to .55 cents plus per gallon at over 2,500 truck stops.
T-Cheks: These are filled out like any regular check, but require an authorization code that we provide to negotiate the check whether it be at any truck stop who accepts them or your bank. T-Cheks: Fee is $4.00 per transaction on the value of the check.
Direct Deposit: This transaction usually credits your account the next banking day, but could take an additional day for final credit. The charge for this service is $7.00.
Wire Transfer: Our charge for this service is $20.00 plus any fees your bank charges you to receive the funds.
Still interested in learning more? Have a look at our freight factoring guide to get the a to z fundamentals.
