Is Freight Factoring the Right Move for Your Trucking Company?
Updated: Nov 24, 2020
Whether your company has one truck, or you run a fleet of fifty, the industry wait time to get paid is the same for all truckers. Freight factoring has always been a value added for truckers. But now, more than ever, trucking factoring is a must for many trucking companies to stay afloat and keep their doors open. The trucking industry was hit hard this past year and the number of trucking companies that went out of business as a result increased dramatically from 2018 to 2019. If you haven't already, it now the time to consider working with a freight factoring company.
What is freight factoring?
Long story short, freight factoring is a reliable and convenient service for truck drivers to get paid immediately when they drop off a load. A trucking company sells their invoices to a freight factoring company to receive their funds. Typically, a truck drivers waits 30, 60, or 90 days for a shipper to pay. Freight factoring eliminates the wait time and provides a solution for trucking companies to have consistent cash flow, no new debt from financial loans, back office assistance and additional services like dispatching help, free fuel cards, and insurance assistance. Ultimately, freight factoring provides you with cash available the same day to ensure you are never low on funds to keep your company moving forward.
How does freight factoring work?
The freight factor will approve the brokers and shippers they can work with, and you can start factoring your freight bills. There are 4 basic steps that will take place:
You book your desired load and receive an email of a rate sheet confirming the agreed amount for the load.
A BOL is signed to confirm the pick-up. The BOL is then signed by the receiver at the drop-off location to confirm.
Once you have dropped the load, you send the BOL, along with the rate sheet/confirmation to your factoring company.
Your freight bill is verified, and your factor will advance you the money (minus the factoring fee) the same day.
Is freight factoring the right move for your trucking company?
Unless you have unique circumstances with your trucking company, your answer will most likely be yes; you should work with a freight factoring company. It is stressful enough as it is to run a trucking company, and the industry is not helping the situation. If you are still unsure about whether freight factoring is right for you, here are some more reasons:
Are you having trouble staying loaded up or finding loads? - If you work with a freight factoring company like Porter, you get connected with a network of dispatchers to keep you loaded up as much or as little as you need.
Are you running out of money for fuel? - Another benefit of working with a freight factor, especially with Porter, is the FREE fuel card. We can load your funds directly onto your fuel card so that you're never short on fuel while on the road.
Do you have bad credit? - Having bad credit can prevent you from getting financial loans. The good news is, most factoring companies will still work with you.
You don't want any new debt - You acquire no new debt when working with a freight factoring company. You are not given a loan you need to pay back. You are simply given cash the same day you send your bills in, minus the factoring fee. The factor then waits for the broker or shipper to pay them.
Your business is growing - Freight factoring provides growing trucking companies with additional cash to stay on top of expenses. The working capital that you receive when factoring your loads will also aid your company's growth.
At the end of the day, if you want fast access to cash to grow your company, while having some stress taken off your shoulders, freight factoring is for you.
Why Porter Billing Services is the right freight factoring for you!
Porter Billing provides you with:
SAME DAY funding
NO binding contracts
True flat rate pricing
Dedicated client representative - NO 1-800 numbers!
Dispatch consultant who works for YOU
FREE: - Fuel card with discounts and advances - Credit checks on brokers you use the most - Invoice and paperwork processing
GET STARTED TODAY!