Why Does Your Trucking Company Need Freight Factoring?
Updated: Dec 4, 2020
What is freight factoring?
Freight factoring provides trucking companies with a reliable and convenient source to getting consistent cash flow. A trucking factoring company sells their invoices to a freight factoring company to receive their funds instantly.
Typically, a truck driver has to wait 30, 60, or 90 days to get paid on a load they hauled for a broker or shipper. However, since the coronavirus pandemic has started, some of these wait times have increased. While many are delaying payments, some are also going out of business. Working with a freight factoring company will eliminate the wait time, regardless of the current situation, and provide a solution of consistent cash flow, no new debt from financial loans, back office assistance and additional services like dispatching help, free fuel cards, and help getting compliant. Freight factoring makes cash available for you the same day to ensure you are never low on funds and can keep your trucking company moving forward.
Why does your trucking company need freight factoring?
Unless your trucking company has unique circumstances of getting consistent cash flow or takes our bank loans, you will most likely benefit from using freight factoring. Running a trucking company is hard and the industry right now is making it harder. Getting that little extra help can be that value added you need to keep your truck on the road and your doors open. Here are some reasons why you need freight factoring:
The obvious reason - consistent cash flow. You will get paid within 24 hours on all loads you send in. You won’t need to worry about having enough funds to cover your next payment if you plan your freight invoices correctly - send your invoices in the morning, get paid that afternoon.
Have help finding the best paying loads. Most factoring companies provide you with additional services like working with a dispatcher. When you work with Porter, we get you connected with a network of dispatchers to keep you loaded up in these slow times.
Get a free fuel card with advances and discounts. Having a fuel card takes away the worry about running out of money for fuel. Porter can advance your funds directly onto your fuel so that you’re never short on fuel while on the road. You also get fuel discounts at locations across the country.
Doesn’t hurt your credit or give you added debt. If you have bad credit, financial loans can be hard to get, but most freight factoring companies will still work with you. You also acquire no new debt when you factor. There is no loan to pay back - you just get cash when you send your bills in, minus the factoring fee.
Your trucking company is growing. Freight factoring helps growing trucking companies by providing them with additional cash to stay on top of their expenses. The working capital from factoring your loads also aid’s the company’s growth. The back office assistance will also help your company grow through additional help, but not extra expense on your part.
How does freight factoring work?
Freight factoring works by the factor approving the brokers and shippers they can work with, so you can start hauling loads and sending your freight bills in once you've been approved. There are 4 steps that take place:
You book your load with the broker or shipper and receive an email of a rate sheet confirming the agreed amount of the load.
A BOL is signed to confirm you picked up the load. The BOL is then signed by the receiver when you drop off the load 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 the same day, minus the factoring fee.
If you want fast access to consistent cash flow to grow your trucking company, while having some stress taken away, freight factoring is for you. It doesn’t matter if your trucking company has one truck or a fleet of fifty, the wait time to get paid on a load is the same for everyone.
Why is Porter Billing Services the right freight factoring company for you?
Well, that’s easy. We provide you with:
SAME DAY funding on ALL loads
NO binding contracts - 1 year, 6 months, or month-to-month contracts available
True flat rate pricing
Dedicated client representative that knows you and your company’s needs - NO 1-800 numbers
Dispatch consultant who works for YOU
FREE fuel card with discounts and advances
FREE credit checks on brokers you use the most
FREE invoice and paperwork processing
Get a free quote today and let's see how Porter can help your trucking company grow!