Avoiding the Worst Factoring Companies
Updated: Sep 14, 2020
Starting your own trucking company is a big deal and making sure you have your finances in order can be make or break. We all know that consistent cash flow is key when it comes to trucking. Working with a freight factoring company is a great step to take to make sure you always have funds to pay your ongoing expenses. This is why it is so important that you understand what to avoid when choosing a freight factoring company, so you don't end up with the worst one. In this blog we outline everything you need to know about avoiding the worst factoring companies.
Hidden terms and fees - If you notice that the freight factoring company has hidden terms and fees, avoid them! You need to know exactly what you're signing your trucking company up for.
Unexpected chargebacks - If a factoring company charges you back unexpectedly, without a heads up or reason, avoid them! You have the right to know if and why this might happen.
High monthly minimums - You should have the freedom to run as much or as little as you want without being charged extra. High monthly minimums can cause issues for your trucking company, especially if you need to take some time off.
1-800 numbers - If you can't call your rep directly at a factoring company, avoid working with them. You need to be able to get someone on the phone easily, especially since it's concerning your trucking company.
Long term contracts - If a freight factoring company doesn't offer contract options of different lengths, they are hiding something. You should be able to decide on a contract you're comfortable with to start out.
Termination fees - If a freight factoring company is willing to charge you outrageous termination fees, they don't want what's best for you.
SAME DAY pay - The best factoring companies will offer you SAME DAY pay once you've sent your bills in, keeping your cash flow consistent.
Dispatching services - Consider freight factoring companies that also offer dispatching services. They want to help you succeed and this gives you a chance to get your foot in the door and build relationships.
FREE fuel cards - Fuel is a huge expense when running a trucking company. Look for a factoring company that offers free fuel card with advances and discounts to save you money.
1-on-1 client representative - Working with someone who knows your company, that you can always get on the phone, and wants to help you grow should be an important criteria when looking for a freight factoring company.
Contract options - A freight factoring company that offers you different contract options wants what's best for you. You won't be locked in longer than you want when you sign up with the best factoring company.
FREE credit checks - Credit checks are important when you are working with new brokers. Look for a factoring company that offers this service for free.
No hidden terms or fees - Look for a factoring company that is exactly who they say they are. You should know what you're signing up for from the start.
Additional services - A freight factoring company that offers additional services to help your trucking company is the way to go. Look for services like insurance, compliance, carrier set-up, and equipment financing.
You can find all of these good qualities at Porter Billing Services. We have been helping trucking companies grow for over 25 years with our what you see is what you get mantra. We are in business to help you. Still unsure? Read just 5 of the reasons why you should freight factor with us here.
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