There is no doubt that the ability to control cash flow can make or break your trucking business, whether you are an independent owner/operator or the proud owner of a fleet. Buying float time with the use of credit cards or going to the banker to request a business line of credit are not the most ideal situations to find yourself in. Fortunately, there are more appealing options available for entrepreneurs in the trucking industry. One option available for owner/operators and small trucking companies is freight bill factoring. Factoring is a safe, convenient, no obligation, reliable way of managing cash flow by getting the capital you need immediately. Instead of waiting several weeks or even months to be paid by your customers, factoring allows you to increase your cash flow right away. To see how much capital you qualify for, fill out the application to the right and a loan specialist will be in touch with you to talk about your options for financing.
Best Trucking Factoring Companies
Below is a short list of a few of the best factoring companies for trucking companies and owner/operators. The best freight factoring companies offer services that go beyond load factoring and freight financing.
Rated as a best trucking factoring company, Love’s offers some of the lowest factoring fees, large amounts of advances, less than 24 hour funding, a nationwide network, no long-term contracts and back-office support.
Thunder Funding’s non-recourse funding means that they take the risk so you won’t need to. They provide free fuel cards, fuel discounts, fast electronic sign up, and same day funding.
TBS Trucking Factoring
TBS provides up to 95 percent of the invoice total. TBS is an attractive factoring firm because they offer same day payments, free emergency roadside assistance, no volume requirement, a FedEx program, no sign up fees and fuel discounts.
Freight Invoice Factoring
You may be asking exactly what is freight invoice factoring. A freight factor is a brilliant solution to manage cash flow and cover expenses quickly and easily. A truck factoring company, or freight broker, makes this possible by paying you for invoices right away, then collects payment for those freight bills from your customer later. Because a truck factor is not a loan, you don’t have to worry about creating debt.
DRIVERS AND FLEETS RELY ON FREIGHT FACTORING TO:
- Help manage cash flow, meet payroll, purchase fuel, cover maintenance costs
- Accept more lucrative loads from slow-paying customers
- Grow businesses while maintaining cash flow for day-to-day operations
Pros and Cons of Using a Freight Factoring Company
As with anything, there are pros and cons to factoring freight bills. Ideally, you invoice customers directly and wait for payment to come in, but if customers are slow to pay and you need cash immediately, working with freight factoring companies may provide the financial cushion you need to keep your trucks driving.
- Cash Now
- Non-recourse means you are not liable even if the customer doesn’t pay
- Flexible options for payment
- Other convenient services
- There are freight factoring rates
- Credit Checks (if you have bad credit, see this page)
- Recourse means you will be liable if your customer doesn’t pay
- Some services require deposits
Best Freight Factoring Services for Small Business
The following list shows a few of the best factoring services for trucking companies. If you are looking for freight capital, these freight bill factoring companies can help.
This non-recourse factoring company for trucking businesses provides free fuel cards, fuel discounts, fast electronic sign up, same day funding available and the ability to pick and choose which customers to factor.
Oak Hill Capital
Oak Hill Capital provides reliable factoring for trucking companies. Oak Hill’s customers pay no application fee, no reserves or minimums.
Apex Capital offers freight capital factoring. Along with experienced account executives, they give free unlimited access to their exclusive load board, free fuel card, professional collections and free Mobile Factoring™ app with image capturing technology.
Riviera Finance can help your bottom line. Through bill of lading factoring, receiving cash for your accounts receivable is cheap and easy.
Only you can determine if truck factoring makes sense for you. This information should provide knowledge you need to make a wise decision for your business.