Choosing a Freight Factoring Company
Freight factoring is one way for truckers and trucking companies to instantly get paid for their work even if the freight broker or shipper they are working for does not pay them according to schedule. It is a good way to keep the cash flowing and the business going. Freight factoring is readily available for any trucker or trucking company who needs to have operating capital for their next load. It is a good investment if you want money for maintenance, fuel, equipment, employee payroll, and anything that the refight factoring can offer. With so many advantages, it may be hard to not avail of such offers, but you should know which one to choose.
One thing to look into before choosing a freight factoring provider is the speed of funding: there are those that offer payment hours after receiving the bills or invoice, while others wait until the next business day. Knowing how quick you can get funding is vital because it helps you manage the cash flow. Make sure you understand this part before signing up with a freight factoring company.
Second, make sure that the freight factoring company that you choose has employees that know about the job and are readily available to assist you should you require some help or inquire about a problem. Commercial trucks are susceptible to accidents because of their size and loads, whether it is because of interior or exterior issues. Truck accidents are more devastating than other vehicle accidents since they are significantly bigger and heavier, causing severe injuries or even deaths. Choose a freight factoring company that can assist you properly while being on the road and caters to your specific needs. Driving for long hours with heavy loads is already stressful enough; you don’t have to deal with poor service and customer support.
Lastly, check if the freight factoring offers recourse or non-recourse. Recourse could put you at risk of paying back the freight factoring company if the broker refused to pay or has gone broke. Non-recourse means the company takes the risk and you are paid even if the broker does not pay the freight factoring company or not. This option, however, may mean you pay more because of the risks involved.
With today’s challenging market, it can be hard to choose which freight factoring to go with. Although this option is a great way to help you with trucking finances, knowing the best ones that cater to your requirements is vital in order to keep the cash flowing. Survey which ones work for you and pick the one you think works best for you.