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How to Choose the Best Factoring Company for Trucking

Accutrac Capital 19-Mar-2015 0 Comments Permalink

Choosing the Best Factoring Company for TruckingYou have decided to leverage your accounts receivable and to factor your invoices. The next step is to find the best factoring company to meet your financial needs. It is important to choose a factoring company that understands the trucking industry and provides a selection of specialized services designed for carriers. 

Look for the factoring company that offers the best rates, cost saving services and trusted customer service.

What is Invoice Factoring?

Factoring is the sale of accounts receivable (invoice or freight bill) at a discount to a third party (the Factor or Factoring Company) in exchange for immediate cash flow. This form of financial transaction eliminates the need to wait 30, 60 or 90+ days for your customer to pay. The sale of your invoice at a discount expedites the process by increasing your liquidity now. 

Factoring invoices is a common business practice within the transportation industry due to the many financial benefits it delivers.

Benefits of Invoice Factoring 

Due to the nature of factoring finance, your trucking company will benefit from more than just immediate access to cash. Ongoing credit analysis of your customers, reporting and a cost effective accounts receivable management are just a few of the advantages that a professional factoring company offers.

Factoring companies specialize in credit analysis and invoice collection, and are efficient and cost effective in managing your receivables. A factoring company will improve your collections while decreasing your overhead costs. Freight invoice factoring companies offer online systems that allow you to track customer payments in real-time, submit invoices, review Days Sale Outstanding (DSO) and customer (broker) credit information. 

When you work with a factoring company that specializes in the trucking industry, these basic benefits can be augmented with further value added services (discounted fuel cards) to increase cost savings.

Real Value for your Trucking Company  

The trucking industry is uniquely different than all other businesses. Aggressive competition, driver shortages, low margins and high operating costs are daily barriers that hinder your profitability. The best truck factoring companies know this and provide much more than just factoring. A factoring company that understands your business challenges can provide cost saving value added services to improve your bottom line. Look for a factoring company that specializes in trucking and provides real value with convenient, cost saving services like:

  • Discount Fuel Cards
  • Cash Advances on loads in transit
  • Free Credit Reports
  • Discount Currency Exchange
  • Equipment Financing

Trusted Customer Service

It is critically important to find a good fit when looking for a funding partner for your trucking company. Factoring is an excellent option for your trucking business, but only if you have chosen a Factor that works well with both your organization and your customers. Use the following check list to assist you in your choice:

Integrity:

  • Does the Factoring Company provide full transparency with online accounting and regular reports?
  • Is the fee structure easy to understand and simple to calculate?
  • Ensure there are no hidden fees or surprises.
  • Ensure there are no delays in the funding process.

Reputation:

  • Check the Factoring Company's website for testimonials and case studies.
  • Ask the Factoring Company for references. Speak to their existing customers (your fellow truckers) and ask about their level of satisfaction.

Superior Customer Service:

  • Does the Factoring Company provide a dedicated Accounts Manager?
  • Is their customer support service prompt and helpful?
  • Does the Factoring Company communicate with your customers in a courteous and professional manner?

Experience:

  • Does the Factoring Company truly understand trucking…not just from a lenders perspective, but from actual hands on experience?

Who is the Right Factoring Company for You?

Choose an experienced factoring company that understands your business. Accutrac Capital specializes in providing the transportation industry with low cost funding solutions to improve your companys cash flow. Our cost effective services are convenient to use, simple to understand and easy to manage. 

A dedicated Accounts Manager ensures you receive superior customer service. Youll receive trusted advice from industry experienced staff to help with credit decisions, expedite funding and to answer all queries. Our specialized services include fuel discounts, load advances, preferred currency exchange rates and a free credit search tool to reduce risk and maximize your bottom-line.

For more information about convenient, cost effective invoice factoring services and cost-saving services to improve your profitability, contact is today.

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