Questions to Consider Before Factoring Freight Bills
Facilitating the process of selecting the best freight factoring company
When researching the best freight factoring company to work with as your financial partner, it is recommended to follow a defined check list of considerations. By adhering to the following list, you will be able to extract pertinent information from candidate factoring companies and compare results facilitating the process of selection.
Types of Factoring
- Does the factoring company provide the type of factoring that’s right for your business?
- Does the factoring company provide a pricing structure that’s right for your business?
- Does the factoring company disclose all of their additional fees?
Speed of Funding
- Does the factoring company have quick and simple to use systems for document submission to ensure you are paid quickly and conveniently?
- Does the factoring company provide dedicated customer service with trucking related experience to complete funding in the most expedited fashion?
- Does the factoring company provide same day funding?
- Does the rate for the factoring contract go up after 30 days? Some factoring companies that run into problems with invoices may wait till after the 30 day mark to solve the issue, making you pay more.
- Does the factoring company understand and have experience in the trucking industry?
- Does the factoring company offer online systems that allow you to track customer payments in real-time, submit invoices, review Days Sales Outstanding (DSO) and customer (broker) credit information
- 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.
- Does the Factoring Company's website have good 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.
- Does the Factoring Company provide a dedicated account manager?
- Is their customer support service prompt and helpful?
- Does the Factoring Company communicate with your customers in a courteous and professional manner?
- Does the factoring company offer the advance and reserve at a competitive rate?
- Does the factoring company have termination clauses that make it difficult to stop factoring?
- Does the factoring company require monthly minimums
- Does the factoring company identify credit limits before you sign the factoring agreement?
- Does the factoring company wait until all the contracts have been signed and returned before filing a UCC-1?
- Does the factoring company have a fuel card program?
- Does the factoring company provide cash advances on loads in transit?
- Does the factoring company provide equipment financing?
- Does the factoring company have a credit check tool available to the client?
- Is the factoring company transparent with their invoice factoring processes?
- Is the factoring company transparent with their pricing structures?
- Is the factoring company professional and efficient when dealing with your customers?
Copyright 2019, Accutrac Capital Solutions Inc.