How to Research Freight Factoring Companies
Reliable access to working capital is a critical necessity for any trucking company. Without adequate operating funds, trucks grind to a halt and revenue ceases. Partnering with a finance company is a vitally important decision and a serious commitment. If a trucking company has decided to utilize freight factoring to improve cash flow, they are choosing a solid financial strategy. However, the right freight factoring company to best meet the needs of a trucking company is not a decision that should be taken lightly.
Ensure to perform proper due diligence to identify factoring companies that specialize in trucking. Finding and selecting a good factoring company should be managed much like hiring an employee; research the candidates, interview them and choose accordingly.
The easiest first step of investigation is to perform an online search in Google or Bing. Narrow your search to limit the results to the most relevant companies. The best search results are those that produce a list of factoring companies that specialize in trucking.
Recommended Search Terms:
- Freight Bill Factoring
- Factoring for Trucking
- Factoring Companies for Trucking
Once the SERP (Search Engine Result Page) displays the list of website selections, click on several of the listings that best meet your needs. The best choices will indicate that they serve the trucking industry. Take the time to visit the websites of your choice and get a sense of the products and services they provide. When you are satisfied that you have found one or two worth investigating further, contact them directly by phone, contact form or live chat. Once you have the opportunity to ask questions, don’t be afraid to ask a lot. You need to get a thorough understanding of who it is you will be working with, what exactly they will be providing to you and what are the terms of the factoring agreement. Following are the key details that need to be discussed, understood and agreed to prior to committing to any one factor:
- Factoring Fees
- Speed of Funding
- Contractual Terms
Each of these topics are significant and require a deeper understanding of their importance. The following chapters are an in-depth review of each topic with strategies to assess the service capabilities of the various factors you are about to investigate.
Copyright 2019, Accutrac Capital Solutions Inc.