Get the RIGHT Factoring Program That Is BEST For Box Trucks…
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Box Truck Factoring is the process in which an owner-operator or a trucking company sells an outstanding truck freight bill to a factoring company for a cash advance.
Up to $1597
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Features of Box Truck Factoring
Compare and choose the right Box Truck factoring plans from our recommended factoring companies that are 100% safe for owner operators. Get the best for your trucking business. Generate truck factoring proposals and quotes in minutes.
Truck Factoring With 1% Factoring Rate First Month
A new Box Truck operator should save every penny that is possible. Get multiple truck factoring proposals from top factors with MaxTruckers’ offer of 1% factoring rate for the first month.
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What is box truck factoring?
Box Truck Factoring in Trucking:
Box trucks are a vital part of the trucking industry, box truck factoring helps box trucks to get paid in 24 to 48 hours after raising a load invoice.
What a driver/owner operator needs to do to factor is pull a load, generate documents BOL/ invoice and submit it digitally through email or on the website or mobile app.
How does box truck factoring ease trucking business cash flow issues?
Box Truck liquidity and cash flow solution:
Box truck operators need money, they won’t be able to wait for 30/45/60 or even 90 days to get paid from brokers/shippers. So, the only way is to submit their trucking invoices and receive cash instantly for a factoring fee/ factoring cut which is between 1.5 to 5% of the invoice value.
Because box truckers get funds from invoice factoring quickly, the cash balance or liquidity of the business becomes stable. This liquidity injection helps box truckers pay driver’s salaries, maintenance, oil or tire change, operation costs, food and accommodation of drivers, and even fuel cost.
Why is box truck factoring important for owner operators?
Box Truck factoring is vital:
Box truck factoring helps box truckers to achieve flexibility and liquidity by offering their trucking invoices at a fee/commission. Other than liquidity injection, a factoring company helps small and medium truckers to get a hold of their carrier side paperwork and secretarial documents.
How do you select a box truck factoring for your business?
Selecting a box truck factor for your business:
To select a box truck factoring company you need to look into various aspects.
Firstly see the factoring percentage. Secondly, see what is the contract length is there any penalty for an early exit from the contract.
Thirdly are their termination fees and hidden fees. Fourthly what are the additional benefits like fuel card, fuel line advances, combo insurance, and factoring?
Fifthly you need to know how much should you factor with your factoring company, is there a minimum factoring limit.
Sixthly you need robust customer support that is ready to solve any issues you might have with factoring 24/7 365 days, plus customer support should help you with any eventuality like accidents, weather trouble, tire issues, breakdowns, etc
Finally, you should check if the factoring company has reserves because reserve reduces the cash you get in hand after submitting your invoices.
What is the cost of box truck factoring?
Cost of box truck factoring:
Factoring companies charge a percentage of the invoice as cut/commission it would basically in the range of 1.5% to 5%. Some, companies also deduct a reserve this will be credited to your account after the shipper/customer has paid up the invoice.
What is recourse and non-recourse box truck factoring?
Recourse and nonrecourse box truck factoring:
Recourse and non-recourse factoring are the two options you get while factoring with a box truck factoring company.
In a Recourse Factoring Program, a factoring company pays you immediate cash against the invoice you submit.
But, if your broker defaults in payment to the factoring company or goes bankrupt, the factoring company is not responsible for the loss incurred, they will take the money from you.
A Non-Recourse Factoring Program takes the risk away from trucking companies if a freight broker/shipper fails to pay an outstanding invoice. The factor only does nonrecourse factoring in certain cases such as insolvency or bankruptcy, if all other nonrepayments types the trucker should bite the bullet and pay from his pocket.
Nonrecourse factoring protects the trucking company from the risk of customer insolvency and places the responsibility of repayment on the factoring company.
Is the box truck factoring worth it?
Box truck Factoring worth it!
Box Truck factoring is worth it, because it provides cash or liquidity to a box trucking company. Due to this the box trucker can pay operational, fuel and maintenance expenses when it arises,
There are only two options for a trucker if they don’t take box truck factoring that is a business loan which is a lengthy and cumbersome process that has interest expenses. The next option is Quickpay, which is not available with every broker.
What are the merits and demerits of a good box truck factoring contract?
Merits and Demerits of box truck factoring
Merits of Factoring:
Easy way to infuse liquidity or cash into your trucking company
High factoring advances means low fees/commission
It’s a short term and long term liquidity option
Demerits of Factoring:
Invoices must be paid within 90 days
Must have quality customers with high credit scores and histories to go for factoring
Control over business account receivables is lost
Credit or loans can’t be taken on account receivables as collateral
What are the additional benefits of joining MaxTruckers box truck factoring?
Added benefits of joining MaxTruckers box truck factoring program:
You can get a good fuel card which gives you a good discount on diesel pumped. You can use these fuel cards at fuel stations and truck stops for discounts on fuel, tire purchase, oil change, driver accommodations and supplies, even maintenance.
The cards are set up through the fuel card company. But, the funding is generated through the factoring agreement.
The best factoring companies give you 50% of your load amount as a fuel line of credit. So, you can go and pick up another high-paying load without any hiccups.
Flexible load volume requirements:
Which invoice do you want to factor in? And what factoring type do you want? Should be your choice, if you want to factor partially, no one should tell you can’t factor like that. A factor should give you funding based on your priorities and choices.
Positive contract terms that favor box truckers:
Contract conditions the factor includes in the contract is very important for the satisfaction of the client. A badly termed contract should be avoided, read the fine print and decide. Do not go for long-term contract month on month is the best type, do not accept a termination fee, don’t expect another hidden fee like credit check fee, etc.
A factoring company should accept scans, photos, or copies of invoices/BOLs or load documents. Fast, easy and robust apps, email upload, and web portals will help drivers/owner operators to upload load documents in an instant.
Any, factor that asks for originals is making the process complicated, so you must not factor with them.
Best customer support:
Every factoring com[any should have a very supportive customer care service. A factoring should allot a specific individual as a dedicated customer care executive. It should be painless and easy to reach them, they should be patient and interested in serving you, and should answer all your queries.
Most truckers go for a long-term relationship with a factoring company, so a supportive and 24/7/365 days service is a must.
Fast and pain-free approval:
For approving invoices for factoring the factor looks at the credit history and creditworthiness of your customer, nothing else is looked upon.
Then if your customer has a good credit score, they initiate the invoice payment process.
Rapid cash payment :
Factoring companies make payments on invoices within 24hours, some companies make payments within 6hours max.
DAT Load board Subscription:
At MaxTruckers we add value to owner operators/truckers by providing 1 month free trial of DAT TruckersEdge load board. A trucker can easily book loads using the load board and see if it fits his need or priorities.
300 member broker list for new MC owners/drivers:
At MaxTruckers we know how hard is it for a new MC owner/trucker to get work. Brokers/shippers do not appreciate working with new MC drivers/owner operators. That’s why MaxTrucler has compiled a list of 300 brokers who are ok working with new owners/drivers.
Trucking Startup Friendly:
As a trucking startup, you have to face heavy competition, unfriendly brokers/shippers, and harsh working conditions,
At max truckers we know the challenges face by new owners/truckers, so we provide you 3-dimensional services such as trucking business consultation, business development service, insurance, factoring consultation, load dispatching, load board package, and knowledge resource connected with trucking.
MaxTrukcers provide you with tools, operational acumen and contacts to prosper in all facets of trucking
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