COMPARE, CHOOSE AND APPLY FROM THE TOP FACTORING PROGRAMS FOR TRUCKING
Type of Factoring
Who is it for?
Type of Vehicle?
Why Trust MT?
What is Truck Factoring
Factoring is a process by which carriers/trucking companies get paid in advance by submitting load invoice to factoring companies, after pulling an authorized load. With this you get instant payments. Otherwise, brokers take 30 to 45 days after the completion of a load, which puts many you in a severe cash crunch.
Types of Factoring Programs
There are two types of factoring programs– recourse and nonrecourse factoring for owner operators.
The factoring company takes the responsibility for the invoice or trucking bills. In case the non-payment of the invoice by the freight broker or shipper the factoring company beards the loss.
Average of 3%
What are you paying for:
- Cash Advance – brokers take 30-45 Days to pay, you get paid same day.
- Risk – Transfer of the liability in case of a non-recourse factoring if the broker goes out of business, it’s the responsibility of the factoring company.
- Back Office Operations – Once the invoice is taken over the whole verification and collection of the invoice is taken care by the Factoring company.
- Other value-added services such fuel cards, discounts etc.
How does it work:
- Complete a load, let’s say of $1000.
- Send the load paperwork such invoice with rate confirmation and bill of lading to trh factoring company.
- Get paid the same day for $1000 – 3% Fee Charged = $970
- Use the continuous cash flow to pay for running expenses such Fuel, Insurance, Driver salaries and grow your business.