Freight and Load Factoring for Trucks

General Factoring companying Information

What is a factoring companying company?

A commercial finance company that specializes in the purchase of invoices or accounts receivable for cash.

How does factoring companying differ from bank funding?

Factoring companying companies make funding decisions based on the credit-worthiness of your customers; a bank makes a credit decision based on your company's financial history, cash flow and collateral. Because factoring companying is not a loan, no liability appears on your balance sheet.

Why would a company sell accounts receivable?

Some companies cannot afford to wait 30, 60, or even 90 days to be paid. They positive need cash flow to meet immediate financial demands such payroll and fuel expenses. Factoring companying helps provide this cash by funding the purchase of accounts receivable, often within 24 hours.

What companies benefit most from factoring companying?

Trucking companies benefit with cash flow and becoming part of a strong financial company, brokers and shippers benefit by freeing up their cash flow.

How will Freight Capital treat our customers?

Freight Capital collects from your customers in a professional and courteous manner. Due to our long history in the trucking industry, we have valuable relationships with many of the people you already haul for, making the whole process seamless.

How much does factoring cost?

Rates are based on individual and specific circumstances. Factoring rates depend on the credit-worthiness of your customers, your average invoice size, average payment cycle, factoring volume, and so on. In general, the cost of factoring is outweighed by its significant benefits; access to immediate cash, credit check analysis, collections, freight bill auditing, and reporting. Rates can be determined with a no-obligation application with Freight Capital.

What is the difference between "Recourse" and "Non-Recourse" factoring companying?

"Non-Recourse" factoring companying is when the factoring company takes the credit risk of the client's customers, which protects the client from credit loss. When an invoice is factored with "Recourse", it means the client is ultimately responsible for payment, regardless of whether the client's customer pays. At Freight Capital, we offer both "Non-Recourse" and "Recourse" factoring.

When is a factoring companying NOT a good fit for your business?

Your business has significant cash reserves free of cash-flow concerns.
Your business works almost entirely with less than credit-worthiness customers.
Your business operates on low margins.

How much money can I get from factoring companying?

We typically advance you between 80 - 95% of your receivables.

For example: if you have $100,000 in accounts receivable, you could immediately get up to $90,000 in working capital in less than 24 hours. The balance due to you of $10,000 (minus our minimal fees) will be paid to you when your customer pays the invoice.

What can I do with the additional cash I receive from factoring companying my receivables?

You can use the additional cash to meet payroll, satisfy operating costs, purchase needed inventory or equipment or just establish good credit for future expansion.

Factoring companying and Your Customers

Will my customers think I am in financial difficulty if they find out I am factoring?

Definitely NOT! A factoring companying is a viable financing option for many businesses and has been around for many centuries... As long as it is handled in a professional manner, your clients will understand you are doing what is necessary to create cash flow for your business. In addition, your customers will know that you will have the cash flow needed to take more loads from them without having to pay you for the first load… They like that.

If my customers know that their invoices are being factored, will they take longer to pay them?

No. More often than not, it is just the opposite. If your customer is a large corporation with its own invoice-payment policy, it will make no difference who the creditor is. If your customer is a smaller company, they will be inclined to pay faster knowing that we, as a factoring company, are a prime reporter of credit information and an influential credit-reference resource. This will benefit the customer by helping them build credit.

How will my customers know where to send the payment?

When you factor with Freight Capital, we send a notification letter to your customers identifying us as your funding source and request that all payments be sent to us. We spend considerable amount of time verifying receipt of this letter.

The Factoring companying Process

How long does the process take to get started?

Within 24 hours of receiving your application, we will send you a proposal. If it is accepted by you, we conduct due diligence and complete all documentation. Initial funding can be the next day. It will all depend on how fast you get documents and signed agreements to us.

Does Freight Capital require additional collateral when my company is factoring companying?

Never. We only require a first position on accounts receivable. Many factoring companies may take an available security interest in other assets of your company. Watch out for this.

Do I need to factor all my invoices?

No. You decide which invoices need factoring and which ones don’t

How will I know the status of my invoices?

Our online account management system allows you to securely access your complete account history in real-time, via the Internet, 24/7. You may view all aspects of your account including, but not limited to: invoice aging, reserve account, payment history, purchase and advance, concentration, and many more.

Can you supply me with references from existing clients?
Yes. Please call us today to get references. We are pleased to provide this service. Contact Rene Pacheco at (760) 496-0799. Mention your referral from CDLFreedom.com.

How do I receive the money from my factored invoices?

Wire
ACH (Direct Deposit)
Check
Fuel Card

CDLFreedom.com:
Address: 112 Bridge St., PO Box 77, Northville, NY 12134