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AltLine by the Southern Bank company was founded in 1936 Jan 1, in Gadsden, AL .
It allows business to sell their freight invoices before their due date at a fee or commission. This provides working capital or liquidity for trucking businesses.
altline customer or client requirement for factoring contract approval :
- Business revenue: $15000 in factored invoices
- Time in business: Not applicable
- Credit scores: Not applicable
- Additional qualifications: No
altline other customer or client requirements for factoring contract approval:
- Should be a B2B business
- Only one bankruptcy within the previous 12 months, multiple bankruptcies are not allowed
- No prior felonies committed
- No invoices with payment terms longer than 90 days
altline commission and interest rates:
- Credit Facility Size: Up to $4 million per month
- Advance Rate: 80%-90%
- Discount Rate: 0.5%-5% (upper limit includes late fees)
- Max Overdue Account: 90 days; 135 days for invoices made to large corporations
- Additional Fees: Expedited funding adds 1%
- Contract Length: 12 months
- Monthly Minimums: $15,000-$20,000
- Factor All Invoices: No
- Recourse Or Non-Recourse: Recourse
- Notification Or Non-Notification: Notification
After factoring with this you get an advance rate of 80 to 90%, which is in a range of $30,000 to $ 5 million. The money will be advanced to you in 24hrs. An 80% advance rate is the lower end of the spectrum and a 90% advance will help you to avoid cash flow or liquidity problems.
Most of the factors charge 1 to 5% of each invoice as a factoring commission. The factoring rate for this starts at 0.75% to 3.5%. The low starting rate is the best in the industry, but the actual rate charged depends on your trucking business and specific needs.
There are 3 different account-based lending products offered by this asset-based lending, accounts receivable financing, and invoice factoring. altline will customize its financial product based on your specific needs and requirements.
It has both contract lengths and monthly minimum, but it doesn't require you to factor in all of your invoices every month. But it won’t enter into a contract with a company with less than $15000/month of invoices or accounts receivables. For the length of 12 months (which is the contract term) you agree by signing the contract that this would be your exclusive factor.
It will usually allow a customer to exit the contract within the first two months if there’s a good reason.
The application process for altline factoring:
altline doesn't charge an application fee, for joining its factoring program. You can determine what your factoring rate will look like by requesting a free quote and details on its website. The quote request is a simple, straightforward, easy process that can be completed in a few minutes.
Ease of Application
Like most factoring companies, altLINE does not charge an application fee. You can request a free quote from altLINE’s website to determine what your rate will look like. The process is straightforward, simple, and can be completed in just a few minutes.
Once the quote is raised, an altline loan specialist will work with you to determine if factoring is the right service for your particular business needs. If you find invoice factoring to be the right service for now, you need to fill up an application. You don’t have to prepare a large amount of documentation for altline membership, as your customer credit score is their prime focus.
Once the invoice factoring application is filed it takes seven days to process and approve it, which is longer than the industry average. After approval invoices submitted are advanced in 24 hours.
Customer Support and Service:
Customer support is easy to access, robust and helpful. Because of this altline has a good reputation for providing top-notch support in the industry. We found that we are really helpful, and considerate and they are not salesy at all, they really help you solve your problem or challenge, by providing quality, concise and impactful information.
As of Aug 10, 2022, a line has an A+ accreditation with the Better Business Bureau. We posed as customers and enquirers with questions their service was easy to connect, transparent, and helpful and they provided detailed information on their website.
These are features that give altline brownie points:
Pricing of factoring: The commission or cut is affordable and pleasing to the truckers and owner operators.
Customer service: We found in our connection with altline that their customer service is pleasing, problem-solving, and considerate. Their customer service is excellent and they have thorough communication skills and they are also very responsive.
Reporting: The reporting system that altline has is very comprehensive and responsive. Customers point out these in their reviews. The customers are kept in the loop about their accounts.
Easy Onboarding: Several customers found altLINE’s application process surprisingly easy and painless.
altline factoring Limitations:
Our reviewers found that the only concern about altline is that they don’t provide nonrecourse factoring. This means you as a trucking company is at the risk of account chargeback if your customer does not pay on time. Nonrecourse factoring is pricey and has too many strings attached, this creates inflexibility for your company.
Some potential stuff to look out for from altline include:
The pace of funding: To get fast funds you need to pay an extra 1% as a fee, the altline is not the best in business when it comes to funding speed.
Customer Service size: Size and quality of customer service is an issue, it is hard to reach sometimes, and it seems like the customer service is smaller compared to other factors.
Qualification: Very small companies in the B2B sector with invoice sizes less than $150,00 may not qualify.
Also, another issue with altline we found was that it takes 7 days to process and approve a factoring application, which is far too long. But after approval of the account or after the first invoice is processed, the second invoice takes less than 24 hours for the invoice money to be credited to your account which is the industry standard
If you are looking for a Recourse factoring altline is one of the best options
altLINE is an excellent alternative lender with excellent factoring services. The sole complaint we found out is that initial funding can take up to seven days as the company finalizes your agreement and sets up your account. However, after your first invoice has been factored in, subsequent invoices take less than 24 hours to advance funds, which is the industry standard.
Is altline factoring right for your business:
altline by Southern Bank is easy to approach, comprehensive, and responsive brand that helps you to get liquidity from a great alternative lending brand.
altline allows you to factor what to really want to factor, you can factor high-value invoices. The rates a good and reasonable. The qualifications are forgiving and flexible, but very small businesses may not be able to meet the monthly minimum qualifications.
Overall, altLINE is a handy service that comes with minimal risk, and it’s just getting started.
altline has high-quality customer service and prices making it a preferred solution for small businesses.
Customer service is outstanding, the customer service team is knowledgeable and helpful, and always willing to go the extra mile when offering support.
Our reviewers found that the only concern about altline is that they don't provide nonrecourse factoring. This means you as a trucking company is at the risk of account chargeback if your customer does not pay on time. Nonrecourse factoring is pricey and has too many strings attached, this creates inflexibility for your company.
If you are looking for a Recourse factoring altline is one of the best options.
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