Truck Factoring: COMPARE, CHOOSE AND APPLY FROM THE TOP FACTORING PROGRAMS FOR TRUCKING
Type of Factoring
Recourse
Non-Recourse
Who is it for?
- Owner-operators
- New Carriers
- fleet owners
- Transportation Companies
Type of Vehicle?
- Power only
- Dry Van
- Reefers
- Flat beds
- Box Trucks
- Hot Shots
Why Trust MT?
- Secured
- Experiential
- Transparency
- All Over USA
- MT Buddy Assist
What is Truck Factoring
Truck 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.
Liability of the freight bill/invoice still lies with the carrier or owner operator. In case the freight broker goes bankrupt, amount is charged back by the factoring company.
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.
Booked
Factoring Rates
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.
Highlights Of our Truck Factoring Programs
- Factoring Type: Non-Recourse(100% protection form broker failure) & Recourse
- Rate - Best in Industry
- Same Day Funding
- Customer Support - Dedicated Account Manager
- Value Adds - Fuel Card, Fuel Line of Credit, No Minimum Invoice Value, etc.
- Contract Period - Month on Month (No lock-in for months or years & no termination charges)
- NO HIDDEN FEES
Highlights Of our MaxTruckers Truck Factoring Proposals
- Multiple Truck Factoring Proposals
- From Top-Rated Truck Factoring Companies
- 100% Verified Companies
- 5 Star-Rated Factors
- Recourse & Non-Recourse Truck Factoring
Advantages OF choosing Factoring with MaxTruckers
- Impartial, fair, and FREE consultation
- Proposals designed as per your business nature
- Multiple factoring proposals
- 100% Pre-verified, handpicked & trustworthy factoring companies ONLY
- Dedicated MaxTruckers buddy for factoring consultation
- Regular quality check of the factor
FAQ'S
Imagine you deliver a load of toys and the store owes you $5,000. With factoring, a company acts like a middleman. You sell them your invoice (basically a receipt saying you delivered the load). They give you most of the money upfront (let's say $4,000) and then collect the full amount from the store. It's like having a friend who can spot you some cash until payday!
- Be your boss, on your own time: No more waiting weeks for your money. You can use it to cover expenses like fuel, repairs, or even your family groceries. This means more control over your finances and getting back on the road faster to take on new adventures!
- Keep your truck rollin': You won't have to wait on payments to take on new loads. It's like having a full gas tank – you're always ready to hit the ground running and keep your business moving forward.
- Peace of mind: Factoring companies sometimes deal with collecting from slow-paying customers. So, you can focus on what you do best – driving safely and delivering those loads – while they handle the sometimes-tricky task of chasing down payments
- Find a factoring company: Think of them as your financial pit crew. They'll be there to help you get the cash you need, but there is a small fee for their service.
- Deliver your load and get your invoice: This is like a receipt with all the details of the delivery, like the pick-up and drop-off locations, and the total amount owed.
- Sell your invoice to the factor: They'll give you most of the money upfront (usually around 70-90%). Think of it like selling a winning lottery ticket – you get most of the prize money right away!
- The factor collects from the store: They handle contacting the store and getting your full payment. So, you don't have to worry about any awkward phone calls or chasing down that check.
There are fees involved, but they can be a good investment. Think of it like paying a little extra to get your money much faster. It's like paying a toll booth to get on a faster highway – you might spend a little extra upfront, but you save time and get to your destination quicker
You can choose which invoices to factor. It might be a good idea for loads with customers you know are slow payers, or when you need a cash boost to cover unexpected expenses. Think of it like having a toolbox – you only use the specific tool you need for the job
Recourse vs. Non-Recourse: This is like deciding who's on the hook if a customer doesn't pay. With recourse factoring, if the store doesn't pay, you might have to buy back the invoice from the factor.
Non-recourse means the factor takes the risk – they can't come to you for the money if the customer doesn't pay (but it usually comes with a higher fee). Think of recourse like borrowing money from a friend – you gotta pay them back for sure. Non-recourse is more like hiring a bodyguard – they take the risk of getting hurt (not getting paid) while protecting you.
The fee depends on the factor company, your credit history, and the size of your invoice. It's usually a combination of a factor rate (a percentage of the invoice) and a flat fee. Think of it like a restaurant menu – there are different options and prices depending on what you order.
It's usually pretty simple. You'll need to fill out an application with the factoring company and provide copies of your invoices and business licenses. Imagine it like getting a library card – just a few basic things to get started.
Once your invoice is approved, you can usually get your cash within 24 hours! That's like getting paid lightning fast compared to waiting weeks for a slow customer.
Most factoring companies have requirements, like being in business for a certain amount of time and having a minimum monthly revenue. Think of it like a rollercoaster – there might be a height restriction to ride (business requirements)
Fees: Compare rates and fees from different companies to find the best deal. Shop around like you would for the best gas prices!
Customer service: Make sure the company is easy to work with and responsive to your questions. You want a factor that feels like part of your trucking team!
Experience: Look for a company with experience in the trucking industry. They'll understand your specific needs and challenges. Imagine going to a doctor who specializes in treating truck drivers – they'll know exactly how to help you!
Yes, factoring is a safe and legitimate way to get paid faster. Just do your research and choose a reputable company. Think of it like using a well-known bank – they're there to help you manage your money securely.
Remember, factoring can be a powerful tool for your trucking business. By understanding how it works and asking the right questions, you can make informed decisions and keep your wheels rollin' on the road to success!
Are you an Owner Operator or New Carrier? Receive a complimentary Start-Up valued at $1500 to Grow your Business and Maximise Profits. Features of Start-Up kit:
- Benefit from access to multiple FREE Fuel Cards. Additionally, opt for an optional fuel line of credit up to $6,000 per truck weekly. Save an average of 20-42 cents per gallon at over 1,400+ locations, including TA®, Petro Stopping Centers®, TA Express®, AMBEST, Sapp Bros., Road Ranger, Roady’s, PWI, Love’s, Petro, Speedway, and more (Guarantee provided). Plus, enjoy an average savings of $40 per tire and more!
- Get 10% off for an entire year on DAT Load Board — the premier marketplace for freight loads and trucks, boasting over 900,000 loads daily.
- Obtain a FREE list of 300 VERIFIED brokers who actively partner with new owner-operators.
- Experience priority in MT Speed, our award-winning dispatch services, with special discounted rates.
- Introducing the MaxTruckers Referral Program: Refer a friend for factoring and earn $150 per successful referral. Potential to boost your income by over $1000 monthly.
- Gain access to FREE Knowledge Resources from MaxTruckers, designed to guide you in growing your business.
