What is Freight Factoring?
Freight factoring ensures your company has the proper capital to cover overhead costs, pay employees, and materials needed for your business.
Imagine this for a moment. You’ve been on the road for hours. Your belly, tank and wallet are all running on E. Then, after safely delivering your load on time you hear the words no one wants to:
“Sorry, I can’t pay you for another 45 days.”
Your heart sinks.
“Another late payment?” you think to yourself. “I can’t keep my business running like this.”
Freight Factoring is the Solution
Freight Factoring can solve this problem! After you’ve delivered your load the freight factoring company will pay up to 80% of what the a company owes you. A company pays the factory company who then gives you the difference for a small fee.
Ever dealt with a company who keeps putting off payment? No one likes to make that uncomfortable call. With a freight factoring company, you won’t have to. Not only will they collect payments, they’ll be able to see which companies are credit worthy enough to work with and will handle all calls on payments. Factoring frees up more time for you to focus on delivering quality business that the companies you work with expect.
“You’ll have cash ready to use within 24-48 hours.”
Invoice Factoring versus Truck Factoring
If you’ve heard these words and would like to know more, don’t worry. First Capital Business Finance is here to help. Invoice Factoring and Truck Factoring all work together under the same umbrella term of Freight Factoring.
Here is how it works. Once you know an invoice won’t be paid quickly, you can sell the invoice to a factoring company like First Capital. You’ll have cash ready to use within 24-48 hours. Then, we’ll collect the payment and give you the remainder minus a small fee. The best part? The only requirement for freight factoring is good credit from the company you’re working with, not yours.
“Freight Factoring will keep your belly, tank, and wallet at F instead of E.”
The main goal of Freight Factoring is to get you the finances you need to keep your belly, your tank, and your wallet at F instead of E. Never again will you wonder when you’ll be paid. With Freight Factoring you’ll have a steady flow of capital so you can keep on trucking.
Did you know that your payment can be split into different payment types. With Freight Factoring, instead of putting your hard earned money into one payment method, you can split into several. Some money could go to your business bank account, some to your personal card, and some to your fuel card. The options are up to you!
Typical profile of our factoring clients:
|Facility Size:||$10,000 – $15 million|
|Annual Sales:||$300,000 – $50,000,000|
|Advance Rate:||Up to 90% of eligible accounts receivable|
|Public or Private Companies|
- Expedited Decisions
- Line of Credit up to $15 million
- Optional Programs Offer No Facility Fee
- Optional Programs Offer No Monthly Minimum
- Ability to lending in over 17 different foreign currencies
- Ability to fund against domestic & foreign accounts receivable & inventory on recourse & non-recourse basis
Contact First Capital Business Finance to learn more about Freight Factoring.
Contact First Capital for Freight Factoring and get pre-approved today!
Are you a growing company with bills to pay? Are you looking to expand your business but need a flowing stream of cash instead of a trickle?
Call us today at 888-939-1036 or contact us online. We will get the information we need from you, answer any questions you may have and thoroughly explain the entire process. Hopefully, as you ease your mind, we will be able to help you take care of your slow cash flow situation and get you on your way.
What is Freight Factoring? | First Capital Business Finance