Freight Factoring Frequently Asked Questions. Freight Factoring is widely used by the trucking industry.

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Frequently Asked Questions About Freight Factoring

Freight Factoring (Accounts Receivable Funding) is a widely used financing alternative employed by the trucking industry and a viable financing solution for all types of businesses that extend credit terms to their customers. Here are some common questions our customers ask.

 

How can I contact TruckingFactor.com to get more information about Factoring my freight invoices?  Simply call us toll free at (877) 960- 1818 or click here.

How is accounts receivable funding different than a loan from a bank?  When making an accounts receivable funding decision, we will focus on the creditworthiness of your customers while banks will focus on your company's financial history and cash flow. Freight Factoring is not a loan and will not show up as debt on your company's balance sheet. We can make a quick funding decision, while banks may take weeks, even months, to approve a loan.

Will my company be eligible for freight factoring funding if it has a bank loan or line of credit?  If a bank has a lien on your company's accounts receivable, you should let us know right away. We will ask the bank to subordinate that lien. Some banks will accommodate the request and others may decline depending on your circumstances. Our number one referrals come from loan officers willing to help out the client in cash flow needs. They are very familiar with this kind of interim financing. The other alternative is to pay off the loan if there is plenty of receivables to leverage the buy out.

How do I apply for freight factoring from TruckingFactor.com?  Applying for a TruckingFactor.com FactorLine is a quick and easy process! The simplest way is to apply online by clicking here.  Always feel free to call us at one of our local office numbers or call us toll free, at (877) 960- 1818 and an account executive will assist you today.

Will you do business with a start-up company?  YES! TruckingFactor.com provides freight factoring based primarily on the financial condition of our client's account debtors (your customers), rather than upon the financial condition of the client itself. By providing factoring services on this basis, we can provide funds to our clients resulting in regular and predictable cash flows.

What if I have a prior bankruptcy or poor credit?  We can still help you. Our underwriting decision is based upon the credit strength of your customer accounts and the integrity of your billing process. Relatively little concern is given to your credit or your company's financial strength.

What will it cost me to factor my freight invoices?  In most cases, your cost will be less than it would cost you to offer a discount to your customer for early pay. Depending on various factors, our fees can start as low as 1.5 % to 3.0%! Call us today, toll free, at (877) 960-1818 for a no-obligation customized quote!

Once the facility is established, what is the turnaround time on getting funds?  Once established, advances can be made as frequently as desired by the client and on the same day the client submits its schedule of invoices.

Are we obligated to factor all of the accounts?  No. You are not obligated to sell any minimum volume of invoices.

Can you assist me in checking the creditworthiness of my customer accounts?  By collecting information from a variety of credit reporting services and private databases, we unobtrusively review the credit strength of our Client's customer accounts and regularly inform you of any potential conflicts.

Can I still collect the accounts or will my customer accounts be subject to aggressive third party collection efforts by TruckingFactor.com?  Yes, you can continue to participate in the collection process. In fact, TruckingFactor.com's clients are encouraged to participate in the collection process in the interest of preserving continuity with their customer relationships. As a financial incentive, the Client is rebated a part of the discount fee based upon a schedule of declining days outstanding.

Is TruckingFactor.com a broker?  No. Unlike most "factors" advertising on the web, we are not brokers. We are direct providers of funds, so we can give you quick and accurate answers.

Will TruckingFactor.com work with brokers?  Yes, Brokers like to refer deals to TruckingFactor.com because they know that TruckingFactor.com will treat their clients with the respect and professionalism that they deserve. Brokers also like Charter's strong reputation for providing quick answers. To become a TruckingFactor.com broker (or to refer a deal to TruckingFactor.com) call us, toll free, at (877) 960 - 1818 or click here.

Where are you located?  TruckingFactor.com Headquarters are in Houston, TX (Texas). However, we do business with growing companies all over the United States.  Major markets include: Dallas, TX; San Antonio, TX; Austin, TX; Atlanta, GA; Albuquerque, NM; Phoenix, AZ; Nashville, TN; Indianapolis, IN; Oklahoma City, OK.

What information will you need from my company to begin the accounts receivable funding process? A short application, your company?s most recent accounts receivable and accounts payable aging reports, Articles of Incorporation or d/b/a/ filing, a master customer list and a sample invoice.

Which customers would be good candidates for accounts receivable funding? Usually 80% of your business comes from 20% of your customers and these would be the most likely to factor, however, we will factor 100% of your customer base so long as they are credit worthy. In order to approve your customer base, we will need their names, addresses, phone numbers and the amounts of credit desired for each client. This will save you time when submitting invoices to us.

Can you purchase only a portion of my company?s invoices or one customer? Yes, so long as it is not a one time deal.

How long does it take to get approved? We can typically approve you within 24 hours of receipt of your application and supporting documents.

How long does it take to get funded? After you have been approved and all documentation is complete, we typically offer same-day funding.

What should I do if my customer mistakenly sends the payment to my company? The answer to this question will apply to any factor you deal with. This is very common especially with the first initial funding. If this occurs, the check must be sent to us immediately. Your company should never deposit invoice checks that were already purchased by a factor. Your customer will be notified to pay us directly in the future.

How can I be certain that your company will treat my customers well? The last thing we want is for you to lose a customer. We are not a collection agency. We will never harass your customers for money. Maintaining your customers? goodwill and confidence are of utmost importance to us!

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