Don’t Fight Slow-Paying Trucking Customers
Non-Recourse Trucking Factoring from Bankers Factoring
In 2022, the trucking industry dominated with over 70 percent of freight transportation in the USA, leaving owner-operators needing working capital to fight slow-paying customers. Thus, Accounts Receivable (A/R) Factoring with Bankers Factoring provides trucking companies, owner-operators, and over-the-road (OTR) haulers with an instant cash injection.
Trucking factoring is also referred to as freight bill factoring or OTR factoring. Unlike traditional financing, Factoring does not force you to take on debt.
You can still accept new business, make payroll, purchase fuel, vehicle repairs and maintenance, and other expenses with AR Factoring. AR Factoring with Bankers Factoring is simple – we buy your invoices (A/R) and provide you with a cash advance the same day.
What is Freight Factoring?
Freight Factoring is when a load or haul is delivered to its destination. The transportation company then sells the invoice to Bankers Factoring. AR Factoring allows transportation companies to sell their accounts receivable as an asset to Bankers. We then instantly cash advance up to 90% of the total value.
To learn more, visit our previous article, What is Freight Factoring.
The process of truck factoring is simple:
- Driver hauls and delivers loads for customers
Work is delivered, and an invoice is generated
- Send a copy of your invoice(s) to Bankers Factoring
The client submits a copy of the freight bill to the trucking factoring company for verification
- Get paid up to 96% of the invoice’s value
We advance the client up to 96% of the invoice’s value within 24 hours
- Bankers collect payment from your customer.
The customer sends payment to the Bankers Factoring
- Bankers send your final payout or the rebate
We pay out the remainder of the invoice value, less our factoring fees, to close the transaction
Freight factoring is suitable for all types of transportation businesses:
- Owner-Operators
- Small to Mid-Sized Fleets
- Freight Brokers
- Auto Haulers
- Dump Truck Services
- Oilfield Transportation
- Hot Shot Trucking
- OTR & Local Carriers
- Intermodal & Containerized Freight
Who qualifies for Freight A/R Factoring?
Suppose your transportation, trucking, or freight forwarding company has completed hauls for business-to-business (B2B) or business-to-government entities. In that case, we can help you close your cash gap.
AR Factoring enables freight companies to no longer wait 30, 60, or even 90 days to get paid. Instead, you benefit from an immediate cash injection by selling your invoices to Bankers Factoring without taking out a loan.
Not only do owner-operators, fleet companies, and brokers qualify for accounts receivable Factoring, but so do small businesses and entrepreneurs with poor credit and distressed financial situations.
A/R Factoring does not look at the business owner’s personal credit. Instead, Bankers Factoring analyzes your customer creditworthiness since we are buying their invoices.
If you want to learn more, then please visit our previous article, Transportation Factoring Pitfalls.
Why Bankers Factoring?
Accounts Receivable Factoring for trucking and transportation companies is easy with Bankers Factoring. We offer a quick and easy approval process with same-day funding. Our proven process adds more than working capital to your freight business and is why our customers think we are the best trucking factoring financing source.
What are the benefits of AR Factoring with Bankers?
- Unlimited access to working capital
- Same-day funding
- Online application process
- Local offices across the country
- Competitive rates
- We take on the credit risk
- Flexible options
- Great for growth
- AR Management
- 24/7 online reporting
Trucking Factoring FAQ
Why should my company factor its invoices?
Accounts receivable Factoring provides an immediate source of cash. AR Factoring eliminates the waiting period for payment after the haul is delivered.
How are rates determined?
AR Factoring rates determine the overall associated risk of the invoices. Some main factors include total monthly volume, average invoice amount, average time for customer payments, and portfolio of companies comprising the A/R asset.
What is the difference between recourse and non-recourse factoring?
In non-recourse Factoring, Bankers Factoring provides credit protection, covering if your customer fails to pay. Conversely, in recourse factoring, the client who sells their invoices is responsible for non-payment.
Are there other benefits besides fast cash?
With Bankers Factoring, we provide a total A/R management solution. Our 24/7 online reporting portal gives our clients access to their inflows. We provide back-office support by managing the receivables process and evaluating the credit of your accounts.
Is AR Factoring different from a bank loan?
Yes! With accounts receivable Factoring, you are selling your invoices. With a bank loan, you receive money that needs to be paid back over time. AR Factoring is not debt on your balance sheet; it is a cash flow solution, and you only pay the factoring fee.