Freight Factoring

Are you in the transportation business? Do you know why you need freight factoring?

Let’s say you own a trucking company. And, like with every other business, one of your main concerns is cash flow. Because sometimes invoices are not paid on time or you have already agreed on the payment terms so you just can’t change them after the contracts have been signed. At least, you certainly can’t change the payment terms without renegotiating and all that it entails.

Your business needs liquidity, whether it’s for repairs or expansion or simply to meet payroll. Rather than sell off hard-earned equity or try to get a bank loan, why not consider transportation factoring? You need cash in order to keep your vehicles maintained and even help preserve the freight within them. Distribution factoring can help you do that.

But what is it, really?

Freight factoring is when you sell your invoices or accounts receivable to trusted truck factoring companies to get the money you need to continue financing your business. The invoices are then sold at a discount; with rates depending on the truck factoring company you are working with.

Transportation factoring is an easy process. Once you get an order from a customer, you then send the information to the factoring company for trucking. The transportation factoring company will then determine if that particular customer qualifies for freight factoring. This determination will include an analysis of the customer’s credit rating and whether they pay their invoices on time. Once you have completed your part of the service, your next step is to send the invoice(s) to the factoring company for trucking. Truck factoring companies offer a range of percentages of payment of the invoice’s face value. Here at Carter Funding, you can get up to 90%. Once the invoice is fully paid by the customer, you will receive the remaining balance.

Transportation factoring gets you an appreciable percentage of your invoice paid quickly. You will not have to borrow money or try to renegotiate terms, whether it’s your client’s terms with you or even your terms with suppliers and companies where you pay for goods and services.

Your business stays afloat. Your credit rating remains secure. Your company’s reputation improves. Your fleet is maintained and you always make payroll on time. Your employees never, ever have to worry about whether you can pay them. And your customers work with you, at a pace which works for them while your business gets the cash infusion that you truly need.

Here at Carter Funding, we can offer factoring for trucking business at rates as starting as low as 1%. And you know you can count on our reputation and experience. We have been providing creative client solutions since 1994, and our experience and attention to detail show in everything we do.

We know that new businesses in particular often have a hard time of it. It can be difficult to get through the first year. And even seasoned transportation business are affected by fluctuating fuel costs, ever-changing road conditions, and the pool of skilled employees in your area. Any of these issues and more can trip up your business and can bring it to the brink of failure. And nobody wants that.

Let us help you succeed.