Benefits of Freight Factoring

What is freight factoring? Freight factoring is simply the purchase of freight bills/accounts receivables, an essential financial tool for trucking and transportation companies.  Freight factoring eases the company's financial tension by funding their net 30-60 and even 90 day freight bills/invoices now - not when they're due!

With factoring, you focus on what you do best; getting and delivering your loads, sales, customer service and growth, and the freight factor focuses on what they do best, factoring/funding your invoices, and assuring that your steady cash flow continues!

With freight factoring, the strengths are in your receivables and the ability of the carrier or brokerage to generate eligible sales - not time in business or financial condition. And, with freight factoring you are not creating debt.

Freight factoring releases cash to bring your business plans to life; grab new opportunities; invest in new equipment, meet payroll and other expenses, or simply negotiate better terms for your business.  Factoring is actually healthy and an essential financial tool for trucking and transportation companies to maintain a steady cash flow.

A factor can fund most situations, including startup businesses, certain clients with poor credit or financial problems, tax liens or bankruptcies!  You can start the simple process at www.TruckApplication.com.

Starting A Trucking Company

Starting a trucking company can be very challenging, more so than most other businesses, on this posting we are including a couple of helpful links that may help with the formation of a trucking business.

How to Calculate Startup Costs for a Trucking Company
http://smallbusiness.chron.com/calculate-startup-costs-trucking-company-10176.html

Grants to Start a Trucking Company
http://smallbusiness.chron.com/grants-start-trucking-company-30793.html

Are truckers seeing an increase in loads?

U.S. Truck-For-Hire Tonnage Up 0.6% in February. The American Trucking Association's latest figures on US truck tonnage shows an increase for the fourth month in a row for a total 4-month gained of 7.7% total tonnage.  In February showing an increase of 0.6% and 1% in January. Optimism is high and we expect positive trends in transportation to continue.

Factoring Large Trucking Companies

(By Blog Contributor)

Is it really becoming more difficult for the larger trucking companies to factor?  A lot of the national factoring companies are limited on advances to $2,000,000 - $3,000,000, unless of course, you're a bank, but then you are going to face the bank's qualifying criteria, which may make it difficult for the struggling carrier to qualify.

Actually, it is not that bad, we found that there are many factoring companies that are advancing as much as $10,000,000, and although qualifying criteria get's tighter on higher advances, the focus still remains on the credit worthiness of the customer, so larger carriers and those that are struggling should not have a problem finding a reliable factor.