factor loads – Blog

Freight Factoring is a process by which the trucker can be paid immediately after delivering the load he has just transported. Independent truck drivers or smaller companies hire a factoring company to handle the collections on invoices. The factoring Company pays a portion or full amount of the freight bills minus their fees up front. Sometimes the factoring company holds the remainder in an escrow account, which cannot be touched until the company gets the receivables. This gives the trucker the needed cash for expenses he has incurred or will incur on the way home or to haul another load. The factoring company is then responsible for collecting on the bill. It might incur hiring legal help to collect on this debt or the customer may not pay for months at a time. By having a factoring company to handle all this, the independent trucker is free to get back on the road with further assignments.
Factor Loads factoring company is not a bank. They know it is important to keep truckers on the road. It is important to have a factoring company who understands how your business works otherwise they could not handle the finances of your business properly. Factor Loads is a master in the field because it is set up by the industry experts. They decided to fill the need of fellow truck drivers and owner operators like themselves.
The account management program offered by Factor loads can be found on their website and viewed at any time to keep the record of the account anytime you require.
The company offers non-recourse factoring programs that are mostly focused on owner-operators and small trucking companies. With non-recourse factoring, you will be paid on the same day the freight is factor through Factor Loads. You need not fear of the losses if the customer pay or does not pay as the bad debts will not be reverted to you.
Benefits of working with Factor Loads as compared with traditional freight factoring companies is that Factor load provides customized factoring service which is based on customer by customer and load by load. This will enable you to transact your reliable customers yourself and others you can get factored. You can access the database of your customers which are pre-approved. The factoring company will make the process very convenient for you with no freight bills requirement, no hidden fees and no monthly minimum bills to be factored. It is ideal for owner-operators and small carriers who are unable produce same volumes every month. Larger companies can use the services in the time of deficit.
The company offers new incentives as the fuel and maintenance discounts for your carriers. The spot factoring feature of the Factor Loads will help you to concentrate on the key areas of your business. This will give you the liberty of which invoice is to be factored at what time to maintain the efficient cash flow to your business. By factoring with Factor Loads you also get a complimentary loadboard account to ensure owner operator job flows.

If you are in to some trucking business then this article will help you a lot to improve your business skills and business itself. Most of the times the cash flow of the shipping and trucking industries gets interrupted because they wait for the payment which is to be paid by the enlisted companies who utilize their services. So to avoid this interruption of cash flow freight factoring is utilized.

In freight factoring the truckers are immediately paid after they have completed their work. And this payment is not concerned with the payment of the shippers for which they are actually working. The freight factoring companies like Interstate Capital firstly purchases the shipping company’s invoices and then releases funds for the carriers. Shipping companies then pay to their invoices within 30 to 40 days. The owner operators in the trucking companies keep repairs, salaries, maintenance and fuel in their minds because these are the most vital expenditures of any trucking company. And these expenses are needed to be full filled regularly after a particular time interval. Utilizing freight factoring can help you to get the payment on time to full fill all these basic expenses
Now days this freight factoring facility is also available online you can utilize facility of freight factoring by simply getting an access to the internet. You have to invoice your trucking company with the freight factoring facility providers online and they will pay you the amount immediately. Among this freight factoring providers’ one name is “interstate capital”, which is a reliable online factoring facility providing company.
Interstate Capital provides categories of freight factoring facility depending on the size of the business and automobiles used for shipment or utilized in business. They also provide fuel advances up to 40 % which helps to manage the expenses of the trucking company. Factoring rates per invoice starts at as low as 0.49% per invoice. They will mail you the invoices regularly so that you must be informed. The company provides 24/7 access to the invoice records and reports through an efficient online system. Freight factoring is more reliable than taking loans, because of the fact that the Interstate Capital charges according to the payer’s payment scale and then makes their decisions. And it is very easy to get factoring as compared to getting the loan for your business because while getting loan you have to full fill certain formalities, while Interstate Capital online proposal takes just 2 minutes. And it takes only 3 business days to fund the freight companies.
While availing the freight factoring facility, Interstate Capital provides you with the professional services of preparation of the invoices, their postage and collection. The company also provide you funding without considering the original bill of shipment and the fund transfer is also online, so it is completely electronic, which is the need of recent times. The payment is posted every day on time with out any delay. There we see that Interstate Capital gives fast and efficient solutions for the smooth running of the trucking business.
Get more of information on freight factoring at our Freight Load Board.