Reliable truck factoring firms understand the elements of the trucking sector. As a trucking investor, you should partner with a truck factor who understands that the industry requires a combination of various aspects to succeed. Carriers employ factoring as a method of obtaining payments sooner after delivering loads. Truck factoring firms purchase a person’s invoices at a discount, hence giving a person instant cash for their invoices.
What is Truck Factoring?
Truck factoring offers instant cash for an investor’s unpaid freight invoices. This provides a person with an opportunity to receive money before their clients pay.
Many firms opt for freight factoring since it offers the cash flow needed in their operation. This facilitates their business’s growth.
Factors to Consider When Searching for a Truck Factoring Firm
Instant Payments
Reliable truck factoring firms deliver cash even within 24 hours. This allows the investor to continue running their business continuously and uninterrupted.
Ease of Approval
Partnering with a factoring company should be easy and quick. Regardless of a person’s rejection by other financial institutions, the best truck factoring firms should approve them without issues if their clients are creditworthy.
Customer Service
Customer service is also an essential element when choosing a truck factoring firm. For instance, a reliable truck factoring firm should assign their clients’ account managers to ensure everything runs smoothly on their behalf. They should also be available to respond to any queries raised by their clients.
Non-Recourse and Recourse Factoring
A person should have the option of selecting their preferred type of factoring. In recourse factoring, a person is liable for unremunerated invoices, while in non-recourse factoring, the factor is liable. Therefore, the factoring firm should explain how these factoring types operate and which one suits you best.
Extra Services
The best and reliable truck factoring firms should provide extra services for small fleets and owner-operators. These extra factoring services can entail:
Fuel card programs
24/7 online account access
Access to complimentary loadboard
Free credit checks
Specialized collections services
Insurance aid for new trucking firms
Choosing the best truck factoring firm requires a person to pay attention to essential elements, as seen above. For more details about truck factoring, reach out to us at Signal Peak Commercial Capital.