We receive a number of questions from fleet owners about transportation factoring. Because of our long history with the trucking industry, and as a leader in transportation factoring services, we have put together a FAQ to help clear up some confusion about how the process works.
Is transportation factoring just for certain types of deliveries?
No. Whether you are delivering electronics, livestock, produce, automobiles, or anything else, you can use factoring services. The only requirement is a BoL that we can use to confirm pickups and deliveries.
I have a lot of unpaid invoices. How long will it take to convert them to cash?
This is not an unusual question. A lot of fleet owners devote a lot of time to tracking down payments from customers who are reaching the end of their payment windows. Transportation factoring from Express Freight Finance can convert backlogs of any size into working capital within 24 hours.
What is your payment plan like?
We don’t have a payment plan. Transportation factoring is an immediate process. You submit your unpaid invoices, and we deliver money to your account. It really doesn’t get any simpler than that.
Why not just get a loan or an advance?
Loans place debt on your books and negatively impact your credit ratings. Cash advances have high interest rates and a lot of hidden fees. Both require fleet owners to make payments over a long period of time, just so the lender can make the most off of the interest generated. Truckers don’t need those restrictions. Transportation factoring gives you the capital you need, so you can get back to running and growing your fleet.
How about insurance on customers?
Express Freight Finance includes checks on customers so you know if they are creditworthy before you do business. Many fleet owners get stuck holding the bag with bad customers, and our freight factoring program is designed to prevent that.
What about collection services?
Collection services exist to get fleets money on delinquent invoices, and they can add up to 45 days onto already late payments. Our transportation factoring services convert invoices to cash as they are generated, which completely eliminates the need for long waiting times, as well as collections.
Do you have more questions?
Express Freight Finance offers the most comprehensive transportation factoring solutions in the country. If you want to get access to the revenue you are owed without waiting, or if you have more questions about our programs, contact our offices today.