#Truck invoice factoring drivers#

When comparing different trucking factoring companies, one of the key considerations should be whether they offer recourse freight factoring or non-recourse freight factoring. Recourse vs non-recourse freight factoring The reason for the higher interest rates is the quickness with which trucking businesses can obtain the funds, as well as the relatively shorter repayment periods (normally a number of weeks, up to a few months). It’s important to note that transportation factoring comes at a cost – the interest rates for freight factoring are higher than some other types of business financing. In general, trucking factoring companies are meant for freight businesses that have difficulty dealing with unpaid invoices and non-paying customers. So if you’re searching for loan solutions for other industries, factoring services for trucking companies is not going to be applicable to your needs. On the other hand, it should go without saying that freight bill factoring is only useful for freight companies. Trucking factoring is one of the most flexible funding options in the sense that it can be used by any size of freight company for virtually any purpose. Plus, the size of your fleet of trucks isn’t going to change your ability to qualify for a trucking loan. Transportation factoring can be used for a wide variety of business-related expenses including (but certainly not limited to) hiring more help, scaling up the business, overcoming a slow season, and many more. Trucking factoring companies will typically provide borrowers with 80-90% of the total amount of all of their unpaid invoices in a lump sum, and then pay the remaining 10-20% after the customers have paid their bills. Freight bill factoring is a particularly useful financing solution for trucking businesses that have a significant volume of unpaid invoices. When it comes to meeting the financial demands that your trucking company faces, transportation factoring can be the solution that you’re looking for.įreight factoring (also referred to as trucking factoring or transportation factoring) is essentially a type of invoice factoring that is made available specifically to trucking companies. But that doesn’t necessarily mean your freight company will be immune to the difficulties that small trucking businesses regularly face. There’s no question about whether or not the transportation industry is booming – it is.

Over $700 billion in revenue is generated by the trucking industry every year.

#Truck invoice factoring drivers#

7.5 million people are employed by trucking companies, including 3.5 million drivers.

Here are a few quick facts to illustrate just how strong the transportation sector in the United States really is: The state of the trucking industry presents business owners with opportunities that are ripe and ready for the picking.

Reading Time: 6 minutes (Last Updated On: June 10, 2019)