7 Basics to Know About Invoice Factoring

One of the keys to running a successful owner operated trucking business is to have on-time, accurate invoices for your jobs. Known as “trucking invoice factoring”, “freight factoring”, and “transportation factoring”, this financial service produces cash flow for your independent business so you have what you need to keep working without delay.

Unfortunately, there are those that try to take advantage of truckers. While they handle billing and collections, they charge astronomical fees and may even take an extended period of time to approve funding. Choose a partner like RoadEx who you can trust and count on to be there with your funding when you need it.

Transportation Factoring Principles

Here are seven basic principles to keep in mind when selecting a freight factoring company for your operation:

Contract Efficiency

A core function of transportation invoice factoring centers around the ability to quickly and efficiently complete the invoice process from start to finish. Your partner should have an easy-to-use system like a 24/7 online portal for submitting a factoring application, notifying you of approval, and producing an accurate factoring contract. They should also be able to perform customer credit checks and will collect on your invoices, providing you with payment after deducting a small fee that is transparent and done so at a competitive rate.

Automated Invoicing

The creation of automated invoices is critical to moving the invoicing process forward. Manual invoices are time-intensive and frankly, are a way of the past. With automation, you have the tools in place to quickly develop a custom invoice that will be sent through the proper channels and can be used for accurate billing and collection.

Same Day Funding

Invoice factoring companies for trucking earn their reputations on how quickly they can produce cash flow for independent operators. Select a partner who can provide you with same day funding. Having this access can make or break owner operated truckers who rely on billing and collections for their next haul. Reputable freight factoring companies won’t charge you an arm and a leg in factoring rates for this service.

Full-Service Invoice Factoring

Truckers don’t have time to complete collections on their invoices, nor do they have the capacity to spend hours and hours billing their customers. A partner who can handle it all and simply keep you updated will go a long way toward your ability to focus on the road, not the paperwork.

No Processing Fees

Many trucking invoice factoring companies may claim to offer you competitive factoring rates, but the rubber really meets the road when it comes to the additional processing fees. These are added fees that are often left out of initial view on purpose to hike up the price. Yes, freight factoring companies will charge a percentage from the invoice when purchasing from the driver. However, those are determined from rates that must be competitive within the industry and shown to the trucker well in advance. Find a factoring provider that has zero extra processing fees so you always know what you’re getting without the last-minute avalanche of bills to pay.

Traditional and Online Credit Checks

Before an agreement is drawn up for the customer who will receive the invoice, a professional invoice factoring partner should have the ability to perform both traditional and online credit checks. This is to determine whether the customer is creditworthy and will be a good candidate to do business with. Unfortunately, this is another area where certain companies may stall the process. Select a freight factoring partner with 24/7 access to perform credit checks as a broker.

A Friendly, Dedicated Account Manager

Invoice factoring should always be handled with excellent customer service. While friendliness and a smile are a given, this means a dedicated account manager will handle every aspect of your billing and collections while providing you with transparent information. Forget about rounding up your unpaid invoices or tracking down someone in the company to give you an update on when you will receive your funding. With an account manager, you have an open line of communication at all times, so you know how your business is being handled.

Partner with RoadEx

For immediate cash flow, experienced account management, no processing fees, and 24/7 access, partner with RoadEx for your trucking invoice factoring needs. We handle your billing and collections so you can focus on being your own boss. Additionally, our team provides owner operator truckers with a variety of other services such as dispatching, insurance, EFS Fuel Cards, affiliate support, and more!

Get your funds and let us handle your freight factoring. Contact us today to get started!

One call to 607-TRUCKER does it all!