4 Tips to Choose a Freight Factoring Company

Owner-operators must remember that not all factoring firms are synonymous when deciding on the best freight factoring company. Select an ethical and reputable company that understands your business and adapts your specific requirements.

This post has four tips to narrow your search while selecting a factoring company:

1. Flexibility: Some factoring firms need a minimum volume and a minimum number of every month’s invoices. It is essential to ask about the upfront as there can be instances where you can factor in your slow-paying consumers. The best way is to select a factoring company that permits flexibility to pick the invoices you prefer to factor in.
2. Industry Knowledge: Choosing a freight factoring company that values your demands in the trucking industry is essential. Make sure your factoring firm knows the ins and outs of your business and provides flexible solutions tailored to your trucking services. It enables you to pick the firm suitable for your business.
3. Customer Service: A factoring company that provides 24-hour online account access that allows you to see exactly where your funds are in the factoring procedure is what you choose for your business. If firms don’t provide it, they lack critical tools to support your project. Learn about such things before making a final decision. No need to work from 9-5 or your factoring company.
4. Recourse Vs. Non-Recourse: Factoring firms receive two types of accounts. They are recourse and non-recourse. Factoring with recourse allows clients to buy back an invoice from the factoring company if the invoice is not paid on time. Non-recourse factoring company. Alternatively, non-recourse factoring means the factoring considers the risk for a non-paid invoice. Does the factoring firm offer non-recourse agreements for certain invoices? You may want the extra shield and peace of mind that a non-recourse agreement can provide. Therefore, it is vital to pick a freight factoring service suitable to your needs.

Your factoring invoices can help your business with cash flow as factoring allows you to utilize the advanced funds to meet your fuel demands or other business expenses. Therefore, choose your factoring company wisely and with the smart guide discussed above.