With numerous freight factoring companies out there how do you choose the one that will be the right fit for your company?
First, lets start with what is freight factoring? It is a financing option that helps transportation companies eliminate the 30-60+ days you have to wait for your customers to pay giving you access to the funds you need to pay for things such as fuel, maintenance, and payroll.
When choosing the right one for you there are many places to start but the best may be to consider what is important to you and your business in relation to terms, experience and included services, which are the three key areas most factoring companies differ.
Terms
One size does not fit all so you want to find a freight factoring company that will work with you on things such as how many loads do you have to factor, which loads do you have to factor, how long are you locked into a contract, how you can access the funds, what is included with their fee and what do they need to handle your funding requests.
Experience
There are two types of factoring companies out there, ones who don’t specialize in helping a particular industry but dabble in many and those who choose one or two industries to become masters of. So you can either choose a factoring company who does freight bill factoring or a freight bill factoring company. In the end it is important to work with a partner who truly understands your needs and can be an asset to your business.
Included Services
Some factoring companies will assist you with different office and financial aspects of your business. If you are a small transportation company or you are just looking for ways to save a little money, make sure you partner with a freight factoring company who can help you streamline the financial side of your business and provides the financial services that matter most to you. Some of the services that may be included are free credit checks, invoicing, processing, postage, collections and more.
