Not all freight bill factoring companies offer transportation companies the same terms when providing them with the working capital they need. With that, there are certain terms that can benefit your transportation company more than others. Here are just a few to consider.
No long-term contracts
If your partnership with your freight bill factoring is not what you would hope or you no longer need the cash flow assistance you should have the control to make changes and not be locked into a contract that is no longer working for you.
No monthly minimums
Factor what you want and when you need to you know your business better than anyone and you may not need to factor every load.
No hidden or extra fees
When you partner with a freight bill factoring company you should know what to expect and not feel nickel and dimed. Make sure there are no hidden or extra fees including documentation fees, application fees, ACH/direct deposit fees, filing fees, due diligence fees, administration fees and termination fees.
Competitive pricing and various pricing structures based on YOUR business and the shippers/brokers you work with. Some brokers pay much sooner than others. If this is the case, the risk to the factoring company is less and the time frame the funds are outstanding can reduce your price significantly.