7 Common Reasons why Trucking Companies Look for a New Factoring Company

When you need working capital for your trucking business, finding the right partner can be challenging. Many of our most satisfied clients have come to us after working with a different factoring company first. They come to us for many different reasons, but they all seem to come down to these 7 core factors:

  1.  Reserves. Some factoring companies will subtract their fee from the amount they advance to you, which is perfectly fine. The part most owner-operators and trucking companies don’t like is when they also hold an additional percentage as a reserve. This usually gives you 90% of the invoiced amount, leaving you with less cash flow and it can make keeping track of finances more difficult.
  2. Specified length of time contracts that automatically renew. Many factoring companies have lengthy contracts that automatically renew without notification. Many also come with huge early termination fees! Many carriers are unaware of this and are caught off guard. These types of contracts allow factoring companies to hold businesses hostage.
  3. Horrible customer service. Owner-operators and trucking companies like to have a personalized service. They prefer to work with someone that knows them and values their business.
  4. The requirement to factor every load. Some factoring companies require their clients to factor all their loads. Trucking companies and owner-operators prefer to have the freedom to choose the brokers that they want to factor and the ones that make the most financial sense.
  5. Minimums. Many factoring companies require carriers to meet minimums with regards to the amount of volume they factor per month. If you do not reach the minimums, the promised rate go up.
  6. ACH Fees (funding carriers checking account). Many factoring companies charge between $5- $15 per transaction. This can really add up over the course of a year.
  7. Flex Rates. Many factoring companies promise some amazing rate but they charge more and more the longer payment takes. This is not a flat rate and can really add up.

We do things differently and it shows!

In a recent survey of our clients, 94% gave us a 4-star rating and 87% said they would absolutely recommend us to a friend. Here are some reasons why our clients choose to partner with Tetra Capital utilizing our freight factoring services:

  1. We strive for complete transparency and do not hold a reserve.
  2. We don’t have long-term contracts. We are here when you need us and if you don’t that is ok too.
  3. Our clients get the personal attention they deserve. Our team knows our clients by name, not as an account number.
  4. With Tetra Capital, you choose which clients you utilize freight bill factoring for and which you don’t.
  5. Our freight bill factoring services come with no monthly minimums.
  6. We don’t charge fees for an ACH or Direct Deposit. In fact we don’t have any hidden fees including no Documentation Fee, Application Fee, ACH/Direct Deposit Fee, Filing Fee, Due Diligence Fee, Administration Fee or Termination Fee.
  7. At Tetra Capital we do not increase our agreed upon rate for any reason. It is truly a fixed rate.

Regardless if this is the first time you are considering trying factoring, or you have tried other factoring companies before, give us a call today. The Tetra Difference is sure to help you get access to immediate funds to cover expenses such as fuel, maintenance, insurance and more with service you will want to tell your friends about.

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About Matt Moore

Matt is an expert at helping transportation companies of all sizes grow by giving them access to the working capital they need. He has over 15 years in the financial services industry with 5 years in the transportation industry. He holds an MBA from the University of Phoenix and did his Undergraduate in Economics from the University of Utah.

View all posts by Matt Moore

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