We were recently contacted by a trucking company in California who had just been turned down by the bank for a line of credit. They were told they did not meet all of the bank’s requirements. One of their first questions for us was “will my transportation company qualify for freight bill factoring since I did not qualify for a bank line of credit?” Fortunately, in their case and for many transportation companies with a creditworthy customer base and unpaid invoices, the answer is YES!
Banks will consider whether your company is financially sound when deciding to approve a loan while truck factoring companies doesn’t look at the size of your business, your time in business or your creditworthiness. In fact, freight factoring companies look at the creditworthiness of your customers.
Factoring your freight bills is quicker and easier than you might think and will give you the working capital you need for fuel, maintenance, payroll and more. Once you deliver the load a factoring company, such as Tetra Capital, can make cash available to you from 65% to 95% of the face value of your unpaid freight bill within hours. The factoring company pays the balance, less a service fee, to you when your customer pays the invoice. While the factoring company waits to be paid, you have a large portion of your money to use as needed.
