Logistics Factoring
Freight Factoring for Logistics and Transportation Companies
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Freight Factoring for Logistics Companies: Accelerate Cash Flow & Scale Your Fleet
Waiting 30, 60, or even 90 days to get paid by shippers and brokers can stall your business growth. In the fast-paced logistics industry, operational expenses like fuel, driver payroll, and fleet maintenance don’t wait for invoice terms.
Freight factoring eliminates payment delays by converting your open accounts receivable into immediate working capital within 24 hours. You do the hauling; we handle the waiting.
Why Logistics Companies Choose Factoring
Maintaining a steady cash flow is the number one challenge for growing fleets and owner-operators. Our tailored logistics financial solutions keep your trucks moving.
- Immediate Cash Injection: Receive up to 95% of your invoice value advanced directly to your account within the same day of delivery.
- Credit Based on Your Customers: Approval relies on the creditworthiness of your shippers and brokers.
- Back-Office Relief: Stop chasing past-due invoices. We manage the collections and administrative paperwork so you can focus on route optimization.
- Fuel Card Discounts: Save on every gallon with integrated fuel advances and fuel card networks built specifically for truckers.
How Freight Factoring Works in 4 Simple Steps
- Deliver the Load: Your driver completes the delivery and gathers the signed Bill of Lading (BOL).
- Submit the Invoice: Upload the invoice and rate confirmation sheets through our secure platform or mobile app.
- Get Paid: We verify the details and advance your cash minus a small, transparent factoring fee (typically 1% to 5%).
- We Collect: Our professional team handles collections directly with your customer according to their net terms.
Choose the Right Protection: Recourse vs. Non-Recourse
We offer flexible factoring structures designed to mitigate risk across your lane operations:
- Recourse Factoring: Offers the lowest factoring rates available. Your logistics company assumes financial responsibility if a broker completely fails to pay the invoice.
- Non-Recourse Factoring: Provides maximum financial security. We absorb the loss if a debtor files for credit insolvency or bankruptcy, protecting your business from bad debt.
Frequently Asked Questions
Is freight factoring a bank loan?
No. Factoring is an asset sale, not a loan. You are selling your outstanding accounts receivable for immediate funding, meaning you accumulate zero balance-sheet debt.
Can I factor invoices selectively?
Yes. Our program offers flexible volume terms. Whether you want to spot-factor specific brokers or route your entire fleet's volume, we can customize a plan for you.
What are the setup fees?
We believe in absolute transparency. We feature zero setup costs, no hidden administrative fees, and no restrictive monthly minimum requirements.