Oct 10, 2017 • Carriers

Freight Factoring Process

Freight Factoring Process

Here’s a step-by-step guide to better understand the freight factoring process and how it can be beneficial for your trucking company.

Freight Factoring Process

The freight factoring process might sound complicated and even overwhelming but it doesn’t have to be. It can be better understood by following our easy to follow guide, along with choosing a freight factoring company like InstaPay. that makes the process of getting paid easier than ever!

What is Freight Factoring?

Freight factoring is the process of selling accounts receivable (freight invoices) for a discounted price so owner operators don’t have to wait over a month to get paid. It’s a finance solution that allows your trucking company access to immediate funds without having to deal with banks, collateral or interest charges. It’s the best way to streamline your cash flow.

When you choose to factor your freight invoices, your credit score does not matter, nor does the size of your business. Freight factoring is based on your client and non-recourse freight factoring with InstaPay means you don’t have to worry about collecting from your clients either. To put it simply – send your docs and get paid immediately!

Overhead costs can pile up and put your trucking company at risk. Diesel fuel prices aren’t going down significantly anytime soon and if you have used trucks in your fleet, repairs can cut into any potential profit as well with costs upwards of $.15 cents per mile according to the American Transportation Research Institution.

If you want to know more about freight factoring in greater detail, check out our breakdown of the advantages of freight factoring.

Freight Factoring Step-by-Step Guide with InstaPay

1. Finish hauling your load

2. Take a picture of your Bill of Lading and Rate Confirmation and email them to InstaPay, right from your phone

3. Wait for a response with the factoring agreement from InstaPay

4. Agree to the terms (no minimum commitments or hidden fees)

5. Sign-up (if you haven’t already) and provide information for bank deposit

6. Get paid within a day and let InstaPay handle collections

It’s that easy! You (and your fleet of drivers) work hard and make tremendous sacrifices to ensure freight is delivered in a timely manner. Without your dedication, America couldn’t function the way it does now. It’s why you shouldn’t have to wait to get paid.

Try freight factoring with Trucker Path InstaPay and expand your business, hauling more freight.

[button text=”Sign Up For InstaPay” href=”https://www.getinstapay.com” width=”250px”]

TagsFreight Factoring

Industry Update - December 5, 2019 <h4><strong>By Paul DeCoste</strong></h4> <h3><strong>Did you Know?</strong></h3> It is a safety violation to replace your truck seat with a <a href="https://cdllife.com/2019/nebraska-state-patrol-finds-unusual-violation/">lawn chair…</a> <h3></h3> <h3><strong>Weather Report</strong></h3> Pennsylvania and New Jersey have <a href="https://cdllife.com/2019/states-issue-truck-bans-ahead-of-snow-storm/">issued travel bans for vehicles</a> in lieu of a massive snowstorm. Vehicles affected are double trailers, empty trailers, RVs, motorcycles, and non-commercial vehicles hauling trailers. This travel ban went into effect at 6 AM on Monday, December 2<sup>nd</sup>. <h3></h3> For more information on which roads are blocked from travel, take a look at the Pennsylvania DOT Facebook page: <a href="https://www.facebook.com/PennsylvaniaDepartmentofTransportation/">https://www.facebook.com/PennsylvaniaDepartmentofTransportation/</a> <h3></h3> <h3><strong>Regulations</strong></h3> California Air Resources Board (CARB) has announced that it is <a href="https://www.ttnews.com/articles/carb-suspends-imminent-ghg-rule-trailers">suspending the enforcement of its greenhouse gas trailer standards.</a> The original standards could be met by adding features to trailers that reduce aerodynamic drag, upgrade the tire pressure monitoring system, introduce low-rolling-pressure tires or other weight reduction methods. <h3></h3> These standards were set to go into effect on January 1<sup>st</sup>, 2020 and had to be met by manufacturers of new trailers. However, due to the lack of federal enforcement and confusion among the definition of a “new trailer”, the CARB has suspended the implementation of these rules for the next two or three years. <h3></h3> <h3><strong>ELD Update</strong></h3> The Commercial Vehicle Safety Alliance (CVSA) is warning <a href="https://cdllife.com/2019/cvsa-warns-truckers-no-soft-enforcement-for-eld-deadline/">that there will be no leeway on December 17<sup>th</sup></a> for drivers that have no transitioned to approved ELDs. <h3></h3> Look out drivers! The CVSA says that on December 17<sup>th</sup>, any driver caught without an FMCSA approved device will be considered to have no record of duty status and will be declared out of service for 10 hours. That’s valuable time that no one can afford to lose! Make sure your ELD is in line with the FMCSA rules: https://www.fmcsa.dot.gov/hours-service/elds/general-information-about-eld-rule <h3></h3> <h3><strong>Trucking Industry Serving the Community</strong></h3> Truckers serve the community in many different ways and styles. <a href="https://www.trucker.com/drivers/drivers-industry-leaders-lead-through-charitable-work">Here are just a couple of foundations making a difference this Christmas season:</a> <h3></h3> <ul> <li><strong>The Convoy of Care</strong> – Founded in 2016, Convoy of Care delivers critical supplies to families in need after natural disasters. They have delivered supplies to multiple states across the US and even found a way to get supplies to the Bahamas.</li> </ul> <h3></h3> <ul> <li><strong>The American Logistics Aid Network</strong> – The ALAN provides free logistics support to disaster relief organizations before, during and after natural disasters.</li> </ul> <h3></h3> <ul> <li><strong>CFI</strong> – CFI has been donating through its Truckloads of Treasure event since 1993 and has collected over $800,000 in donations from employees and contractors alike. They choose multiple charities to support each year and even hold fundraising events like chili cook-offs, silent auctions and ugly sweater contests.</li> </ul> <h3></h3> <ul> <li><strong>XPO Logistics</strong> – XPO supports the Ohio based non-profit, Elves and More which helped surprise over 800 children with bikes during the 2018 holidays. They even donated 500 bikes for a Christmas in July event this past summer.</li> </ul> <h3></h3> <ul> <li><strong>Wreaths Across America</strong> – Drivers throughout the industry look forward to participating in Wreaths Across America, a foundation that coordinates wreath laying ceremonies at more than 1,600 locations across the nation. Drivers support by delivering wreaths to different locations and even participating in the wreath laying events.</li> </ul>

Dec 05, 2019 • Carriers

Factoring Costs - Comparing Factoring Rates [p] Freight factoring can be advantageous to your trucking company but there are some factoring costs that are misleading and comparing factoring rates as well as their offer details can help you maximize earnings. [/p] [h2] Factoring Costs [/h2] [p]There is more to the factoring cost than the factoring rate offered in<a href="https://truckerpath.com/blog/freight-factoring/"> freight factoring</a>. Freight factoring provides owner-operators an opportunity to better manage their cash flow and eliminate waiting to get paid. Factoring companies offer rates based on a variety of factors but there are several things you must understand when talking about the factoring cost.[/p] [p]Some require specific qualifications a client must meet to earn the best possible factoring rate. Others might require a specific volume of loads or long-term commitments (not quite 'til death do us part but nonetheless). Sometimes the lowest factoring rate won't provide you with the lowest cost to factor. [/p] [video id=IBCMtru_QMQ] [h2] Comparing Factoring Rates [/h2] [p]When comparing factoring rates a 1.5 percent factoring rate can cost more than 3.5 percent rate. Yes, you read that correctly. It's entirely possible that a lower factoring rate can actually cost you more. Let's say Factoring Company A who is offering a 1.5% rate and Factoring Company B is offering 3.5%. You're more inclined to factor invoices with Factoring Company A because the rate is better right?[/p] [p]While Factoring Company A's rate is lower, the overall cost to factor is not. This is due to fine print in Factoring Company A's contract where it included a variety of fees and commitments from you.[/p] [p]By breaking down the additional factoring fees and including them with the factoring rate we can compare the true factoring cost and decide which option is best for you. In this case, Company B would be the best freight factoring company for your trucking business. [/p] [img src="/uploads/2017/06/factoringrates.png" alt="My image"] [h2] Understanding the Differences When Comparing Factoring Rates [/h2] [p]Not all factoring rates are created equal. If you are interested in using a freight factoring company to help your cash flow, comparing factoring rates and determining the actual factoring cost can save you thousands. Some factoring companies aren't transparent and hope you won't see through some of their additional fees that lead to a higher factoring cost to you. [/p] [p]Remember to always read the <a href="https://truckerpath.com/blog/hidden-costs-to-factor/">fine print to avoid those hidden fees</a> in your factoring contract and understand the details that could lead to additional fees before committing to factor with a company. [/p] [p]Factoring companies like Trucker Path InstaPay offers non-recourse factoring with no commitment or fees. IntsaPay is completely transparent and you can easily get paid in a day by factoring right from your phone. It's perfect for owner-operators with a simple flat rate and no additional costs. [/p] [button text="MORE ABOUT INSTAPAY" href="https://truckerpath.com/sign-up-instapay/?utm_source=blog&utm_medium=ctacomparingratesJuly24" width="250px"]

Jul 25, 2017 • Carriers

Freight Factoring Fees [p]Some companies will charge freight factoring fees compounding the actual factoring cost for your trucking company to factor a load. [/p] [h2] Freight Factoring Fees [/h2] [p] Review the fine print of freight contracts and understand the factoring fees that sneaky freight factoring companies sometimes have hidden from the advertised factoring rate. [/p] [p]Freight factoring can be a great tool to streamline your cash flow and grow your business as it eliminates the wait to get paid for owner-operators. However, some factoring companies have contracts with complicated jargon and disclaimers hidden in the fine print. [/p] [h2] Hidden Costs and Factoring Fees [/h2] [p]Sometimes a factoring company will advertise a great rate, far lower than any competitor. It's a perfect scenario for you, right? Well, not exactly. [/p] [p]Those rates that seem too good to be true are typically just that. Although a low rate is optimal, the associated factoring fees that you will incur in addition to the rate can balloon the overall cost for you to factor. [/p] [video id="IBCMtru_QMQ"] [h2] ACH Transfer Fee [/h2] [p]ACH Transfer fees can be issued each time you factor and range from $10 to upwards of $25 depending on the type of transfer or deposit. This cost can surely add up over time and frankly, it's ridiculous for to you to pay a fee just to receive your money. [/p] [h2] Minimum Volume Fee [/h2] [p]Often times a factoring company will require you to commit to factoring a minimum volume of invoices. Failure to meet the agreed minimum amount can result in extra fees or a percentage surcharge. Take into account your typical invoice amounts and calculate if you will have an issue trying to meet the minimum requirements. Keep in mind not all factoring companies have this policy or fee. [/p] [h2] Client's Credit Check Fee [/h2] [p]Although your credit is not taken into account, your client's credit is. The creditworthiness of your client must meet a certain standard for certain factoring companies before they agree to factor your invoices. That's right, some companies will charge you a fee for that credit check. [/p] [h2] Length of Terms [/h2] [p]You might decide to factor for a variety of reasons. Unavoidable circumstances might arise making it difficult to cover your operational costs. Truck repairs are extremely costly and unpredictable at times, especially for owner-operators and having a reliable truck that is fully functional is essential to your business. If you run a small fleet, wages, insurance, and taxes further compound your expenses. [/p] [p]This brings the length of terms to factor into play. Most factoring companies offer three to six-month term agreements to factor with some even require one-year contracts. It's important that you review and consider your options when considering the length of terms.[/p] [p]Be sure to choose the best fit for you. If you're confident that you won't be factoring for an entire year or that you want to explore other options after a few months, you should consider factoring with a company that doesn't have a minimum length of terms agreement. [/p] [h2] Termination Fee [/h2] [p]Let's say you have been factoring with a company for six months now. You have received payment days after hauling a load and it's been beneficial in helping you generate cash quicker to cover your expenses. Now you have ample funds and decide that you don't need to factor for the next few months.[/p] [p]The factoring company won't let you out of the contract because you agreed to factor for a certain length of time. In order for you to stop factoring, you have to pay a fee up to $1,000. [/p] [p]That's ridiculous, right? [/p] [giphy] <iframe src="https://giphy.com/embed/KE58LJF3k8jug" width="480" height="426" frameBorder="0" class="giphy-embed" allowFullScreen></iframe><p><a href="https://giphy.com/gifs/roger-KE58LJF3k8jug"> [/giphy] [h2] Choosing a Freight Factoring Company [/h2] [p]The list of factoring fees can be costly and limit your trucking company's ability to sustain a stable cash flow. [/p] [p]Before choosing to do business with a factoring company, you should take into account these potential hidden costs and fees in the fine print of a contract. Freight Factoring helps manage your trucking company's cash flow and takes the hassle away from client collections, allowing you to focus on growing your business and hauling more freight. [/p] [p]You shouldn't feel that you are being fleeced by an unusual amount of fees that you weren't aware of or deal with. <strong>Trucker Path InstaPay</strong> is freight factoring that pays you in a day with no hidden costs, fees, minimum commitments or contracts with pages and pages of fine print to sift through. [/p] [button text="LEARN ABOUT INSTAPAY" href="https://truckerpath.com/sign-up-instapay/?utm_source=blog&utm_medium=factoringfeesAug29" width="250px"]

Aug 29, 2017 • Carriers