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.

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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

How to Kick-off your Trucking Career [p]If you like road trips and you get excited by the idea of earning money while living ‘life on the road’ then trucking is for you. Trucking is one of the biggest industries in the world and extremely important for the survival and efficient function of an economy. As such, trucking not only helps support the economy, but also helps build it. At the moment around <a href="https://markets.businessinsider.com/news/stocks/trucking-industry-facts-us-truckers-2019-5-1028248577#truck-drivers-earn-less-than-most-americans-in-terms-of-annual-income10">6% of all the jobs available in the U.S are in the trucking industry</a> with more than 7 million people working in the industry right now. The number is growing each year as dependency on trucking increases.[/p] [p]That sounds like an industry where the future is secure and employment guaranteed if you are good at the job. Sounds good right? It sure does but before you can get anywhere near a truck you need to fulfill some obligations like getting a license, choosing a trucking company, and more. Follow the steps below to get started with your stint as a truck driver. [/p] <h2></h2> [img src="https://truckerpath.com/uploads/2020/09/2-1.jpg" alt=""] [p][b]Make Up Your Mind [/b][/p] [p]It is extremely important to get yourself mentally ready before even thinking about getting a license. Trucking sounds exciting but the job is mentally and physically taxing. At times you are required to sleep at truck stops, in cheap motels, or inside your truck's cabin. There aren't many decent places to take a shower and you will eventually run into some dirty truck stops. You may also meet some rude people which will definitely test your patience. Most importantly, you are away from your family for lengthy periods. Therefore, never decide in haste. Sit down and think about it but once you make up your mind do not look back as only excitement and adventure come ahead.[/p] <h2></h2> [img src="https://truckerpath.com/uploads/2020/09/3.jpg" alt=""] [p][b]Apply for a CDL[/b][/p] [p]The first step on the road to becoming a truck driver is to get a commercial driving license (CDL). The CDL is divided into three main categories in North America: [/p] [img src="https://truckerpath.com/uploads/2020/09/cdl_types.jpeg" alt=""] <h2></h2> [p]If your goal is to become a big-rig driver then you need a Class A license. To get that you need to enter into a trucking school. This institute is much like a driving school except in a trucking school you are taught advanced methods of driving a large vehicle. There you will be required to practice and hone your skills both in the classroom and on the field. Generally, trucking school starts at $3,000 for a beginner program. You may avoid paying the whole cost of the trucking school by availing of some financial aid options. If you sign with a carrier before graduation, they may cover some of your educational expenses. Some schools in areas with trucker shortages may also offer scholarships to its students. You are eligible to apply for a Class A license once you have completed at least 160 hours or roughly 10 weeks of training. [/p] [p]Once you have that many hours under your belt simply go to a state-mandated testing facility, pass your test with flying colors and you are good to go. Afterward, you need to go to the licensing authority in your state where you will be required to show your identification, proof of state residency, your Social Security Number (SSN),and proof of passing the CDL exam. The training program for a CDL can last for 3 to 4 weeks so if you are motivated you can get started with your trucking career within a matter of months. [/p] <h2></h2> [img src="https://truckerpath.com/uploads/2020/09/4.jpg" alt=""] [p][b]Pick A Trucking Company[/b][/p] [p]The next step in your road to becoming a truck driver is choosing a good trucking company. There are many good local and national companies across America. That is a good thing because you have the power to choose and differentiate between various trucking companies. As such you should always look for renowned companies that have a good name in the industry. The last thing you want is to end up in a trucking company that is not financially stable and that doesn’t provide you with job perks. [/p] [p]A good company may provide you with health insurance, life insurance, paid vacation, sick leave pay, and more. So choose wisely but don’t waste too much time stalling![/p] <h2></h2> [img src="https://truckerpath.com/uploads/2020/09/5.jpg" alt=""] [p][b]Accept the First Good Job [/b][/p] [p]Most newcomers in the trucking industry waste time by waiting for the right opportunity, the “perfect route”. But that is not advisable. You are a fresh trucker who has just gotten his/her license. It is better to get some and any experience under your belt as soon as possible. Ultimately, the number of hours you spend driving will help you in the future to move up the ladder to better trucking companies. That can also lead to better job perks, better opportunities as a trucker, and a handsome salary. If you wait, a very good trucking contract may come your way but that is a rare possibility. By then, your peers would have moved further up the ladder on to greener pastures while you start late and experience the grit of a newcomer in a tough industry. [/p] <h2></h2> [p][b]Final Thoughts[/b][/p] [p]It is not very hard to get into the trucking business if you have the right mindset and you are motivated. Yes, you may face financial burdens in the beginning but seeing that the <a href="https://www.census.gov/library/stories/2019/06/america-keeps-on-trucking.html#:~:text=More%20than%203.5%20million%20people,occupations%20in%20the%20United%20States.">average trucker</a> makes $50,000 - $60,000 per year the initial burden might not feel a lot to bear. However, you would have to spend time away from family but in the end, all of this is worth the effort. The trucking industry is here to stay and you can make the most of it while having a grand adventure and enjoying the magnificent views in your big rig! [/p] <h2></h2> <h2></h2> [p][b]By Aldous Aldwin[/b][/p]

Sep 08, 2020 • Carriers

Lease Purchase Trucking [p]If you're a company driver, lease purchase trucking is a way for you to become an owner operator and eventually be your own boss, but consider all the factors before signing on. [/p] [h2] Lease Purchase Trucking[/h2] [p] You might consider a lease purchase trucking agreement if you've been a company driver for a few years now and you like the idea of <a href="https://truckerpath.com/blog/how-to-become-an-owner-operator/">becoming an owner operator</a> in order to earn more and create a more flexible schedule, right? We don't blame you! [/p] [p] The road to becoming an owner operator and running your own trucking company can be a bumpy one (though not nearly as bad as some of the California interstates) but as long as you understand the costs and have a plan, you can indeed succeed! [/p] [h2] What is Lease Purchase Trucking? [/h2] [p] Lease purchase trucking is when a carrier decides to become an owner operator by making payments on a truck leased to a trucking company. This end goal is to pay off the truck, generate a reputation for being a reliable carrier and then once the truck payments and term agreement expire, you can venture out to grow your <a href="https://truckerpath.com/blog/how-to-start-a-trucking-company/">trucking company</a>. [/p] [p] Lease truck payments can range anywhere from $300 to upward of $1,200 per week depending on if you choose a used or new truck and the trucking company you sign on with. [/p] [h2] Things to Consider in a Lease Purchase [/h2] [p] Trucks, like any piece of equipment, will require repairs and the costs to cover are the responsibility of the owner-operator. Truck repair costs can be up to $17,000 annually for an average OTR truck driver logging 100,000 miles. Therefore you must be extra cautious when considering a used truck lease purchase. [/p] [p]If the truck is used, be certain to review the repair records of the truck and double-check if another driver previously ran the truck as a lease. These might seem like common sense but being thorough in your examination of a used truck can save you from making a potentially disastrous mistake. [/p] [p]When you agree to a truck lease purchase, the company you sign with will ultimately decide your revenue because they decide your loads. Make certain that there is ample freight available and check load boards like <em>Truckloads</em> for regions and routes that they want you to haul through to see if there are enough loads to haul. [/p] [p] Keep in mind which <a href="https://truckerpath.com/blog/types-of-truck-freight/">type of truck freight</a> equipment you will be hauling. On average, flatbed loads are the highest paying truck load with freight often being oversized heavy machinery or other large goods for construction. [/p] [p] While most drivers haul dry van, consider the type of truck equipment you'll be using and if the company has the loads for it regularly or not. This can have a tremendous impact on your success as you transition for lease trucking into running your own trucking company. [/p] [h2] Use Truckloads Free Load Board [/h2] [p] As we mentioned before, you can use our free load board <em>Truckloads</em> to search for loads based on location and equipment type to double-check that there are ample loads available in a given area and for a specific freight type. Once you finish paying off your leased truck and have your <a href="https://truckerpath.com/blog/trucking-authority/">own trucking authority</a> without being signed to a company, you can use Truckloads to help you find the perfect loads to fit your needs. [/p] [video id=snyBYpnuhWw] [button text="Try Truckloads for Free" href="https://truckerpath.com/truckloads/free-load-board/?utm_source=Blog&utm_medium=truckfreight&utm_campaign=Aug10" width="250px"]

Oct 19, 2017 • Carriers