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