Factoring Service -

Factoring Service

Contact us for free setup

Better options of Factoring Services for Trucking Companies

Maintaining a stable, continuous cash flow can make the difference between sinking or swimming in business, especially if your company is tiny or you’re just getting started. Unpaid invoices are a major headache, especially if you rely on the incoming money to pay your employees or your rent.

Because of this, RtsDispatcher has partnered with expert factoring businesses to offer our clients factoring services that can radically alter the way they conduct business.

What is freight factoring?

Carriers and owner-operators can convert unpaid invoices into cash through truck factoring services, sometimes referred to as freight factoring. A third-party trucking freight factoring company will essentially buy those unpaid accounts receivable at an advance rate of typically 80% to 90% of the value and then pursue collections on those unpaid invoices on their own.

Why You Should Consider a Truck Factoring Service

Choose Your Truck Type

How To Get Started

At RtsDispatcher our job is to provide the best loads in the market for every driver. Our expert team ensures that drivers from any region and state get high-quality and best-paying loads

Contact us for free setup

The Benefits of Factoring for Trucking Companies

A few advantages of factoring for a trucking firm have been mentioned, but let’s go into more detail. Working with a factoring service for the trucking sector necessitates accepting that drivers occasionally feel a bit hesitant to give up a portion of their revenues. The small amount of lost profit, however, can actually result in significant benefits for businesses and drivers, and it may even cause you to see an increase in profits over time.

It is common for there to be a delay between accepting a task and receiving payment. While this isn’t always an issue, such when business is booming and corporate revenue is high, it can seriously hurt drivers during tougher times. As the truck driver has upheld their half of the bargain and is still not being paid, it is also unfair.

Such a worry is unfounded when considering. The truck driver receives their capital up front, promptly and without delay, from the third-party freight factoring or trucker factoring provider.

For truck drivers, making projections and forecasts can be challenging. Drivers cannot anticipate with certainty when they will receive the money that is owed to them since even when orders are coming in, it is likely that many of the payments on these orders will be delayed. This is a significant problem, especially when trying to get funding for expansion projects for businesses. Simply put, a lack of dependability makes it challenging for owner-operators and truck drivers to expand their businesses in the manner they desire.

This unpredictability is eliminated with a truck factoring service. Drivers are ensuring a steady stream of cash when they accept factoring orders and jobs. They can then use this consistent source of money to demonstrate their annual revenue, which makes it simpler to draw in investors, meet loan requirements, and increase the company’s capabilities.

Accepting a calculated order might not be appealing to all drivers. After all, the driver can only anticipate receiving 80% or 90% of the order’s total cost when accepting this kind of order, which may seem unjust given that the driver is the one doing the actual driving. However, the concept behind factoring services is that a trucking firm or driver accepts this reduced cost in order to connect with a more certain payment.

You have more freedom as a truck driver or owner-operator because of this. You can accept factored orders that give you a stable source of income—a predictable stream of money you can rely on. Then, by accepting additional orders with full payment, you can increase this revenue. This greater flexibility gives you more options, allowing you to adjust the ratio as your circumstances change and your risk tolerance fluctuates.

Unreliable payment schedules are one thing, but truck drivers are more seriously concerned about the possibility of not being paid at all. Risks of non-payment include disputes with clients, dishonest clients, and a wide range of other variables. This may be disastrous for independent truck drivers or small transportation companies. Too many companies have had major problems as a result of not receiving the money they are due.

Obviously, truck drivers will greatly gain from this. With a truck factoring service, another party assumes the risk of non-payment. Since you won’t have to worry about getting paid, you can concentrate on other, better parts of running your company.

How Trucking Factoring Works

The general process you encounter with trucking factoring is as follows

You invoice your client for work done.
You give a truck factoring service control of outstanding invoices. If you use contract factoring (high volume), you allocate the transportation factoring business all of your unpaid invoices. You choose which invoices you will assign for truck factoring services if you choose spot factoring for trucking (low volume).
You receive the agreed-upon advance from the truck factoring firm. This might happen as quickly as within a day after everything is set up.
Your client pays the truck factoring service; the factoring firm is now in charge of pursuing clients for payment.
Your client pays the truck factoring service; the factoring firm is now in charge of pursuing clients for payment.

Which is best for you: recourse or non-recourse factoring?

You have the option of choosing a recourse agreement or a non-recourse agreement when you hire a truck factor.

You must purchase your clients back if you have a recourse agreement and they refuse to pay their debts. The factoring business for trucks may even tack on extra charges.

Once the unpaid invoices are given to the factoring business under a non-recourse agreement, they become the factoring company’s property. If the customers don’t pay, you are no longer responsible. As a result, factoring companies typically demand higher charges for non-recourse agreements.

Types of freight companies who factor

Few qualification requirements - Because this sort of invoice factoring is based on your clients' creditworthiness, there aren't many qualifications needed.
Fast funding - Through the factoring company, you can receive the majority of the amount owed to you up front rather than having to wait until after the invoice due date has passed.
Because the value of the invoices you assign affects the amount of your loan, you can obtain additional finance as your firm expands. Therefore, as you gain experience, your advancements may grow.

Some of the cons of hiring a trucking factoring company include:

Why ChooseRsdispatcher Factoring Services for Your Trucking Company

If your client doesn’t pay the invoice, it could wind up costing more. If you have a recourse factoring agreement, you are required to repurchase the invoice in the event that the client defaults on payment, and you will probably be required to pay a charge to the factoring business.

We are focused on protecting our clients’ profits.

Our clients’ success has always been our top priority at RtsDispatcher. We assist our clients in maximizing the advantages that truck factoring services have to offer. You may count on us to choose a dependable factoring partner who will put your needs first.

We have a strong track record of success

We already have a sizable clientele that comes to us for assistance in locating reputable freight factoring services. By utilizing the possibilities that freight factoring offers, these clients are growing their businesses, becoming more flexible, and making future plans. We advise you to exploit this family.

We understand the trucking industry and all that it entails

You need to be confident that the staff you are dealing with is knowledgeable about your business, profession, and line of work. We at RtsDispatcher are honored to be a part of that group. We have in-depth knowledge of this sector, and we are experts in helping you choose the appropriate factoring partner for your company to maximize the benefits. You can rely on us to be by your side and defend your interests.

Trucking invoice factoring made easy

We take great pride in collaborating with skilled factoring businesses. They provide the tools necessary to provide our clients with extremely efficient trucking factoring services and link them to a variety of benefits. Together, we’re dedicated to assisting you in growing your company while you’re on the road.

We provide expert support to all our clients

The best assistance is always provided alongside the best services. At Logity Dispatch, we take this seriously, and we are always available to offer advice, support, and to address any inquiries you may have about our service. At any time, you can get in touch with us, and we’ll be here to help.

Learn More About Our Truck Factoring Services or Get Started Today

The best assistance is always provided alongside the best services. At our company, we take this seriously, and we are always available to offer advice, support, and to address any inquiries you may have about our service. At any time, you can get in touch with us, and we’ll be here to help.