What is Freight Factoring?
Freight factoring is a quick and easy financing solution for transportation companies and freight brokers. With Growth Capital’s transportation factoring, you receive immediate cash for your unpaid freight invoices without having to wait on slow-paying customers, so you can manage your business expenses and focus on growing your company.
Our freight factoring program gives you access to cash within 24 hours, ensuring that slow payment won’t hold your company back from its potential. Improved cash flow helps you pay for important operating expenses such as fuel, truck leases, and drivers’ costs, haul more loads and earn more.
Growth Capital has a proven track record of helping transportation carriers and freight brokers grow their business.
How Does Freight Bill Factoring Work?
Growth Capital’s straightforward, easy-to-implement freight factoring program will solve your trucking company’s cash flow challenges. After you open an account with Growth Capital, there are 5 basic steps:
- Deliver your freight load to your customer as you normally would.
- Invoice your customer as usual, then submit a copy of the invoice, along with Proof of Delivery (POD), to Growth Capital.
- Receive a cash advance of between 80-100% of your invoice, with the remaining value held in reserve, within 24 hours.
- Your customer pays Growth Capital the full amount of the invoice by the due date.
- Growth Capital sends you the remaining balance of the invoice, minus a small factoring fee.
What Are the Benefits of Freight Factoring?
Simply send your freight bills to Growth Capital to get paid today.
Quick and Reliable Funding
After you set up an account with Growth Capital, you will receive cash quickly for all of your invoices. Trucking factoring is a much faster funding process than traditional financing methods.
With freight factoring, you don’t need to worry about your business’s credit history. Qualification relies on the creditworthiness of your customers, so your business’s qualifications are minimal.
Unlike a business loan or a line of credit, transportation factoring does not involve incurring debt. By selling your invoices to a factor, you are basically borrowing against your own assets. The only price you pay is a small factoring fee, which has no long-term ramifications for your business.
At Growth Capital, we pride ourselves on our transparency. You don’t have to worry about hidden transaction fees, credit check fees, or overdue fees, and we offer rates as low as 1.5% per month.
No Long-Term Contracts
Growth Capital works with you to design terms of agreement that are tailored to your business – there’s no pressure to commit to long-term contracts.
Your accounts receivables will be managed by our professional, highly experienced team.
Why Choose Us for Freight Factoring?
While freight factoring is a great choice for many transportation companies and freight brokers, choosing the right factoring company is essential to success. At Growth Capital, we’ve built our reputation on providing professional services that give our clients the financial stability they need to succeed.
We are committed to finding customized solutions that suit your needs. Large or small, we’ll solve your company’s cash flow problems and help you achieve your full potential.
Working with us will give you the financial stability and peace of mind you need to focus on operating and growing your transportation business. Contact Growth Capital today to request a quote.
How Do I Qualify for Freight Factoring?
There are only a few requirements for qualifying for freight factoring with Growth Capital:
- You must be a B2B transportation or freight brokerage company that sells products or services to clients.
- Your invoices must be free of liens and cannot be promised as collateral to other institutions.
- Your customers must be creditworthy and able to pay invoices on time.
How is Factoring Cost Calculated?
Freight factoring is a low-cost funding solution that is calculated based on your customers’ payment days and/or their credit. The only cost to your business is the factor fee, or discount rate. This fee ranges from 1.5% to 6% and is taken off when you receive your rebate. The factor fee will likely be higher for customer invoices that have longer payment times. For example, if you have one customer that pays within 90 days and another that pays within 25 days, you will pay a lower fee for the latter.
The cost of freight factoring is determined by the cost of capital. Many factoring companies operate by borrowing from traditional financial institutions and must pay their own fees calculated on the outstanding days. Therefore fees are higher based on the amount of time it takes to collect on the invoice.
Freight Factoring Rates, Terms & Qualification
Growth Capital offers low fees and transparent terms. With easy qualifying requirements, your business can access a reliable cash flow in no time. From the very beginning, the experts at Growth Capital will work with your company to meet your needs and achieve your goals.
We offer a cash advance rate of 80% to 100%, with low factor rates ranging from 1.5% to 6%. Our professional receivables management team is with you every step of the way and our extensive industry experience gives us the insight required to design custom plans.
To qualify, you simply need to run a business that issues unencumbered invoices and has clients with good credit. To see if you qualify and to get started, ask for a quote today.
What Are the Cons of Freight Factoring?
Less Customer Control
When you sell your invoices, the factoring company becomes responsible for accounts receivables and communicating directly with your customers for payment. It is of critical importance to find a professional company that can manage your customers responsibly.
Cost Relies on Customers
If your customers take too long to pay, your factor fee may increase. You must be confident in your customers’ ability to pay their invoices on time.
Freight Factoring FAQs
1. Can I control which invoices to factor?
Yes, you can! You can be as selective as you wish with the invoices that you sell if you don’t want to factor all of them. This is called selective invoice factoring, spot factoring, or single invoice factoring, and it allows many trucking businesses the flexibility they need to begin a freight factoring program.
2. What should I look for in a freight factoring company?
When looking for the right freight factoring company for your business, there are some questions you should ask yourself. It is important to learn about a company’s operation history and reputation. Asking about advances rates and fees is also essential, as well as how quickly they can provide you with funding. Most importantly, you need to find a company like Growth Capital that is familiar with the trucking industry. Because of our experience, we know we can provide the perfect arrangement for your company.
3. Do I have to be a big trucking company to qualify for transportation factoring?
No, you don’t! At Growth Capital, we are happy to work with trucking companies of all sizes. Whether you’re just starting out with a small fleet or have lots of trucks on the road, we can find a financing solution for you.
4. Is freight factoring expensive?
No, freight factoring is a cost-effective funding solution. After receiving your initial cash advance and your reserve rebate, you will pay a small fee of 1.5% to 6%. You’ll have access to quick funding without having to open a line of credit or borrow money from a financial institution. Freight factoring is inexpensive and leaves you free of long-term financial commitments. With more cash on hand and less time dedicated to chasing down customers for payment, you can focus on other operational tasks and focus on building your fleet and finding more loads to deliver.
5. How quickly can my business receive funds?
Setting up an account with Growth Capital is quick and, once you get started, your cash advance will be transferred to your bank account within 24 hours of selling your invoices. You can receive advances daily.
If you are interested in bypassing slow-paying customers and increasing your cash flow, freight factoring may be the right solution for you. Growth Capital offers transparent freight factoring programs with high advances and low factoring fees that are tailored to your transportation company.
Our program is quick to set up, easy to use and gives you instant access to reliable cash advances. With many years of experience in the trucking industry, we know how to ensure this valuable workforce succeeds. No matter the size of your business or how big your fleet, Growth Capital can help you achieve your goals by obtaining the cash you need to grow.
Request a quote from Growth Capital today to find out how we can help you meet your freight factoring needs.
Need a factoring quote?
Interested in factoring your freight bills and getting paid? Growth Capital offers high advances at low rates to truckers and freight brokers.
We are passionate about helping our country’s most valuable workforce succeed! Our freight bill factoring program is easy to use and quick to set up. Once it is set up, you have instant access to an ongoing and predictable cash flow.
Don’t let unpaid invoices slow you down. Send your freight bills to Growth Capital to obtain immediate cash for your business needs and growth.