Factoring For Trucking Companies
Factoring For Trucking Companies. Balanced Bridge Funding provides factoring for trucking companies of all sizes. We are one of the best factoring companies for trucking in the transportation industry.
If you are interested in our Trucking Factoring Rates, please contact us today and we can start your process immediately.
Why Use Balanced Bridge Funding for Factoring for Trucking Companies?
When you work with Balanced Bridge Funding, our trucking factoring product has a very simple and fast process. Once we have the proper documentation we need, you can receive an advance on your receivables quickly.
Why Use Factoring for Trucking Companies?
Trucking companies have to deal with massive operational expenses to keep them running. Operating expenses may include payroll, equipment maintenance, vehicle payments, vehicle insurance, fuel expenditures, and more.
Here’s the thing about operating expenses: All of these expenses must be paid immediately. You can’t delay paying your bills until you have the money. Bills get paid today.
But you don’t get paid today for the work you do. Your customers don’t pay you immediately. You might have to wait thirty, sixty, or even ninety days to actually get paid for the work you have already done. And during that time, you have to keep laying out cash to pay the bills to keep your trucking company going.
This is why trucking companies’ factor some of their receivables. For a small percentage of your total invoice, we give you money immediately, and we get paid when your customer pays their invoice.
Factoring companies like Balanced Bridge Funding advance you cash TODAY, which will allow you to pay your operating expenses now, and then when your customer pays you, we get paid. Essentially, we get paid a small fee to “do the waiting for you.”
Why Use Factoring for Trucking Companies Instead of a Line of Credit?
A line of credit is great, and lots of businesses take advantage of them. But there are a few reasons factoring is better for trucking companies than a line of credit.
- A line of credit isn’t easy to obtain, especially for smaller trucking companies or new trucking companies.
- A line of credit isn’t flexible. Meaning, you have a fixed credit limit and you can’t borrow more than that amount. If you suddenly get very busy, it isn’t fast or easy to increase your line of credit. But with factoring, you have infinite flexibility. You can factor as much or as little as you want to. If you have a spike in business, you could factor all of your outstanding invoices (up to 99% of individual invoice value). Factoring is based on your receivables, not your credit.
- A line of credit can erode your debt-to-equity ratio, making it harder to take out loans for new equipment, new buildings, new trucks, etc. The more you have borrowed already, the less lenders are willing to loan you in the future. Having a line of credit can reduce your ability to borrow more money later. But when you use factoring for trucking companies, you aren’t “taking out a loan” so these transactions do not show up on your credit report, and therefore do not impact your debt to equity ratio; leaving you free to use your credit for equipment purchases, warehouse space, etc.
- A line of credit (or business credit card) can be reduced, or even closed without any notice to you, the business owner. Lenders change lending standards all of the time. And it isn’t uncommon, especially with credit card companies, to simply close your account the next time the balance is low or zeroed out. They can (and do) do this without any warning or explanation. One day you have a credit line or card, and the next day you don’t. But with factoring, you aren’t applying for credit, and there is no account to “close.” As long as you have invoices owed to you, you can factor part of them to manage your cash flow.
- Interest and Fees– the interest on business credit cards is often high, as are lines of credit. Their fees are also often very high. The rates charged for factoring for truckers, compared to the interest rates of credit cards or lines of credit, are typically better.
How to Begin Factoring for Trucking Companies
To get started using our factoring for trucking products, we will need to receive a copy of your application, business formation documents, proof of operating authority and insurance owner’s driver’s license. Once we receive these documents and you pass a clean public background search, we are able to factor trucking companies’ receivables for you.
Ongoing Factoring for Trucking Companies
Once you have worked with us on your first advance, things become even easier (and faster) for you. For each request for trucking factoring, we will need to all relevant documents for the completed job, this can include, rate confirmation sheet, invoice, dump tickets, etc.
Fast Approval for Factoring for Truckers
Approval of each request occurs in hours and the funds will be wired directly into the account via ACH or wire transfer (for an additional fee).
What Percentage of an Invoice will Balanced Bridge Factor for Trucking Companies?
We will purchase up to 99% of the value of the invoice.
How Does Balanced Bridge Handle Repayment of Factoring for Truckers?
For repayment, we can either submit the invoice ourselves for payment or you can remain the main contact and then we will automatically pull the repayment amount directly from your account when the invoice has been paid.
Quick Summary of Steps to begin Factoring for Trucking Companies
- Submit application and entity documents to get company approval – usually completed within 1-2 days
- Submit supporting documents for each invoice – receive approval within hours of receipt
- Funds are wired immediately to account (if they pay the wire fee) otherwise funds will be deposited directly into account via ACH within a couple of days
- When invoice has paid, the repayment amount will be pulled directly from the account via ACH or sent directly to us
Trucking Factoring Rates
We do not publish our Trucking Factoring Rates online and we hope you will understand. The market changes dynamically in the transportation industry, and our rates change with it. But you can rest assured that Balanced Bridge Funding is always competitive and offers great rates for your Trucking Factoring. Contact Us Today to Complete Your Application. Receive your funds quickly and efficiently.