Factor Your Transportation Receivables Today

Accounts Receivable Cash offers freight factoring programs for the transportation industry to ensure you’ll always have cash on hand.  Steady cash flow is a requirement when looking to grow your trucking business. Reliable cash flow makes it easy to accept better paying loads, fund repairs and maintenance, purchase new equipment, cover payroll and taxes and hire new drivers. Factoring freight bills is a fast and simple way to battle cash flow challenges. Freight factoring helps truckers increase working capital when shippers are slow to pay.

How Does Transportation Factoring Work?

Factoring works by selling freight bills at a discount to receive immediate cash. ARC’s freight factoring services are designed with small trucking companies in mind. Owner-operators can factor freight bills with no monthly minimum and no long term-contract requirements. Steady cash flow is available to all owner-operators, no matter your size. ARC also offers freight financing for start-up trucking companies.

It’s quick and easy to submit an application for trucking factoring today. All you need is the application, your articles of incorporation, copies of the invoices you wish to factor and your current customer list. You can be approved in as little as 3 business days and funded within 24 hours after approval. Once you are approved and your invoice funds are released to you, the transportation factor will contact your debtors and notify them of the factoring process and let them know to pay the factor directly. You are able to factor as much or as little as you would like.

Bad Credit? Accounts Receivable Factoring Can Help Fund Your Trucking Company

Not to worry, when applying for accounts receivable financing it’s your shipper’s credit that matters, not your own. Factoring transportation receivables can help grow your business by providing the necessary cash flow to cover payroll and other expenses so you can take on new opportunities. Owner operators factor their transportation receivables to cover payroll, take on new projects, purchase new equipment and hire new drivers, the possibilities are endless. Freight factoring can improve your credit by giving you the working capital to pay down existing debt.

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Factoring Programs for Trucking Companies-Recourse and Non-Recourse

Accounts Receivable Cash will match you with a factor who can deliver your funds within 24 hours. We also offer recourse and non-recourse factoring. Recourse factoring requires your trucking company to take responsibility for the payment of the invoice. Recourse factoring allows the factor to avoid responsibility if the client does not pay within the allotted time slot due to bankruptcy or going out of business. Since your company is taking on the responsibility and risking a loss, this option is the most affordable when factoring freight. If you need immediate cash at a low cost, recourse factoring may be for you. Recourse freight factoring may also be a good option if your clients are reliable and pay in a timely fashion. Factors offer credit checks to increase your awareness of your client’s credit worthiness. Knowing if your clients are in good credit standings can increase the likeliness of payment but will not guarantee it. With recourse factoring your trucking company is ultimately responsible for the unpaid invoices. Recourse fees start as low as 1%.

Non-recourse factoring requires the trucking factoring company to assume the credit risk for the collection of the invoices. Non-recourse factoring protects your trucking company from clients who ultimately do not pay their invoices. As a result, factoring companies charge a higher fee for this service. Fees are dependent on volume but range from 3% to 5% for non-recourse factoring. If your company relies on a few, large clients, non-recourse factoring may be a better fir for you because in the case of non-payment, your trucking company is protected by the factor.

Save on Fuel Costs

Save Big by Freight Factoring with Fuel Cards

A significant advantage of freight factoring is fuel cards. Truckers save big with fuel cards by factoring their transportation receivables. Fuel cards provide substantial discounts on fuel at all major truck stops and travel centers across the U.S. and Canada so truckers can easily fill up their gas tanks while instantly saving money. Factors have the ability to pay truckers directly through their fuel cards, which work like debit cards. Truckers can use the cards on gas, repairs and other items. Fuel cards are set up through a variety of fuel companies but the funding comes from the freight bill factoring agreement. Fuel cards are quick and easy to obtain. Once your approved for factoring your trucking receivables, fuel cards are available at no additional cost and will be mailed to you the day after approval.

Truckers Benefit from Transportation Factoring Through Fuel Advances

Truckers are able to get immediate cash upon load pickup with fuel advances. High fuel prices can make it impossible for truckers with cash flow problems to deliver their goods to the destination. Fuel advances can provide an increase in working capital for these truckers to get their goods from point A to point B without worrying about affording fuel. Freight factoring companies provide an instant cash advance for freight bills. With this cash flow problem solved, trucking companies have the opportunity to take on more projects and expand their companies. Fuel advances allow truckers to gain up to 50% of the fright bill upon pick up of the load. Fuel advances can be sent directly to your bank account or placed on your fuel card and you will receive the funding within a few hours.

Contact Accounts Receivable Cash today for all of your transportation factoring needs. We offer same day funding, fuel advances, fuel discounts and free credit checks! Give us a call at 866-937-8146.