Working with a freight factoring business can do wonders for your freighting company. If you work with a reliable and proper freight bill factoring service provider, you can do a lot of good for your company.
A freight factoring service can give you access to more funds because of the cash advances you can receive from them. There is no need to wait anymore for weeks on end just to receive payment for a job that you already had completed much earlier. Using a freight bill factoring service can help you cover any expenses that you might incur in your business operations. After all, fuel costs to keep your truck running could be very hefty. That is why receiving some cash advance payments could keep your truck running and keep your income from coming in too.
A freight factoring service also has the benefit of making it easier for you to find jobs too. Factoring service providers will often give you access to invoice jobs that they have already bought and are willing to provide to you. Not only does freight factoring service make it easier to find shipping invoices, but you may also even be able to expand your business by being able to find more customers too.
As you can see, there can be many advantages to working with a freight factoring service provider. But before you jump in and work with a freight factoring company, you may want to ask them a few questions first. Here are a few questions you have to ask your freight factoring service provider before you hire their services.
- Do they support fuel cards?
Freight factoring companies, at least the good ones, should offer fuel card support for their clients. This is because a fuel card can help you, as a truck driver, save a lot of money. How exactly does a fuel card help? The cash advance for a job can be stored on your fuel card, which is provided by the freight factoring company. You can then use this card to exclusively pay for the fuel you will need on your trip. This fuel card can help you in a multitude of ways. First of all, you do not need to worry about having enough cash for fuel; you can just use the fuel card provided to you by the factoring company. Secondly, you will also be glad to note that if a job will require more fuel than necessary you can just contact your freight factoring company to advance you more cash for fuel.
- How long are their standard contracts?
As a freight truck operator, you will know the changing demands of your industry. And because of those changing demands, you may not want to be tied down for too long with a single contract with a freight factoring company. You will want to clarify if the company offers contracts of varying length that you can avail of.
- How much is their advanced payment?
You will also want to know how much the company will advance to you from a shipping invoice. Most companies will offer 90-95% advances when you finish the job, the rest of the 5-10% payment will come after the client has fully paid the job. Ask the company their policies on payment advancements.
- How much is their commission rate?
Freight factoring companies often take a percentage of the total payment of the shipping invoice. You will want to ask them their commission rates, to check if you can afford their services.
- Ask them for a short trial period
One thing you can ask your freight factoring company is if they are willing to work with you for a job or two. After all, you will not know how they will be like unless you try them out.