In light of the daily expenses incurred by trucking companies (e.g., fuel, payroll, taxes at the pump, insurance, license, tags & permits and maintenance), it's often desirable or necessary to receive payment for the load right away from a load factoring company rather than to wait 60 days or so to get paid on loads carried.

With the services of a load factoring company, you will you will be able to pay bills, buy fuel or handle whatever other immediate needs you may have for cash which prevent you from waiting for payment from your customers. To get more load factoring information, check out the links below.

1. Select which invoices you want for load factoring, and which ones you want to collect from the customer yourself.

2. Get free customer credit checks and same-day funding on submitted invoices.

3. Identify a factoring company will keep the load factoring fee to a minimum.

Action Steps
The best contacts and resources to help you get it done

Select a load factoring company that lets you choose which invoices you want factored

Sometimes you'll have certain customers that are good about paying you quickly. In those cases, you may wish to not have invoices from those customers factored but rather collect the money yourself directly from the customer, saving the factoring fee. If you want to be able to keep some invoices and have others factored, you find load factoring companies like the following to be cooperative in this regard.

I recommend: FactorLoads offers numerous selling points, such as rates of 5.4 - 6.9%, immediate payment, no reserve account, factoring on a customer-by-customer basis, factoring on a load-by-load basis, no minimums, non-recourse factoring, no long-term contracts and administrative support. Just In Time Cash offers features such as no minimums, fund as much as you want, whenever you want, you choose invoices to fund and a no term contract.

Consider a load factoring company that offers same-day funding and free credit checks

It's nice when you can leave it to the factoring company to take care of the cost of credit checking of your customers. But also, if you need immediate or same-day funding, see the following load factoring companies.

I recommend: Load factoring provider Pay4Freight has terms such as same day funding, they accept faxes, multiple methods of funding and free credit checks. 1st Commercial Credit offers terms such as no minimums required, no minimum Invoice fees and same-day funding.

Choose a load factoring company that charges among the lowest factoring rates available

The discounting percentage that the load factoring company charges will of course impact your bottom line. If you're looking to minimize the factoring fee, see the following load factoring list.

I recommend: Advance Business Capital offers same day funding, instant credit approval, fuel cards, freight matching and very low rates. Winston Financial Group has features such as a 1% fee, no up-front fees, no minimum volumes, no minimum fees and instant approval.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Ask for non-recourse factoring. With non-recourse load factoring, the factor bears the risk of non-payment. If the customer can't pay the invoice, the factor cannot turn back to you to pay the invoice in place of the customer. The cost is typically higher with this type of factoring, but you are relieved from worrying about non-payment on the invoice.