Trucking factoring can ease your cash flow worries and keep your fleet on the road where it belongs. In today's market many traditional lenders are less inclined to view accounts receivable as assets that could count toward cash value.

Trucking factoring companies, who also refer to themselves as freight factoring companies, provide trucking and transportation businesses with the advanced funds and credit lines they need to pay their bills. Consider the following when putting together your trucking factoring list of companies to consider:

1. Study trucking factoring information to compare loan and advance rate information.

2. Find trucking factoring websites that provide online price quotes.

3. Choose a trucking factoring provider specializing in fleets that are the same size as yours.

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

Study trucking factoring information to compare loan and advance rates

Credit line loan rates and cash advance percentages vary from company to company. Be sure to compare loan and advance rates when considering a trucking factoring provider to obtain the best terms possible.

I recommend: TranCentral advertises rates from half of a percent to 100 percent cash advances. New Century Financial offers advance rates of up to 95 percent.

Obtain price quotes from trucking factoring providers

To get an idea of how much you will be paying for trucking factoring service, be sure to get online quotes before committing to any one provider. Some trucking factoring companies even offer free trials to see if their service adequately meets your cash flow needs.

I recommend: Bay View Funding has an application screen that will provide you with an instant quote. Inzap, which offers a free 90-day trial, has an application that can also be completed online. Once submitted, the information will be provided to you in a few days.

Choose a trucking factoring provider that specializes in businesses the same size as yours

It may give you additional peace of mind to select a trucking factoring provider that specializes in working with trucking fleet organizations that are the same size as yours. The fact that they have worked with other companies similar in size gives them the advantage of being better able to anticipate monthly cash flow projections.

I recommend: FactorLoads a division of Insight Technology, specializes in freight factoring for small- and mid-size businesses. However, if your trucking fleet is large and needs cash quickly, they offer customized programs to meet your needs. 1st Commercial Credit advertises simple, flexible factoring for small- to medium-size fleets.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some trucking factoring companies offer additional services to relieve you of burdensome tasks such as billing, collections and customer credit monitoring.
• •  Other industries not related to trucking or transportation can also benefit from trucking factoring. Those that own seasonal or spot sales businesses, or other small- to mid-size companies that struggle with cash flow issues, should consider factoring services. Some freight factoring services will lend to businesses outside of the transportation industry.