The process is usually fairly quick and painless. If you want to use a factoring company, you must fill out an application. If collection efforts are necessary, the factoring company will take care of those efforts or hire a collection agency to do it for them. Sometimes it can be hard to collect payment. You will not waste your time dealing with companies who may not be able to pay their bill. It will check the credit of any company that you do business with. Factoring requires much less paperwork than a formal loan, so it is easy for the freight company, brokers, and shippers.Ī freight factoring company can provide several different services. When you are a customer of Simplex Group, you will only pay the factoring company $15 for same-day payments.
Most factoring companies will charge you $25 to $30 extra to get your money on the same day. OTR Solutions will process the transaction right away, and you can get your money on the same day. They make their money from the difference between what they paid you and the amount of the actual invoice.
The trade-off is that you get the money right away. Some smaller companies may even make delayed payments.Ī factoring company will pay less money than the invoice value. They are likely to take at least 40 days to pay their freight bills, if not more.
Chances are, the clients you do business with are struggling just like you. Very few brokers and clients pay their bills the second they come in. You will be able to keep your business running while the factoring companies wait for your client’s payment. With a freight factoring company, you won’t have to wait until the bill is due to get your money, you will get your funds advanced right away. These contracts will state that the bill is due anywhere from 30 to 90 days, and when you are a new trucking company, this can be a long time. When you are in the trucking business, you will have a contract with each of your clients that specifies how much they will pay you and when, which is called Rate Confirmation. Truck factoring can increase your cash flow without increasing your debt! Factoring is not considered a loan, as the parties neither issue nor acquire debt as part of the transaction. In the majority of cases, factoring may be a better and easier solution to obtain than traditional bank financing to fund the growth of a business. If your company is struggling financially, you may have thought of taking out a bank loan, but there is an alternative solution for such growth needs, which is factoring.
TRUCKING INVOICE FACTORING FREE
OTR offers free credit checks to the companies that we work with, so you will never have to work with brokers with poor credit ratings. We ensure everything is advantageous to our clients before selecting a factoring company with which to partner. We want factoring to be a stress-free experience for you. Simplex Group is committed to finding the best deals for the trucking companies with which we work. You will not have any miscellaneous fees when you use this unique program. Our partnership with OTR Solutions charges a much lower fee for direct deposit transactions and same-day payments than other factoring companies. You will not be charged a monthly minimum when you use OTR Capital Services. OTR & Simplex factoring program will not charge trucking companies for sending invoices to your clients the way many freight factoring companies will. This will provide you with the necessary cash flow to keep operating while you leave the collection of the payment to the factoring company! In addition to the service that OTR provides, Simplex will assign a factoring specialist to your account who will be available to clear any concerns, ensure efficiency and promote clear communication.ĭedication, transparency, and accessibility are traits that set us apart from other factoring programs.įor a small fee, you will obtain immediate cash for your freight bills as soon as the load has been delivered and the paperwork has been approved. Through their user-friendly portal, you will have access to check your broker’s credit at any given time, even from your phone. This allows you to plan ahead with no surprises or unexpected fees. Our program is customized to your needs and offers a flat rate, with no minimum requirements and no reserves. We have created a unique factoring program with OTR Solutions, one of the largest and most reliable factoring companies in the nation, and one that we are proud to be partnered with. Simplex Group has been offering full-on trucking solutions for over 20 years by educating its carriers to become independent, knowledgeable, and successful.
0 kommentar(er)
