Bank loans are a very commonly known type of financing but more often than not, trucking and transportation company owners tend not to know much about invoice factoring. Invoice factoring in the transportation industry can help relieve the stress of maintaining cash flow when clients have 30, 60 or 90+ days to make payments that you need for fuel, truck maintenance, payroll and more. With invoice factoring, the factor will provide you with almost immediate funds after the load is delivered, allowing you some peace of mind knowing that you’ll be getting paid.

Below are a few common myths about invoice factoring in the transportation industry. You may find that these myths do hold true with some factoring companies, but with us at CoreFund, they remain as myths.

I have to factor a minimum number of invoices a month to qualify.

With CoreFund as your partner you won’t need to since a monthly minimum is not required.

I must commit to a long-term contract.

Not every factoring company will lock you into a long term contract. Be careful to read the fine print from other companies that might not be as transparent as others.

I have to factor all my freight bills.

CoreFund allows you to choose which clients’ invoices you want to factor.

I have bad credit so I won’t qualify for freight factoring.

Factoring companies will take your client’s credit into more consideration than yours. After an invoice is factored, the factor takes over collections and your clients will essentially be paying the factor.

I need the money but I know there will be hidden fees.

Transparent and honest companies will not have any hidden fees. If you’re still concerned about any hidden fees, read all fine print and don’t hesitate to ask any questions.

 

If you’re ready to factor your invoices, sign up with us today!

Post written by Senior Copywriter “Nikki Wakefield” of CoreFund Capital, LLC.