Another one from Factoring Explorer is here.
How To Choose a Right Freight Factoring Company?
According to Commercial Capital LLC when choosing the best factor for your business, you should consider these questions to narrow your list of potential factors:
Q: How long have they been in business?
A: The factor should be in business for a 5 year at least
Q: Are they specialized for transportation industry?
A: Don’t regret your time to check out if the factor is specialist for your niche.
Q: Is fuel card offered?
A: This is the filter questions – only consider factors with fuel card integration
Q: Do they provide unlimited credit reports?
A: This is one of the main arguments for choosing a freight factoring as a solution, meaning that you don’t want to miss it by picking a poor factor.
Other recommended questions are:
- How quickly can they set up an account?
- How quickly can they fund your first freight bill?
- How quickly do they approve new shippers/brokers?
- Can they finance copies or do they need originals?
- Do they provide fuel advances?
- How long are their contract terms?
- Do they specialize in transportation and logistics?
After all the questioning, some additional options should be considered. Between various conveniences offered by the factors, I’ve picked three that seemed especially interesting to me:
- Fuel advance factoring. This is a typical situation where you can see the advantage of freight factoring for the new trucking companies. To get the fuel advance, a factor usually verify booking and picking the load via confirmation sheet and bill of lading, respectively. After that, they load the funds onto your fuel card or send the money to your bank account.
- Short-term contracts. The good thing about the freight factoring is option for, offered by most of the freight factoring companies.
- Online credit information. Don’t miss this service offered by the most of factoring companies. They should provide the info about all your current and potential clients.
Put Your Invoice On The Auction
Save your time and energy by using service from one of the bidding platforms for selecting a company. They are putting clients invoices to the auction where factoring companies are bidding to get picked.
