Are you in need of a reliable trucking factoring company with which you can work? When looking for a factoring company, you must carry out your search carefully. The firm should have specific criteria that sets it apart and makes it favorable to work with as a company. Below are a few of these essential qualities that you should seek in any factoring firm with which you choose to work.
No Hidden Fees
You need to understand how the company will make its money. Are the charges clear up front? The last thing you want is to be taken off guard by an unexpected service fee of which you were not aware. You also need to ask if there are any minimum requirements before you sign the contract. Make sure that you know exactly what payment you will be paid too.
No Monthly Minimums
It is preferable to settle for a factoring company that has no monthly minimums and allows you to factor as and when the need arises. If your firm is small, you don’t want to be stressed out from trying to keep up with the required monthly invoice factoring minimum requirement from the trucking factoring company.
You should have the freedom to go and factor when you need a boost in your cash flow. Factors that tend to want you to have a set minimum are those that are looking at working with companies with higher invoice volumes. Make sure you’ve selected a factor that works with small-to-medium enterprises if you’re still growing.
High Advance Rates
The advance rates offered by a factoring company are equally important. How much of the total invoices will you receive? In general, it’s more often 80 to 90% of all the completed contracts; however, it is worth checking in with the factor and getting an idea on the rates before signing the contract. You want to be paid as soon as you finish the job, so you have the funds to take on bigger and better projects as well as meet all your business expenses.
Enables You to Grow
A factoring company is your partner for growth. Nothing slows down a business like a lack of cash flow. It’s a standard business practice that clients are billed invoices with a 60 to 90-day option for payment. However, this can mean waiting for months before being paid for a completed job. This issue is where trucking factoring companies step in to give a helping hand. They can advance the cash you need so you can focus on growing your business.
Quick and Efficient Setup
You are already busy with your business. You don’t want to spend hours filling in paperwork for a loan. So what do you do? Consider a factoring company, of course. Most trucking factoring companies have streamlined simple startup processes that can see you receiving your first payment within 24 hours. When applying, it is crucial that you ask them about the application process and how soon they can consider your case and cash out your first payment.
Some of the more prominent factoring companies working with corporate truckers can take seven business days or more to process applications. The above tips will help you to find a factoring company with which it is worth working.
