Freight factoring is an essential part of a carrier’s toolkit. Without factoring, your ability to take on new business is drastically reduced. So why are there so many myths about factoring for truckers in 2024?
Whatever reason they’ve come about, we’re here to set them straight. But first…
What is Freight Factoring for Truckers?
Freight factoring for truckers is a service provided to carriers that allows them to be paid immediately for a load.
By contracting with a factoring company, carriers can maintain healthy cash flow, keep up with their expenses, and take on more freight.
If you’re ready to immediately increase your cash flow and try factoring, you can fill out the form below.
If you’ve heard myths about factoring that make you hesitate, here are the top 5 factoring myths debunked.
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Factoring for truckers is for when you urgently need cash.
This myth stems from a common misconception that factoring is a ‘break the glass’ tool to be used in tight spots. In reality, factoring for truckers is used over a long period to boost cash flow.
Truckers are often put in a difficult situation when they wait weeks to be paid on a load. Because trucking expenses can mount quickly, delays in payment can prevent a carrier from taking on more freight until they are paid.
Factoring solves this issue by providing immediate payment to the carrier, allowing them to pay their bills and get back on the road.
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Even with factoring, it takes days to be paid.
One myth asserts that factoring payments still take several days to be processed, virtually defeating the point of factoring.
For reliable factoring services, payment for a load is processed in only a few hours. This rapid turnaround allows you to fuel up and get back on the road immediately.
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Factoring plans are a one-size-fits-all solution.
This simply isn’t true. Nationwide carriers and small fleets alike all use factoring services with customer-tailored plans.
Factoring for truckers is remarkably accommodating to a carrier’s needs. When a carrier is first starting out, factoring services can be crucial to taking on additional freight.
If you’re skeptical, you can fill out the form below to receive a quote and custom-tailored solution from an account manager.
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Factoring is great on paper… but there sure is a lot of paper.
Some carriers hesitate to try factoring for fear of the unending paperwork required with every load. Again, this is false.
Typically, you will only need to submit your rate of confirmation, Bill of Lading, and provide an invoice to your factoring company to receive payment. Outstanding factoring companies will even create an invoice for you.
Once you’ve submitted your documents, you can expect to see a deposit straight to your bank account in a few hours.
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Factoring companies don’t have roots in the trucking industry.
Unfortunately, there may be some truth to this… but not for all factoring companies.
England Carrier Services (ECS) has deep ties within the trucking industry through C.R. England (over 100 years). This allows ECS to better tailor factoring solutions to carriers with a sound understanding of what a trucker really needs.
There are several misconceptions about freight factoring for truckers, but the reality is this: Carriers, large and small, use factoring to get paid quickly, increase cash, and expand their business.
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The England Carrier Services (ECS) division offers various services for carriers ranging from maintenance to support. As ECS members, carriers have access to nationwide discounts on fuel and tires from dedicated team members committed to finding the best price. ECS also provides factoring services with benefits such as same-day funding to a bank account or fuel card. These options allow carriers the freedom to focus on growing their business while saving time and money.