As a carrier, you want to get paid as soon as possible. You want to get paid to help your business move forward. Unfortunately, this isn’t an instant payment industry. It could be several weeks or over a month before the money from successfully delivered freight comes in. How much can happen with your business while you wait on payment? As a carrier, you likely know that collecting and managing invoices can be an organizational mess; taking a lot of time out of an already busy day. Enter factoring. It might be just what you need. It might be just what will move your business forward. For carriers, factoring can be a very handy way to get funds into your business as soon as possible. As a carrier who decides to factor, you have to find the right company. Carriers tend to look for factors based on reliability, experience and comfort.
Reliability
Carriers tend to want to work with a solid company. After all, we are talking about selecting a company that will have a major and direct impact on company cash flow. Factoring has been around a long time. The economy can be unpredictable. An unpredictable economy can impact your business. Factoring companies come and go. As an experienced carrier, you want a stable factor.
Why might a factoring company go out of business? Perhaps the company’s funding dried up, they took too many losses, they moved to another industry, or, something else entirely. Carriers want to make sure they are working with a reliable company they know will be around. Carriers are looking for a company they can come to rely on. Carrier trust means repeat business. Repeat business, managed with care, provides the reliability carriers are looking for in a factor.
Experience
Carriers tend to prefer working with a company that knows the industry. Insider industry knowledge is developed over time. Experienced factors have seen the ups and downs of this industry. You may have learned the value of experience by trial and error. Factors are trusted to reduce, not increase your organizational challenges. In addition, Industry understanding means not needing to explain how your billing and collections work. Experienced companies are ready to run from day one.
Your ideal factor should have hundreds of clients just like you. They would know and understand your customers. Your chosen company should be able to provide you with data. This factor should have access to industry insights and analytics. An ideal factor is your key partner. They are solving major time and logistical issues for your company. Ideally, they simplify things for you. The right factor helps you move your carrier business forward.
Comfort
Is the company the right fit for you? And, how can you know if the fit is right? This question of fit is critical. You may like to do things your own way. You have to find the correct factor connection. Knowing what you want in a factor helps speed up the factor-finding process. At the end of the day, carriers want their new factoring relationship to be a net benefit to their growing company. What does your sifting process look like?
Ask questions. Listen. Learn. Decide what will work for you and be ready to move forward in that direction. Does the process and group of services provided by the factor align with your goals, or are they just not what you need? Every new partnership can take some getting used to, however, the right partner will improve your organizational efficiency, immediately.
When carriers choose a factor, they prefer a blend of reliability, experience and comfort. What have you found to be the best combination? What advice would you have for other carriers hoping to choose an ideal factoring company? When the right factor is found, the carrier’s business thrives. As your carrier business begins to thrive, you’ve found an answer to the overarching question of, Why Factor?
The England Carrier Services (ECS) division offers a variety of 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 who are 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.