Factoring Company for Trucking
Factoring Company for Trucking
Trucking professionals rely on factoring companies to get paid on time, boost operational efficiency, and support back-office needs.
Factoring companies help carriers of all shapes and sizes avoid delayed invoice payments. Through Outgo, a DAT product, truckers can solve cash flow problems and get rid of the hassles caused by invoice, billing, and collection work.
- Get paid fast by factoring with Outgo, a DAT product.
- Remove the unpredictability from your business cycle.
- Gain back-office support and valuable benefits.
Get paid fast by factoring with Outgo, a DAT product.
DAT wants truckers to get paid on time. That’s why we offer industry-leading funding speeds through Outgo, a DAT product.
Factoring is an effective strategy that truckers use to minimize the strain of invoice processing and alleviate cash flow burdens. If you find yourself waiting on invoice payments long after they are due, factoring could be the solution for you.
With freight factoring, you can elect to sacrifice a small portion of the total load payment to ensure that you receive payment fast. Outgo offers modern factoring that optimizes cash flow management, provides access to funds within 4 hours for approved invoices, and gets you on the road faster.
Remove the unpredictability from your business cycle.
Transportation factoring allows truckers to streamline their business and take on new loads with confidence.
Carriers and owner operators that use transportation factoring companies prioritize present-day cash flow needs. The ability to get paid predictably and on time is worth sacrificing the small fee for the factoring company’s invoicing services. Factoring closes the gap between the time truckers complete a load and actually get paid on that same load. Minimizing payment delays gets you back on the road much more quickly, which is why factoring appeals to truckers seeking to boost their load volume and grow.
Gain back-office support and valuable benefits.
Having a platform that provides your back-office needs can springboard your trucking business.
The right truck factoring company will also assist truckers with back-office needs. In return for a small percentage of the load fee, factoring companies instead handle the load’s invoice-related and administrative matters. Once the factoring company pays for a particular load, it becomes their responsibility to collect payment from the customer.
A factoring company for trucking offers freight factoring, sometimes called trucking invoice factoring, services to truckers. Factoring allows truckers to sell their freight invoices to a factoring company in return for rapid payment. The trucker sacrifices a small percentage and receives a slightly discounted value of the total load payment in order to receive payment from the factoring company fast.
This can be a really effective route for truckers who have immediate cash flow needs. Given that 60% of invoices are paid late, a time value exists for truckers who sometimes have to wait for up to a few months for a broker to finally pay off an invoice. Factoring helps truckers get paid quicker and stay on the road that much more.
The freight factoring process for truckers is simple. Once truckers deliver a load, they can submit the bill and rate confirmation to the partner factoring company. Trucking ends with the brokerage firm verifying a clean delivery. Upon confirmation, the factoring company will then issue payment. It’s that easy. These funds can be deposited immediately using a fuel or debit card, same-day via wire transfer, in 1-3 days through ACH, or instantaneously with instant transfers. Most factoring companies will charge truckers a factoring fee or discount rate ranging from 2% to 5% of the total freight invoice. Keep in mind that factoring fees will vary based on a trucker’s creditworthiness, sales volume, invoice value, and whether the company uses recourse or non-recourse factoring.
Freight factoring offers a host of valuable benefits for truckers. Chief among them: factoring gets truckers paid quickly, allows truckers to grow their businesses, and improves truckers’ customer satisfaction. Truckers can effectively plan ahead using factoring because predictable and reliable invoice payments smooth the business cycle. Since operating cash flow and working capital can now consistently be accounted for, truckers can eliminate any cash flow gaps that occur when customers slowly pay their invoices.
Truckers can bypass traditional lenders and more ably grow their business through factoring – without incurring more debt, subsequent interest payments or payroll problems in the future. At the cost of the small factoring invoice percentage fee, the time-value of money means truckers can maximize their business’s present-day value. And some of a carrier’s customers and most valuable accounts seek longer payment periods, so factoring keeps the trucker’s business functioning without a hitch.
With the best factoring company, truckers can eradicate cash flow gaps, streamline operating efficiency, and purchase complimentary freight factoring services specifically geared towards truckers.
There are a few key criteria to look for when evaluating the best factoring companies to meet your needs. Carriers should consider the kinds of businesses that the factoring company works with and the structure of each company’s factoring process. Each factoring company will also offer different terms, fees, conditions, and other possible requirements.
Yes. Outgo, a DAT product, ensures trucking professionals no longer have to wait weeks, if not months, to get paid. The factoring process is made easy with Outgo. Truckers will receive a payment within 4 hours for approved invoices. Its factoring programs are straightforward, fair, and reliable. Growth-oriented carriers appreciate how Outgo doesn’t include any hidden fees. Less time spent on administrative and back-office tasks frees carriers to focus on the road ahead.
They can expect an unrivaled range of benefits, services, and features designed to help truckers grow their businesses. Outgo provides industry-leading funding speeds, transparent factoring rates, and no long-term contracts or commitments.
Outgo offers non-recourse factoring, instant access to funds, and automated invoicing. Its modern financial platform and AI-powered technology all save carriers time, money, and help them focus on the road ahead.
Partner with the Best Factoring Company For Trucking Today!
Every load on the DAT One Load Board that contains a dollar sign is automatically eligible to be factored through Outgo, a DAT product. Factoring continues to become more and more popular in the trucking industry as supply chain bottlenecks mean higher degrees of uncertainty. In a complicated business climate, Outgo is here to get you paid on time, keep you on the road, and keep your business ticking over. Sign up today and take control of your cash flow.
Outgo, a DAT product
- Invoices approved within 4 hours
- Low, transparent rates (no hidden fees)
- No annual contracts, no reserves