What is factoring in trucking?
What is factoring in trucking?
Factoring helps carriers and owner-operators turn unpaid invoices into faster access to the cash needed to run their business.
Carriers and owner-operators often have to wait weeks or even months for payments. Not only is this frustrating, but it can also hurt a business. After all, without steady cash flow, it’s harder to cover fuel, maintenance, and other day-to-day costs. That’s where freight factoring with Outgo, a DAT product, can help.
Key benefits of freight factoring can include:
- Fast payments in 4 hours or less for approved invoices
- Access to non-recourse factoring options
- Transparent pricing with no hidden fees
Fast payments in 4 hours or less for approved invoices
Access cash quickly with freight factoring services.
Transporting freight involves a lot of work. You’ll need to find, negotiate for, and deliver loads. On top of that, you also have to handle your cash flow. Unfortunately, slow payment times are common, leading to cash flow gaps.
That’s where factoring in trucking comes in. With factoring services, you’ll get your cash without the wait and won’t be 100% reliant on timely customer payments or loans.
Access to non-recourse factoring options
Non-recourse factoring can help protect carriers from the risk of some non-payments by customers. Let Outgo, a DAT product, take on the bankruptcy risk of unreliable customers for you.
Recourse factoring is an excellent fit for many companies, but sometimes non-recourse factoring is preferred. It’s important to review the details, as non-recourse factoring terms can vary.
With non-recourse factoring, the factoring company assumes the risk of non-payment if the customer goes bankrupt or out of business, so carriers can access cash flow without taking on all the collection risk themselves.
Transparent pricing with no hidden fees
Factoring services that offer transparent pricing help carriers avoid unexpected costs. Outgo, a DAT product, provides trucking invoice factoring services without any pesky hidden fees.
Hidden fees can creep up when least expected and throw an entire budget into disarray. That’s why many carriers seek freight factoring options with clear, upfront pricing — so what’s agreed upon is what’s paid.
The good news is you won’t have to worry about hidden fees when you use freight factoring services from Outgo, a DAT product. Instead of slipping costs past you, Outgo has transparent pricing so what you see is what you’ll pay.
Being a carrier or owner-operator usually means waiting weeks or months for payments, but that’s not the case with freight invoice factoring. Instead of waiting for money to arrive and potentially taking on new debt to keep your business afloat in the meantime, you’ll have the cash you need much faster.
Your freight factoring company will pay you and then wait for your customer to pay them. In exchange, your factoring company will take a small percentage of your total invoice, but you’ll quickly get the money you need. Outgo, a DAT product, offers funding within 4 hours for approved invoices.
Getting cash quickly while another company handles the waiting sounds like a dream come true. In fact, it almost sounds too good to be true.
While factoring in trucking used to have companies that charged massive or hidden fees, many factoring services today are more reliable. Working with a trusted factoring company that offers transparent pricing and clear terms can help ensure a positive experience.
One option is Outgo, a DAT product. You’ll not only have reliable cash flow and access to straightforward factoring programs without any monthly requirements or hidden fees, but you’ll also receive high-quality customer support.
Every freight invoice factoring provider charges slightly differently. However, most companies charge between 2% and 5% of an invoice’s total value. Exact rates will depend on how many invoices you factor, the invoice amount, whether you opt for recourse or non-recourse factoring, and your customers’ credit history.
However, with Outgo, a DAT product, this trusted partner has transparent pricing, so you won’t be caught off guard.
Some factoring companies may also have hidden fees on top of their base percentage, so it’s important to review the pricing carefully before you sign up.
Factoring in trucking will cost you a little money, but it can be worth it. You’ll be able to access cash when you need it and pass off billing and collecting duties to your factoring company. With freight factoring, you’ll have the money to cover repairs, fuel, hotels, and other day-to-day expenses.
Say goodbye to waiting 30 to 90 days for payments, taking out additional loans, and overdrafting your credit card. With the right factoring partner, you can have cash in your pockets fast.
When it comes to recourse and non-recourse factoring in trucking, there are a few differences to consider.
In recourse factoring, you’ll need to pay the factoring company back if your customer never pays or makes a late payment. However, the factoring company takes on the risk of non-paying customers in non-recourse factoring, usually in exchange for slightly higher fees. This means that if a customer goes bankrupt or out of business, you’ll still be able to keep the cash advance.
Outgo, a DAT product, is one of the highest-rated factoring providers, and with good reason. Not only do they offer transparent pricing, automated invoicing, great rates, and no long-term contracts, but they also offer industry-leading funding speeds. With Outgo, you won’t have to wait to get paid. Instead you’ll receive your cash within 4 hours for approved invoices so you can keep your business running smoothly.
Start freight factoring with Outgo, a DAT product
Freight factoring can be a useful option for carriers and owner-operators looking to improve cash flow. When you work with Outgo, a DAT product, you’ll receive payments quickly, and they’ll handle the billing and collecting. Register with Outgo today to get paid promptly.
Outgo, a DAT product
- Invoices approved within 4 hours
- Low, transparent rates (no hidden fees)
- No annual contracts, no reserves