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Accounts receivable and factoring are great loan alternatives in most industries; truck factoring, in particular, allows you to be recompensed for your services in a timely fashion and thereby frees up capital for bills and business expansion. In the rest of this short piece, you’ll see exactly how factoring manages to accomplish this.

Truck Factoring Basics

In the above subsection, you saw that factoring with trucks isn’t all that different from factoring as carried out in other industries. Here, similar principles apply: always seek out a truck factoring company that is well-versed in the trucking industry – as discerned through their history in business and their clientele. 

Once you’ve found one, you can feel confident that your invoices are in good hands. They will buy your freight invoices from you at the specified price and funnel you the cash immediately so that there’s no interruption in your services. Once the factoring company receives payment for your invoices (from your customers), they will funnel you the remaining cashless administrative fees, of course.

What to Look For in a Truck Factoring Company

Firstly, you want to make sure they can send you the cash quickly. This is a competitive industry vying for the business of many trucking companies, so you shouldn’t have too much problem finding one that can deliver your funds within 24 hours.

You also want a company that is known for quick approvals – especially when compared with traditional lenders. Short approval times and no application fees make a winner for business. While you’re at it, lean headily towards a truck factoring company that gives you a personal account manager to emphasize a personal touch of their business.

Lastly, check to make sure they provide you with both of the available options when it comes to truck invoice factoring: the recourse and non-recourse variants. All these mean is that either you are responsible for the unpaid invoices (recourse), or the factoring company is (non-recourse).

You may want to opt for a company that offers other services in addition to factors – such as equipment loans, fuel cards, insurance assistance, and more. For more ideas on finance and business, check us out at the Ideal Financial Group website.