Here at Apex there has been a long running joke that factoring is like a four-letter word in the trucking industry. Factoring your freight bills gets a bad rap, but why is that? Did a few bad apples spoil the bunch? We don’t know, but what we do know is that there are a ton of myths and misconceptions when it comes to what freight factoring is, how it works, and why it’s a good cash flow solution for most small to medium size trucking companies.
Apex has been in the factoring business for 21 years so when we say that we’ve pretty much seen and heard it all, we mean it. We’re going to pick apart the commonly talked about downsides of factoring and highlight the Apex difference.
Four Freight Factoring Myths
“You’re Required to Factor All Your Invoices!”
This is one of our favorite myths to bust here at Apex because we hear it all the time and tell everyone right away, if you have customers that pay you fast and you’re happy billing them direct we don’t want you to factor those invoices. Apex is here to help you and your trucking company. Instead, we let you choose which customers you want to factor.
“Factoring is Only for Trucking Companies in a Financial Bind!”
The trucking industry is tough and attaining positive cash flow is even tougher when you’re waiting 30, 60, or even 90 days to get paid. According to The National Association of Small Trucking Companies (NASTC) only 15% of newly formed trucking companies make it to their second year of operation. And on average only about 5 cents of every dollar earned is used for profit for your trucking company. With statistics like that, it’s obvious that invoice factoring can help anyone with their trucking company grow their business whether they are in a financial bind or doing well on their own.
“It’s Too Expensive!”
We often hear that quick-pays or fuel advances are the same thing as factoring but it’s really like comparing apples to oranges. You’re paying a fee to get paid faster in both cases, but Apex is a full-service factoring company. That means we offer lots of services to help you save money, like our fuel card program where you can get awesome fuel discounts, back office support that collects on your bills, a free load board to book more loads, and so many other advantages.
“All Factoring Companies are the Same!”
This myth is one that we have worked tirelessly to bust over the last 21 years. The truth is that yes, all factoring companies buy freight bills, but when you factor your freight bills with Apex we focus on being transparent so you know exactly what to expect. The Apex difference means that we don’t have long-term contracts, termination fees, monthly minimum volume fees, and we offer recourse and non-recourse options so that you can choose what works best for your trucking company. We focus on providing the best customer service possible because at Apex we know that we work for you, not the other way around.
If we have changed your outlook on factoring and you think your trucking company could benefit from having consistently reliable cash flow, saving money on fuel, and so much more, become an Apex client by giving us a call at 855-369-2739 or get started here.