Find the Best Factoring Company
How to find the best factoring company for you
Factoring is offered as a cash flow solution in many different industries, and there are numerous factoring companies that will factor multiple types of businesses. Consider finding a factoring company that specializes in trucking. Factors that specialize in trucking focus their attention on serving the needs of trucking companies, like yours, so they may have some advantages over companies that factor for a lot of different industries.
Would you prefer to talk to someone who knows your name or be treated like a number? Do you want to be able to call someone directly when you have questions? Find out if you’ll have a dedicated account representative that truly cares or just a general call number. Will there be someone who knows your account, and be willing to answer questions as well as resolve issues?
You can learn a lot about a factoring company by asking for referrals. We bet you know someone at another trucking company who’s working with a factoring company. Ask your friends about their experiences. Do they like their representatives? What kind of service do they get? There are good and bad factors, so don’t let horror stories scare you away from factoring.
Brokers and Shippers
Another good referral source for factoring companies are brokers and shippers. Don’t upset your customers by working with a factoring company they don’t like. See if they have any experience with the companies you’re considering to be sure everything goes as smoothly as possible.
When you’re researching companies, check online for some helpful information. The Better Business Bureau is a good place to look for a business rating. The companies that have been around for a while probably have reviews on Google and Facebook you can read. If you can’t find anything about them, that could be something to consider as well.
Finding Additional Services
Look at their list of additional services and free tools. Do they offer services that you and your drivers would use? Factoring companies usually have a list of advantages, or extras, that they offer to their clients such as: hotel discounts, fuel discounts, tire discounts, roadside assistance, free, or discounted load board subscriptions, and more.
Read the Fine Print
The most important thing a carrier should do when deciding on a factoring company is to read and understand the factoring contract and any other document that requires a signature. Know the difference between and all-asset lien and an accounts receivable lien and only work with a factoring company that files an accounts receivable lien.
Read the contract closely and find answers to these questions:
- What type of lien is being filed?
- Is this a long-term contract?
- Does the factoring company collect on invoices?
- If so, are they aggressive or do they build relationships with your customers and treat them with respect?
- Is there a volume minimum that must be factored?
- If so, what is it and what are the penalties for not meeting the minimum requirement?
- Is there a termination fee?
- If so, what is the fee and how much notice does the factoring company require to terminate?
Finding the Best Factoring Company
There are many factoring companies to choose from and they’re all a bit different. Now that you’ve read through this guide, make a list of the things that are important to you before you begin your search. The key to finding the best factoring company is doing your homework and asking questions. There might be advantages to one factor over another that we haven’t even thought of.
Apex has been factoring for trucking companies for 22 years. We’ve helped thousands of small and new trucking companies get started and grow. Let us talk to you and see if Apex factoring is a good fit for your company.
- FREE credit checks
- 2% flat rate on invoices you’ve already billed
- Fast and reliable funding
- No monthly minimum volume fees
- FREE online Account Management Portal (AMP) with 24/7 access
- A highly experienced account executive to help you manage your account
- Low, competitive rates with same-day and next-day funding
- No long-term contracts or termination fees
- FREE unlimited access to our exclusive load board, NextLOAD.com
- FREE fuel card with discounts on fuel nationwide
- Professional collections on factored invoices
- FREE Mobile Factoring™ app with image capture technology