Trucking Factoring FAQ
A freight factoring company, also referred to as a “factor,” purchases freight bills (accounts receivable) at a discount, providing up-front funds to a client for unpaid invoices. Instead of having to wait 30, 60, or 90 days for your customer to pay you, a factoring company can send money in less than 24 hours. The freight factor collects a fee once the invoice is paid.
Factoring is an excellent way of getting money fast to manage cash flow to pay for operating expenses without creating debt. You could go to a bank and try to get a loan, but there’s no certainty you will be approved. And even if you are approved, you may not be able to get additional loans for critical equipment such as trucks or trailers.
Because you are factoring your outstanding freight invoices, we are focused on your customers’ credit. Plus, a good factoring company will also take the hassle of collections off your back and provide you with important back office support services.
One of the many benefits of being an Apex client is that we make it easy for you to stay updated on the status of your factored invoices. We provide a user-friendly online account system that features a wide variety of reporting and informational tools. We want to make it easy for our clients to be completely informed about their customers and invoices.
We will buy freight invoices from all your customers including brokers, shippers, and freight forwarders. We can factor invoices for most kinds of freight. Call us to learn more.
Absolutely. In fact, our fuel card is one of the most popular programs we offer because it’s one of the best in the trucking industry. We offer substantial fuel discounts at our discount network locations. Our “in-network” stops include TA and Petro, AMBEST, Speedway, Sapp Bros., Roady’s, and more. The Apex Fuel Card also allows our clients to enjoy deep discounts on roadside assistance, maintenance, and tire services.
Unlike some factors, Apex doesn’t lock clients into long-term contracts, nor do we charge any monthly fees or cancellation fees. We want to help your business grow. Just let us know so we can provide the flexibility you need.
You wouldn’t buy a truck without looking at it first, right? Then why haul a load for a customer without knowing they can be relied upon to pay? Checking credit regularly will dramatically reduce serious issues such as payment delays.
Every load that you don’t get paid means you need as many as 12 loads to make up the cost. Apex provides 24/7/365 online access so you can know instantly how much credit will be extended to one of your customers. You can also use the Apex Mobile Factoring™ App to check credit anytime.
We spend valuable effort and resources to make sure our credit system is the most accurate and reliable of any factoring company. We are committed to providing the best, most trusted service.
We primarily factor freight bills, but we also offer authority services and client portfolio management services. We provide collections, credit, fuel cards, and other services to help start your company and allow it to run smoothly and effectively.
Here are a few of the extra services we offer:
- Startup Program to get your authority
- Personal account manager
- 24/7 online account access
- Free credit and collections
- Substantial fuel and tire savings programs
- Customized Apex Fuel Card program
- Cash Flow Assistance
- Apex Mobile Factoring™ App
- Free NextLOAD load board
- 24/7/365 Roadside Rescue program
Non-recourse and recourse refer to the party that takes the payment risk. If you enter into a recourse arrangement, that means you are responsible for buying back the invoice from the factoring company if your customer does not pay.
If you have a non-recourse arrangement, that means the factor will take the loss, not you, if the customer doesn’t pay the invoice due to credit reasons.
No. Apex will handle all collections to make sure payment is received as quickly as possible. We’ll document all payments we receive so you’ll know when and how we collected on your invoices. This will save you time, hassle, and the expense of managing your own collections.
No, but when you factor one customer we do ask that you factor all the invoices from that customer.
Should your customer ever mistakenly send you a check or make an automatic payment into your account, you must immediately forward either the check or the payment directly to Apex. Do not deposit a check from a customer that you’ve factored with us.
That won’t be a problem. We can work with your current factor to make sure the buyout and transition processes goes smoothly.
We will need you to fill out a short application, provide proof of your authority and your insurance. We will also need a list of your current customers if you have already begun operating under your own authority.