Trucking Terms Glossary
The maximum percentage of the value of a collateral that a lender is willing to extend for a loan.
The primary tool used by collections personnel to determine which invoices are overdue for payment. An aging report categorizes a company’s accounts receivable according to the length of time an invoice has been outstanding.
A detailed list of a shipment of goods in the form of a receipt given by the carrier to the person consigning the goods.
A U.S. federal filing that designates legal agents upon which process may be served. It’s required before authority can be granted.
A company’s operating cash flow minus operating expenses. The difference in amount of cash available at the beginning of a period and the amount at the end of that period.
The act of collecting payment from a broker upon receipt of an invoice and other appropriate paperwork. The factoring company sends the broker a notice of assignment designating payment to the factor.
A check performed on the financial backing of the counter parties in a transaction. Ensures that both parties have the means to cover their leveraged positions in the trade before the transaction takes place.
For a broker or shipper who a carrier is hauling for, the amount Apex will let each carrier have outstanding.
Companies that operate commercial vehicles transporting passengers or hauling cargo in interstate commerce must be registered with the FMCSA and must have a USDOT Number. The USDOT Number serves as a unique identifier when collecting and monitoring a company’s safety information acquired during audits, compliance reviews, crash investigations, and inspections.
An authorized for-hire motor carrier transports passengers, regulated property or household goods owned by others for compensation. In addition to a USDOT number, they also require an MC number.
A freight bill is a bill rendered by a carrier to a consignee of freight and containing an identifying description of the freight, the name of the shipper, the point of origin of the shipment, weight of the shipment, and the amount of charges.
An individual or company that serves as a liaison between another individual or company that needs shipping services and an authorized motor carrier. The broker does not function as a shipper or carrier.
A person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution. (AKA: forwarder, forwarding agent, or non-vessel operating common carrier (NVOCC))
A fuel advance is an option that many brokers offer or factoring companies offer alongside their freight bill factoring programs. Fuel advances provide funding to cover fuel expenses at the time you pick up a load.
(AKA: Fleet Card) Used as a payment card most commonly for diesel fuel at truck stops and fuel stations. Some fuel cards can also be used to pay for vehicle maintenance and other expenses at the discretion of the fleet owner or manager.
The maximum amount of credit that a client is authorized to use. On the fuel card, the amount they can have outstanding.
(The International Fuel Tax Agreement) An agreement between the lower 48 states of the US and the Canadian provinces to simplify the reporting of fuel use by motor carriers that operate in more than one jurisdiction. Alaska, Hawaii, and the Canadian territories do not participate. An operating carrier registered for IFTA receives an IFTA license and two decals for each qualifying vehicle it operates. The carrier files a quarterly fuel tax report, which is used to determine the net tax or refund due and to redistribute taxes from collecting states to states that it is due.
(Limited Liability Company) A corporate structure whereby the members of the company cannot be held personally liable for the company’s debts or liabilities. LLCs are essentially hybrid entities that combine the characteristics of a corporation and a partnership or sole proprietorship.
An online load and truck listing website that many trucking companies, owner operators, and truck drivers choose to find loads and freight brokers and shippers use to post loads.
Also known as your Motor Carrier Number, an MC Number identifies a carrier who transports regulated commodities for hire in interstate commerce.
Having the tools that once were only available through calling your executive or on a desktop computer on your smart phone or tablet on the go. Everything from invoice generation to document requests to the fuel finder are available on the Apex Mobile Factoring app.
A free load board for carriers, owner operators, brokers, and shippers to post and find loads to haul. If you become an Apex factoring client, you will be able to see extra information not available to non-clients, such as more detailed credit information and fuel discounts available on each route.
Non-recourse factoring is a type of agreement where the factoring company assumes the credit risk rather than the client. If the client’s customer does not pay for credit-related reasons, such as bankruptcy, the factoring company takes the loss.
Learn more here: Benefits of Freight Factoring
A notice of assignment in trucking, or NOA, is a legal agreement that informs the broker or shipper that the carrier has a relationship with a factoring company and informs them where to remit payments.
Proof of Delivery, or POD, is a method to establish that the recipient received the contents sent by the shipper. Usually a delivery receipt copy of the freight bill signed by the receiver at time of delivery.
Also known as a rate sheet, a rate confirmation is a document that confirms the agreed upon amount for the cost of service between the shipper and carrier.
An understanding between a client and the factoring company that the client must buy back receivables that the factor is unable to collect payment on.
A reserve occurs when the trucking company chooses to have the factoring company hold a larger percentage of their invoice up front. When the invoices are paid, the factoring company takes their fee, then puts the rest of that percentage into a reserve account. It can be taken out at the client’s discretion, or left to build up over time to pay for things like insurance premiums or repairs.
At Apex, the Startup Program is designed to help, step-by-step, clients start their own trucking companies. We establish companies, obtain authority, and complete other filings to help each new trucking company get started on the right foot.
Learn More about how to Start Your Trucking Company.
A charge levied when a party wants to break the term of an agreement or long-term contract. They are stipulated in the contract or agreement itself and provide an incentive for the party subject to them to abide by the agreement.
A new electronic online registration system that will streamline and simplify the FMCSA’s registration process and serve as a clearinghouse and depository of information on all entities regulated by the agency, including motor carriers, brokers, freight forwarders, etc. The URS will combine multiple registration processes, information technology systems and forms into a single, electronic online registration process.