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Trucking Glossary

The maximum amount a lender can extend for a loan based on the value of collateral.

Categorizes a company’s accounts receivable according to the length of time an invoice has been outstanding. It shows invoices that may be as yet unpaid.

Legal permission granted by the FMCSA to transport goods for profit. Known as an MC number after it’s granted.

A receipt that lists in detail a shipment of goods. The carrier will give this to the shipper.

U.S. federal filing that will designate a representative (process agent) that can receive legal documents in the event that proceedings are brought against your company. A new company must have a process agent listed in all 50 states (blanket coverage) and 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.

An amount of money that is owed to the factor and is deducted or “charged-back” from the reserve or availability of the line due to an agreed upon non-payment by debtor clause in the contract.

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 support of the different groups in a transaction. Ensures that both parties have the collateral to cover themselves before the transaction takes place.

The maximum amount of credit that a customer is authorized to use. For fuel, the max they can spend. For a debtor, the max amount Apex will let them have outstanding.

A federal cabinet department of the US government concerned with transportation. Their mission is to “serve the US by ensuring a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future”.

To sell one’s receivable debts (accounts receivable) to a factoring company.

Any carrier that is authorized to transport goods, passengers or other property that is owned by a separate entity in return for payment. In addition to a USDOT number, they also require an MC number.

A bill produced by a carrier of goods to the receiver of said goods with identifying material such as the name of the shipper, point of origin, charges, weight, date, etc.

An individual or company that works as a coordinator between a company in need of shipping products and a carrier who can move said products. The broker doesn’t function as a shipper or carrier.

(AKA: Forwarder, forwarding agent, or non-vessel operating common carrier (NVOCC)) a person or company that strategizes the shipments between companies or individuals to get a product straight from the manufacturer to its final market.

A fuel advance is a financing option that many 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 gasoline, diesel and other fuels at gas stations. Some cards can also be used to pay for vehicle maintenances and expenses at the discretion of the fleet owner or manager.

The maximum amount of credit that a customer is authorized to use. For fuel, the max they can spend. For a debtor, the max amount Apex will let them have outstanding.

Apex Capital’s fuel management tool to help map out the best fuel savings along a specific route that the user enters.

(The International Fuel Tax Agreement) an agreement between the continental US and Canadian provinces to streamline the reporting of fuel use by motor carriers that operate over various territories Alaska, Hawaii and the Canadian territories do not participate. An operating carrier with 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 in which the company members are not held liable personally for the company’s debts. LLCs are a combination of a corporation and a partnership/sole proprietorship.

An online load and truck freight board that many owner operators choose to find their own loads. Truckers often look for loads and freight postings through their own networking.

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 tool for Apex Factoring clients, but also free for anyone to create an account, login and search for freight to haul anytime. If you become an Apex client, you will be able to see extra information not available to non-clients, such as credit information and fuel discounts available.

A type of factoring arrangement under which the factor assumes responsibility for credit losses caused by insolvent account debtors. Under a non-recourse factoring agreement, the factor relinquishes the right to seek recovery from the client when account debtors prove financially unable to make payments for factored invoices.

A letter that lets your clients know that a factoring company is managing your receivables, that the factoring company has financial right over your receivables, notifies of the new payment address and other legal matters that vary from company to company.

(Proof of Delivery) a method to establish the fact that the recipient received the contents sent by the sender. Usually a delivery receipt copy of the freight bill signed by the receiver at time of delivery.

(AKA: Rate Sheet) a document that confirms the agreed upon amount for the cost of service between the shipper and carrier.

An understanding between the driver/company and the factor that the company must buy back receivables that the factor is unable to collect payment on. The driver/company must cover the cost of any invoices a customer may be unable to pay for whatever reason.

Companies that factor may choose to receive a full advance, which is all of the funds from their schedule of invoices, minus the factor’s fee. A reserve occurs when the trucking company chooses to have the factoring company take out a larger percentage of their invoices. When the bills 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 company’s discretion, or left to build up over time.

At Apex, the Startup Program is designed to help, step-by-step, clients start their own trucking company. This involves assisting in filling out forms, sending them to the appropriate offices for filing, and setting up various necessary authorities and also providing information about certain aspects that Apex may not be able to complete.

(TransConnect Services) a product of Apex Capital Corp, TCS is an independent fuel platform operating on the Comdata server. TCS provides a full comprehensive fuel management system, complete with a fuel card, account management website and a mobile app.

A new electronic on-line 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.

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.