What Is Freight Factoring?
Freight factoring is a financing method in which a trucking company sells their accounts receivable at a discount to a third-party funding source to increase cash flow. In other words, Love’s Financial buys invoices for the loads you’ve already delivered then collects from your customer.
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Love's Freight Factoring in a Nutshell
Our team will prepare a customized plan based on the needs of your business. Once approved and setup is complete, you simply send us your invoices along with proof of delivery and Love’s will pay you within 24 hours and generally the same day. You can continue to focus on running your business while we collect from your customer. When you freight factor with Love’s Financial, you also have greater access to many other Love’s products and services - all delivered with the Love’s commitment to outstanding Customer service.
Types Of Freight Factoring
Whether you’ve just started your own trucking company or have been in the business for a decade, it’s important to consider the different types of freight factoring to determine what is best for your business.
Freight Factoring with Love’s Financial offers competitive plans. If you’d like more information, please call us at 1-855-495-LOVES (1-855-495-5683), 901-255-8330 (Quick-Funding Office), or fill out this form below.
01.Non-Recourse Freight Factoring
Non-recourse factoring is a type of factoring facility in which the factor assumes the risk of non-payment if the customer does not pay the invoice due to an insolvency or a credit event, even if bankruptcy is not filed. When factoring with Love’s Financial, once we purchase your freight bills, you have no further liability. We will not charge them back to you in the event of non-payment, as long as the non-payment is not from a claim, dispute or short pay.
Who Should Use Non-Recourse Factoring?
Startup trucking companies or established trucking companies that need protection from invoices being charged back
Hauling mostly for freight brokers and/or finding loads off load boards
Need full advance on invoice less the factoring rate
Would like back office support, including billing and invoicing options
Don’t want to assume risk of customers
Advantages of Non-Recourse Factoring with Love’s Financial:
Flat factoring fee with full advance, maximizing your cash flow
Risk free freight factoring
Extensive database of credit approved brokers, shippers and freight forwarders
Invoice creation, billing, and collection services at no added cost
Multilingual sales and operations team
Knowledgeable inside sales phone specialists available to answer any questions and assist during setup process
Guaranteed minimum credit of $2,500 for fuel, tires, and maintenance
Same day funding to give your bank account an immediate boost
02.Recourse Freight Factoring
With recourse factoring the trucking company retains liability for the ultimate collectability of the factored invoice. As this carries less risk to the factor, recourse factoring is generally available at a lower discount rate. The factor purchases the freight invoice from the trucking company, but it may become uncollectible for any number of reasons (e.g. file bankruptcy, go out of business, claim/dispute on the load, etc.) which may result in a “charge back” to the trucking company.
Who Should Use Recourse Factoring?
Hauling for established and creditworthy customers
Interested in the lowest possible rates
Comfortable with a small reserve
Maximize the most cash for your invoices
Financially capable of paying back uncollected invoices to the factor
Advantages of Non-Recourse Factoring with Love’s Financial:
Lower discount rates; maximize your funds from invoices
The approval process is fast! At Love’s Financial, approval happens 24-72 hours after we receive a completed application package
Extensive database of credit approved brokers, shippers and freight forwarders; larger credit limits for your customers
Ability to choose which customers you would like to factor
Credit terms for fuel, tires, maintenance and roadside assistance
Multilingual sales and operations team
Knowledgeable business development specialists available to come to your office to better customize a factoring solution for your trucking company
Bundled packages to include discounts at all of our nationwide network of travel stops
Scalable funding allowing maximum growth and cash flow for your business
Experienced collection team who maximize effort to collect invoices
03.Oilfield Freight Factoring
The oil and gas industry can be full of booms and busts, which is why Love's Financial is here to provide financial consistency for your business. Our customized factoring solution is a simple process in which you sell us your accounts receivable and collect funds within 24 hours instead of the traditional 60 to 90 days. Regardless of your specialty within the oilfield, our funding is here to increase your cash flow while saving you time and money. Click here to get a quote today!
Advantages of Oilfield Factoring with Love's Financial:
Love's exclusive bundled discounts on fuel, tires and maintenance.
Customized factoring solutions tailored specifically for your business.
Scalable funding to maximize growth and cash flow for your business.
Next-day payment.
Collections and Invoice billing support.
Multilingual sales and operations teams.
Dedicated account representatives specialized in trucking and oilfield industries.
Credit flexibility for debtors with extended-pay terms.
Who Should Use Oilfield Factoring?
All hauler types: vacuum, water, hot oil, sand and more.
Drivers interested in our lowest rates.
Content with a minimal reserve.
Maximize the cash from your invoices.
Benefits Of Freight Factoring With Love's Financial
High Advances: Up to 99% access to cash from your invoices.
Professional Receivables Management: Back-office support, billing, collections and a dedicated account representative.
24/7 Online Access: Review account, reporting, free debtor checks and ongoing credit support.
Funding Options for any Business: Be in control of when you get paid with our same day, 3-hour, and 60-minute funding options.
Competitive pricing options.
Bundled Packages Available: For greater savings, bundle factoring with discounts on fuel, tires and maintenance.
Credit: Enjoy our no-fee Love’s Express Billing Program, with minimum of $.30/gallon savings and a $2,500 guaranteed credit line for fuel, tires, maintenance or in-store purchases.
Earn More: Receive My Love Rewards points when you factor with us, plus earn points on qualifying purchases.
Love’s Factoring App: Submit your invoices from the comfort of your cab with our Love’s Factoring App.
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