A trucking company uses freight factoring as a financing method to increase cash flow by selling its accounts receivables at a discount to a third-party funding source. Simply put, Love's Financial buys your invoices for the loads you've already delivered, and then collects from your customer. Freight Factoring with Love's only requires a few steps:
You will receive a customized plan based on the needs of your organization
Complete application process for approval
Complete setup for onboarding
Upon approval and setup, simply send us your invoices with proof of delivery, and Love's will pay you within 24 hours and usually the same day.
Non-Recourse and Recourse Freight Factoring
No matter how long you have been in the trucking business or how recently you started, it is wise to evaluate both non-recourse and recourse options. Non-recourse factoring is a type of factoring facility that assumes non-payment risk if the customer fails to pay the invoice due to financial problems or credit issues, even if bankruptcy is not filed. Factoring recourse means that the trucking company remains liable for the actual collection of the invoice. Because of its low risk, recourse factoring is generally offered at a lower discount rate.
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
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
Freight factoring with Love's Financial gives you access to other Love's Financial products and services, and all are delivered with the Love's Financial commitment to outstanding Customer service.
What are the advantages 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
Fast & Flexible Financing: Hassle free account setup, no hidden fees, and same day or next day funding
Competitive Pricing Options
Bundled Packages Available: For greater savings, bundle factoring with discounts on fuel, tires and maintenance