Truck factoring is a great way to meet your immediate cash needs instead of wasting your time with billing and invoice collections. By turning over your freight bills to a factoring company, your company receives immediate cash to pay for gas and other expenses. Here are some things to look for when selecting one of the trucking factoring companies in Norcross to work with.
Immediate Payout
The point of using a factoring company is to get paid right away. Many of these companies can pay you within 24 hours. If you have to wait significantly longer than that, you may want to look for someone else to do business with. It’s also important to find out how you’re going to get paid. Will it be a direct deposit in your company’s bank account, or can they offer fuel cards or Comchecks?
Easy Process
The truck factoring company should make it as easy as possible to get your invoices submitted and approved. Online access is great, and if they accept your invoices via fax or email, that’s even better. The best part about invoice factoring is that your credit score doesn’t matter. Your customers’ creditworthiness is what counts here because they are the ones that pay the invoice.
There are also differences in setting up an account. Some companies require an account setup fee to get you started. Others may require a certain volume of invoices per month. You’ll want flexibility here. If your company has some clients that pay very quickly, then there may not be a need to send their invoices to a factoring company.
Recourse and Non-Recourse Factoring
There are two ways to factor invoices: recourse and non-recourse. Both get you paid right away, but with Recourse factoring your business is still liable for the invoice. That means if your client doesn’t pay the invoice down the road, the factoring company will require repayment from you.
With non-recourse factoring, you never have to worry about whether the client pays or not. Non-recourse factoring is often more expensive to make up for the additional risk the factoring company assumes in this situation. Which option is best for you probably depends on the situation. Ideally, you get to make this choice per invoice.
Personal Service
Everyone appreciates the ability to do business conveniently online. But when you need assistance, it’s nice if you have someone to talk to. The right truck factoring company will be there to help you when you need it. If they assign you an account manager, that makes it even easier for you as they’ll understand your business needs.