Freight factoring is invoice factoring for the trucking industry. Factoring is a cash flow method where a business sells its account receivables to a factoring company at discounted rates in exchange for faster working capital access. Invoice factoring can help businesses to run their operations smoothly by providing consistent cash flow.

Recourse factoring allows a factoring company to sell any unpaid or disputed invoices back to a business. In the non-recourse method, the factoring company takes full responsibility despite of any claim or nonpayment. Due to the risk level, factoring rates are much higher, and the advance rate is lower in non-recourse factoring.

With Freight Factoring Inc. you have the freedom to choose which invoice you want to factor. However, we recommend you factor all your invoices to avoid any accounting errors.

Yes, a new business can qualify for factoring. Factoring is not a traditional bank loan or line of credit thus the requirements to qualify are not as strict as loans. Factoring companies do not focus on your personal credit. Factoring solves cash flow problems for new businesses so they can focus on growth.

Qualifying for invoice factoring happens in a matter of days. Factoring companies do not charge interest rates as bank loans do. However, you do sell your invoice at a discounted rate. Qualifying for a bank loan is a lengthy process that includes many steps. Banks have high credit standards and base their approval on your credit. Factoring approval is based on the customer’s credit and payment history.