Tips for Working with Freight Factoring

It’s a situation plenty of truckers find themselves in: they aren’t getting paid quickly enough for freight they have to deliver. They’ve got to cover their gas bills. They’ve got bills at home to pay. They’ve got to eat. The money still isn’t coming.

It’s one of the most stressful parts of being a trucker, but there are ways to get around this issue: factoring. Factoring involves a trucker selling their invoices for freight delivery in exchange for payments upfront. They give away a portion of the overall pay in order to get the money when they need it. It’s a situation in which everyone wins, so long as you choose the right factoring company.

Since you’re dealing with your income, you don’t want to go with a company that isn’t honest. Some factoring companies will look for ways to take advantage of you by sneaking in tricks to take more of your income. Factoring is a great resource, but only as long as you pick a factoring company that is designed to be honest and truly help you out.

How do you do that? How do you make sure you make the right choice? Take a look at these tips and try to use them when picking your factoring company.

Look for experience

A factoring business that has been around and remains successful is probably legitimate. A new factoring business may spring up and offer suspiciously great terms, which you should greet with great suspicious. Go with those who have proven they are legitimate over a long period. Businesses like TBS Factoring have been in the business for decades and come with a huge list of positive reviews. Go there first for all your factoring issues.

Make sure there are no sign-up fees

Less reputable factoring companies will try to add in ways to make you pay more. Ask upfront if there is a sign-up fee. The legitimate factoring companies won’t charge one.

Make sure there are no long-term obligations

Like sign-up fees, this is a way some factoring businesses will try to force more money out of you. They’ll make you sign up for a long-term deal so that your one-off financial issues become a regular pain that cost you over and over. Big factoring companies shouldn’t make you sign up for anything beyond this individual deal.

Check the rates and compare them

Factoring rates are incredibly reasonable, or they should be. Ask for the rates of the factoring company you are considering, and compare them to other competitors to make sure you’re getting a fair rate.

Find out if they’re members of the International Factoring Association

Being a member ties the factoring company to certain ethical standards, including being honest with all customers and keeping accurate records. Membership promises you a better factoring experience.

If you follow all of the above tips, you’re sure to get the factoring experience you were looking for, with the money you need now, reasonable rates for the service, and no long-term financial obligations.