Freight Bill Factoring Questions & Answers
We want to answer any questions you have about our freight bill factoring service. Please call us today at 1-800-233-2056 if the information you need is not provided.
General Questions
About Getting Started
Invoicing and Collections
General Questions
What types of accounts do you factor?
You can factor freight bills for the transportation services your company provides to freight brokers and shippers that meet our credit approval standards.
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What size clients do you serve?
We accept clients that are just getting started in trucking, as well as established trucking companies with up to multi-million dollar monthly sales.
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Does my business location matter?
We are backed by a nationwide commercial finance provider and can factor trucking receivables for businesses located anywhere in the United States and Canada.
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What if we haven't been in business very long?
As long as your trucking company has valid accounts receivable, it doesn't matter whether you just started or have been in business for years.
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Will brokers or shippers not like us using a factoring company?
Some brokers and shippers may question their invoices being factored if they are unfamiliar with factoring. But it is not common, since most are experienced in working with factoring companies.
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What is the difference between recourse and non-recourse factoring?
When invoices are factored with recourse, you are ultimately responsible for payment, regardless of whether the account debtor pays. And when invoices are factored on a non-recourse basis, the factor takes the credit risk to protect you from any loss. FleetFactor only offers recourse factoring. We recommend www.freightcheck.com if you are interested in non-recourse factoring with no monthly minimums.
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What do you consider when quoting factoring rates?
There are a number things we consider when formulating our rates. We look at the credit worthiness of brokers and shippers you use, the average dollar amount of your invoices, the number of invoices factored each month, the total dollar amount of invoices factored each month, the average number of days your debtors take to pay, plus the term length of the factoring agreement.
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Can we get better factoring rates as our business grows?
We can adjust your factoring plan at any time to accommodate business growth and changing financial conditions.
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About Getting Started
Can we use more than one factoring company?
You can only use one factoring company.
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What if we already have a factoring company and want to change?
If you are under contract with another factor and would like to use FleetFactor instead, please call us at 1-800-233-2056 to discuss buying out your account.
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Do you charge a start-up fee to begin factoring?
Complete our Online Express Application now to qualify for our March promotional offer, and we'll waive the standard $450 setup charge.
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How long does it take to process our factoring application?
Preliminary approval can be provided in one or two business days. And upon receiving all documentation, it usually takes three to five business days for our underwriting department to process an application.
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How quickly can we get funded?
You can be funded as soon as the underwriting process is complete, which usually takes three to five business days for most new clients.
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What if we submitted a startup application to another factor?
There should be no problem, as long as you have not signed an agreement or contract with them. If you would like to work with FleetFactor instead, you will need to provide us with name and telephone number of the other factoring company.
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Invoicing and Collections
Do we have to factor all of our accounts receivable?
You are able to select which accounts to factor and can maintain the others in-house for direct billing. Once you assign an account, you must factor all future invoices, unless a release is provided.
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Do you collateralize our accounts receivable?
First position is required as collateral on all accounts receivable you factor, and a uniform commercial code financing statement will be filed to evidence it.
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Do we have to provide additional collateral?
Additional collateral is not usually required, unless you would like an advance rate higher than we would normally provide.
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How long is the term of your factoring agreement?
The term can be as long as you want, but the minimum is twelve months.
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How do we know which brokers or customers are factorable?
When you get started, we review the list of brokers and shippers you use. You can also log into our online account management system to view our no-buy list of debtors and perform credit requests on new debtors. Plus you can call our credit department to check our experiences with over 40,000 companies.
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Who prepares the invoices and mails them?
You prepare daily schedules for the accounts receivable you plan to factor, along with the invoices. All invoices, signed original freight bills, rate sheets and receipts must be sent to our operations department for verification, mailing and funding.
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How do companies know where to send payments?
The invoices you prepare and send to us will be stamped with an assignment notice. The broker or shipper receiving the invoice will recognize the assignment stamp and know to remit payment to our address. In addition, the company is also provided an assigment letter documenting that your company has assigned the account, and the invoice is being factored.
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What if a broker or shipper does not pay an invoice?
If an invoice remains unpaid after an agreed upon number days, you would typically exchange the invoice for another of comparable value.
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How do we know whether factored invoices are paid?
You can log into our 24-hour online account manament system or speak with the dedicated portfolio manager assigned to your account.
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When is funding provided?
Funding is provided for the invoices you factor within 24 hours of receipt, unless you take advantage of our same-day funding option. Funding is completed in the early afternoon.
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How is funding provided and what options are available?
After invoices are submitted and verified, direct funding is provided by ACH or wire transfer.
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