WEX Capital

What is a freight factoring company?

Freight factoring companies are an increasingly common way to free up cash flow in the trucking industry. The elements of running a freight business are relatively simple: Pick up a load Deliver the load to a specific location Get paid for the transport and delivery of goods However, it is rare for a customer to pay you quickly. In fact, the average time it takes for an invoice to be paid is 40 days. Some cases take much longer. Factoring for truckers is a way to get the money you need, when you need it.</p

How does freight factoring work?

Factoring with a company like WEX Capital is simple. Once you apply to work with us and your business is approved, most of what you do is business as usual. To begin, you will let WEX Capital know what companies you want to deliver for, and WEX Capital will vet the clients to ensure they have a good track record of paying invoices. You pick up, move, and deliver cargo for your brokers like normal, but you assign the invoice to us. The factoring company (WEX Capital) will then pay you the majority of the invoice to you and collect from the client based on the invoice terms. You can use the paym

What are the benefits of freight factoring?

Freight factoring comes with some significant benefits, including: Quick payment — Invoice factoring companies give you uninterrupted cash flow. Payment can happen in as little as 24 hours. You can turn your invoices into capital that keeps your business operating without taking out conventional loans. Reduced accounting burden — Load factoring, or freight factoring, means outsourcing your accounts receivable to another entity. Doing so removes the burden of tracking down invoice payments and will get revenue into your account quickly. It’s a great way to free up time to run your business. Qua

How does my business qualify for freight factoring?

Most freight factoring companies determine qualified applicants based on risk and volume. Anyone you choose to work with will likely ask for the following information: Your monthly Invoice Volume — your monthly volume can impact the amount you pay. The more you utilize freight factoring, the less you will have to pay. Your customer base — diversity is important but not critical. However, if you only have one customer you deal with, you will be considered to have a higher risk than a small business that works with several freight brokers. The more diversity you have in your clientele, the more

What should I look for in a contract?

In any business decision, you should pay close attention to contracts. Whether you work with WEX Capital or someone else, here are a few things to keep in mind when reviewing your invoice factoring contract: Know how much can be borrowed — a factoring contract will have a maximum credit line which limits how much you can factor. This can also limit business growth. Most freight factoring companies use larger loans from other banks. At WEX Capital, we are the bank and can offer larger credit limits than many competitors in the freight factoring industry. Advance amount — Your contract will spel

Why do companies use freight factoring?

The reasons an owner-operator or small business might use factoring are closely tied to the benefits. Here are the top four reasons you might consider freight factoring. Cash flow — many smaller companies are at the mercy of their clients paying invoices for delivery. With invoice factoring, you increase working capital and have quick access so you can grow. With payment as soon as 24 hours after delivery, you have the cash flow necessary for payroll, new equipment, and unforeseen financial needs — all without taking out loans. Administrative help — for some businesses, offloading the administ

How much does invoice factoring cost?

Invoice factoring, or load factoring, is a simple and easy way to qualify for business financing. At WEX Capital, we believe in absolutely zero hidden fees. Our factoring services are covered with one clear factoring fee. What we negotiate with you is what you pay with zero surprises. The cost of factoring depends on a few factors related to your business, but when you factor with us, you can expect quick access to at least 96% of your invoice amount (in some cases, even more). We will work out the details of your factoring agreement after you complete the application process. For the cost of