Compliance Service Bureau works in partnership with TAFS Factoring Freight Service to ensure that everyone gets on the road safely and legally and ready to make money!
Freight factoring, also known as trucking factoring, takes the invoices for the loads that you run and allows you to get paid on them now Instead of waiting for 30, 60, or even 90 days for a load to be paid out. This allows an influx of working capital to keep the business in motion in between invoice payouts.
This becomes a vital business tool in trucking as invoice payments are almost never made immediately; the transportation industry standard is 40 days (or more) to fully process payouts to drivers and trucking companies. These process times can literally make or break a freight company’s budget, and many have had to turn elsewhere to make ends meet from time to time.
In the past, many relied on bank loans or even credit cards to stay afloat when there are more “payouts” than “pay-ins” on the balance sheet. Not only is this hard to juggle, but it can end up costing thousands in interest payments – especially over time for the trucking companies.
With freight factoring, a company or owner-operator makes their delivery as usual, but instead of waiting on payment, they transfer or “sell” the invoice for the job to a third party company. This company will “buy” the invoice for slightly less than the total owed for the job, but they make up for it by paying immediately. With money in hand, the freight company goes about their business as usual, while the freight factoring company cashes in the invoice and does all the waiting.
For some freight companies – especially smaller or privately owned operations – this type of immediate payment will seem like a lifesaver for their weekly or monthly budget, allowing them to cover expenses without incurring any debt. Others on the other hand, will be extremely skeptical of the costs associated with the transaction.
Luckily, we’ve outlined all the details of how freight factoring works.
In the trucking industry getting paid quickly can be essential to being successful. Factoring allows you to submit invoices to your factoring company for same day processing and allows you to get paid on the invoice amount much sooner instead of weeks down the road. This gives you the capital you need to keep your business moving forward. Like all business transactions, freight factoring works because there is an incentive for all the parties involved.
The incentive for the freight company or owner-operator is immediate payment instead of long waits. For the freight factoring company, the incentive is the percentage they charge or “leave out” of the invoice when purchasing from the driver, which translates to profit when they later collect from the customer. And finally, the customer’s incentive is that they get to deal with a company that has the financial collateral to wait for a payout rather than a small freight company that’s literally dying to get paid.
For one, TAFS knows the trucking industry first hand and came into being out of seeing the need for a new approach to factoring services in trucking. We understand the needs of trucking companies as well as the expectations of the industry and we use that knowledge to provide our clients with a unique and understanding approach to factoring. There are a lot of factoring companies out there these days but TAFS proudly stands out from the rest through this level of understanding of just what truckers are dealing with and the services they need to succeed. TAFS has a strong line up of benefits and strategic partnerships geared towards our client’s success. While other businesses have entire office staff working hard to push the company forward, for many trucking companies all that pressure and responsibility falls on the guy driving the truck; It doesn’t have to though. Through strategic partners like TAFS, you can set yourself up for success while taking a fair amount of the burden off of your shoulders.
TAFS has taken fast advances to the next level! Save time and money for your business. No more waiting on fuel funds.
No more digging through load boards for the best deal. ProDispatch specializes in freight dispatch for Dry Van, Reefer, Power Only, Hotshot and Flat Beds – more freight types to come!
Streamline your business with automatic invoice generation, paperless management, and much more.
Get answers to your questions when YOU need it. Our customer service team is dedicated to helping you succeed as a consultant for your business.
Factoring should not be a one-size-fits-all solution. Find the program to best fit your business needs.
Tires are another expense that can cost your business time and money. Stop overpaying for a necessity. Join the TAFS Elite Tire Club.
Keep moving with our comprehensive maintenance program. TAFS brings our clients significant saving through maintenance discounts at TA, Petro Stopping Centers, TA Express, MHC and Goodyear locations. Whether it’s parts or preventative maintenance, you’re covered with TAFS.
Get peace of mind knowing you don’t need to worry about being stranded by flat tires or needing a tow with the Roadside Assistance Program.
Take the guess work out of doing business. Free credit checks allow you to protect your money by making sure you’re in business with the right customers for you. And with your online account access, you can monitor your account 24/7.
TAFS has taken fast advances to the next level! Save time and money for your business. No more waiting on fuel funds. Speed up your cash flow.
No more digging through load boards for the best deal. ProDispatch specializes in freight dispatch for Dry Van, Reefer, Power Only, Hotshot and Flat Beds – more freight types to come!
Streamline your business with automatic invoice generation, paperless management, and much more.
Get answers to your questions when YOU need it. Our customer service team is dedicated to helping you succeed as a consultant for your business.
Factoring should not be a one-size-fits-all solution. Find the program to best fit your business needs.
Tires are another expense that can cost your business time and money. Stop overpaying for a necessity. Join the TAFS Elite Tire Club.
Keep moving with our comprehensive maintenance program. TAFS brings our clients significant saving through maintenance discounts at TA, Petro Stopping Centers, TA Express, MHC and Goodyear locations. Whether it’s parts or preventative maintenance, you’re covered with TAFS.
Get peace of mind knowing you don’t need to worry about being stranded by flat tires or needing a tow with the Roadside Assistance Program.
Take the guess work out of doing business. Free credit checks allow you to protect your money by making sure you’re in business with the right customers for you. And with your online account access, you can monitor your account 24/7.
Trying to collect from a customer can take time and prevent you from getting back on the road. Let our Collections Team help you get your money from your customers so you can focus on running your business.
Consultations and advice are always free of charge!
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