Other Considerations for Truck Factoring Services

Your truck factoring agreement can be either recourse or non-recourse. If you have a recourse agreement and your customers are NOT paying their invoices, you will be forced to buy them back. The factoring company may even ask for additional fees. If you have a non-recourse agreement, once the factoring company receives the unpaid invoices, they become the property of the factoring company. If customers don’t pay, it’s no longer your problem. As a result, the rates charged by factoring companies tend to be higher for non-recourse agreements.

Factoring for Trucking: Pros and Cons

Like any important business decision, the decision to use truck factoring depends on your business model, the scale of your business and how much risk you can afford.

Some of the pros of truck factoring include:

  • Limited qualifications – This type of factoring depends on the creditworthiness of your customers, so you won’t have a large number of qualifications.
  • Almost Instant Financing – Instead of waiting a long time for an invoice to become due before you receive the money you’re owed, you can get most of the amount upfront through the factoring company.
  • The more active your business grows, the more financing you can get – This is because the value of the invoices you issue determines the amount of your advance. That is, as your business grows, your advances will increase

Some cons of hiring a trucking factoring company include:

  • It can get expensive – In exchange for receiving your advances through the factoring company, you don’t receive a certain portion of the total amount (i.e., the factoring company’s commission).
  • It can get even more expensive if your customer doesn’t pay the invoice – If you have a recourse factoring agreement, you will be required to buy back the invoice if the customer doesn’t pay, and you will likely have to pay the factoring company’s commission.

Why Should You Choose the Truck Dispatcher Service`s Factoring Services for Your Trucking Company?

There are many factors that make drivers choose the Truck Dispatcher Service and the factoring services we offer. We’ve prepared a few of the most important factors that will allow you to make your choice and learn more about what makes us the best in the business.

  • We focus on protecting our clients’ profits

At the Truck Dispatcher Service, we care about our clients and their bottom line. We try to help our clients get the most out of our truck factoring services and take advantage of the benefits that these services provide. You can count on us to put you first.

  • We have a long track record of success

We already have many clients who have turned to us for truck factoring services. These clients are making the most of the opportunities that truck factoring offers, and in the process are strengthening their business, increasing their flexibility, and planning for the future. We encourage you to join this growing family.

  • We understand the trucking industry and all that goes with it.

You need to know that you are partnering with a team that understands your field, your industry and what you do. We at the Truck Dispatcher Service are proud to consider ourselves such a team. We know this industry inside out, and we’re also experts in factoring and helping our customers benefit. You can trust us, we’ll always stand by your side.

  • We cooperate with the best

We are proud to partner with RTS Financial. RTS gives us the means to offer our clients highly efficient trucking factoring services and provide them with all sorts of benefits. Together with our partners at RTS Financial, we are the factoring company truck drivers can count on – we try to help you and your business achieve more while you’re on the road.

  • We provide expert support to all of our clients

The best services come with the best support. We take this seriously at Truck Dispatcher Service and are ever happy to offer guidance and assistance, as well as answer any questions you may have about our services. You can contact us at any time, and we will immediately help you.

Learn more about our truck factoring services or get started Today

For many trucking companies, engaging factoring services helps them stay in business and maintain a steady cash flow so their business can grow. Because the Truck Dispatch Service helps owner-operators make and keep more money, we have partnered with RTS Financial, who can provide the factoring services you need to be successful.

Contact us today to find out if factoring would be good for your business.