Factoring Do’s and Don’ts
Overall, factoring sounds like a great way to make sure you’re getting paid for work you’ve completed. A factoring service will take your invoices and advance a portion of the invoice value. This allows you or your business to have the funds on hand to continue growing your business. However, there are some important things to keep in mind before signing up with a factoring service.
At Financial Carrier Service, we offer freight factoring that is simple and easy. We don’t require a contract either, making it an easy decision when you have invoices that need to be paid or if you need a paycheck cashed. With us, you can be sure to get paid right away, instead of waiting months for the funds. And as truckers, we all know how important having cash on hand is.
Here are some do’s and don’ts to keep in mind when you’re looking for a freight factoring service.
Research: It’s important to keep in mind that different freight factoring companies all have various services, differing processes, and fees. Before signing up with a company, be sure to research what they offer and make sure it will fit your needs. Even though all factoring companies will provide an advance on your invoice or paycheck, if they have high fees, it may not be worth the lost money.
Read Reviews: This is good advice for whatever type of service you’re looking for. Look online for reviews, or even ask the company for a list of reviews that they can provide. If you can, get in touch with previous and current customers and ask about their specific experience. It won’t take too long to get an overall opinion of the company.
Read the Terms and Conditions: This goes hand-in-hand with researching the freight factoring company before you sign up. Thoroughly reading a potential company’s terms and conditions will ensure that you are aware of all fees, potential restrictions, and policies. When you’re waiting to be paid for an invoice, the last thing you want from a factoring service is to hear that it’s not possible because of a specific condition.
Sign up With a Vague Factoring Service: The more you know about their services, policies, and even their customer service process, the better you’ll feel about signing up for their services. If they are even slightly vague about fees or policies, don’t sign up with them! It’s as simple as that. At Financial Carrier Services, we are truckers ourselves, so you can be confident that you’ll get the best service available.
Choose the Cheapest Rate: Pricing will definitely be a significant factor in which freight factoring company you choose, but it should not be the only one. As you may have found out when you searched for other services, the lowest price can often mean inexperienced and lacking in quality. Get to know the company before you sign up.
Go in Blind: If you don’t understand something about the process, don’t sign up! We understand that factoring can be somewhat confusing, but with us, you can be confident that we’re an honest and reliable service. If you are confused about how anything works, feel free to get in touch to learn more about the process and about what we offer.
We started Financial Carrier Services because we were in your situation before and we know how important it is to have reliable and trustworthy factoring services. The money coming in to your business is essential to keep it growing and anyone who has worked a job in their life knows the importance of having a steady paycheck. Our freight factoring services were designed for trucking companies that need their invoices paid.
Learn more about us and get in touch today with any questions.