How Freight Bill Factoring Can Benefit Trucking Companies

49piZ69Trucking organizations see how troublesome it can be to run an operation while sitting tight for solicitations to be paid. A few customers may not pay until 60 days after a task has been finished.

Meanwhile, the trucking organization must keep on paying its bills so as to keep their business afloat, sometimes on almost no money. Work must be paid and gas acquired with no money from the customer (in any event not for 30-90 days).

Numerous trucking organizations are compelled to depend on using a loan to keep their organizations going or chance losing everything. One alternative that is beginning to be utilized by numerous organizations as a part of the business is freight bill factoring.

Freight bill factoring gives a trucking organization quick money. Rather than holding up 30-90 day to land paid for positions they as of now, they can be paid in 7 days from a factoring organization. It gives organizations the cash they have to pay their drivers, recover their transportation costs furthermore tackle new employments, all without tackling any new obligation.

The procedure of factoring (likewise alluded to as receipt subsidizing, to financing, and records receivable factoring) is sufficiently basic. It includes two things, an organization’s solicitations and a factoring organization, otherwise called the variable. The variable buys an organization’s solicitations for money and after that gathers these solicitations for business for a charge. Normally this expense is something to the tune of 1.5%-3.5%.

Here is an illustration: Super Road Trucking Company may have quite recently finished a $50,000 work for a customer by a huge credit. They have invoiced their customer and hope to be paid in 30 days. It implies Super Road won’t have the capacity to utilize any cash from the client to pay their driver, fuel or some other related costs for that particular occupation. Since they don’t yet have the money they are experiencing difficulty financing new business and have in this manner turned down a few huge contracts.

They choose to utilize a factoring organization. The component pays Super Road $45,000 for the receipt and afterward gathers it themselves. Once the get it, they return it to Super Road, less a settled upon charge. Issue understood, further harm turned away. Super Road gets the cash they require and are currently ready to proceed with operations.

Ideally, you can see the advantage of freight bill factoring company. It is an open door for truck organizations to inspire funding to proceed or grow operations without tackling any new obligation. Note this lone works if the organization or individual who owes the parity on the receipt has great credit. It gives protection to the variable that they will get their cash in the wake of fronting it for the organization.

Standard charges for this sort of administration vary however fall frequently some place somewhere around 1.5% and 3.5%. However, this can contrast. The expenses will be influenced by receipt periods. On the off chance that an organization takes into consideration a 60-day pivot, they will be charged all the more than a group that has a 30-day pivot. It is on account of it might take more time for the factor to recover their cash.

Freight Bill Factoring Keeps Many Truckers on the Road

ZOb42eJbThe business of trucking demands cash in order to pay the drivers, for repairs or breakdown and fuel. If you do not have cash in hand for these demands then your business may not be as pleasurable experience. This problem is however a thing of the past for the trucking companies today due to the introduction of a system called freight bill factoring. Freight factoring enables you to maintain a steady cash flow without having to worry for late payments from your clients. It can get your bills paid in a couple of days itself. With a steady cash flow you can pay your drivers on time as well as tackle repairs and gas expenses.

It is a plain fact that many in the trucking industry are trying to simply survive until things turn around. And the members of the trucking industry have varied profiles. There are large national and regional carriers who are cutting expenses by letting drivers go, small to medium local and regional trucking firms who are following the same course of action and independent truckers with fixed expenses and no revenue if they are not on the road.

Each of these types of trucking entities is implementing specific measures to remain solvent until the economic storm passes. Some, unfortunately, will not make it. But one method many truckers use to keep their cash flow moving and their financial heads above water is professional freight bill factoring.

Factoring freight bills is a practice that is certainly not new to the trucking industry. I used to work in sales for a small trucking firm and the company could not have operated were it not for the practice of factoring their invoices. Factoring is, essentially, an agreement between a company and a “factor” whereby the factoring agent provides the company with cash advances in exchange for the company’s invoices or receivables. Depending on a variety of conditions, the factoring agent will advance to the company anywhere from 70 – 90% of the value of the invoices. Once the invoices are collected, the company receives the balance of the cash due less a small percentage that the factor is compensated for advancing the cash against the invoices. This rate is typically between 1-3%.

As any trucker will tell you, waiting to get paid by clients can be terribly frustrating. The customer wants the best possible terms for providing their freight business to the trucker and the trucking firm can wait anywhere from 30-90 days to get paid. In the meantime, there are drivers to be paid, trucks to be maintained, fuel to be purchased, etc. And those expenses must be paid right away. A driver is not going to wait up to 90 days waiting for the company to get paid so the company has to either have a large surplus of cash (which is not likely in a trucking enterprise) or access to a line of credit against which they can draw. And we all know what it’s like to get credit these days.

The fact is, the trucker does have an asset in the form of the receivables outstanding through the issued invoices. Eventually, they will get that money and the factoring agent knows that. Consequently, they are willing to “buy” these invoices at a discount from the trucking company and provide most of the cash value right away. This arrangement puts much-needed cash in the hands of the trucker and a few percentage points of the total value in the pocket of the factoring agent or company.

In the current economic climate, factoring is becoming more widespread as a form of financing. Factoring has been widely used by the trucking industry, healthcare and construction industries for quite some time. However, as credit becomes tighter and payment is even slower in coming, many companies are turning to factoring as a means of staying solvent and, in some cases, growing their business.

As I said, the trucking industry tends to be a leading indicator of economic trends. The use of freight bill factoring has made the industry has into one of the leading proponents of factoring receivables as a form of financing. Let’s hope both the trucking and factoring industries are trending in a positive direction for the foreseeable future.

Factoring Requirements for Your Freight Bill Factoring

truck-24360_640In order to meet the day-to-day financial obligations of their business, like fuel, payroll, etc, freight companies can ill afford unpaid invoices for a month or two. They need immediate cash flow, which is thankfully provided by various factoring companies. As a freight company when you decide to get your accounts receivable factored you need to follow a clear-cut procedure. You cannot afford to ignore the necessary guidelines or your factoring request would be turned down.

After your factoring company receives the necessary paperwork from you they would process the documents. They would send a valid invoice to the consignee and receive payment from them.

Remember, you cannot send your freight bills directly to a direct non-recourse factoring company. You will have to fill out a prescribed application form for every freight bill, which you then submit either online or faxed. Normally on receiving your freight bills, duly signed by you, factoring companies disburse funds within hours. Make sure to avail the different kinds of discounts most factoring companies offer. Some of them insist that once you start factoring freight bills for a particular customer you must continue to factor all future consignments meant for that customer, unless you inform them beforehand that you intend to bill that customer yourself. In such cases all factored open invoices must be closed before your customer receives a release letter from the factoring company you have been dealing with.

You may follow these steps for you factoring requirements:

Ring up a couple of factoring companies. Talk to them and find out their rates, and business terms and conditions. Usually, they quote their rates on the basis of your client’s credit, the age of your invoices, the amount of your invoices, etc. The rates are also implicitly determined by the amount of risk the factoring companies perceive in the invoices.

Make sure bills/invoices factored are valid. Billing is strictly based on the goods or services being rendered by your company and is acceptable to your customer. Also determine the creditworthiness of the account debtors in accordance with the requested line of credit.

While filling out the form to be submitted to the factoring company state clearly the name of the business firm, address and the amount of money you expect. Be careful while summarizing and calculating the amount.

After sending your application allows some time to the factoring company to work on it. They will assess your case on the basis of your performance and business references mentioned on your application.

Look forward to receiving a contract that you have to sign and get notarized by the concerned person or people. You can enclose fresh invoices for disbursement while sending back the executed contract to the factoring company.

Depending upon the factoring company you can expect up to 90% funding on face value of the invoice. When the factoring company receives payment on the invoice from your customer they would pay you the remaining amount.

After you have done your job you can monitor the progress of your business on the web system provided by most factoring companies. Many of them regularly send web reports and online information.

Benefits of Working with Freight Factoring Companies


Any business needs cash flow and transport companies are no different. This is why, as a manager, you need to rely on services that will increase cash flow and minimize your company’s debts. This is where freight factoring comes in handy. This service is convenient and offers instant cash flow to trucking companies.

What is freight factoring?

Freight factoring for trucking company is when a transportation company sells some or all of its invoices to a factoring company. The factoring company will offer the transportation company instant cash in return for the sale of the invoices. The factoring will take over the billing and charge a fee for its services. This process is easier than applying for a loan.

Small fleets and freight factoring

Start-ups and small business struggle a lot when it comes to securing a loan from a bank. This is because; they have little credit history and collateral. This implies that small felt companies have a difficulty when they want to purchase more trucks and expand. However, by working with a trucking freight factoring company, you will enjoy the following benefits:

Instant Payments

This is the main reason why most small fleet companies go for a factor. Unlike banks, factoring companies offer faster payments and are more reliable. In fact, most factoring companies offer 80-95% of the loads value up front. The remainder is usually paid within a month. Freight factoring will give you access to unlimited funds which you might have, otherwise, waited months for. Factoring companies will minus their own management fee from the payment.

Less risk

Using factoring will lower the risk of non-payment from big contracts or new customers. Most factoring companies operate under a non-recourse’ model. Therefore, if they don’t get paid, you will still keep the money they paid for your invoices. You will always get paid no matter what.

Minimal invoicing hassles

Invoicing can be hectic. Well, factoring will reduce your invoicing workload. Rather than submitting your invoice directly to customers and then following up when they aren’t paid, just submit all your documents to your factoring company. They will carry out collection and billing for you. This gives you more room to focus on other areas of your business.

Is factoring right for you?

If your main problem is not being able to pay for business expenses because shippers are paying slowly, factoring is what you need. To qualify, your:

· Invoices should be free of encumbrances.

· Clients/shippers must have a reputable commercial credit.

Most small truck fleets can meet these requirements. Boost your cash flow today and expand your company.

Get To Know When to Rebuild Your Engine

truck-191919_640Most people just hear about engine rebuilding but they don’t exactly know what an engine rebuild means. An engine rebuild is done for many reasons. Do you know what to look in an engine that needs to be rebuilt? There are various signs that should tell you that your engine is not in good condition.

First, if you realize that your exhaust is producing excessive white smoke and oil consumption is not economical as usual, consider an engine rebuild. This results from worn piston rings. Additionally, knocking and loud banging noises are signs of a worn out engine. Finally, a sudden loss of engine power means that it needs to be rebuilt.

Tips for improving the life of a damaged engine

There are two approaches of rebuilding your engine: repairing individual parts and replacing the entire engine. If you opt to repair the entire engine then you must be ready to spend more but the results will be long lasting. However, you can opt to improve your engine as follows;

  • Replacing engine bearing- this helps to reduce that engine suborn noises as well as for low oil pressure.
  • Replacing pistons and piston rings- a compression test should be done before replacing the piston and the piston rings. If the test reveals that these parts are not in good condition, a replacement is necessary. A replacement will increase engine efficiency and effective fuel consumption.
  • Replacing timing chains, car drives and belts- a wear of these parts affects engine performance drastically. Remember, if the chains and belts break, that will be the end of your engine. It is therefore important to replace the parts if they are not in good condition.
  • Replacing lifters and camshaft- all pushrod cams must be installed together with new lifters for best performance.
  • Replacement of engine valves- it is important to note that a weak engine valve limits your engine’s power potential. Damaged valves may also lead to burning of other parts, such as, the exhaust.


Everyone loves to see their car engines in good condition. However, your engine will show signs of failure when one or two parts are damaged. At this time, you need to act swiftly to safeguard your investment before it is too late. Your engine needs ultimate care.

Benefits and Features of the HP2000 Auxiliary Power Unit

semi truck with hp2000 apuDesigned specifically for the transport industry, the HP2000 auxiliary power unit has taken 10 years to develop, test and use on the road. It has featured astounding results by proving to handle extreme temperatures that most drivers are accustomed to everyday. This power unit eliminates the need for a truck’s engine to idle thus significantly reducing fuel usage whilst permitting the driver to enjoy all the privileges that usually come with an idling engine. The following are the most notable benefits of the HP2000 power unit.

It is cost-effective- An idling engine consumes a lot of fuel, thus, turning off the main engine of a truck grants a range of benefits such as reducing carbon emissions, reducing fuel consumption and saving the truck’s engine from the wear and tear it is ordinarily accustomed to when the truck’s engine is idling. It is noteworthy that legislative bodies are increasingly coming up with no-idle legislation meant to reduce emissions, reduce noise and save fuel. Some of those legislation’s are presently being adopted in the United States of America and Canada.

Quick Installation

In a world that requires lots of efficiency and where everything flows with time, it can be disconcerting when installing a power unit consumes huge chunks of your time. Thankfully, the HP2000 is so easy to install, thus, saving a lot of precious time. In under 6 hours the complete power unit system will be up and operational in your truck.

The Power Unit Features a Cooling, Heating and Charging Functionality. The heat pump provides 20000 BTU cooling, 20000 BTU heating, 12 Volt DC, 150 amp for the vehicle batteries and standard 65 amp charging power.

It is strong, light and quiet

The power unit features a proven electric start, 2 cylinder Perkins diesel engine which drives the patented heat pump system. The heat pump system runs quietly, runs smoothly and is not expensive to maintain.

Long Warranty Period

The engine comes with the manufacturer’s two year warranty.

Cutting Edge Technology

The power unit features state of the art control systems that are incredibly simple to operate. The pump features high-tech functionalities such as a calendar start, low battery start, coolant temperature, auto heat and cool climate control.

Dependable Power

This APU integrates an invertor combination that provides high quality alternating current power. If you remove the generator head, the HP2000 is more than 200lbs lighter as compared to other APU’s in the market. Moreover, its engine can run an incredibly low 1800 RPM which then reduces fuel consumption and a smooth, quiet operation.

The Benefits of Using HP2000 on your Semi-Truck

The gross weight of the auxiliary power unit is only 345lbs thus making it one of the lightest APUs in the market. Admittedly, the weight does not in any way impact fuel consumption but it definitely reduces the load of the semi-truck. Moreover, a lightweight auxiliary power unit is far easier to mount and dismount.

It Has a High BTU Rating

Since most semi-trucks operate throughout the calendar, many of the truck’s resources are used during extreme temperatures. To survive in the extreme temperatures, the truck drivers therefore need an auxiliary power unit that will provide hot or cool air for long periods of time. Fortunately, the HP2000 has the ability to produce 20,000 BTU of both A/C and heat. This is sufficient to cover the needs of the driver.

Reduced Fuel Consumption

Most states in America have adopted the anti-idling law. An ordinary APU has a consumption rating that ranges from 0.75 to 1.2 gallons each hour, which is higher than what the anti-idling laws recommend. The HP2000, on the other hand, consumed only 0.11 gallons every hour. That is below the limit that is recommended in the anti-idling law

The HP2000 APU is Compact

Truck owners usually face a big challenge when installing the Auxiliary Power Unit. The problem is compounded if the chassis has not been designed, as it does happen in some cases, keeping APU in mind. If, for instance, you buy a large APU, you will have to relocate the fuel tanks and air dryer to fix the auxiliary power unit. Conversely, the HP2000 is compact and it can easily fit most chassis.

In conclusion, the HP2000 APU is a good product that is fuel efficient, cost-effective and compact. Purchasing the HP2000 is another way of abiding by the anti idling laws in some states as this APU is fuel efficient.

Your Truck Is Your Mobile Home – Take Care Of It

When you’re a truck driver, you spend more time driving the truck than you spend at home. Some people are born for this kind of life and they enjoy the thrill and the pleasure that it brings. However, for making sure that you always return safely back at home, you need to do at least a few things before you get up behind the wheel.

Taking care of your truck is extremely essential, not only because you spend so much time on it, but also because you drive it for long distances on different kinds of roads.

drivers-menuThe trucks function exactly like any other car, the only difference being that they are bigger and harder to handle by an inexperienced driver.

Here’s what you need to do to keep your truck in a functioning state.

Maintaining the Truck

Making a regular maintenance is the key to making sure that your truck functions perfectly. As you surely know, there are some things in the vehicle that need a constant replacement. Some have to be changed after a certain number of miles, others after a certain time has passed while others simply have to be changed when it’s needed.

The regular maintenance will make sure that you have the oil changed for the engine, along with the needed filters that the vehicle functions with. This will make sure that the engine works properly, and the fuel consumption is lower.

Apart from this, the regular maintenance will also tell you if there are other parts that need to be changes. Of course, any truck driver knows a lot about mechanic, so if you’re an experienced truck driver, you’re going to know beforehand what the truck needs to have changed.

Update the Insurance

truckerapp_2.001-343x343In some cases and for some trucks, it’s not enough to have only the mandatory insurance, also known as the compulsory MTPL, but you can also have an insurance providing full protection from damages, also known as CASCO – an acronym for Casualty and Collision.

The MTPL is mandatory and it has to be done by every vehicle that runs on the public roads, while the CASCO is optional, and it covers different damages, like vandalism, collisions, theft or burglary, but also weather incidents like storms, floods or even fire.

If you’ve got a truck that is new or less than 10 years old, you can ask for a CASCO from any insurance provider. They will evaluate your car and they will determine a sum of money that you have to pay each year for this kind of insurance. In case you have an incident and you request the money for fixing or repairing the car, the insurance company will give you back the sum that the truck was evaluated for.

Respect the Tachograph

Truck-Driver1Every truck driver knows the rules and regulations of driving a truck on public roads. For making sure that these rules are respected, the companies have two options – they use two drivers for the same truck at once, to make sure that the cargo is delivered on time, or when there’s no hurry, they ask them to respect the tachograph.

The tachograph is that device that is installed on the big vehicles to see the speed that the vehicles has run with and the resting time. Usually, they have to respect a four hours driving period alternated with a four hours resting period.

If the truck drivers respect these requests, they will avoid getting too tired from a long period of driving and the vehicle will also be used according to the regulations.