1. What is factoring?
Factoring companies purchase accounts receivable. When you factor an invoice you are selling the right to collect on the invoice in trade for immediate cash.
2. Why would I want to factor my freight bills?
Many small and growing transportation providers run into the same problem. They have most of their working capital tied up in receivables waiting to be paid by brokers and shippers that pay when they want to pay. Factoring gives you the cash you need to fuel trucks, make payroll, and pay for repairs, allowing you to accept your next assignment without worry.
3. How do I get paid for my invoices?
The day we receive your paperwork (invoices, rate confirmation, bills of lading) we can wire the money directly to your bank account, issue you a Comchek, or send a standard check via U.S. Mail.
4. What is Recourse vs. NON-Recourse factoring? Which program do you offer?
Under Recourse programs, the factor has the right to charge the invoice back to you at any time, thus taking the original money advanced back, plus fees, for any reason it deems necessary.
All of our programs are NON-Recourse. This means we assume the credit risk. Once we purchase the bill from you we will not charge the invoice back to you.
5. Am I required to sell you all our invoices?
No. You choose which invoices you want to factor. We only ask that you factor all of the invoices you have for the same broker or shipper in order to make it less confusing for your customer. If they receive some invoices factored and some billed direct from you, the confusion will delay payment.
6. Will you purchase all invoices that I send to you?
No. Before accepting an assignment, simply call us and we can tell you if the debtor is creditworthy or not. Our credit decisions are based on our personal experience, as well as their rating in Dun & Bradstreet, Experian, Compunet, and Transcredit. We have credit experience on 150,000+ debtors. By calling us before accepting an assignment, you minimize the risk, on both our parts, of having a bad experience.
7. Can you wire transfer money into my bank account?
Yes. We can also fund you via ComChek, or hold it in a trust account from which you can draw ComCheks as needed.
8. What if I want to stop factoring?
You can stop using our service at any time. We have no long term contracts or termination fees.
9. Can I get a lower rate if I have a high volume?
Yes. For higher volume customers we can offer better rates. Call us for more information.
10. What types of businesses do you factor?
We factor transportation companies only. By specializing in this industry segment, it allows us to be more knowledgeable about your business and deliver outstanding customer service.
11. Are my invoices liened as collateral?
Yes. It is standard industry practice for factoring companies such as Nationwide Transport Finance to hold first position on accounts receivable.
12. What if I have other questions?
Call us at (800) 624-3353 and ask for Pat Montgomery. He will be happy to answer any questions you have about our programs. You can also fill out our short form and we will contact you.