As a freight broker, choosing the right factoring company can make or break your business. Factoring companies can provide much-needed cash flow, administrative support, and help build strong relationships with carriers. But with so many options out there, it can be hard to know what to look for. Here are the top five things to consider when choosing factoring companies for freight brokers.
1. 24/7 Same-Day Funding
Cash flow is crucial to any business, and freight brokerage is no exception. With loads moving at all hours of the day and night it’s critical for your freight brokerage to work with a factoring company that can provide funding 24/7. Having access to funds immediately can help you pay carriers quickly, maintain cash flow, and even take on new business opportunities.
In addition, unexpected events can arise that require immediate access to funds. A truck breaking down, a sudden increase in fuel costs, or a last-minute load cancellation can all create cash flow gaps that need to be addressed promptly. Having a factoring company that is available 24/7 can provide peace of mind and help freight brokers navigate these challenging situations. The importance of 24/7 funding cannot be overstated for freight brokers. It’s crucial to choose a factoring company that offers this service and has a track record of reliability and exceptional customer service.
**Watch out for factoring companies advertising “24/7 Factoring” but they fail to mention they have a cutoff time for invoice submissions. Choose a company with no cut-off times for invoice submissions.
2. 24/7 Live Customer Support
When you have a question or an issue, you need to speak with someone who can help you right away. Look for a factoring company that has actual representatives available 24/7. Quick access to knowledgeable customer service representatives can help you resolve issues quickly, avoid delays, and keep your business running smoothly.
3. Administrative Support
Managing administrative tasks like preparing carrier packets, filing bonds, and generating year-end tax reports can be time-consuming and take you away from focusing on growing your business. Look for a factoring company that provides administrative support to handle these tasks for you. This support will give you more time to focus on expanding your business and building relationships with carriers.
4. No Hidden Fees
Some factoring companies might have hidden fees, which can add up quickly and cut into your profits. Make sure to ask potential factoring companies about their fee structure and look for a company that offers transparency. Understanding all of the costs upfront can help you make better decisions about which factoring company to choose.
5. No Minimum Invoice Amount
Many factoring companies have a minimum invoice amount that you need to meet each month, or you will be charged additional fees. This requirement can be problematic for newer brokers or those with smaller customers. Look for a factoring company that doesn’t have a minimum invoice amount requirement. This way, you can use their services as much or as little as you need without being penalized for lower invoice amounts.
Choosing the right factoring company for your freight brokerage can make a significant impact on your business’s success. Quickpay Funding is a factoring company that meets all of the criteria discussed. Our 24/7 same-day funding, live customer service, administrative support, transparent fee structure, and no minimum invoice requirements make us an ideal partner for freight brokers looking to grow their business and improve their cash flow. Consider Quickpay Funding for your factoring needs and see how we can help take your freight brokerage to the next level.
Click Here to learn more about Quickpay Funding’s factoring for freight brokers program.