Welcome To Truck Dispatch Training Session 12 Coverage for today

Welcome To Truck Dispatch Training Session 12

Coverage for today

What is a Freight Factoring Company

The process of getting money

What is a Freight Factoring Company
Freight factoring, also called transportation factoring, trucking factoring, or freight bill factoring, is a process in which the person or business that delivers a load sells their invoice to a factoring company. The factoring company then pays the carrier the full amount of the invoice, minus a small percentage, within as little as 24 hours of receiving the invoice, rather than waiting a month or longer for a broker to pay the invoice. The time it takes to receive payment can depend on a variety of factors, but generally different companies will have different timelines for payment
The process of getting money

POD always should have 2 signatures: one from shipper and the other one from receiver.

How to send PODs to factoring company

• POD always should have 2 signatures: one from shipper and the other one from receiver.
• Factoring companies will not buy if receiver’s signature is missing.
• Customers like Costco and Walmart should put a sticker on BOL as a proof of delivery
• POD should be in PDF version and the quality of POD should be not damaged

Factoring companies pay through ACH , WIRE, Check, loaded directly on to your fuel card account

Payment

• Factoring companies pay through ACH , WIRE, Check, loaded directly on to your fuel card account
• ACH Transfer: payment will be in 24 hours and Factoring company will not charge
• Wire : payment will be in 1-2 hours and charge some amount of fee
• Check: payment will be in check and send to your company address
• Loaded directly on to your fuel card account: will send the money to your fuel card, owner of the fuel card can use it for fuel expenses or get cash back from banks

Credit Check

• Factoring companies have their own site for credit checks. Carrier can check the brokerage company before getting loads from them
• Factoring companies will buy invoices from only approved brokerage companies
• They don’t buy invoices from NO buy companies