TruckStop Factoring is a newcomer in the transportation factoring industry. Brought to you by TruckStop.com (formerly known as Internet Truckstop), the services aim to help you get paid when you need it the most. And the services offer a simple, low, flat fee structure to keep more money in your pocket.
How TruckStop Factoring Works
Truckstop.com’s factoring service works to keep your business moving. As an owner-operator, you know how hard it is to keep fuel in your truck, pay bills, maintain your rig and cover the other expenses you have when customers are paying 30+ days after sending your invoice.
Transportation factoring with TruckStop offers same-day invoice processing.
Factoring works by following four key steps:
- You finish hauling a load.
- Send TruckStop all of the paperwork instead of sending it to your broker.
- TruckStop pays you right away.
- Broker pays TruckStop.
When working with TruckStop.com, you benefit from:
- Flat fees so that you’re never surprised
- Same-day payment if invoice verification is provided
- Non-recourse factoring
- No minimum volumes to sign up
You don’t have to worry about billing because the company handles that on your behalf. Instead, you can do what you do best: drive your rig. If you don’t like the service or want to try something different, flexible cancellation options also exist.
Why Non-resource Factoring is Important
Non-recourse factoring is a major selling point for TruckStop. Compared to resource factoring, non-recourse factoring offers protection to you as the owner-operator. If the broker never pays the invoice, the risk is on TruckStop.
As an owner-operator, this means that you take on significantly less risk, with one exception:
If you fill out the paperwork incorrectly, you’re responsible for the invoice
Otherwise, you can have peace of mind in knowing that your job is done the moment you finish hauling a load. You don’t have to chase down invoices or deal with accounting teams again.
Factoring Rules to Consider
Invoice factoring is an option for every broker that TruckStop approves. When you log into the app, you enter the broker’s or shipper’s name or MC. If the broker is approved, it’s a simple and easy process to factor your invoice.
However, if the broker isn’t listed on the site, you can send the broker’s name to the team at TruckStop to see if they’re approved.
Factoring Fee Basics
Factoring transfers the payment risk and time to TruckStop. You’ll pay a flat fee for your service when you work with the company. Larger business volume lowers your fees, but most fees are:
- 2.5% – 5%
You’ll need to contact TruckStop for yourself to discuss what fees you’ll pay for their service. Since the company offers spot factoring, you can factor the invoices you need to be paid immediately while going through a traditional broker for other invoices.
Qualifying for Factoring
Owner-operators must meet minimum standards for approval. TruckStop.com will require you to:
- Meet credit score requirements
- Be in business for 90 days or longer
- Meet a certain minimum annual income projections
While it may take some time to go through the initial invoice process, subsequent invoices are paid faster. Reach out to TruckStop to discuss what requirement minimums you’ll need to meet.
TruckStop Factoring’s Robust Mobile App
TruckStop provides a robust app for Android and iOS that makes it fast and easy to begin factoring on the road. The app offers the following functionality:
- Easy way to apply for an advance
- Credit checks for brokers you’re considering
- Scan paperwork directly into the app to submit it
You can do all of your invoice factoring right in the app to keep money in your pocket, even if a broker is late paying you.
If you’ve used other factoring companies in the past, you know that many of them require you to have a minimum number of loads factored per month. Additionally, some companies also require you to factor every invoice you have.
TruckStop doesn’t ask you for this level of commitment.
Factor the invoices that you must factor, or don’t factor any – it’s up to you. With no commitment required for the platform, you can factor only when you need the cash and can’t wait for the broker to make payment.
You won’t take on as much debt when you have positive cash flow and money in your pocket. TruckStop factoring”s service makes it effortless to begin factoring with a company that offers 100% transparency, no hidden fees and a program that has zero commitment.
If you are looking for transportation factoring visit https://truckstop.com/product/payments/factoring/