Accounts receivable financing (A/R financing) is a great solution for businesses that need additional cash flow quickly. Porter Freight pays loads out within 24-hours, when shippers could take months. Porter Freight handles all the behind-the-scenes billing so you don’t have to worry about anything but picking up and delivering loads.

How Does Freight Factoring Work?

Once you invoice your customer, you send us your bill of lading and other supporting documents. Porter Freight buys your invoice from you and pays you within 24 hours. All the backend accounts management is handled by Porter so that you can focus on taking on more loads. Porter Freight offers recourse and non-recourse factoring.

 

Recourse vs. Non-recourse Factoring

In a recourse factoring agreement, your trucking company is responsible for a situation where the shipper or broker doesn’t pay on time or at all. Since in this agreement you are sharing the risk, a recourse factoring fee is slightly lower. The freight factoring company will provide credit checks on the shippers or brokers that you use to minimize the risk of working with debtors who fail to pay. With a recourse factoring agreement there is a portion of your funding held in a reserve account until your client pays the factoring company. A recourse agreement is best for established trucking companies who have worked with their clients and know their pay terms. Also, it’s good for trucking businesses that don’t need back office assistance. However, billing can be included in the contract if needed. A non-recourse factoring contractual agreement will protect you from clients that don’t pay on time, or at all. Your freight factoring company would incur the risk if the client doesn’t pay, and you will never be charged back for it. Non-recourse factoring is beneficial for most trucking companies, especially if the company cannot afford to take on the risk of a client not paying or going out of business. The fee is often slightly higher, but worth it to avoid the risk of going out of business. With most non-recourse factoring agreements you also get additional services like back office assistance of billing, invoice handling, and collections included in the fee.

 

Why Choose Porter Freight?

Freight factoring provides trucking companies with multiple benefits to help them succeed. The advantages include the following, but are not only limited to these.
Easy access and consistent cash flow
Truck drivers need to be paid in a timely manner for their success. Unfortunately, sometimes without a middle man situation, getting paid can take between 30 and 90 days. This time frame is way too long when you need to make monthly payments to keep your trucking company open. There is no reason why you shouldn’t get paid the same day you send your bills in. You never wait for a payment with Porter.
Avoid bad debt
Freight factoring isn’t a loan, so you don’t need to pay anything back. It also helps you avoid having to take on any new debt to keep your trucking company open. There are no interest rates with freight factoring. The only fee is the low factoring rate that comes out of your funding.
Good or bad credit
Since the broker or shipper is the one who is actually paying the factoring company, their credit is usually more important than yours. If you’re a trucking company with little or bad credit, freight factoring could be your solution.
Flexible contracts
The best factoring companies will offer contract options so you’re not stuck in a bad situation. Porter offers contract options of various lengths and has no hidden terms or fees. You know exactly what you are signing up for.
Extra, beneficial services
Great freight factoring companies not only factor your bills but also provide you with additional services to help you succeed. For example, Porter provides its clients with connections to a dispatching network, free fuel cards with advances and discounts, low insurance rates, compliance help, free credit checks on customers, free collection services, and invoicing processing services
Take advantage of getting consistent cash flow for your trucking company and watch it grow.
Porter Freight is a relationship-oriented company that works closely with its clients to fulfill the