Frequently Asked Questions
What is Freight Factoring and Invoice Factoring?
Is a cash flow solution for Trucking Companies, mainly owner operators or companies having to wait for payments from their clients. The problem is not about collecting the money; it is about when you are going to receive the payment. A trucker might have to wait 30 days or even more for its customers to pay the invoices for delivered loads. To keep the cash flowing during the waiting period and being able to pay all expenses, many truck owners and even large companies turn to freight factoring in which a factoring company advances most of the invoiced amount in return for a fee. Using 18 Wheel Funding services, you can have the payment for the open invoices in your account on the same day instead of weeks. In conclusion, when you use our factoring services you are selling your invoices at a small discount and we will give you the cash for your load same day. No more having to wait for the payments to come, keep your wheels running, we will provide you the cash and take care of the rest.
Does it work for me?
18 Wheel factoring process is designed to streamline cash flow for transportation companies, allowing them to pay their expenses and grow their businesses.
This is how simple:
We just require an application and a short list of supporting documents to issue a proposal the same day. Once your account is set up in our system, you just have to forward your customer’s approved Rate Sheet and Bill of Lading to us. We will then buy that invoice from you, sending you the agreed upon amount based on the invoice total. We will then invoice your customer or broker and collect payment on the invoice. No further action is required on your part. As Simple As That!
Does it really help my company?
After you deliver your load, you still have a lot of work to do. The factoring company can also help you with some of the time-consuming back-office like invoicing the clients and collecting from them. 18 Wheel can assist you with that and provide you with the cash for your invoices without having to wait for 15, 20, 30 or more days to receive the payments from your clients. Working with us, you only have to go and pick-up your next load!
Can you give me an example?
Picture this: an independent trucker submits unpaid invoices with a total face value of $5,000 to 18 Wheel. Assume just as an example, there is an agreed discount of 4%: that is $200. We will pay you the same day $4,800. The trucker does not have to do anything else after that because 18 Wheel will do all actions concerning invoicing and collection from the trucker’s clients.
Can I factor invoices from shippers, brokers and dispatchers?
Absolutely, you can factor all three of these type of clients as long as our credit department approves them.
Does it have to be for all invoices?
Not at all. Factoring is very popular within the trucking industry and it has been around for quite a while, it is more common than you think. You can be sure that all your customers understand that a factoring company knows the ins and outs of the accounts payables/receivables process and has years of experience in working with companies for collections. Also they know that you can’t run your business without a financial service in place. But, if you have some customers you don’t want or need to factor, it’s your choice!
Who can I call with questions once I have my account set up with 18 Wheel?
We will designate your own personal account manager to your account. We will make sure that you can have his/her direct extension number and email address. We have bilingual account managers available for Spanish speakers.
Is the contract is for a long term?
No, we don’t require a long term contract. You are free to go anytime. Our pride is to have very good service, if you are not satisfied with our work; there is no reason for us to make you stay. On the other hand, if you are happy with our service and performance, please, tell your friends!