Altline Factoring (2024)

FAQs

What is the best factoring company for trucking? ›

Non-Debt: Factoring is not considered a loan, which means that you assume no debt. Instead, you are selling your accounts receivable to a factor in exchange for immediate financing. In contrast, traditional bank loans require repayment of both principal and interest, adding to your overall debt burden.

The factoring company assesses the creditworthiness of the customers and the overall financial stability of the business. Typically, the factoring rates range from 1% to 5% of the invoice value, but they can be higher or lower depending on the specific circ*mstances.

Business factoring loans are not asset based lending even though it is based on an asset: your invoices. Since you're not borrowing money that has to be repaid, it's not considered a loan.

Unlike traditional lending options, factoring companies look at the strength of your customer's credit, not your business or personal credit history. Even if you have been turned down for a bank loan or line of credit, you can turn your open invoices into quick cash with invoice factoring.

Factoring helps these companies manage their cash flow by providing immediate funds based on their freight invoices. Interestingly, transportation companies often enjoy the highest advance rates from factoring companies (90%-96% or higher), which means more cash upfront to help pay for: Fuel. Maintenance and repairs.

The short answer is yes. Here's why: Invoice factoring is worth it if you're grappling with cash flow issues because unlike other financing, it's designed to solve that specific problem.

If you don't have any outstanding invoices with your current factor, you can typically pay any related fees and end the contract. However, if you have outstanding invoices and can't pay back the balance right away, you'll typically work out a buyout agreement with the old and new factoring company.

Since accounts receivable factoring fees are a business expense, they are deductible.

What is a good factoring rate? ›

The percentage rate varies based on services offered, program type, and monthly factoring volume to name a few. Factoring rates range from <1% to 4%, depending on the carrier's operation.

As long as you have invoices to factor, funding is available! Working with a bank is a solid option for many business owners, but the lending market remains tight. If you're lucky enough to be approved, the loan amount may not be enough to meet your financial requirements.

Debt factoring gives businesses immediate working capital, but it also creates short-term debt. This debt should be repaid once the customer pays the invoice, but if there are payment issues, it can result in bad debt for you.

Invoice Factoring allows you to leverage your sales ledger to improve cash flow, or release funds to invest in new opportunities. As your debtor book rises, so does the amount of cash you can realise.

Freight factoring rates are typically charged as a percent of the load or invoice amount. While several factors can affect factoring rates, companies will usually charge between 1% and 5% of the total invoice amount.

I started with TAFS several years ago and it has been a good fit for my company. They have been more than a factoring company to me. Been great to work with and has definitely worked with me through some problems that other factoring [companies] would have looked the other way.