We take freight factoring sales calls every day and receive a huge array of freight factoring questions. Here are some quick answers to our most popular questions:
Q: What are your factoring fees?
A: Rates will vary based on volume you want to factor. As a general answer our clients will range in factoring fees from 1.25% up to 4%. We are the most competitive in the industry. If we want a deal we will price it right.
Q: How much do you advance on a factored invoice?
A: Depending on the program and the volume factored, it varies between 93% and 95%
Q: Do you require a contract term?
A: Yes, depending on the program you decide to take, or contract range from 6 months to 2 years. Obviously the better the rate, the longer the contract will be. But, our average contract term is 6 months.
Q: Are there any minimum fees associated with the contract.
A: No, we do not require that you pay a minimum factoring fee each month and we do not hide it in the form of an administrative fee. We do require that you factor at least $1,000 per month to keep the account active because we have to be able to determine if you closed the business or decided to stop factoring. But, again, there are no fees applied to the account for lack of volume factored.
Q: Are there any hidden fees?
A: No, our contract is easy to find all the fees associated with your factoring account. The fee structure will be reviewed with you prior to factoring. The only fees you will see are: factoring fee, invoice process fee (if you choose to factor with copies of the BOL) and WIRE fee (if you need same day funding). These are the only fees associated with our factoring contract. Of course, there will be default fees added to any account that is habitually not in compliance with the factoring guidelines of our contract. Like all factoring companies, we need to protect ourselves from fraud and the only way to deter it is to penalize for it.
Q: Do we have to factor all of our invoices?
A: No, you may factor any client you want to factor as long as they are credit worthy. But, remember, the more you factor, the less you factor fee will be.
Q: Do we charge for credit checking customers to factor?
A: No, we do not charge for credit checking of debtors. You may credit check as often as you need. There is no limit and you may do it on-line
Q: Do we have ON-LINE Access to our account?
A: Yes, you will be given on-line access to you account where you can review and download account activity as well as check debtor’s credit.
Q: How long does it take to get set up an account?
A: Most accounts can be set up and funded in less than 24 hours.
Q: How do we set up an account?
A: To set up a freight factoring account you need to send us an application. You must have an active MC number with proper insurance. We will need to see copies of your driver’s license and a W9. That’s it.
Q: My credit isn’t very good. Do you have credit criteria I have to meet?
A: We do not put a lot of emphasis on credit scores. We are able to set up factoring accounts for clients with credit scores in the 500’s.