5 QUESTIONS YOU SHOULD ASK BEFORE SIGNING WITH A FACTORING COMPANY
When it comes to choosing a freight factor, there are certain key factors that you should
consider before making your decision. These factors can greatly impact your business
operations and financial stability. To ensure that you make the right choice, here are the top 5
things to look for in a freight factor:
1. Experience and Expertise: Look for a freight factor that has extensive experience in the
industry. They should have a deep understanding of the unique challenges and requirements of
the transportation and logistics sector.
2. Transparent Pricing Structure: Ask about their pricing structure upfront. A reputable freight
factor will provide clear and transparent pricing information, including any fees or additional
charges that may apply.
3. Quick Funding Turnaround: One of the main reasons to work with a freight factor is to access
quick funding for your invoices. Make sure to ask about their funding process and how long it
typically takes for them to advance funds against your invoices.
4. Flexibility: Every business has different cash flow needs, so it's important to find a freight
factor that offers flexible solutions tailored to your specific requirements. Ask about their
flexibility in terms of invoice volume, funding limits, and contract terms.
5. Customer Support: A reliable freight factor should provide excellent customer support
throughout your partnership with them. They should be responsive, accessible, and willing to
address any concerns or questions you may have along the way.
By considering these top 5 things when evaluating potential freight factors, you can ensure that
you choose a partner who will not only meet but exceed your expectations in terms of service
quality and financial support for your transportation business needs.
Transcap is a Full Service factor providing cash flow for small to medium trucking companies.
Our focus is on giving trucking companies fast, easy access to cash. Our highly experienced
team is committed to the client experience.
Click the Learn More button below to access our free "Freight Factoring 101" Reference Guide
President of Transcap and a 25-year veteran of the freight factoring industry.