Freight Factoring For Trucking
For years, truckers have been a big fan of freight factoring. As you may know, factoring is the process where a third party agrees to buy unpaid vendor invoices. In the trucking industry these invoices are known as freight bills. Along with a BOL, or bill of lading, these freight bills can be submitted to a factoring company for quick payment.
In the past, most factors have demanded an original BOL along with the freight bill in order to advance money. Since a BOL can actually become a negotiable instrument, factors have, in the past, demanded that they be in possession of the original copy before payment would be made. The receipt of an original BOL, they reasoned, lessened the risk of doctored documents and fraud.
Today, however, many factors no longer require an original BOL. Technology--especially email--has made the transmission of both BOLs and freight bills easy and exact. Some accounts payable departments now actually favor an electronic copy rather than the original, since technological advances have made it very easy to verify a copy.
Email and Scan
Some innovative factors have actually approved programs that allow a client to receive cash based on the receipt of a legible and scanned funding request with the original BOL to follow. One of these programs requires a third party, like a service representative at a participating truck stop, to scan the proper forms. They then use a simple barcode system to upload the image and route it to the factor, using the factor’s dedicated and secure email system. After the factor receives the information, the funding process will begin. The trucking company is then required to submit all original documents within one week.
If the factoring client has a quality scanner at their office and is able to access the required online submission process, certain companies will allow that client to process their own documents online. Of course, the client must also submit the originals within the required time frame.
These new cash from copies programs have become extremely popular within the last six months and have allowed many trucking companies to easily bolster their cash flows.
Fuel Card News
Once the freight bills have been cleared for payment, the net amount can actually be downloaded to individual trucker fuel cards. These cards, which look like credit cards, are accepted at over 5000 nationwide truck stops. The factor has also arranged substantial fuel discounts.
The days of waiting for freight bill payments are over. Just contact a quality freight factoring company, ask about their freight factoring program, get set up to scan documents, and cash can be yours overnight.