The time between accepting a job and getting paid for it can frequently be delayed. While this may not always be an issue—for instance, when business is booming and revenue is high—it can seriously harm drivers during hard times. Furthermore, it is unfair because the truck driver has fulfilled their part of the contract and is still unpaid

Such a worry does not exist with factoring. The truck driver obtains their capital quickly and without delay once the third-party freight factoring or trucking factoring provider pays money ahead.

For truck drivers, predicting and making future projections can be challenging. Drivers are unable to forecast with certainty when they will receive the money that is owed to them since even when orders are coming in, it is likely that many of the payments on these orders will be delayed. This is a serious problem, especially in terms of getting funding or loans for initiatives aimed at expanding businesses. In other words, it is difficult for truck drivers and owner-operators to expand their businesses in the manner that they would like when there is a lack of reliability.

This unpredictability is eliminated with a truck factoring service. Drivers that accept factoring orders and jobs are guaranteeing a steady source of revenue. They may then demonstrate their yearly earnings with this steady stream of cash, which will help them draw in investors, get approved for loans, and grow the company's capabilities.

Accepting a calculated order might not be to everyone's taste among drivers. Since the driver is the one doing the driving, it may seem unfair that they can only expect to receive 80% or 90% of the transaction's entire cost when accepting this type of order. The premise behind factoring services, however, is that a driver or trucking company accepts this lowered rate in order to connect with a more dependable payment source.

As an owner-operator or truck driver, this offers you flexibility. Orders that figure in and give you a steady income stream that you can rely on are acceptable to accept. Then, by accepting additional orders with full payment, you can increase this revenue. Thanks to this improved flexibility, you can choose to modify the ratio in either direction as your circumstances change and you become more or less risk averse.

For truck drivers, the possibility of not getting paid at all is a far more significant problem than an inconsistent payment schedule. Conflicts with customers, dishonest clients, and a plethora of other variables can raise the possibility of non-payment. This can have disastrous effects for owner-operators of truck drivers or small transportation companies. Too many companies have had severe difficulties as a result of their inability to obtain the payments they are due.

Obviously, truck drivers will greatly gain from this. A truck factoring business transfers the risk of nonpayment to a third party. Because you don't have to worry about getting paid, you can concentrate on other, more enjoyable parts of managing your company.

The following is the usual procedure you'll experience with trucker factoring:

✔ You bill your client for the services rendered.
✔ You designate a truck factoring service for outstanding payments. All of your outstanding invoices are assigned to the freight factoring business if you engage in contract factoring (high volume). You choose which invoices to designate for truck factoring services if you choose to use spot factoring for trucking (low volume).
✔ The truck factoring company pays you the agreed-upon advance. Once everything is set up, this can be as soon as within 24 hours.
✔ After your client pays the truck factoring service, the factoring firm will now be in charge of contacting clients to collect payment
✔ When the bill has been settled, the factoring company will take its fee cut and then send you the balance

Your agreement for truck factoring services can be a recourse agreement or a non-recourse agreement.

You have to purchase your clients back if you have a recourse agreement and they don't pay their invoices. The freight factoring business might even impose extra costs.

If your agreement is non-recourse, the unpaid bills become the property of the factoring business as soon as they are assigned to them. It is no longer your problem if the clients fail to make payments. Consequently, factoring organizations typically demand higher charges for non-recourse agreements.

Whether or whether you choose to employ a truck factoring service will rely on your business model, operational scale, and desired level of risk, just like with any other significant business choice.

Drivers pick American Movers LLC and the factoring firms we work with for a variety of reasons. To assist you in making your decision and to understand more about what sets us apart from the competition, we've enumerated some of the most crucial elements.

Our priority is safeguarding our clients' financial gains

At American Movers LLC, our first priority has always been our customers' success. We assist our customers in obtaining the most out of truck factoring services and reaping the rewards that come with using them. You may count on us to choose a reliable factoring partner who will prioritize your needs.

Why Use Factoring Services from American Movers LLC for Your Trucking Company?

There are numerous reasons why drivers pick American Movers LLC and the factoring firms we work with. We've developed a list of the most significant aspects to assist you in making your decision and learning more about what makes us the finest in the business.

We are committed to safeguarding our clients' revenues.

At American Movers LLC, we have always prioritized our clients and their earnings. We assist our clients in getting the most out of truck factoring services and reaping the benefits that these services provide. You may count on us to choose a reliable factoring partner who will prioritize your needs.

We are familiar with the trucking sector and everything that it includes

You must have confidence that you are dealing with a staff that truly understands your profession, industry, and what you do. We at American Movers LLC are delighted to be a part of that team. We know this market inside and out, and we are also experts in picking the finest factoring partner for your company, allowing you to get the most out of it. You can count on us to always be on your side and in your corner.

We are pleased to collaborate with reputable factoring firms. They provide the means for us to provide our clients with highly effective trucking factoring services and connect them with a variety of benefits. We are committed to working together to help you and your company achieve more while on the road.