Viva Capital Funding has been serving transportation companies since 1999. As a leading freight factoring company, we offer same-day cash for your unpaid transportation invoices, competitive rates, and flexible terms, freeing you to run your business as you see fit and accept the loads you want.
Understanding Transportation Invoice Factoring: A Guide for Trucking Companies
Transportation invoice factoring is a financial transaction that helps trucking companies maintain steady cash flow by converting unpaid invoices into immediate cash. This process allows businesses to get paid quickly, enhancing working capital without incurring debt. When you run a trucking company, waiting for invoice payment can strain your finances. With transportation factoring, you submit invoices to your factoring company, which advances a percentage of the invoice value, typically ranging from 70% to 90%. The remaining balance, minus a small fee, is released once the customer pays the invoice.
Factoring companies for trucking, like Viva Capital Funding, offer tailored solutions to meet the specific needs of the trucking industry. These companies provide freight invoice factoring services that help businesses manage their cash flow efficiently. Factoring allows trucking companies to focus on operations and growth without worrying about delayed payments. This form of financing also supports the purchase of new equipment and hiring drivers, which are essential for business expansion. Unlike traditional loans, transportation factoring doesn’t require a long-term commitment or impact your credit line, making it an attractive option for businesses in the transportation sector. By using invoice factoring, companies can ensure they have the funds necessary to keep their trucks on the road and maintain operational efficiency.
Invoice Factoring for the Transportation Industry
In addition to traditional freight bill factoring services for truckers, Viva’s programs for carriers include options like a dedicated team to accelerate your billing and collections process and money-saving fuel cards, so your business grows stronger by the day. Whether you have a single truck or small-to-midsize fleet, have an occasional cash flow shortfall, or qualify for volume discounts, our team will work with you to find the ideal solution and provide a transparent quote at a competitive rate.
In the trucking industry, managing cash flow effectively is crucial for growth. Freight factoring provides trucking companies and owner-operators with a powerful solution to get paid faster for outstanding invoices. Factoring your invoices allows companies, including smaller trucking companies, to receive a cash advance within 24 hours instead of waiting 90 days or more for invoice payment. Factoring for trucking companies ensures steady working capital for operational expenses like fuel, repairs, and payroll, even when a customer fails to pay.
Freight factoring for truckers and freight brokers works by having a trucking factoring company purchase the freight invoice and advance up to 100% of the invoice amount, offering immediate liquidity. Factoring can benefit companies by offering flexible financing options that keep their trucks on the road. A factoring company will offer both recourse and non-recourse factoring agreements, giving trucking companies options to suit their specific needs. Factoring companies will also provide additional services like low factoring fees, debtor credit checks, and back-office support. The cost of factoring is minimal when compared to the benefits of consistent cash flow. Companies use freight factoring to maintain operational efficiency and continue growing. For businesses looking for freight factoring, partnering with the best factoring companies ensures they can pay their invoices and grow. By using factoring, trucking businesses can focus on operations while the factoring company handles the rest.
Freight Factoring Process
Deliver the load to
your customer.
Submit a copy of the invoice, confirmation, and the bill of lading or proof of delivery to verify the work has been completed.
Viva Capital Funding purchases the invoice and advances 90-100% of the face value.
We collect payment on the invoice from your customer
Testimonial
Viva Capital has made processing invoices and receiving our funds a simple process with many added value services. Their simple funding process has positively impacted our business and accelerated my company’s cash flow cycle. The Viva Capital Team has worked to understand my business and provide great customer service. Especially David and Teresa!
Mark M. | Transportation | Michigan
Benefits of Using Our Freight Factoring Services
Low Rates
Save more with competitive rates that start as low as 0.75% for qualifying clients and can be prorated.
Fuel Cards
Get better fuel pricing and cost control with 24/7 Fuel Cards at more than 1,000 locations
Quick Funding
Speed your cash flow even more with same-day funding.
Additional Services
Take advantage of debtor credit checks and collection services.
Seasonality Services
Get the help you need managing seasonal ups and downs.
High Advances
Receive up to a 100% advance.
Quick Setup Time
Begin factoring quickly with our streamlined setup process
Expanding Opportunities
Quickly expand factoring lines as your company’s needs grow.
Customer Portal
Access your account 24/7 through your personal Customer Account Portal.
The Benefits of Non-Recourse Factoring for Trucking Businesses
Non-recourse factoring is a beneficial financial tool for trucking businesses, offering a way to mitigate the risk of non-payment from customers. In a non-recourse factoring agreement, the factoring company assumes the credit risk, meaning the trucking company isn’t held liable if the customer doesn’t pay the invoice. This arrangement is particularly advantageous in the trucking industry, where cash flow consistency is crucial. By using non-recourse factoring, businesses can secure immediate cash flow without worrying about customer defaults, allowing them to focus on operations and growth.
The benefits of freight factoring include improved liquidity and risk management. This type of factoring allows trucking companies to access funds tied up in unpaid invoices, providing the working capital needed for fuel, maintenance, and payroll. Additionally, it offers protection against bad debt, ensuring financial stability. Factoring companies for trucking provide a line of credit based on invoice value, enabling companies to plan and budget more effectively. With competitive factoring rates and flexible terms, non-recourse factoring can help trucking businesses navigate economic fluctuations and maintain financial health. It’s a strategic choice for companies seeking to enhance their cash flow while minimizing risk, making it one of the best options for financial management in the freight and trucking sector.
Trucking Factoring Advantages
Easily secure the financing needed for fuel, repairs, operations, and payroll.
As a trusted trucking factor, Viva Capital can provide fast cash to small and medium-sized freight companies. Through factoring, carriers can easily secure the financing needed for fuel, repairs, operations, and payroll without having a long-term commitment or burdening the company with unnecessary debt.
- Recourse and non-recourse freight programs
- Fast payment (hours, not days)
- Credit checks before taking on loads
- Fuel discount cards
- Fuel advances
- Low factoring fees
- No minimum volume requirements
- Funding from copies
- After-hours fuel credit
- 24/7 online access
- Customer service team dedicated to your account
Free yourself to focus on other important parts of your trucking business.
Factoring is a great solution for transportation owners, operators, and startup trucking companies. Factoring a freight invoice is based on your client’s credit and ability to pay their bills since they are going to be making the payment. This means your business size, credit, and financial history won’t impact your ability to factor!
Freight bill funding can help you get access to cash quickly, which in turn allows you to focus on other important parts of your business, including:
- Hiring drivers
- Repair or replace an engine
- Make a down payment
- Pay taxes, registration fees, or insurance premiums
- Maintenance
- New equipment
Find out how R. Ramirez Express, a Viva Capital Funding client, has saved $5,000 per year on fuel with the help of the Viva Capiral Funding’s Fuel Card Program!
Why Viva Capital?
Many elements go into deciding which third-party financier to choose. You should go with a company that appreciates the daily challenges and opportunities of your business. We strive to make the process as simple as possible. We fund quickly and handle all your back-office billing and collection needs. We understand that you and your team are focused on getting your trucks on the road and may not have time to spend in the office dealing with your receivables. Collections can be time-consuming and expensive. Viva Capital Funding will help your transportation business by providing the financing and back-office you need while you focus on growing your business.
Find out how Cold Way Transportation, a Viva Capital Funding client, was able to boost its revenue by 47% with the help of Viva Capital.
Transportation Invoice Factoring FAQs
What is transportation factoring?
Transportation factoring is a financial solution where trucking or freight companies sell their unpaid invoices to a factoring company for immediate cash. This helps maintain a steady cash flow without waiting for clients to pay.
How does transportation factoring work?
Transportation factoring works by allowing trucking and freight companies to sell their unpaid invoices to a factoring company for immediate cash. The factoring company advances a portion of the invoice value upfront and then collects payment from the customer when the invoice is due. This process helps transportation companies maintain steady cash flow, cover expenses like fuel and payroll, and continue operations without waiting for long payment terms from their clients. Factoring is not a loan, so there’s no debt repayment.
What is trucking factoring?
Trucking factoring is a financial service where trucking companies sell their unpaid invoices to a factoring company for immediate cash. This process helps trucking businesses get paid faster, improving cash flow without waiting for clients to pay according to their typical payment terms. The factoring company advances a percentage of the invoice value upfront, collects the payment directly from the client, and sends the remaining balance, minus the factoring fee, once the invoice is fully paid. It’s a debt-free way to improve cash flow.
How does factoring work in trucking?
Factoring in trucking works by allowing trucking companies to sell their unpaid invoices to a factoring company in exchange for immediate cash. The factoring company advances a percentage of the invoice value, typically within 24-48 hours. However, Viva Capital offers same-day payments to streamline the process even more. Once the client pays the invoice, the factoring company releases the remaining balance, minus a small factoring fee. This service helps trucking companies maintain steady cash flow, cover expenses like fuel and payroll, and keep operations running smoothly without waiting for long payment terms from clients.
How does freight factoring work?
Freight factoring works by allowing freight and trucking companies to sell their unpaid invoices to a factoring company in exchange for immediate cash. The factoring company advances a percentage of the invoice value upfront. Funds are usually available within 24-48 hours, though clients of Viva Capital can receive same-day funding. The remaining balance, minus a nominal factoring fee, is released once the customer pays the invoice. This helps companies maintain cash flow to cover operating expenses like fuel, payroll, and maintenance without waiting for long payment terms from clients. Factoring is not a loan, so no debt is incurred.
Do freight brokers use factoring companies?
Yes, freight brokers often use factoring companies to improve their cash flow. Since brokers typically have to wait 30-90 days for customers to pay invoices, factoring allows them to receive immediate cash by selling these unpaid invoices to a factoring company. This enables brokers to cover operational costs, such as paying carriers on time, without financial strain. Factoring is particularly beneficial for brokers handling high volumes of freight but who need quicker access to funds for ongoing business needs.
How quickly can transportation companies receive funding through factoring?
Transportation companies can typically receive funding within 24-48 hours once the factoring company approves the invoices. However, if you work with Viva Capital, same-day payments are available. This fast turnaround ensures steady cash flow for operational needs.
