Freight Factoring
Made Easy For You
Trucking Invoice Factoring Tailored to Your Business.
Say Hello to a Smarter Approach to Invoice Lending
If you want your company to grow and thrive, you need to choose a reliable lender you can trust. A bank with the experience and the resources you need to access factoring capital. A bank that offers some of the best rates and quickest service in the industry. Most importantly, your business needs an invoice financing lender who tailors their services to your needs and offers easy-to-use solutions for factoring.
Why you need factoring in trucking
- Easy access to your cash with our streamlined online banking portal
- Personalized attention from a dedicated relationship manager to help with your unique banking and financing needs
- Customized invoice factoring solutions to fit your specific business
TAB Bank is the lender you’ve been looking for.
For more than 25 years, we have specialized in factoring for semi-truck, freight, and other transportation companies. Hundreds of businesses have trusted us to help improve their internal operations and get paid faster – and you can too.
Smart
Trucking invoice factoring with TAB Bank is intuitive, smooth, and easy to use. Manage your business anywhere, anytime.
Reliable
We’ve got the resources you need. Hundreds of companies trust us for their invoice loans, and you can too.
Fast
Time is money. With TAB Bank, you can access your working capital in as little as 24 hours after your invoices are received and verified.
What is Invoice Factoring?
Are you unsure how invoice financing works? Here’s a crash course in this popular form of financing that can help propel your trucking business down the road to success.
Invoice factoring lines are financial transactions that turn invoices into cash – immediately. In the transportation lending industry, invoice factoring is a widely used method that helps alleviate the waiting period trucking companies experience after invoicing their customers.
A major benefit of factoring for trucking companies is that you can get instant access to money that you’ve already earned, which enables you to put the capital to use towards your business to make the right moves and grow your company.
How is Invoice Factoring Different from Business Lending?
Invoice factoring is not a traditional business loan. Rather, it is simply the sale of assets, which are the accounts receivable or invoices. The lender purchases the right to collect a receivable or invoice, when it is paid, in exchange for a fee.
Traditional lending requires your business paying the lender back the full amount borrowed, plus interest. With invoice factoring, your customer is the one repaying the lender, either directly or through your business.
Invoice Factoring for Bad Credit
In this type of financial transaction, the factor depends on your customers to pay. Therefore, a lender is more concerned with the financial credibility of your clients. Factoring companies can collect payment indirectly or directly. If your trucking business has creditworthy customers, invoice factoring can help you access the funds you need without having to wait for customers to pay their invoices. Your credit is not under evaluation in the invoice factoring process.
Trucking Companies Use Factoring for Different Reasons
Factoring has many benefits, and trucking companies can strategically utilize these advantages to increase working capital, invest in growth, and delegate the task of collecting receivables.
Increase Cash Flows
The most common reason trucking companies factor is to increase cash flows and get around the trucking industry norm of completing a job and not getting paid for a few months. With factoring, once the job is complete and the invoice is sold to your lender, you gain instant access to the invoice value, minus a fee.
Seize Growth Opportunities
Oftentimes, trucking companies that are not struggling with maintaining healthy levels of working capital still opt to factor their invoices. Invoice factoring allows businesses to reinvest their capital into growth opportunities.
Delegate Collections
For trucking companies that lack the manpower to manage collecting receivables, factoring is very enticing. The sale of the invoice means the lender is now in charge of seeing the payment through. Some trucking companies opt to collect the payment from customers and send it to the factor for a streamlined customer experience, while other companies enjoy the collection delegation so they can focus on other tasks
How You Can Grow Your Trucking Business with Invoice Factoring
When you get quick invoice factoring lines of credit, this immediate capital can help you fund your business in several ways, including the following:
- Leasing or buying new equipment
- Funding operating expenses
- Paying taxes and payroll
- Opening a new location
- Covering cash flow gaps
- Hiring new employees
- Investing in marketing and advertising
- Managing unexpected business expenses
Why American Small Businesses Choose TAB Bank
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