Cash Flow Solutions for Transport & Logistics

No, the freight invoices you sell are totally up to you. You can request funding as required.

You can request funding as frequently as daily; our funding limits are based on your capacity.

Trucking companies of all sizes use factoring for day-to-day operational expenses like fuel, driver payroll, and maintenance, as well as larger expenditures such as purchasing new trucks, trailer repairs, acquisitions, or fleet expansions that would typically require debt.

Speed – Clients get money in their bank accounts within hours from the time we verify their proof of delivery or bill of lading.

All-In Fee Structure – We have one simple fee, so our clients never have any surprises. That means no admin fees, no schedule fees, no reporting fees, and no wire fees.

Experience – We have been factoring for over 20 years and have worked with trucking and logistics companies across Western Canada and beyond.

Factoring is far from a new concept. In fact, it's a financial practice that has stood the test of time, dating back to ancient civilizations. It involves the sale of accounts receivable to a third party at a discount, enabling businesses to secure cash for outstanding invoices ahead of their due dates. This practice can also help mitigate the risks associated with unpaid invoices.

Factoring's origins can be traced back to ancient Babylon, where it was included in the Code of Hammurabi, one of the earliest known legal codes. The code allowed merchants to sell their debts to a third party at a discounted rate, providing them with quick access to cash to fuel their business operations.

Fast forward to the 1400s in Europe, factoring became a formalized industry during a period of rapid global trade expansion. Merchants needed a way to finance their operations, and factoring provided a solution—particularly for export and import trade—offering cash for outstanding invoices while reducing risk exposure.

In today's business landscape, factoring is a common practice across businesses of all sizes and spans various industries, including manufacturing, construction, staffing, and notably, transportation and logistics. Factoring is particularly valuable in industries where payment cycles can be lengthy and unpredictable—which describes trucking perfectly, where 30 to 90-day payment terms from shippers and brokers are standard practice.

One of the key benefits of factoring is improved, predictable cash flow. By securing cash for outstanding freight bills, trucking companies can unlock funds to cover fuel, maintenance, and payroll—reducing financial stress and enabling them to take on more loads and grow their fleet.

Factoring also reduces risk exposure. When businesses sell their accounts receivable to a third party, they transfer the risk of non-payment caused by insolvency. This can be especially valuable in transportation, where broker defaults and shipper payment disputes remain ongoing concerns.

Lastly, factoring is a relatively simple and straightforward financing solution. Unlike traditional loans, factoring doesn't require collateral or extensive documentation, making it a viable option for owner-operators and newer carriers with limited credit history or assets for collateral.

In conclusion, factoring—one of the oldest forms of finance—continues to be a valuable tool for businesses, including those in the trucking and logistics industry. By selling their freight invoices to a third party at a discount, carriers can improve their cash flow, reduce risk exposure, and access a simple financing solution that grows with their business. While the practice has evolved over time, its core principles remain the same, making it a trusted financing option for trucking companies of all sizes.

No, factoring is not debt, and it does not show up as debt on your balance sheet; it is an off-book transaction.

Factoring, a financing option that provides businesses with instant access to cash by selling their accounts receivable, is not a traditional loan. It doesn't create a liability on the business's balance sheet, making it an attractive option for trucking companies seeking a debt-free method to boost their cash flow.

One of the primary advantages of factoring is its ability to enhance a business's financial statements. Factoring transforms accounts receivable into cash, providing increased liquidity for the business. This liquidity can help carriers meet their financial obligations—like fuel, insurance, and payroll—while capitalizing on growth opportunities such as adding trucks or taking on new lanes. Moreover, factoring can decrease the risk of bad debts, and having the cash available to pay bills on time will improve the business's credit rating. Eventually, this will facilitate easier access to financing in the future.

When a business sells its accounts receivable to a factoring company, it is trading some of its future cash flows for immediate cash, which can create off-book debt. While factoring doesn't create a liability on the balance sheet, the sale of accounts receivable can impact the business's future cash flow, as it will no longer collect payment directly on those invoices.

It's vital for trucking companies to thoroughly consider the potential impact of off-book debt before opting for factoring. While factoring can be a beneficial financing tool for carriers needing to improve their cash flow, it's crucial to fully comprehend the terms of the factoring agreement and its potential impact on the business's financial statements.

In summary, factoring is a debt-free financing solution that can offer trucking and logistics companies the flexibility and cash flow they need to thrive. However, businesses should be aware that factoring can create off-book debt, which can affect their financial statements and how lenders assess their financial position. It's essential for carriers to weigh the potential benefits and risks of factoring before deciding if it's the right financing option for them.