- Swift capital upfront
- Partnership with RTS Financial
- Expert support to all our clients
Factoring services for companies engaged in cargo transportation
Running your own business – especially when it’s a small business, or you’re just taking your first steps on this path – is a pretty overwhelming undertaking. Plus, in order to maintain reliable and stable financial returns, it pays to prepare for moments like falling or floating. Unpaid invoices can create quite a bit of trouble. And if you also consider the fact that your financial health is completely dependent on incoming rent and payroll, you can’t do without professional support. With this in mind, DispatchMe decided to team up with RTS Financial to provide factoring services to clients that regulate the possibility of raising the business to a profitable profitability channel.
DispatchMe's main objective is to provide the best loads on the market for every driver. Our experts ensure that drivers from every region and state receive the top quality and highest-paying loads.
Factoring for transport companies: what is the benefit
The need for this financial product is primarily due to the growth of world trade. Market participants increasingly began to face long time intervals from the moment of delivery of the goods to the payment. Factoring allows you to instantly turn shipping documents into real money that can be put into circulation.
Factoring for business is most often used in the following cases:
- An urgent increase in working capital and the elimination of the cash gap is required, and making a loan in a credit and financial institution is expensive. Representatives of small and medium-sized businesses are most often in this situation, since there are very few profitable lending programs on the market for them.
- To attract a counterparty, you need to provide him with a comfortable deferred payment.
- When expanding the list of partners. Starting cooperation with new contractors, the supplier may doubt their solvency. Factoring will minimize the risk of non-payment of the shipped goods.
- If the participants in the transaction on the one hand are a small enterprise, and on the other ― a large retailer or a giant corporation, which, as a rule, work according to clearly regulated schemes with fixed payment terms.
What is the essence of cargo transportation factoring?
The sequence of factoring:
- conclusion of a commodity agreement between the buyer and the seller;
- shipment of goods, provision of services in accordance with the concluded agreement;
- the application of the supplier of goods (services) to a financial institution with a request for the conclusion of a factoring agreement;
- analysis of the economic and financial condition of the supplier's legal entity, verification of the solvency of the buyer specified in the supplier's application, and making a decision on the possibility of concluding a contract;
- conclusion of a factoring agreement between the supplier and a financial institution on the transfer by the first of its right to collect receivables from the buyer to a new creditor and determination of the terms of the specified legal action;
- loss by the supplier of the right of claim to recover receivables, that is, the withdrawal of the primary creditor from the obligation;
- notarization by the supplier of copies of documents (commodity contract, title documents, debt receipts) certifying the right of claim, and transfer of their originals to the new creditor;
- payment by the financial institution of settlement documents submitted by the supplier in the amounts determined by the factoring transaction;
- notification of the debtor on assignment of the claim;
- payment by the debtor of obligations in favor of the new creditor.
Additional truck factoring services
The contract for truck factoring services consists of a reverse claim for reimbursement of the amount paid, or not. In the first case, you will have to redeem those bills that were left unpaid by your customers. In such situations, additional fees are provided by the factoring company. In the second case, all the invoices that were paid by the factoring company belong exclusively to her, and such a problem as not paying from the customers is far from yours. Based on this, it is still better to use the condition of the reverse claim for reimbursement of the amount paid.
The main advantages and disadvantages of factoring for cargo transportation
Similar to any other business solution, you yourself determine the need to use the truck factoring service. Here, foremost, the scale of operations, the business model, as well as the amount of risk assumed are taken into account. The main advantages of the above service are:
- A limited number of qualification requirements – here everything depends on the creditworthiness of your clients, therefore, the number of qualification requirements is limited.
- Prompt receipt of funds – You will not have to wait for the payment of bills since before the full payment you will receive an advance payment by the factoring company.
- The amount of financing depends on the growth of your business – The amount of your income is determined by the cost of the invoices you have issued. Therefore, your success will increase as your own confidence increases.
Let's also consider the disadvantages of freight factoring services:
- To begin with, this is far from cheap – To receive an advance payment, you will have to pay part of the amount due to you.
- If the client does not pay the invoice, you will have to pay a decent amount of money to the factoring company - you will be obliged to pay the company a commission when the client does not make the payment since you sign a contract on the reverse claim for the refund of the amount paid.
DispatchMe: why it is worth ordering a freight factoring service from us
- Our main mission is to protect the profits of customers who have contacted us. There are a number of reasons, based on which it is worth choosing our company. The most leading factors will be provided below, having studied them, you will be able to make sure of our competence in this niche.
- We are proud of our successful projects. The company DispatchMe is aimed at helping customers to get the money they earned. Every customer who contacted us was satisfied with the services provided, as evidenced by the many testimonials of gratitude for cooperation with us.
- Experienced specialists of our company are well versed in the cargo transportation industry. We have a huge number of customers who regularly order truck factoring services. Thanks to our support, they were able to significantly strengthen their business, increase flexibility, and plan a successful and secure future for their business.
- Our partners are among the leading in the field of cargo transportation. As a rule, it is important for the client to understand that he cooperates with people who understand aspects of his business direction. The staff of the company DispatchMe includes exactly such employees who have researched this industry, as they say, along with and across. With us, you will get exactly what you applied for, that is, everything that is included in the range of freight factoring services.
- Exclusively qualified support is provided to each client. Our pride is cooperation with RTS Financial, as it is, they who provide financing for highly efficient freight factoring services for trucking companies that we give to each client.
As a rule, the key to the quality of services is, foremost, reliable support. The company DispatchMe is driven by this goal, and every user who has decided to contact us will receive all the necessary help and recommendations at any time he needs.
Do not put it off until tomorrow, find out now everything about the services we provide in the field of freight factoring
Today, many transport companies have already managed to get the maximum benefit from factoring services, which has contributed to maintaining their business and increasing profitability. The main task of DispatchMe is to provide such important support and assistance to owners-operators in obtaining the funds earned by them, which unscrupulous customers often refuse to pay. Do not delay with such a task and problem as hanging unpaid bills, contact us this minute, and we will help you!
In short, we save you time so you can start making more money. Many owner-operators start out in this business to haul freight and make money, but later on are faced with all the paperwork, regulatory requirements and negotiations - things that distract you from what DispatchMe enables, takes all the responsibility of maintaining the business you would like to get rid of and makes your business more efficient and you more active with freight. What's more, we strive to offer you the best terms on freight rates so that you can earn more.
Surprisingly, no. In order to hire competent and capable employees, you will have to organize and conduct a fairly thorough recruiting process, which will take time and, if you turn to headhunters, money. Even if you find someone you need, you'll likely need to allocate office space - which is another expense item - and in some cases, conduct additional training. At the same time, as many of our clients testify, DispatchMe services are much more profitable than even one full-time dispatcher. Our experience, connections and professionalism make us the best in the industry.
No. You engage a DispatchMe dispatcher on a monthly basis. We never induce you to sign long-term contracts, because we are confident that you will continually cooperate with us without them. Your dissatisfaction is our dissatisfaction, so we will work hard for your business. However, we believe that all entrepreneurs should have the freedom to choose and work with whomever they want. We think it's important to maintain that choice for you.
Registering with DispatchMe is a simple procedure, as documents can be submitted online.
- First of all, you sign the terms of cooperation with DispatchMe - a document detailing our duties and area of responsibility. This document serves to protect both parties - it is not a long-term service contract. Our services are paid month-to-month, and you are not charged a penalty for terminating the cooperation.
- In addition, you need to take out insurance that lists DispatchMe as the certificate holder. This is common industry practice for carriers, dispatchers and brokers - it will allow us to act at your direction and on your behalf as soon as you want us to. Make sure that your insurance includes compensation as well as coverage for damages.
- We will also need a carrier registration package and references for the shippers and brokers we work with and for our records. This should also include your MC Permit and a signed W9 form.
- At DispatchMe, we keep our records spotless and accurate and always comply with all safety, regulatory and industry requirements, which is why we also need a copy of the CDL for each driver we will be serving.
We work with owner-operators who work under their own MC's as well as carriers with company drivers.
No. Except when you have specifically authorized your insurance agent to review requests for certificates made by the "insured only" - you, we will work with your insurance agent to obtain insurance certificates with information about the certificate holder.
Sure. We're happy to help truck drivers and carriers in all phases of their work. We strive to find passionate and hardworking drivers. Indeed, if you're a first-time carrier, we may have a harder time finding the best loads for you at first, as most shippers and brokers prefer carriers with MC organizations more than six months or a year old. Nevertheless, you can be sure that DispatchMe will do what it takes to make you good money in your first year. Once you reach the one-year milestone, you'll get access to better rates and loads even faster.
Yes. Most of our customers like our full service package, which includes dispatch, documentation, compliance and all the help a carrier needs to do business, but we also have customers who just need help with documentation and paperwork, for example. At DispatchMe, we believe that our clients have the right to conduct their business as they see fit. After all, no one knows their business better than they do. Have other questions? Don't hesitate to contact us. We'd love to help you grow your trucking business.