Alternatives to Freight Factoring

Freight factors provide a useful service for many trucking companies and independent drivers by purchasing their debts at a discount. However, it is not the only option for companies that are struggling to make ends meet while waiting for their debts to be settled. Before you make choices about your business’s financial future, you need detailed information about your options.

Some of the more common alternatives to truck factoring include:

• Business financing loans: If your credit score is acceptable, a bank may be willing to invest in your company based on your estimated future earnings. Of course, this money will need to be paid back with interest, whether or not you do as well as expected in the following year. In contrast, the money you receive by selling your debts to a trucking factor is simply yours to keep.

• Small business grants: There are many government and private organizations dedicated to helping small business owners. Depending on your location and the resources available in your area, you may qualify for a grant to help your business remain strong during a slow period. The competition for such grants can be stiff, however, so prepare your application carefully.

• Collect on debts on your own: If your business is struggling because many of your clients have not yet paid their bills, you may decide to pursue the payments you need on your own. This can be a delicate undertaking, however, due to laws about creditor harassment. Additionally, you may simply be unable to persuade your debtors to settle their accounts on time.

Of course there are pros and cons to every financing option. All of your company’s current needs should be considered as you choose the right option for you.

Contact Us

TBS Factoring Service, LLC offers a variety of reliable factoring plans at reasonable prices. To discuss your financial needs with one of our experienced truck factoring agents, contact us today at 1-800-207-7661.