Freight factoring is a financing tool that provides your company with immediate capital. Not a business loan, factoring involves selling your invoices at a discount. In turn, you get immediate cash, and the factoring company -- not you – waits for payment.
Frequently Asked Questions
Q: What is Factoring?
Q: What is the difference between NON RECOURSE and RECOURSE factoring?
When an invoice is purchased by the factoring company on a non-recourse basis, the factor takes the credit risk. In other words, if the account debtor does not pay an invoice because of a credit problem TBS will take the loss. When an invoice is purchased under a recourse arrangement, the client is responsible for repayment of an invoice if an account debtor does not pay for the invoice.
Q: How long do I have to be in business?
TBS does not have a requirement pertaining to the length of time you have been in business. We work with brand new companies every day. We only require that you have your own authority.
Q: Is there a sign-up fee?
No, TBS does not have any type of fee for signing up to use our services.
Q: Does my credit score affect my ability to factor?
No, we expect payment from your customers and do not have minimal credit standards.
Q: How long does it take to process my application?
Once TBS receives your completed application and associated information, you are typically signed up and ready to go in just 24 hours. We can usually honor faster turnarounds.
Q: Do I have to factor all of my Accounts Receivable?
No, you can choose which companies to factor and which companies you do not wish to factor -- flexibility not offered by some truck factoring companies.
Q: What do I need to send to factor my invoices?
We need a copy of the rate sheet, proof of delivery, and a completed Exhibit B -- a TBS in-house form that we provide. Then, we create the invoice, bill the customer, and send you your money.
Q: How long does it take to get paid?
Barring a problem with the load and verification, you will be paid the day TBS receives the paperwork.
Q: How is the money sent to me?
Money is sent electronically directly into your account by bank wire or ACH.
Q: Any other questions?
Please call us at (800) 269-4106, and we will clarify your questions about factoring in general or the programs at TBS -- the number one freight bill factoring company.