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
FAQ
Q: What is Factoring?
A:
Q: What is the difference between NON RECOURSE and RECOURSE factoring?
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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?
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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?
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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?
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No, we expect payment from your customers and do not have minimal credit standards.
Q: How long does it take to process my application?
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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?
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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?
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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?
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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?
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Money is sent electronically directly into your account by bank wire or ACH.
Q: Any other questions?
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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.