Frequently Asked Questions
Q: What is a Factoring Company?
Q: What are the benefits of factoring?
Q: Why would a company sell its freight bills?
Q: Is Factoring a Type of Loan?
Q: Can I submit freight bills without completing a factoring application?
Q: Can I just fax my freight bills to you and get paid?
Q: Who Invoices the Customer if You Purchase My Freight Bills?
Q: Who follows up with my customers to collect on invoices?
Q: Am I required to factor all of my invoices?
Q: What happens if I receive a check from my customer/debtor after factoring the invoice with you?
Q: How quickly can I start factoring?
Q: How soon can I get paid?
Q: How do I get paid?
Q: How can I get blank Comcheks or a Comchek Card?
Q: What are the fees to get setup with factoring, and what are the fees to end our relationship?
Q: What if I factor through another factoring service?
Q: Do you hold part of my money in Reserve Escrow?
Q: Do you have discount programs in place that would help my company?


Q: What is a Factoring Company?
A: A company that specializes in purchasing accounts receivable at a discount and provides funding to the customer for the receivables purchased.

Q: What are the benefits of factoring
A: Factoring provides a source of quick liquidity to give your business the capital it needs for growth or ongoing operational costs. A factor that specializes in the trucking industry can also provide Credit and Collection services on a collective basis at a fraction of the costs incurred by an individual carrier.

Q: Why Would a Company Sell Its Freight Bills?
A: Trucking companies that find positive cash flow a problem can't afford to have unpaid invoices for 30 to 45 days or more. They need cash to meet the immediate financial demands of their business, like payroll and fuel.

Q: Is Factoring a Type of Loan?
A: No. Factoring is the purchase of a company's accounts receivable in exchange for funding, as opposed to a bank loan using those receivables as collateral.

Q: Can I submit a freight bill without completing a factoring application?
A: You must complete our brief factoring application and receive approval prior to submitting your freight bills for purchase.

Q: Can I just fax my freight bills to you and get paid?
A: At start up with your account, you will need to submit your original invoices along with required documentation to us via mail or courier. Once those invoices are reviewed and accepted, funding will be sent to you by your chosen method. After 6 months of service, we will allow you to scan and upload image files of your freight bills and supporting documents for those debtors who will accept copies rather than originals in processing payments.

Q: Who Invoices the Customer if You Purchase My Freight Bills?
A: You prepare the invoices for your customer and place a notation on the invoice directing that payment be sent to us. You then send those invoices, along with all supporting documentation, to us via US Mail or Overnight Courier. After invoices have been processed and purchased, we will then mail the invoices to your customers.

Q: Who follows up with my customers to collect on invoices?
A: We do! Our collection efforts begin at 35 days from invoice date and continue weekly to assure payment is reveived as quickly as possible. This saves you the time and expense of costly collection efforts. You need only provide assistance to us when requested on problem invoices or debtors.

Q: Am I required to factor all of my invoices?
A: No. However, we do require you to factor all invoices for any particular shipper/debtor that you decide you want to factor. This eliminates confusion with your customers as they will be notified that all subsequent payments due on factored invoices must be paid directly to us.

Q: What happens if I receive a check from my customer/debtor after factoring the invoice with you?
A: In the event that a customer mistakenly sends a check or makes an automatic payment to your account, the check or payment must be immediately forwarded directly to us. You should never deposit checks from any customer/debtor that you factor with us.

Q: How quickly can I start factoring?
A: We require 24-48 hours to process your completed credit application, but we will respond to your inquiry immediately. Once approved, you may begin submitting invoices for same or next day funding.

Q: How soon can I get paid?
A: Most trucking companies submit invoices via an overnight courier to expedite processing and often choose to hold paper work for several loads and consolidate them into one package. We commit to same business day funding of advances on all invoices received by 11:00 am EDT Monday through Friday. All invoices received after that cut-off time will be funded next business day. You can elect to be paid on each schedule (group of bills) submitted, twice weekly, or at whatever interval you prefer.

Q: How do I get paid?
A: We can send payment to you by your choice of check, Comchek, by ACH deposit to your bank account (next day), or by wire transfer (same day) to your bank account. You pay only a nominal fee that reimburses our expenses dependent on method of payment you choose.

Q: How can I get blank Comcheks or a Comchek Card?
A: Contact us and we can send your company blank Comcheks if needed. These can also be obtained from most any truck stop or travel plaza.

Q: What are the fees to get setup with Factoring, and what are the fees to end our relationship?
A: There is a one-time client Set-Up fee of $250.00 to set up everything for your account. This fee will be rebated to your Reserve Account after one year of continuous service. Our contracts specify a renewable 30 day term and require only a 30 day termination notice on either party's side. We do not charge heavy early termination or penalty fees like many factors. We do, however, charge a $150.00 fee to terminate our UCC Filings once all obligations have been settled.

Q: What if I already factor through another factoring service?
A: No problem. We will work with your current factoring service to assure a smooth buyout and transition process for open invoices on their books at the time.

Q: Do you hold part of my money in Reserve Escrow?
A: Yes. The Required Reserve Percentage is clearly stated in each contract and we will go over that in detail with you to assure you understand how the escrow account works. The difference between your advance rate and 100% of the face value of the invoice is typically held in a Reserve Account to assure you meet your obligations under the contract. As payments come in on the invoices, that percentage of the invoice that was escrowed moves from the Escrowed Reserve Account into a Cash Reserve Account. Providing your contractual obligations have been met, you may request that any excess funds in your Cash Reserve Account be sent to you at an agreed upon frequency (typically not more than once per week).
Example:

• You send an invoice of $1,000 to us to factor
• We advance to you the agreed percentage same day ie
• 90% or $900 is advanced to you on the invoice we purchased
• We then collect the invoice for $1,000 and credit your Cash Reserve Account with the $100 (difference that was not advanced already) less our fees as specified in the contract.

Q: Do you have discount programs in place that would help my company?
A: Yes. We offer discounted rate programs with Federal Express and DHL that allow you to take advantage of our negotiated bulk rates when submitting invoices/documents to us. Slated for the future, we will add a Fuel Card Program that provides discounted fuels, a Credit Card Program for Repairs, an Insurance Discount Program, and other discount programs that will benefit our industry base.