Factoring helps trucking fleets maintain cash flow and manage their finances effectively. However, not all factoring services are created equal. Choosing the right factoring partner can significantly impact your fleet’s financial health and operational efficiency.
Traditional factoring companies often come with rigid terms and limited flexibility, which can stifle growth and create additional financial burdens. On the other hand, innovative factoring solutions like those offered by Denim provide a more adaptive and supportive approach.
Let’s look at some of the main benefits you can enjoy when you switch factors and work with a fleet factoring company that supports your business.
Flexible Factoring Rates
Traditional trucking factoring companies often operate with set rates for every load, which can be limiting for fleets. These companies typically offer one fixed rate based on your loads, regardless of payment terms, which can hinder growth and scalability.
In addition to fixed rates, traditional factoring companies often require you to factor all of your loads with them, which you may not want to do (especially when you have clients who pay quickly.) They also don’t offer discounts for early payments.
Traditional factoring:
- Has set rates for every load, which limits growth
- Requires you to factor all of your loads with them
- Don’t offer discounts if shippers pay quickly
Factoring With Denim
Denim offers the most flexible approach to factoring for fleets.
With Denim, you can choose which loads you want to factor—whether all or only some—allowing you to only pay for the money you need.
Our Days Sales Outstanding (DSO) pricing means that our clients' factoring fees are adjusted based on how quickly their shippers pay. If your shipper pays faster than Net 30, you get a discount. Conversely, if they pay slower, your rate is adjusted to a new daily rate based on the days outstanding.
Don’t need your advance right away? Denim’s flex factoring allows you to push out your advance (up to 30 days) for a discounted rate, providing even more financial flexibility (check out our flex factoring calculator to see how much you could save).
Both of these programs can be combined for optimum discounts on your rate. With Denim, you are in control of your rate.
Work With More Shippers and Brokers
Non-recourse factoring is often touted by traditional trucking factoring companies as a protection from non-payment. However, this can result in higher rates and increased risks.
For example, if a shipper claims non-payment due to damage, you may end up disputing this, but if it’s your fault, all your loads from this shipper are considered full recourse, but at a non-recourse rate (which is often high).
Non-recourse factoring also limits who you can work with, as most traditional companies underwrite shippers but not brokers due to perceived higher risks. This is why many fleets choose a suitable non-recourse factoring alternative.
Factoring With Denim
Denim is purpose-built for recourse factoring to save clients as much money as possible.
- We work closely with our clients to find resolutions before chargebacks occur.
- Our approach allows clients to work with more shippers and brokers, extending credit to more companies.
- We run thorough credit checks and provide advice, ensuring you can work with a wider range of customers.
- By underwriting both brokers and fleets, we open up your customer pool, providing more opportunities for growth.
Transparent and Communicative Customer Support
Most traditional factoring companies primarily communicate over email and charge fees for various services such as wires, quickpay, and minimums. They also have high early cancellation fees, locking you into long contracts with penalties as high as 50% of your contract value.
Factoring with Denim
At Denim, we prioritize transparent and communicative customer support.
Our customer support team is available through phone, email, and chat and will respond within a few hours.
- We customize reports to give you the best understanding of your invoices and collections.
- Our pricing is transparent and clearly outlined in your contract, with a flexible factoring rate and a single administration fee. No hidden fees!
- We only charge a 10% early cancellation fee to cover our UCC filing costs, providing more flexibility and less financial burden for our customers.
A More Efficient Back-Office With an Intuitive Platform
Traditional trucking factoring companies typically only offer factoring and capital for your business, often charging extra for efficiency tools. This can lead to additional time, money, and overhead because you’re required to download and re-upload documents between systems.
Factoring With Denim
Denim provides a comprehensive back-office platform included with your factoring rate.
Our tools, such as document audit, document inbox, and analytics dashboard, help you manage collections and invoicing efficiently, reducing the need for additional hires. And, with two-way integrations, you can send documents and loads from your Transportation Management System (TMS) to Denim for funding and see job statuses back in your TMS. This seamless integration saves time and enhances productivity.
Work With a Financial Partner
With traditional factoring companies for trucking, you’re often just one of thousands of clients and have no customization options available to fit your unique business needs. These traditional factoring companies prioritize protecting their business, sometimes at the expense of providing personalized service.
Factoring with Denim
Denim works closely with each client to ensure complete satisfaction. Our team of experts is always available to answer questions and set up systems tailored to your business. Each client is assigned a dedicated customer support team member to assist with their needs, ensuring a high level of personalized service.
You Deserve More From Your Factoring Company
Switching to Denim for your factoring needs offers many benefits over traditional factoring companies. From flexible rates and top-tier technology to transparent pricing and superior customer support, Denim is designed to help fleets operate more efficiently and grow their businesses.
If you're interested in switching your factoring company and want to work with a partner that truly understands and meets your needs, request a demo today.
Freight Factoring Scorecard: Making the Decision to Switch
Is your factoring provider the right fit? Use our scorecard to see if it's time for a change.
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