Carrier Factoring Mythbusters: Minimum Volumes
Factoring companies have traditionally required monthly volume commitments from carriers. If a carrier doesn’t meet the minimum amount, there could be in increase in the factoring fee or extra fees. This has changed as some companies allow carriers to select the customers and invoices they want to factor.
Carriers often believe this myth: factoring is all-or-nothing. Carriers can actually find a company who will factor only the loads they want. There is no obligation to do all their business with just one factor.
To choose which loads to factor, a carrier is able to print and scan a select group of freight bills from its accounting system, or scan the load paperwork directly using a vendor’s mobile app.
Once the documents are uploaded to the factoring company, the carrier receives electronic payment in their bank accounts on the same or next day, depending on the time of day the transaction was completed. InstaPay has an online portal that allows carriers to submit new invoices, view invoice history, view customer lists, and check broker credit for free.
There are many factors out there who give carriers hassle-free experiences without the carrier having to sacrifice freedom to factor how they want!