Trucking Factoring Company Illinois

From Liability to Cargo, we keep you covered

Making sure your bills are paid is one of the hardest things to do when you start any business. It is especially difficult in the trucking industry. Trucking companies have to find a place to operate, buy or finance trucks, hire drivers, and acquire clients. Insurance is also required for those trucks.

Once a trucking company acquires clients, it is going to have to get the client’s products where they are going on time and in one piece. The company is going to have to wait as long as 90 days to receive payment. The standard contract that trucking companies have with their clients allows them to pay long after their load has been delivered.

If you own a new trucking company in Illinois, you probably do business with other small companies. Many of those companies are probably brand new themselves and struggling to keep up with their own bills. You are unlikely to get paid early. The trucking industry professionals at Simplex Group have a simple solution to cash flow problems. Truck factoring is a way to get the cash you need to pay your bills.

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How Simplex Group Can Help

Simplex Group has been helping new trucking companies get up and running for over 20 years. We can help you with every aspect of running a trucking business. Although we are not a factoring company, we work with the very best invoice factoring company in the country. They are well-established, trustworthy, and professional.

How Freight Factoring Works

When your trucking company is having a hard time keeping up with its bills, There are several things you can do to get money, like taking out a loan from a financial institution. However, bank loans can be hard to get. 

The loan officer at the bank will look at several factors, including assets and liabilities, credit history, and the way other new trucking companies are performing in the state of Illinois. It can take months to acquire a small business loan.

Truck factoring is the best way to get immediate cash. It is the process of selling invoices at a reduced rate. Your clients will pay the freight factoring company when the bill is due. 

There are a few simple steps you have to take to receive freight factoring services in the Windy City. You will fill out some basic paperwork, which will include information about your clients. The factoring company will run a credit check on your clients.

The factoring company will approve or deny your application based mostly on your clients’ credit. If the company approves your application, you will be able to sell invoices right away. The factoring company should pay you within a week. However, if you need money faster than that, you should be able to get it in 24 to 48 hours for a small fee. 

A factoring company will pay you an amount that will normally be about 10% less than the invoice is worth. Simplex Group will ensure that you are getting the very best deal possible.

Different Types of Invoice Factoring Companies

There are two basic types of invoice factoring services—recourse and non-recourse. A recourse factoring agreement makes the trucking company responsible for unpaid invoices. This means that if you sell your invoice to the factoring company and your client does not pay, you would be responsible for paying the invoice. 

To make the client pay, you could try to collect from them yourself, or you could hire a collection agency. A collection agency will charge you on a contingency basis, meaning they will take a percentage of the money that they can collect. Collection agencies are rarely able to collect the full amount of a bill. You would have to make up the difference to the factoring company.

If you use a non-recourse company, you will never have to worry about paying the client’s bill. The factoring company will be responsible for hiring a collection agency to get the client to pay. Simplex Group chose a non-recourse factoring company for you to do business with because that is what we feel benefits our clients the most.

It is easier to get approved for recourse factoring than it is to get approved for non-recourse factoring. Other than that, there are no real benefits to recourse factoring. The last thing a new trucking company needs to worry about is slow-paying customers.

Additional Benefits

The fact that factoring companies run your clients’ credit is a huge advantage to a trucking company. You will be able to determine if your clients can pay their bills without having to pay for a credit check yourself. This can save you thousands of dollars a year.

In addition, some of your back-office expenses will be reduced when you use a factoring company. Once you sell your invoice, your clients will receive factoring invoices for your services. That means that the factoring company will be the one billing them. You will not have to pay someone to handle this aspect of your bookkeeping. Your bookkeeper’s hours will be greatly reduced, saving you money on employees’ salaries. 

Clients who use the factoring company we partner with will receive a discount fuel card, too. You can save hundreds of dollars a year on fuel when you use this card.

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Are there any hidden fees?

There are some unscrupulous factoring companies out there that will charge you all kinds of extra fees. They may charge you startup fees as well as fees for canceling your contract when you no longer need them. They may try to charge you late fees if your clients are late with their payments.

You will never have to worry about hidden fees when you do business with Simplex Group. The factoring company we have partnered with is above board and does not charge additional fees.

Do I get all my money right away?

If you use a factoring service because you are having cash flow issues, you certainly want to get all of your money right away. Some companies will insist that you keep part of your payment in reserve. When you get factoring services from our partner, you will get all of your money immediately.

What is a chargeback?

There are some so-called non-recourse factoring companies out there that will have a chargeback policy. This means that if one of your clients does not pay their bill, they will return the invoice to you and expect you to give them their money back.

Simplex Group knows that this is not true non-recourse factoring. You will never have to worry about a chargeback policy when you go through us.

What kind of customer service can I expect?

Some trucking industry service providers will make you call a customer service center and explain your situation to a customer service representative who does not have the time or resources to help you. When you do business with Simplex Group, you will be assigned an account manager. You can call that person anytime and ask them any questions that you might have.

If you use the factoring company we are partnered with, you will be able to see your account activity 24/7. You can simply access your information through the company website.

Services Provided by Simplex Group

There is no other company like Simplex Group in the country. We assist trucking companies with every aspect of their business from the time they open their doors forward.

We can help you set up your business with the Department of Transportation and make sure you are fully compliant with the Federal Motor Carrier Safety Administration rules.

We will walk you through the process of hiring drivers and keeping your records up to date. We will also provide you with a state-of-the-art electronic logging device that will do everything from keeping records of daily automobile inspections and repairs to your driver’s hours. Our ELDs can tell you everything from how fast a driver is traveling to whether or not they are keeping to the route you have planned for them.

We will assist you with selecting an insurance plan and paying your taxes to ensure you are always compliant with all state and federal laws.
When you hire Simplex Group, we consider ourselves your partner. We want to make the company we work with succeed. Give us a call today.