Freight factoring is a way for truckers to be paid immediately for the work they did whether or not the shipper they are working for pays on time. TAFS is an invoice factoring company that partners with truckers to advance the carrier for the purchased receivables. Successful trucking companies rely on freight factoring to avoid delays in receiving cash for fuel, maintenance and more.
Canada’s economy depends heavily on fast and efficient freight transportation. The trucking industry remains a vital piece within the machine of the modern world. During transit, products may be transported by ship, rail, or even air, but on both sides of that transaction, there is a truck involved. In fact, statistics have shown that up to 90% of all consumer goods were shipped by trucks. The commercial trucking industry in Canada brings in close to $40 billion per year. This tells us that there is most definitely money to be made, but to be successful you will need a competitive edge.
Where a factoring service can help you come out ahead of the rest is by getting you paid fast so that you can stay a step ahead of your competition. Waiting for shippers to pay for the loads hauled 30-90 days can be a crippling factor to many businesses that require that money now to keep their operations in motion. As all business owners are aware, it takes money to make money. To keep your trucks on the road running loads comes with operational expenses that have to be paid now. From fuel, payroll, equipment upkeep, and much more, you need funds coming in promptly to make sure those expenses are covered. With a quicker turnaround on your company’s receivables, you will have the capital to keep your business on the road and moving when your competition may fall short financially.
The ability to properly maintain sufficient cash-flow is a make or break issue for a trucking company. TAFS is able to help your business grow by offering premier freight factoring services that can take care of those financial concerns. TAFS is able to a range of company types in Canada from carriers, brokers, and even pilot cars. Through TAFS you will gain access to our knowledgeable team of trucking experts that know the industry and want to see your business succeed.
Don’t fall for that “non-recourse factoring” jazz, If a factoring company claims to be non-recourse, meaning they want you to believe they will not collect from you if your customer does not pay the factoring company back, they are misleading you. This is actually only true if the customer files for bankruptcy during the time in which you submitted the invoice until they are supposed to pay the factoring company. This happens very rarely.