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Financial Services for Small Carriers

What is factoring?
Factoring is selling your accounts receivables at a discount in order to better control your cash flow.

• Factoring can protect you from unnecessary credit risks.
• Factoring removes the number one reason start up companies fail, lack of cash flow.

What types of factoring options are there?

Pay4Freight.com offers two options:

    1. Non-recourse factoring:
Pay4Freight.com takes on the credit risk. Pay rate is determined by the time-frame on when the payment will be distributed to you. Basically the quicker you need to be paid, the higher the rate. Should the debtor fail to pay and you have submitted the load and documentation as required, Carrier Cash will take the loss.

    2.Recourse Factoring:
Pay4Freight.com does not risk bad debts. A percentage of the pay is withheld by the Pay4Freight.com until the debtor pays the invoice. Dependent upon how quickly the debtor pays on the invoice determines the percentage to be released to the carrier from the reserve account. Should the debtor fail to pay, the responsibility falls back upon the carrier.

How do I sign up, and when can I start?
We will need a signed and completed copy of our factoring application, and a legible copy of your drivers license. If you are incorporated, or LLC we will also need a copy of your "filed" organizational documents. A background check is conducted from the information on the application and supporting documents. Upon factoring approval, there is a one time fee of $150.00 to cover the cost of due diligence which is deducted from the first factored load you submit to Pay4Freight.com. Depending on how quickly you provide the necessary information will determine how soon we can generate the factoring contract. This contract will need to be signed and notarized. Sending back the notarized contract and forms along with load documents is the fastest way to receive funding the same day.

Will my company be bound to a long term contract?
No. Of course there will have to be a documented agreement since there will be financial transactions. The Pay4Freight.com contract is limited to 30 days that renews automatically every 30 days. You can stop at any time without penalty. If you ever want to cancel your contract, all we ask is that you give us 30 days notice to collect any outstanding receivables. There will be a $150 fee to cover the cancellation of the UCC filing. Once your outstanding balance is at zero, a release letter is sent to you.

How long is a credit check good for?
When submitting a load for factoring, the debtor (whomever you got the load from) must be credit approved before we will accept the paperwork. Normally a credit check takes only a few minutes, at times direct shippers can take up to a day or two. Credit approvals are good for 72 hours unless we receive notification of a bankruptcy or authority revokation.

Can I fax my paperwork in anytime?

Our system allows you to fax in your loads 24/7. However, our cutoff time to get your load into the system for payment is 12:00 PM Central Standard Time daily.

Can I have more than one factoring company?
No factoring company will allow this. The reason is that the factoring company must hold first lien position on your receivables. This is nothing more than protecting our interests.

Can I factor all my loads?
As long as whoever you are getting the load from is credit approved by Pay4Freight.com, you can factor their load. As much as we would love the business, a credit check must be done on all debtors before we will approve them for factoring. If you have already moved freight for a customer that isn't approved, you may have to invoice them yourself.

Is there a minimum amount of loads I have to factor each month?
No, there is no minimum. However, by factoring more you may be eligible for a better rate.

How do I get paid?
You have a variety of Payment Options

• T-Cheks: These are filled out like any regular check. The only difference is that you will need to get an Express Code from Pay4Freight.com to validate the check, and your bank or wherever you are cashing the check will have to get an authorization code to confirm the check. If you need more T-Cheks, you can contact us either via email or call us to re-order more. The charge for this service is $4.00 per encashment of the final amount we fund you. You will be issued approximately 50 T-Cheks, and 50 FEDEX labels unless you desire direct deposit or use your Fuel Card relationship with EFS. Please be sure to call us at 888-479-4378 to replenish your supply when you are getting low. Allow one week for delivery.
• Direct Deposit: By providing your Routing and Transit Number for your bank and your bank account number, we can electronically transfer payment to your account. This transaction usually takes 1 - 2 business days. The Charge for this service is $5.00.
• Wire Transfer: Wire instructions must be given to us by your depositing bank. The charge for this service is $15.00 plus any fees your bank charges for this transaction.
• Fuel Card: We can fund your Fuel Card account at $4 per transaction.