All resourcesFactoring
Trucking Factoring vs. a Bank Line of Credit
Speed of approval
Banks often take weeks and focus on your financial history. Factoring companies focus on the strength of your customers' credit, so approval is usually much faster.
Flexibility as you grow
A line of credit has a fixed limit. Factoring grows with your sales: the more you invoice, the more funding is available.
Cost and debt
Factoring is not a loan, so it does not add debt to your balance sheet. Fees can be higher than bank interest, but the speed and flexibility often make up for it.
Which should you choose?
Many carriers use both: a bank facility for equipment and factoring for day-to-day working capital. Request a quote and we will help you compare.