Question 1

What is Freight Factoring?

Accepted Answer

A freight factoring company purchases account receivables (invoices) from a trucking company for a fee. Factoring allows companies to get paid faster and is especially helpful for managing cash flow when a carrier is working with brokers or shippers that have payment terms of 30 days or more.

Question 2

How does Factoring work?

Accepted Answer

Step 1: You haul and deliver a load for your customer.
Step 2: You send the load’s paperwork and invoice to your factoring company.
Step 3: The factoring company buys the invoice and you receive payment from them.
Step 4: The factoring company sends the invoice to your customer.
Step 5: The factoring company collects payment from your customer for the invoice.

Question 3

What are the benefits of Freight Factoring?

Accepted Answer

Factoring is an excellent way of getting money fast to manage cash flow to pay for operating expenses without creating debt. You could go to a bank and try to get a loan, but there’s no certainty you will be approved. And even if you are approved, you may not be able to get additional loans for critical equipment such as trucks or trailers.

Because you are factoring your outstanding freight invoices, we are focused on your customers’ credit. Plus, a good factoring company will also take the hassle of collecting your invoices off your back and provide you with important back-office support services.

Question 4

Why are credit checks so important?

Accepted Answer

You wouldn’t buy a truck without looking at it first, right? Then why haul a load for a customer without knowing they can be relied upon to pay? Checking credit regularly will dramatically reduce serious issues such as payment delays.

Every load that you don’t get paid means you need as many as 12 loads to make up the cost. Rubber Duck Funding provides 24/7/365 online access so you can know instantly how much credit will be extended to one of your customers. You can also use the Rubber Duck Funding Mobile Factoring™ App (coming soon) to check credit anytime.

We spend valuable effort and resources to make sure our credit system is the most accurate and reliable of any factoring company. We are committed to providing the best, most trusted service.

Question 5

Can I see the invoices that I have factored?

Accepted Answer

Yes! Through our portal you can see everything to do with your account so you can monitor your invoices, payments and what you have available in your reserve account.

Question 6

What kind of invoices can be factored?

Accepted Answer

We will buy freight invoices from all your customers including brokers, shippers, and freight forwarders. We can factor invoices for most kinds of freight and will work to customize a path for your business needs. Call us to learn more.

Question 7

What is the cost for Freight Factoring?

Accepted Answer

One standard rate does not fit all clients. Rubber Duck Funding designs a plan around your needs, considering freight rate, flat rates, tiered rates, etc.

Question 8

Can I get out of my Factoring agreement?

Accepted Answer

Yes. At any time you want to get out of your agreement with us we will be just as much of an assistance as we were when we were signing you up.

Question 9

What other services can I get from Rubber Duck Funding Corp.?

Accepted Answer

We primarily factor freight bills, but we also offer authority services and client portfolio management services. We provide collections, credit, fuel cards, and other services to help start your company and allow it to run smoothly and effectively.
Here are a few of the extra services we offer:
– Startup Program to get your authority
– Personal account manager
– 24/7 online access
– 24/7/365 funding through the Rubber Duck Funding Digital Wallet
– Free credit checks
– Substantial fuel and tire savings programs
– customized Rubber Duck Funding Fuel Card Program
– Rubber Duck Funding Mobile Factoring™ App (coming soon)
– 24/7/365 Roadside Rescue program through Big Rig Fleet Service
– Major savings through our partner programs such as hotels, work wear and much more!

Question 10

What is the difference between recourse and non-recourse factoring?

Accepted Answer

Non-recourse and recourse refer to the party that takes the payment risk. If you enter into a recourse arrangement, that means you are responsible for buying back the invoice from the factoring company if your customer does not pay.
If you have a non-recourse arrangement, that means the factor will take the loss, not you, if the customer doesn’t pay the invoice due to credit reasons.

Question 11

Do I have to follow up with my customers to make sure my invoices are paid?

Accepted Answer

No. Rubber Duck Funding will handle all collections to make sure payment is received as quickly as possible. We’ll document all payments we receive so you’ll know when and how we collected on your invoices. This will save you time, hassle, and the expense of managing your own collections.

Question 12

Do I have to factor all of my customers and invoices?

Accepted Answer

No, but when you factor one customer, we do ask that you factor all the invoices from that customer.

Question 13

What do I do if I get a payment from my customer after I have started factoring?

Accepted Answer

Should your customer ever mistakenly send you a check or makes an automatic payment into your account, you must immediately forward either the check or the payment directly to Rubber Duck Funding Corp. and notify your account representative. Do not deposit a check from a customer that you’ve factored with.

Question 14

What if I use another factoring company already?

Accepted Answer

That won’t be a problem. We can work with your current factor to make sure the buyout and transition processes goes smoothly.

Question 15

What do you need from me so I can start factoring with Rubber Duck Funding Corp.?

Accepted Answer

We will need you to fill out a short application and provide proof of your authority and your insurance. We will also need a list of your current customers if you have already begun operating under your own authority.

Frequently asked questions