1st Commercial Credit

Learn About Funding and Supply Chain Finance Solutions, Business Tips, and Industry Related Articles.

Over 18 Years in Business

Recent Transactions

invoice factoring for a trucking oil field hauler

$1.2 Million

Oil Field Hauler

invoice factoring for a po funding valve importer from china for inventory, freight and duty fees

$210,000

Valve Importer PO funding

1st Commercial Credit Factors Trucking Brokers and Freight Logistics Companies

As a trucking broker, your customers depend on you to keep their trucks full and get their freight hauled without delay. You provide them with access to loads that they otherwise wouldn't have had. This type of company only thrives when you have a constant influx of new business. To do that, you must offer customers up to 30 days or sometimes eve up to 60 days to pay their outstanding invoices. While this is helpful in keeping customers satisfied, it can become problematic when it impedes cash flow at your trucking brokerage company.

An Accounts Receivable Advance is the Ideal Solution

At 1st Commercial Credit, we factor trucking brokers along with dozens of other types of trucking businesses. Factoring, which means the same thing as accounts receivable financing, is when our company forwards you 90 to 95% percent of the value of your aged accounts receivable. Using your unpaid invoices as collateral, you gain access to immediate cash flow. After the assigned carrier delivers the services you agreed to provide to your customer. The carrier will send you all the documentation required to invoice your shipper. The freight brokerage would simply assign its own invoice that goes to the shipper for proceeds to factor.

As a freight broker, all proceeds are treated as a trust fund, the carrier must be paid its portion upon us financing the invoice, the balance is the freight broker's profit minus our fee. Once we have advanced the initial funds to both parties, we hold the rest in reserve (assuming there is a reserve balance left) until your customer pays the invoice in full. You continue to bill your customer as usual, but you need to inform them to remit payment to 1st Commercial Credit instead of your company.

Special Financing Program for Freight Brokers

If you are a large trucking broker with a minimum of $10,000 in monthly sales, we can provide you with very low rates and other attractive benefits. These include:
• Initial account set-up in three days
• Free credit checks on your customers
• Automatic credit increases
• Wires or ACH to carriers
• Scheduled payments online

To take advantage of our accounts receivable financing program for freight brokers, you must have all permits in place before you apply.

Why Factoring is Preferable to a Bank Loan

Trucking brokers often need financing flexibility that traditional lenders are unable or unwilling to offer. For example, you may be turned down simply because you have large seasonal variations to your income. Another reality about lines of credit from a bank is that the amount offered is usually insufficient for your needs. This becomes evident when you are just starting your trucking brokerage firm and you need large amounts of working capital to grow. Your bank's business loan or revolving line of credit becomes restrictive instead of actually helping you.

With accounts receivable loans from 1st Commercial Credit, your available cash flow is only limited by the amount of money that is owed to your company. The more brokerage services you bill, the more cash you have available to you through our factoring company. Instead of holding you back like other lenders, our financing program grows right along with your business.