Freight Brokers Rates & Services

custom Freight Broker Payment Program

We have been factoring for Freight Brokers for over 40 years.  We customized a Broker Payment Plan software over 30 years ago. Our Factoring software is the base of the popular Factorsoft/Cadence written by the same programmer.  

• No No Set Up Fees

• No Personal Credit Check Required

• Non-Recourse Factoring

• Same Day Reserve Release

• No Minimum Volume Requirement

• No Hidden Fees

• Factor What You Want

• 24 hr. Application Approval

• Online Account Access

• Knowledgeable, Friendly Staff

Factoring companies deal with freight brokerage business in one of three ways. Most simply turn down business from brokers, some companies factor for brokers and pay all the revenue directly to the broker, and then there are the companies that factor for brokers, but pay the actual carriers directly. Freight brokers that are seeking factoring should try to understand the reasons behind the different polices factors have about the freight brokerage industry.  Factoring for Freight Brokers.

Factoring Rates for these two different services should not be compared, since a much higher administration workload goes into setting up and paying each carrier on a haul, vs one lump payment to the Freight Broker.

UC Factors Pays your Carriers Directly

Either by a set terms ( 15, 21, 30 Days) or by Quick Pay.

You keep all Quick Pay Fees!

We pay the underlying carriers out of the revenue generated from the receivables. This service is relatively rare because the amount of administration involved in paying the carriers directly exceeds the capacity of most factors. Plus you get to keep any fees charged to your carrier all to yourself, most factors take a percentage of the Quick Pay Fees.

IMPORTANT NOTE:

Freight broker’s receivables have a priority claim against them until the underlying carrier has been paid. This claim does not have a public filing to warn other creditors that a priority claim exists. To have this knowledge you must be aware of court rulings from 20 years ago where the carrier claim was upheld over a factoring company and created the precedent for future claims. Factors that use a bank line of credit to finance their operation are probably violating their credit agreements which usually call for all financed receivables to be contingency free.

There are several variables in quoting rates to a prospective account, so there is no one size fits all rate. Yet, we have been factoring transportation accounts so long, we can accommodate most accounts with a flat rate.   

Rates generally range from 2.25% to 3.0% per 30 days. Advances usually range from 90% to 100%, less the factoring fee. 

How does the Freight Broker Payment Plan work?

Example:  100% Advance at a 3% fee, paid upon receipt of required paperwork …  

Cost saving services covered by UC Factors: 

• Credit Reporting

• Credit Analysis 

• Credit Protection on Non-Recourse Accounts

• Invoice Billing Administrator  

• Collections on Factored Accounts

• Accounts Payable-Payment to Carriers

• A/R Management & Reporting

Besides our Accounts Payable Dept. paying all your carriers, which is an undertaking in itself, another cost saving service we give our clients is their account analyst’s will review their invoices and documentation to ensure all necessary paperwork is in place and accurate for your customer to remit payment without incident.  A few examples are, they will help ensure the billing address and/or email address is accurate, and current according to the documentation and our records, that the correct back up paperwork is attached to the appropriate invoice for billing, and that the pricing noted on the invoices has no discrepancies. Any mistakes will be brought to your attention so you may fix them before your customer sees that a mistake was ever made. 

How much do you think all these services would cost you if you were to purchase them yourself?  You would also need to increase your staff to cover the administration portion of these services, which means payroll, workman’s comp, insurance, and paid time off. Something to think about when assessing the rate of a factoring company.      

Apply now, get an honest, upfront, rate and service quote from UC Factors. 

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