Frequently asked Freight factoring questions
Freight factoring is NOT a business loan. It’s a financing tool that provides you with immediate working capital.
How? You sell us your invoices at a small discount. We pay you cash the same day, and then WE wait for payment—not you.
Non-recourse factoring is when the factoring company assumes the risk that your account debtor does not pay an invoice (through no fault of your own). For example, if the debtor goes out of business, files for bankruptcy, or becomes insolvent during the factoring period, TBS will take the loss.
Recourse factoring is when the client is responsible for repaying an invoice if the account debtor fails to pay.
TBS does not have a requirement. Our team works with brand new companies every day. Our only requirement is that you have your own active authority. We can also help you get your company back in good standing, if needed.
If you need your own authority, we’ll process it for FREE and walk you through the paperwork.Get your authority!
No, we expect payment from your customers and do not have minimum credit standards for your personal credit.
Once TBS receives your completed application, the required documents, and your authority is active, it takes 24 hours for you to be completely entered into our systems so you can get paid faster for the loads you’re hauling.
No, you can choose which companies to factor and which companies you do not wish to factor. We are proud to be one of the few factoring companies to offer this flexibility.
You will need to send a copy of the rate confirmation sheet, a completed Exhibit B, singed Bill of Lading (BOL) and any other documents (lumper tickets, retention tickets, etc) your broker requires in order to be paid. Exhibit B is a form that TBS provides. Then, we create the invoice, bill the customer, and send you your money.
TBS processes invoices 24/7 but there are specific funding deadlines for ACH and wire payments to meet certain bank timelines. Fuel card payments can be funded daily until 11:00PM (CT) Monday – Sunday. Anything processed after 11:00 PM (CT), will post at 6:00 AM (CT), the next day.
Money can be sent electronically and deposited directly into your bank account by wire or ACH. TBS can also send payment to your EFS or Comdata fuel card.
Permitting & Compliance Frequently Asked Question
Companies that operate commercial vehicles hauling cargo must be registered with the Federal Motor Carrier Safety Administration (FMCSA) and must have a USDOT number. The USDOT number serves as a unique identifier when collecting and monitoring a company’s safety information acquired during audits, compliance reviews, crash investigations, and inspections.
An interstate operating authority (also called an MC number) is required as it dictates the type of operation a trucking company may run and the cargo it may carry. The type of authority requested will impact the type and level of insurance that’s required by the Federal Motor Carrier Safety Administration (FMCSA). You must carefully select only the type of authority relevant to your business. The FMCSA does NOT refund application fees.
You can apply for your authority through the FMCSA, but we recommend having our expert team process your authority for you. The processing is FREE and you won’t have to worry about potentially messing up the paperwork.Get started on your authority!
TBS can advance up to 50% of any load that you factor with us.* We also offer Saturday advances for your fuel card.
*Subject to approval