![]() ![]() The longer your clients take to pay, the higher the fee. The sooner your clients pay the factoring company, the lower the fee. These fees accommodate for the risk associated with taking the risk of your invoices. Aging fees - there are typically aging fees in most factoring contracts.This can be as high as 95% paid to you within 24 hours of load delivery. At WEX Capital, we work to get you the highest percentage possible as soon as you complete the work. Advance amount - Your contract will spell out a specific percentage of your invoices that will be paid upon delivery of a load.Most freight factoring companies use larger loans from other banks.Īt WEX Capital, we are the bank and can offer larger credit limits than many competitors in the freight factoring industry. Know how much can be borrowed - a factoring contract will have a maximum credit line which limits how much you can factor.Whether you work with WEX Capital or someone else, here are a few things to keep in mind when reviewing your invoice factoring contract: In any business decision, you should pay close attention to contracts. There are additional variables that determine your eligibility for freight factoring based on your business situation - these will be discussed by a sales representative when you apply. In this scenario, a factoring company can purchase three times the amount of invoices with a customer that pays in three weeks. If a client of yours averages $25,000 in invoices a month and takes roughly three weeks to pay, their risk is much lower than another client that ships the same volume with you but takes nine weeks days to pay. Average days to pay - every freight factoring company will take into account the time it takes to get your invoices paid.The more diversity you have in your clientele, the more likely you will qualify for factoring. ![]() However, if you only have one customer you deal with, you will be considered to have a higher risk than a small business that works with several freight brokers.
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