The business of transportation factoring has always been both rewarding and highly competitive. New potential clients usually appear in droves every day. Dozens of new trucking companies apply for FMCSA registration a day and the industry only grows each year. However, disruptions in the market caused by the Covid-19 Pandemic have left their mark on the freight factoring and transportation sectors. Global supply chains have been impacted in ways that we’re only just starting to recover from. This caused the competition to intensify as trucking companies floor it to fill unfulfilled loads leftover from lockdowns and quarantines and lenders compete to provide them with funding. This not only represents a strong economic outlook for the transportation industry, but also a larger need for capital to get trucks moving. Factoring companies have the most to gain with a strong transportation market. There are now as many factoring companies, lenders and brokers in the industry as there are new clients in need of capital. As a result, it’s vital to be able to stand out from the crowd if you want to draw in new clients and succeed in this now hyper competitive market.
Those in the trucking business spend much of their lives on the road. As a result, clients need a factoring application and origination process that can be done no matter where they are. Whether your client is at home or driving down Interstate Highway 75, they should be able to quickly and easily apply for funding. Investing in a cutting edge, all digital, cloud-based funding application and origination software gives your clients the convenience and flexibility they want and need. The flexibility of the cloud allows them to apply anywhere and at any time with 24/7 access. Thus, ensuring that you can stay in the fast lane and keep ahead of the competition.
In the freight factoring business, speed and efficiency are everything. Your clients have invoices and they need them to be funded on time if they want to keep themselves afloat. They need capital and they need it now. this is especially true in these strange and unpredictable times. Slow, inefficient loan origination slams the brakes on both your client’s business and yours. Because of this, your underwriting process needs to be as quick, painless and efficient as possible in order to keep your company driving forward. Modern underwriting technology allows you to use improved document management, integration with key third party data services, digital signatures and automated loan origination to give you and your clients the speed and efficiency you both need to succeed.
The freight factoring market is also driven by data like never before. From safety ratings and FMCSA status to financial history and more, there’s a lot to manage. Making sure that you instantly have the information required to make better lending decisions and the means to keep track of it all is crucial. In the past, this was a time-consuming endeavor consisting of going to different places to run background checks, verify the authority, the company, obtain voided checks for bank account information and much more. Nowadays, you can have all the data you need from one fully customizable platform, even read-only access to your carrier’s bank account information. This allows you to approve clients much faster and better determine which deals are worth closing. Therefore, enabling you to steer clear of deals that are likely to crash and burn.
Your clients are spread across the country. Your team is trying their best to close deals quickly and with less friction. Want to steer your way to success? Find out how our Factoring Origination System (FOS) for freight factoring works. Schedule a Demo today.