The worst factoring companies have these issues.
Know what to look out for.
Hidden terms & fees
Avoid factoring companies with hidden terms & fees. Know exactly what you're signing your trucking company up for.
If a freight factoring company charges you back unexpectedly, without giving you any warning or reason, you should not work with them. You have the right to know if this is going to happen.
High monthly minimums
High monthly minimums can cause issues for your trucking company if you need to take some time off from working. You should be able to run as much or as little as you want without being charged extra.
A factoring company that has
1-800 numbers is one not worth working with. You need to be able to get someone directly on the phone with ease, when it's concerning your trucking company.
Long term contracts
Any freight factoring company that doesn't offer you contract options of different lengths is hiding something. You should have the freedom of signing up for a period that you're comfortable with.
A freight factoring company that will charge you outrageous termination fees is one who doesn't want what's best for you. You don't need high termination fees to add to your stress.
Grow your trucking company!