Most freight brokers don’t realize how much of an impact their back-office can have on their growth. Brokers frequently associate growth with front-end activities like sales, finding new customers and carriers, and other business development tasks. But as your brokerage grows, your business is more likely to run into back-office bottlenecks from delays in invoicing, payments, processing paperwork, and more. 

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These bottlenecks can lead to stagnating growth, even when sales are better than ever. If your back office can’t process the volume your team is selling, it’s almost impossible to grow. 

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As your business grows, you’re left with two options to solve this problem: invest in hiring the staff required to cover your new volume, or leverage tools and vendors to support your existing team.

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Hiring new team members can be costly, risky, and time-consuming - which is why we recommend exploring back-office automation tools before committing to expanding your staff.

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Some services provide complete back-office solutions for brokers — including everything from submitting jobs, providing comprehensive dashboards, TMS integrations, carrier portals, automated invoicing and collections, payment processing, and more. Other solutions in the industry might only offer one or two of these features, and are far from comprehensive. 

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Below we’ll compare how Denim’s flexible factoring and back-office automation tools can offer a complete system for most brokers, and why we think Denim is the best solution for brokers who want to grow without adding more back-office staff.

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Submitting new jobs

Submitting jobs is the first step in getting a load factored. Most factoring companies require a BoL (bill of lading), PoD (proof of delivery), and rate confirmations to purchase (factor) your invoices. How this works varies from company to company, here’s how Denim’s solutions stack up:

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Denim’s solution:

Submitting a job with Denim is simple and fast - so fast you can do it in under 30 seconds. Jobs can be uploaded through Denim’s online or portal or directly through a TMS integration at your earliest convenience.

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When uploaded through Denim’s portal, the intuitive interface makes it easy to find exactly what you need when you need it. Information icons are there to walk you and your team through the process. Presets and commonly used companies remove any redundant data entry, so you can focus on booking more loads.  

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Key benefits: 

• Submit jobs through a self-service portal or TMS integration.  
• Denim’s TMS integrations let data flow seamlessly between your TMS and factoring platform with a single click.
• Presets and commonly used companies to eliminate duplicative data entry.

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Traditional factoring companies:

Submitting jobs to traditional factoring companies can be a time-consuming and error prone process. There are two main routes taken: CSV upload or email. 

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The average factoring company has a dashboard to upload CSV files with load details and separate PDF documentation with BoLs, PoDs, and rate confirmations. Batching loads like these can take dozens of hours and lead to errors when a load data is different in the csv than the pdf document. 

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Alternatively, some factoring companies require you to email this information. This often results in several back-and-forth emails to correct mistakes and verify information. 

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Some factoring companies have TMS integrations, but they are often delayed updates, meaning updates are only displayed 1-2 times per day. 

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Client dashboard

One important feature that isn’t always available for factoring clients is a comprehensive client dashboard that gives real-time metrics and data so brokers can make informed decisions on the fly. Here’s how Denim’s client dashboard stacks up against more traditional solutions:

Denim’s Dashboard:

With the Denim dashboard, brokers get a bird's eye view of the most important financial metrics. They can instantly gain insights into stats like jobs over time (with predictive month-over-month analytics), Days Sales Outstanding (DSO), total amount factored, fastest and slowest paying customers, and most profitable customers - all at a glance.

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Custom roles and permissions with Denim for Teams lets brokers set custom roles and permissions for the whole team, giving the exact data points every team member needs. This protects sensitive business information and gives more control to owners. 

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Custom reports can also be requested on demand by team members so they can find important information fast.

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Key benefits:

• Find important data at a glance.
• Set custom roles and permissions for specific team members.
• Request custom reports on important data on demand.
  
  

Traditional factoring companies:

Traditional factoring companies have limited or non-existent dashboards. Many require brokers to request specific data or metrics through email, leading to slow response times and confusing email chains with potentially unreliable customer support teams.

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When traditional factoring companies do provide dashboards, they often do so through “view-only” portals which only offer basic transaction reporting and payment statuses. These dashboards often require employees to share passwords, and offer limited if any control over which team members can view sensitive information.

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Client tools 

Brokers need more than just working capital to run their business - they need modern tools that improve efficiency and their bottom line. Here’s what Denim and other factoring companies offer:

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Denim’s Document Management:

Denim's Audit, Document Collection and Inbox features give brokers an easy way to collect and audit documents automatically, saving countless hours for back-office staff. Both tools are included for all factoring clients, and provide automatic document auditing that helps identify errors before you hit submit. This alone vastly improves the time it takes to submit new jobs.

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The Denim Document Collection & Inbox organizes all PoDs, BOLs, and Rate Confirmations in a simple easy-to-use inbox, and automatically attaches the correct documents to every job - finally ending the constant searching through your inbox and PDF merges for document submissions. 

Key benefits:

• Auditing tools automatically check documents for errors or missing information and cuts down on manual, time-consuming processes.
• Document collection inboxes automatically organize and securely store important documents so they’re always available when you need them. 

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Traditional factoring companies:

Traditional factoring companies provide little in the way of client tools, and are primarily focused on providing working capital to brokers. Factors that do provide these tools often do so at an additional cost for brokers.

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Carrier portal 

Effective carrier communication is critical for brokers, both to keep customers informed and to reduce unnecessary back and forth between your team and carriers. Here’s how Denim helps brokers keep carriers informed while saving staff time:

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Denim’s carrier portal:

Denim’s Carrier Portal gives carriers an easy way to stay informed at every step of the process, and is available for all factoring customers. This helps cut down on calls from carriers asking about payments, giving them real-time updates on payment status. Automated emails are sent to carriers when payments are complete, saving your staff time.

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Key benefits:

• Carrier portal access is available for all customers.
• Automatic and real-time updates are available for carriers.
• Automated email alerts cut down on calls to your team.
  
  

Traditional factoring companies:

Traditional factoring companies provide little or no outbound communication to carriers on behalf of brokers. The broker is responsible for all communication with carriers about payment, leading to excess calls and frustrated staff and carriers.

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Some factors will send out update emails when payments are completed, but it’s up to the broker to send any other communication.

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Invoicing and collections

Efficient invoicing and collections are vital for maintaining healthy cash flow. Denim’s back-office automation tools give brokers new advantages in these areas too:

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Denim’s process:

Denim’s automation tools make it easy for brokers to create and distribute invoices for shippers in minutes, instead of hours. As soon as rate confirmations and PODs are received, your client can be invoiced. No more waiting for carriers to send invoices, letting the aging clock start sooner.

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Denim also automatically alerts brokers of aging invoices, and follows up with shippers and brokers to prevent slow payments. Brokers can work directly with Denim to collect on invoices before using more drastic measures like chargebacks. 

Key benefits:

• Automated invoice creation and distribution.
• Early invoicing.
• Automatic aging alerts.
• Built-in collections process that keeps customers happy.

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Traditional industry processes:

Most traditional factoring companies don’t generate invoices for brokers automatically, and opt to send generic emails instead. These emails are often impossible to customize and confuse shippers without specific company logos or identification.

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Many traditional factoring companies also have very limited communication and lack comprehensive escalation processes. They frequently send one or two email reminders, and then charge a chargeback, causing issues with customers. 

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This lack of a collection process hurts customer relationships and costs brokers business.

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Payments 

Managing payments is an essential part of every brokerage, and doing it well is critical to the broker-carrier relationship. Denim provides improved processes over other providers in the space:

Denim’s payments:

Denim makes payments to carriers for you automatically, and gives brokers control over every aspect. Brokers choose how carriers are paid (e.g. ACH, check, QuickPay, and more) with no additional fees. 

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Denim also takes care of all the collection and storage of payment information on your behalf, so you never have to worry about storing sensitive personal carrier data on your system.

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Key benefits:

• Automated payments with unparalleled control.
• Save payment info and important documents securely.

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Traditional factoring companies:

Most traditional factoring companies don’t automate payments to carriers. Brokers are responsible for paying out carriers, requiring them to use additional back-office resources. 

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This can frequently lead to delayed or late payments, and unhappy carriers as a result.

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Many traditional factoring companies also charge excess fees for common services like QuickPay or ACH transfers. The fees vary from factoring company to factoring company, but often must either be absorbed by the broker or passed along to carriers who desire QuickPay. These fees can range from 1-3% of the load, which can quickly eat into the profitability of your brokerage. 

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Conclusion 

Brokers depend on cash flow and efficiency to grow their business. Without a suite of back-office tools to support your operation, you may find yourself paying excess fees, stuck manually invoicing shippers and paying carriers, processing paperwork, chasing down important metrics, manually compiling PDFs for job submissions, and more. 

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With Denim’s suite of back-office tools, your brokerage will be ahead of the curve with more efficient processes, streamlined communications, and fewer fees. Denim’s all-in-one platform is designed to meet the needs of brokers of any size, and sets a new standard for the factoring industry.

If you’re ready to find out how Denim can streamline your business, cut down on fees, improve your cash flow, and help your brokerage grow - get in touch with our team today. We’ll walk you through every step of the process and give you the tools you need to maximize your cash flow and streamline operations almost overnight.

QuickPay is a valuable tool for freight brokers, offering carriers the benefit of faster payments, typically within 24-48 hours instead of the usual 21-30 business days. Beyond improving cash flow for carriers, QuickPay can serve as a strategic advantage for brokers. Carrier QuickPay can help brokers attract top-tier carriers, improve retention, and even add a new revenue stream. 

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However, implementing QuickPay requires careful planning and communication to maximize its benefits and minimize risks.

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In this blog, we will cover best practices for managing a QuickPay program, including how to navigate fraud and leverage the right tools to make your program a success (and profitable).

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1. Vet Your Carriers: Avoiding QuickPay Fraud

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One of the key challenges brokers face is distinguishing between legitimate QuickPay requests from trusted carriers and those from fraudsters or double brokers attempting to get paid before being caught. QuickPay fraud can pose significant risks, including financial losses and damage to your reputation.

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Best Practices for Vetting Carriers:

• Onboard Through Trusted Programs: Use established carrier onboarding and vetting systems like MyCarrierPortal (MCP) or Highway to ensure you are working with verified and reliable carriers.
• Limit QuickPay to Trusted Carriers: Consider offering QuickPay only to carriers with a proven track record, reducing the risk of extending this service to potentially fraudulent operators.
• Regularly Monitor Performance: Keep an eye on carrier performance and payment history to identify any unusual patterns that may indicate potential fraud. For example, if the name on the invoice is not the same as the bill of lading. 

As the end of the year comes to a close, growth is on almost every brokerage’s mind. But, growing sustainably means working with the right shippers that you can build rapport and long-term relationships with. By choosing the right shippers for your brokerage from the beginning, you can set yourself up for growth in 2025 and beyond. 

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Let’s look at some questions to ask to ensure the shippers you work with are the right ones for your business. Working with the right customers is the key to successful freight broker sales. 

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Do Your Research Ahead of Time

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Before we dive into the questions to ask your shippers to qualify them, we first need to talk about the importance of good prospecting from the beginning.

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Freight broker prospecting is a lot like digging for gold. Before you start digging a 12-foot hole, you want to be sure there’s gold at the end. As a broker, your biggest asset is time. By doing your research ahead of time, you ensure that your time isn’t wasted and that the shipper you’re potentially going to work with is a good fit for your business. 

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Research Their Business

Before getting on a freight broker sales call with a shipper, take the time to research their business. This includes their industry, business size, geographic locations, any recent news, and freight types. You can also estimate their current shipping volume based on public data, testimonials, or industry standards.

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Identify Key Contacts

To make the most of your calls, make sure you’re talking to key decision-makers at the company. Tools like LinkedIn can help you identify these key contacts. 

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Leverage Existing Relationships

In addition to knowing the key contacts, research if you have any mutual connections. These mutual connections can help bridge the gap between the first freight broker sales call and building rapport.

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Go the Extra Mile

As Chris Brewer, CEO of River City Logistics says, “the battle is won before the phone call.” This means preparing as much as possible so you know who you’re talking to and what their needs are. He suggests going the extra mile and researching if you have any other things in common. This like mutual hobbies might seem superficial, but they can go a long way in building a connection with a prospect. 

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Qualifying Questions to Ask Your Shippers

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Okay, so you’ve done your research and know that the shipper you’re talking to is worth a discovery call. Let’s go over the types of questions to ask as you qualify shippers as part of your freight broker sales process.

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Questions About Their Past Experience

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Qualifying questions help you assess whether a shipper is a good fit for your services. Here are some categories of qualifying questions to start with:

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Past Experience With Brokers

A great freight broker prospecting question to ask potential new customers is whether or not they’ve worked with a brokerage before. This will give you a good understanding of what to expect and may give you insight into their past experience and how working with your brokerage might compare.

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Seasonal Volumes

Asking volume-related questions is an important way to qualify shippers. While some shippers might be hesitant to answer specific questions like “how much are you shipping this week?”, they may be more open to general questions about past loads. For example, try asking things like “what volumes were you averaging last fall? What about last summer? Were those volumes more or less than expected?”

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By keeping volume-related questions conversational and focused on past experiences, you can get a good gauge on how much business this shipper might bring your brokerage.

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Load Type

Of course, you need to make sure that the load type matches your brokerage. Ask questions about whether they require any special equipment for their loads, if they do full truckload shipping or LTL, and any other load-specific questions you need to know. 

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Business-Related Questions

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Next, ask the shipper about their specific business. Remember, the purpose of the discovery call in your freight broker sales process is to get as much information as possible to see if they’re a good fit for your brokerage. 

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These business-related questions will depend on the specific shipper but might include things like “how has your year been?”, “how is your industry doing?”, or “are you expecting any big orders this year?” Try to keep it positive and encourage the shipper to share their successes.

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Operational Questions

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Lastly, you should qualify your shippers by asking operational questions so you fully understand their business and needs. These freight broker sales questions can cover everything from their internal organization structure to their weekly truckload shipments. Here are some operational questions to help get you started:

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• How is your shipping organized?
• How much notice do you usually get to organize a truck to pick up your load?
• When is your busy season? When is your slow season?
• How do you usually find your trucks?
• How much time do you spend organizing a truck pickup on a last-minute load?
• What kind of trucks or equipment do you require?
• Have you had to extend freight payment terms and why?
• How many locations do you have? Are you organizing both inbound and outbound shipments from these locations?

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These operational questions just scratch the surface of everything you can ask about a shipper’s operations so let the conversation guide your information-gathering. Remember, you’re interviewing your shipper to see if they’re a good fit for your business as much as they’re interviewing you to see if they want to work with you. 

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Bonus: The Magic Wand Question

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Even the most successful shippers likely have something they would change about their business. But, rather than focus on the negative, consider asking the Magic Wand question: “if you had a magic wand and could change anything about your business, what would it be?” This is a fun and positive way to discuss potential challenges and pain points. It will also give you insight on what you can help improve as the shipper’s freight brokerage. 

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Find High-Quality Shippers Through Research, Prospecting, and Asking the Right Questions

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2025 is right around the corner, which means now’s the time to set your brokerage up for success to start the new year strong. One powerful end-of-year goal is to focus on attracting high-quality shippers to increase your freight broker sales. By doing your research and qualifying your prospects by asking the right questions, you can foster trust and secure partnerships with the right shippers.

Scaling your fleet trucking business is no easy feat, especially if you want to scale sustainability (as you should). We’ve seen too many horror stories about fleets that grew too quickly and then went out of business, such as Surge and Convoy. 

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But, cautionary tales aside, there are a lot of growth opportunities for fleets and it all comes down to proper truck fleet management. We may not be seeing a complete market upturn yet, but there are plenty of signs that things are on the upswing for fleets. Sustainable growth is possible. 

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Let’s look at ways to manage your truck fleet and scale sustainably through smart cash flow strategies, efficient operations, and a productive team of employees and drivers. 

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Step One: Plan Your Finances

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When it comes to scaling your fleet trucking business, accurate financial planning is key. A few things to consider when approaching financial planning for your fleet is your budget, financing, and cash flow. 

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Create a Growth Budget

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One of the first things to do when planning to scale your fleet sustainably is create a growth budget that takes into account all of your costs. 

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These costs could include acquiring new trucks (including their purchase prices, leasing options, and maintenance requirements and expenses), increased insurance coverage, and hiring and training new drivers. You may also budget for upgraded technology, such as a fleet management software to make your operations more efficient as you grow. 

Secure Financing

The next step when thinking about scaling your fleet is to consider financing. There are lots of options available to fleet owners, including loans, factoring, and lines of credit. 

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Loans

Loans provide a lump sum of funding, but they require regular payments, which might impact your cash flow as you scale. 

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Factoring

When you factor invoices, you sell your invoices to a fleet factoring company to improve your immediate cash flow. Factoring rates differ based on your needs and while factoring may impact your overall revenue, the fees are often a small price to pay for the flexibility it affords fleets. 

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Lines of Credit

Lines of credit offer flexibility because you can spend more cash now, but they come with variable interest, often as high as 14% for newer fleets. 

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Weighing freight factoring vs a line of credit is a common consideration for fleet owners as they both provide access to cash flow, but when looking at the pros and cons of each, factoring is often a better choice for fleets to avoid variable interest rates, tighter credit conditions, and higher borrowing costs. 

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Manage Cash Flow

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Lastly, you will need a way to manage cash flow as you grow to avoid financial strain. Your detailed budget and financing will help with managing cash flow, but you will still need to look at the data to accurately project your revenue and expenses. 

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To avoid any future financial hiccups, make sure to account for potential fluctuations in things like fuel costs, maintenance, and driver wages. Monitor your cash flow closely to ensure that as you grow, you aren’t jeopardizing your ongoing operations. Some fleet owners may even consider setting aside a reserve fund for any unexpected costs.

2024 has brought a mix of challenges and opportunities for trucking companies across the nation. From economic uncertainty to rising fuel costs to cautious optimism in the coming months, there’s a lot to think about as a fleet owner or broker.

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The end of the year is right around the corner and there’s no better way to end 2024 than by setting some powerful short term goals to carry you through Q4. Here, we share some short term goals you could consider for your trucking company and provide some actionable steps to progress towards them. Here’s to a great end-of-year rally!

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1. Optimize Your Freight Pricing to Maximize Revenue

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The goal: Conduct a pricing review to ensure alignment with market trends and close Q4 with improved margins.

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A great end-of-year goal to set your sights on is to optimize your freight pricing to maximize revenue. We’ve seen freight pricing trends go up and down and just recently, some companies have even secured rate increases. For example, XPO negotiated an 8% rate increase from a year ago and ArcBest finished Q2 with a 5.1% increase in rates. With this in mind, optimizing your freight pricing strategy should be a top priority for the rest of the year. 

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But optimizing freight pricing is easier said than done, right? Start by conducting a comprehensive review of your current pricing strategies to ensure that they align with current market conditions. Then, look at where you can renegotiate contracts or shift your focus to higher paying lanes. 

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Another option is to implement dynamic pricing models, especially as we approach the busy holiday season. Dynamic pricing models allow you to create freight pricing that adjusts as the market changes.

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Actionable steps

• Review and adjust pricing strategies
• Renegotiate contracts or focus on higher paying lanes
• Implement dynamic pricing models

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2. Conduct an End-of-Year Financial Review and Optimize Cash Flow

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The goal: Reduce Days Sales Outstanding by 10-15 days by streamlining invoicing processes and conducting a comprehensive financial review by end of Q4. 

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Effective cash flow management is essential for any successful trucking company, especially at year-end when costs can rise, and cash can become tight. To set your business up for success in 2025, conduct a thorough end-of-year financial review focusing on cash flow, outstanding receivables, and areas for improvement. Proper financial planning for brokers and fleet managers is crucial to sustain growth and maintain financial stability.

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During your review, identify opportunities to reduce the time it takes to get paid. This may involve tightening up invoicing processes, implementing quick-pay discounts, or leveraging technology to send accurate invoices promptly. If your review indicates that reducing DSO could significantly improve liquidity, consider partnering with a factoring service to get paid on invoices immediately. 

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At Denim, we offer a number of benefits outside of just factoring. Our solutions include customized financial reports, transparent pricing with no hidden fees, and dedicated support to help you understand and enhance your company’s financial health.

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Actionable steps:

• Conduct an end-of-year financial review
• Optimize payment terms
• Improve cash flow with factoring

Cash flow is the lifeblood of every fleet operation. Without it, covering essential expenses like maintenance, fuel, and repairs becomes a challenge. When cash runs dry, delivering the top-tier service your fleet is known for could be at risk.

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Many fleet owners turn to freight factoring to ease their cash flow concerns, but not all factoring is the same. There are two main types: recourse and non-recourse. Knowing the difference between them can help fleet owners better manage risks, control costs, and keep their operations running smoothly.

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What is Non-Recourse Factoring?

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Non-recourse factoring is a financial arrangement where the factoring company assumes the risk of non-payment from the fleet's customers, typically brokers. This type of factoring is particularly appealing to fleet owners who are concerned about the possibility of non-payment or encountering a double-broker scenario, where payment becomes complicated or delayed.

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Benefits of Non-Recourse Factoring for Fleets

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Risk Mitigation

The primary advantage of non-recourse factoring is that it shields your fleet from the risk of non-payment due to bankruptcy. If a broker defaults, the factoring company absorbs the loss, not your fleet.

Simplified Accounting

With non-recourse factoring, you can manage your cash flow more effectively, knowing that your revenue is secured. This allows for easier financial planning and less stress about potential losses.

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Drawbacks of Non-Recourse Factoring

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Higher Fees

The peace of mind that comes with non-recourse factoring comes at a cost. Non-recourse factoring companies charge higher fees to compensate for the increased risk they assume.

Stricter Credit Criteria

Non-recourse factoring is typically only available for brokers with strong credit profiles. This may limit your ability to use this option if your customers don't meet the stringent requirements.

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Doesn’t Cover All Non-Payment Situations

Most non-recourse factoring contracts only protect your fleet from non-payment due to bankruptcy or brokerage closing. It does not apply to situations like double brokering or disputes. 

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When is Non-Recourse Factoring the Right Fit for Fleets?

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Non-recourse factoring is most beneficial for fleets that prioritize risk avoidance over cost. If your fleet frequently deals with new or smaller brokers, or if you've experienced a client bankruptcy in the past, this option can provide the security you need to keep your operations running smoothly.

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What is Recourse Factoring?

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Recourse factoring places the risk of non-payment back on the fleet owner. While this might sound less appealing at first glance, there are significant advantages that make recourse factoring an attractive option for many fleets. 

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Benefits of Recourse Factoring for Fleets

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Lower Fees

Because the factoring company is not taking on the risk of non-payment, recourse factoring typically comes with lower fees. This can be a major advantage for cost-conscious fleet owners who are confident in the creditworthiness of their customers.

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Flexibility

Recourse factoring tends to have more lenient credit requirements, making it accessible to a broader range of customers. This can be especially useful for fleets that work with a mix of brokers, including those with less established broker credit histories.

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Drawbacks of Recourse Factoring

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Risk Retention

The biggest downside of recourse factoring is that your fleet is responsible for any unpaid invoices. If a broker fails to pay, you’ll need to cover the cost or negotiate with the broker directly.

Could Lead to an Increased Workload

With the potential for unpaid invoices, recourse factoring can lead to additional administrative work, as your fleet may need to follow up on payments for aging collections.

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When is Recourse Factoring the Right Fit for Fleets?

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Recourse factoring is a great fit for fleets with a strong handle on their customers' creditworthiness and those who are willing to take on a bit more risk in exchange for lower fees. If your fleet operates with long-standing, reliable brokers, recourse factoring can be a cost-effective solution.

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Recourse vs Non-Recourse Factoring: 4 Key Differences

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As you can see, both non-recourse and recourse factoring offer their individual benefits and drawbacks. Here are a few more key differences between the two:

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• Risk Management – Non-recourse factoring shifts the risk to the factoring company, while recourse factoring places it on the fleet owner.
• Cost – Recourse factoring is generally less expensive due to the lower risk for the fleet factoring company. Recourse factoring fees are typically between 1-3%, while non-recourse factoring fees could be up to 5%. 
• Qualification Criteria – Non-recourse factoring requires customers with strong credit, while recourse factoring is more flexible.
• Impact on Cash Flow – Both options provide immediate cash flow, but non-recourse factoring offers greater security at a higher cost.

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Recourse vs Non-Recourse: Choosing the Right Option for Your Fleet

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When deciding between non-recourse and recourse factoring, consider the following:

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• Creditworthiness of Your Customers – If you work with trusted brokers, recourse fleet factoring might be a viable option. If you work with one of the many brokers that factors with Denim, you know that you’ll always be paid on time. 
• Risk Tolerance – If you prefer to avoid risk, non-recourse factoring provides the peace of mind you need.
• Cost Considerations – Weigh the higher costs of non-recourse factoring against the potential risks of recourse factoring.
• Growth and Expansion – If you plan to grow your fleet, securing reliable cash flow through recourse factoring might support your expansion more effectively with lower rates.

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Choosing between recourse vs non-recourse factoring depends on your fleet’s specific needs and risk tolerance. While non-recourse fleet factoring offers protection against non-payment, it comes with higher costs. Recourse factoring is more affordable but may carry more risk. At Denim, we offer recourse factoring because it gives both us and our customers more flexibility to grow their fleet and cut costs. If you’d like to learn more, request a demo today!

Making timely payments as a broker is more than just important - it’s a necessity. On-time freight payments directly impact your credit score, carrier relationships, reputation, and even the number of follow-ups you receive from carrier factoring companies. 

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On the other hand, late payments can negatively impact your freight broker credit, make carriers less likely to work with you again, and negatively impact your reputation in the industry.

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By implementing the best practices we’ve outlined below, you can streamline operations, build trust with carriers, and potentially open new revenue streams. These are our top five essential freight payment best practices that every broker should start implementing today.

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1. Pay Your Carriers Before Paying Yourself

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Getting into good habits when paying carriers is a cornerstone of building a successful brokerage. This means prioritizing paying your carriers first, before paying yourself. 

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Many brokers might think this doesn’t matter, because they think there will always be enough to pay their carriers. This unfortunately is where many brokers run into trouble, because when they get into the habit of paying themselves first and run into a cash crunch, it can leave carriers hanging with delayed or unreliable payments.

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Paying your carriers first helps maintain healthy relationships and avoids any possibility of business disruption due to delayed payments. By ensuring carriers are paid promptly, you guarantee continuous, reliable service from carriers, prevent debt spirals that can quickly derail your financial stability, and build a reputation as a trustworthy partner in the industry.

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To implement this effectively:

• Establish a clear payment hierarchy within your business. Make it company policy that carrier payments come first.
• Implement rigorous cash flow monitoring systems. This could involve daily cash flow checks or using specialized software to keep a constant eye on your financial health.
• Consider setting aside a dedicated cash reserve to ensure you always have the necessary funds available, even when the unexpected happens. 

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2. Offer a QuickPay Program

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QuickPay has quickly become one of the most popular methods for payment among carriers. These programs give carriers the ability to be paid within 24 hours after delivering a load, making it hugely popular among carriers who are used to 7-14 day payments (or longer). Carriers who want to be paid through QuickPay are often reluctant to work with brokers who don’t have it available, making it more difficult for brokers to find reliable carriers if they don’t offer a QuickPay option.

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While QuickPay is great for carrier retention, it does come with a few caveats. First, it should only be offered to reliable carriers you’ve worked with before, or those vetted through programs like MCP. This helps reduce the possibility of fraud and misuse. 

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Brokers should also consider charging a fee to carriers based on the speed of payment. This can range from 1-3% of the invoice amount, depending on how quickly the payment is made, giving brokers a new revenue stream.

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Benefits of a QuickPay program include:

• Improved carrier satisfaction, leading to stronger, more loyal partnerships.
• Keeping drivers on the road and loads moving, improving overall efficiency.
• Potential for a new revenue stream through QuickPay fees.

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When implementing QuickPay, be sure to keep the following tips in mind. First, don’t offer QuickPay to first-time carriers to avoid fraud. Brokers should also look for a factoring company like Denim that doesn’t charge for QuickPay, giving you the ability to add a new revenue stream by charging a fee.

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3. Pay Consistently and On-Time 

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Making payments consistently and on-time, every time, is critical to growing your brokerage. This gives your carriers a predictable, reliable payment schedule they can depend on, all while building your broker credit. 

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With inconsistent payments, brokerages will be bombarded with calls from carriers wondering where their payment is, when it will come, and wondering if they should work with you again. This inconsistency also negatively affects your credit score, making it more difficult to find carriers in the future, get lines of credit and loans, and grow your brokerage. 

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In order to ensure consistent on-time payments, be sure to:

• Set up automated payment systems. This removes the human error factor and ensures payments are made like clockwork.
• Clearly communicate payment schedules to carriers. Transparency about when they can expect payment can significantly reduce payment-related inquiries.
• Leverage a payments partner like Denim who provides flexible payment settings that can be tailored to your needs to ensure carriers are paid on-time and consistently.

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4. Pay Carrier Factoring Companies Near 30-day Terms

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More and more often some carriers are choosing to factor their loads, which means brokers need to pay their carrier’s factoring company instead of the carrier directly. 

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While carriers are used to being paid quickly, sometimes within 24 hours with QuickPay, it’s possible to shift the payment terms with factoring companies to net-30 terms. Making these payments consistently will help reduce follow-up calls from carrier factoring companies, and will help improve your credit score with agencies like Asonia.

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We generally recommend paying carrier factoring companies in 27-28 days on net-30 invoices, to stay off of their follow-up call lists. To do this consistently, it’s best to use set-and-forget payment settings through your payments software. Brokers should also monitor and audit invoices to ensure they’re accurate and submitted promptly to avoid any delays in payment.

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5. Work with a Factoring Company

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Implementing all of these systems and rules into your brokerage might seem like a lot of work - and it is when done manually for every invoice and carrier. That’s why we recommend brokers work with a factoring company to automate most (if not all) of these processes.

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Freight factoring provides immediate cash flow to your brokerage, giving you the ability to pay carriers right away through programs like QuickPay. Factors like Denim even include a free QuickPay option for brokers, letting you add new revenue streams that often make up for factoring fees immediately. This cash flow also helps cover operating expenses, which would normally need to be delayed until shippers pay their invoices in 30-60 days. 

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In addition to automating much of your back-office and covering immediate cash flow needs, freight factoring can also help improve your credit by automating payments to carrier factoring companies, and ensuring that payments are made on time consistently.

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Here’s our top tips for considering a factoring company:

• Research and choose a reputable factoring company that aligns with your business needs. Be sure to take into account their industry experience, technological capabilities, and customer service.
• Regularly review the terms and fees associated with the factoring service, and make sure they’re competitive and won’t increase significantly as your business grows.
• Consider how the factoring company integrates with your existing systems and processes. The right partner should make your operations smoother, not more complicated.

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Conclusion

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By adopting these best practices, your brokerage can significantly improve its cash flow, strengthen carrier relationships, and improve the stability of your business. These strategies not only help you avoid late and missed payments but also position your brokerage for long-term success in the industry.

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Your payment practices are a direct reflection of your business's reliability and professionalism. By implementing these best practices, you're not just improving your operations – you're investing in your reputation and future success.

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If you’re ready to instantly streamline your freight payments and take your brokerage to the next level, get in touch with the Denim team to find out how our factoring services can be tailored to your brokerage's unique needs. With the right partner and practices in place, managing your payments can be transformed from an arduous task into something that moves your business forward, drives new revenue, and helps your brokerage grow.

You've likely built your business on making smart decisions, managing cash flow, and navigating relationships with shippers and carriers. Yet, when it comes to freight invoice factoring, we often hear a resounding, “I don’t need it.” After all, you’ve got things under control, right?

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The truth is, many freight brokers who believe they don’t need factoring may be missing out on valuable opportunities for growth and operational efficiency. Factoring isn’t just a solution for struggling businesses. It’s a tool that can supercharge your brokerage's performance, giving you the flexibility, security, and administrative support you need to thrive in a competitive market. 

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Let's break down the common objections to factoring for freight brokerages and show you how, in reality, it can be a game-changer for your business.

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Reason #1: "I’m Self-Financed"

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We get it. If you’re self-financed, you’ve likely worked hard to get there. You’ve saved, reinvested profits, and maybe even avoided taking on debt to keep control of your business’s financial health. The assumption here is that since you’ve got cash reserves, you don’t need freight invoice factoring. It’s a reasonable conclusion, but it’s not the full picture.

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Why Factoring is Still Beneficial:

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Opportunity Readiness: Even the most financially stable brokerages need quick access to capital when opportunity knocks. Factoring ensures you have the funds to take on bigger contracts, expand your fleet, or make critical investments without waiting on your shippers to pay.

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Administrative Relief: Factoring isn’t just about cash flow—it’s about time. By working with a factor that provides back-office support, like Denim, you can streamline your invoicing and collections processes. This allows you to focus on growing your business instead of chasing down payments. We helped Peregrine invoice in under a minute with our back office support. 

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Competitive Edge: Cash on hand means you can negotiate better deals with suppliers, offer better terms to clients, and act quickly on market shifts. Factoring keeps your liquidity strong, giving you the edge over competitors who might be slower to act.

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Operational Efficiency: By converting receivables into immediate cash, you maintain a consistent flow of working capital. Healthy cash flow allows you to manage day-to-day operations more effectively, without draining your reserves.

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Reason #2: "I Have a Line of Credit"

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A freight broker might think they don't need factoring if they have a line of credit because they believe this credit line provides sufficient liquidity to manage their financial needs. They may view the line of credit as a flexible and readily available financial resource, but when it comes to factoring vs a line of credit, factoring may offer a number of benefits that a line of credit doesn’t.

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Why Factoring is Still Beneficial

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No Additional Debt: Freight invoice factoring is not a loan. It doesn’t add to your debt load or impact your credit. Instead, it accelerates your cash flow based on work you’ve already completed, keeping your financial profile clean.

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Higher Funding Limits: Factoring scales with your sales, not a pre-set credit limit. As your business grows, factoring provides more funds to fuel that growth without the constraints of a credit line.

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Credit Services: Factoring includes customer credit checks and vetting, which can help you avoid the risk of non-payment and improve your overall financial management, something a line of credit typically does not offer.

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Payments and Collections Automation: Factoring services automate much of your back-office work, from carrier payments to collections. This frees up your time and reduces the administrative burden on your team, allowing them to focus on more strategic tasks.

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Reason #3: "We Don’t Want Shippers and Carriers to Think We’re Broke or Damage The Relationship We’ve Built”

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Factoring sometimes carries the misconception that it signals financial distress. Brokers worry that using a factor will make them look unreliable or unable to manage their own cash flow. However, it is often the opposite. Working with a factoring company signals efficiency to a shipper. 

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Why Factoring is Still Beneficial

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Improved Relationships: Factoring provides immediate funds, ensuring you can pay your carriers and meet other obligations promptly, which can actually boost your reputation with carriers. This freight brokerage used Denim’s factoring to “cement” their carrier relationships!

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Simplified Processes: Factoring can simplify your interactions with shippers by streamlining the back office operations and payment process. With factoring handling the heavy lifting on invoicing and collections, you can ensure smooth and efficient operations that bolster, rather than hinder, your relationships.

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Growth and Stability: Factoring helps you avoid common cash flow pitfalls and supports sustainable growth. By avoiding payment delays and financial hiccups, you project a stronger, more reliable image to your clients and partners.

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Enhanced Service Focus: By outsourcing the accounts receivable process, you free up time and resources to dedicate to customer service and operational excellence. This can lead to better relationships with your shippers and carriers, as they will benefit from your increased attention.

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Reason #4: "My Shippers Pay Fast"

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If your shippers already pay their invoices quickly, you might think factoring is unnecessary. After all, you’re not dealing with long payment cycles or cash flow crunches. But even fast payments don’t account for unexpected expenses or new growth opportunities.

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Why Factoring is Still Beneficial

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Credit Risk Management: Factoring is more than just paying invoices. It includes credit checks and vetting of your shippers, reducing the risk of non-payment and providing peace of mind regarding your receivables.

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Access to Immediate Capital: Even with fast-paying shippers, factoring provides immediate cash flow, which can be crucial for handling unexpected expenses, taking advantage of timely opportunities, or investing in business growth without waiting for the end of a payment cycle.

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Growth and Investment: Having that extra liquidity, even temporarily, can be the difference between maintaining the status quo and investing in growth. Factoring allows you to reinvest in your business without waiting for customer payments to arrive.

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Reason #5: "I Don’t Want Anyone Cutting into My Profits"

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It’s understandable that the idea of paying fees for factoring might seem like a hit to your bottom line, especially in a business where margins are already tight. But factoring fees should be seen as an investment in the overall efficiency and growth of your business.

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Why Factoring is Still Beneficial

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More Than Just Factoring: With a factoring partner that’s invested in your success like Denim, you get much more than just factoring. Denim offers features like automated invoicing, collections management, free credit checks, TMS and QuickBooks integrations, and document collection. These tools not only save you time but also enhance your profitability by making your operations more efficient. 

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Reduce The Risk of Non-Payments: Factoring includes thorough credit checks, meaning you’re less likely to suffer from non-payment or bad debts. This protection can prevent costly losses and, in many cases, offset the factoring fees entirely.

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A Positive Cost-Benefit Analysis: The immediate access to capital that factoring provides allows you to take on bigger contracts, expand your fleet, or improve services—all of which can lead to higher revenues. Often, the growth enabled by factoring outweighs the cost, making it a smart investment for long-term profitability.

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Conclusion

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Freight invoice factoring may not be what you initially think, but it offers countless advantages to help your brokerage grow and operate more efficiently. Whether it’s freeing up capital for new opportunities, relieving administrative burdens, or strengthening your relationships with shippers and carriers, factoring isn’t just a financial tool—it’s a strategic advantage.

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If you’re ready to see how factoring can transform your business, schedule a demo today.

All of the processes involved in freight billing, payments, invoicing, and collections can seem complicated, especially because there are so many different parties involved for freight brokers. 

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To have a successful brokerage, brokers need to have a deep understanding of how money flows between the various parties involved, including carriers, shippers, and your brokerage.

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Freight billing for brokers breaks down into three core parts: Freight invoicing from carriers and to shippers,  freight payments to carriers, and freight collections when brokers collect on payments from shippers. To best understand this process, let’s start with a few definitions of these terms.

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Freight invoicing includes two invoicing steps, with the broker acting as the intermediary. First carriers will create and send invoices to their broker for loads, along with relevant paperwork like a POD and BOL. Then brokers will use this information to create a second invoice, which is sent to shippers with all of the relevant details.

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Freight payments is the step where brokers pay carriers for their services. This can happen in a few ways, either immediately through a QuickPay service provided by a factoring company, or in 7-15 days depending on the payment terms agreed to by the broker and carrier.

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Freight collections is the process of collecting payments from shippers for the services arranged by the broker. This includes the broker's fee and covers the cost of the carrier’s services, and is sometimes also performed by the broker’s factoring company instead of the broker. 

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In this article, we’ll dive deep into the freight billing process for brokers, and will break down everything brokers need to know about freight invoicing, payments, and collections.

Most brokerages wish their team could stay entirely focused on finding new customers, loads, and other business growth activities - not getting bogged down in back-office tasks. A recent industry survey found that 78% of brokers think their back-office operations take too much time, and 52% say they spend over 480 hours a year on just the back-office.

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Yet when brokerages don’t have the right tools and systems in place to scale their back-office operations alongside their sales, the whole operation crawls to a halt. This leads to expert team members shifting focus away from moving the business forward to tedious tasks like invoicing, payments, and accounting.

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With Denim’s suite of back-office payment tools, brokerages like yours have cut their invoice processing time down to minutes instead of hours, reduced staff time spent on accounting, automated previously tedious back-office tasks, and more.

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Below we walk through four different case studies that demonstrate exactly how Denim’s back-office can drastically improve your brokerage’s freight bill processing, invoicing, and factoring processes.

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How Direct Expedite Reduced Invoice Processing Time From 2.5 Hours to 12 Minutes

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Founded in 2019, Dale Prax has grown Direct Expedite to 26 employees across multiple offices, with nearly half their staff being focused on back-office operations.

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Direct Expedite’s Challenges:

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Direct Expedite was struggling with invoice processing time, with their old process taking a staggering 2.5 hours to process every invoice. 

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This inefficiency made it almost impossible to find and retain capable accounting staff, who dreaded the manual mundane data entry that the roles required. Direct Expedite knew there had to be a better way than manual invoice processing, and were seeking a factoring partner who adapted with modern technology and automation. 

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Denim’s Solution:

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Direct Expedite was looking for a way to leverage their existing talent into other roles, but with so many staff stuck in accounting tasks, it was nearly impossible. 

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They decided to swap their factoring company to Denim, in the hope that our back-office solutions would help speed up their invoicing process. The switch vastly exceeded their expectations, bringing freight bill invoicing processing speeds down from 2.5 hours to just 12 minutes per load! 

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This one change had a cascading effect on the company, resulting in fewer calls, emails, and manual data entry for the team. As a result, employees were much happier, stayed with Direct Expedite longer, and vastly improved the hiring process.

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How Roadly Reduced Accounting Time by Half:

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Roadly Logistics is a growing brokerage that started out specializing in the meal kit delivery industry, and has quickly expanded to other services.

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Roadly’s Challenges:

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When Roadly began expanding, they quickly realized that long time frames for shipper payments and a busy accounting team meant they needed two solutions: freight invoice factoring services and invoicing automation.

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They quickly realized that most old-school factoring companies were still using manual processes and emails to send invoices, leading to long email chains and slow communication for their accounting team. His team was spending far too much time chasing down payments and emailing back and forth instead of focusing on business-critical tasks. 

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Many of these manual processes also didn’t integrate with Roadly’s accounting software, QuickBooks. They were looking for a solution that checked all of these boxes.

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Denim’s Solution:

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Through Denim’s factoring services, Roadly’s accounting team was able to finally focus on moving the business forward instead of following up with customers constantly. Plus their cash flow improved, giving Roadly payments up front for invoices that would normally be delayed by 30-60 days.

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Most importantly, Denim’s QuickBooks integration helped cut out all of the manual processes involved in invoicing and payments, cutting Roadly’s manual accounting time in half!

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How Yeti Logistics Cut Time Spent on Back-Office Tasks by 75%

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Yeti Logistics was experiencing the crunch of a slow economy, and had been forced to operate on tighter margins in recent years. Despite these economic challenges, they were determined to grow and scale their company. 

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Yeti’s Challenges:

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In order to grow, Yeti knew they needed to cut down on the time their team spent on back-office tasks. They were struggling with their existing solution because it lacked integrations with their TMS, causing the team to constantly switch between platforms.

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This wasted a huge amount of precious time for staff that were already spread thin, causing frustration across the board. This lack of integration and automation left Yeti’s team spending 3-4 hours every day just to manually enter shipment data into multiple systems, spreadsheets, and platforms. 

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Denim’s Solution:

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Denim’s built-in integration with TMSs like the one Yeti Logistic uses, EKA, completely automated tasks that were previously manual. Instead of downloading documents, transcribing them into a spreadsheet, and then uploading that sheet into their old freight bill factoring platform, everything was done automatically at the click of a button.

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Jobs were transferred seamlessly from EKA to Denim for factoring and payment, automatically. This cut down on the need for manual and repetitive data entry, audited invoices for errors, and cut down on human errors that often sneak into manual processes.

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All of this automation saved Yeti 75% of the time they used to spend on back-office tasks, freeing up team members to focus on driving the business forward all while cutting down on errors and keeping customers and carriers happier than ever.

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How Peregrine Cut Time Spent on Invoices Down to Under a Minute:

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Peregrine is a lean and quickly growing brokerage focused on providing reliable services to shippers while maintaining strong, healthy, and respectful relationships with their carriers.

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Peregrine’s Challenges:

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Before working with an advanced factoring company and payment platform like Denim’s, Peregrine was using manual processes to make payments to carriers and invoice customers. 

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They were stuck manually downloading documents from their Transportation Management System (TMS), creating and sending freight invoices to customers via email, and managing direct payments to carriers. This manual method was extremely inefficient and error-prone, causing concerns from customers and carriers, slowing down their cash flow, and leading to frustration across the board. 

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They knew that to achieve their growth goals, automating some of this process would be required. 

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Denim’s Solution:

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Peregrine found Denim when they were looking for a technology-focused freight factoring service that could adapt to their needs. They used Denim’s back-office suite and integrations to cut down on freight bill invoicing time, improving their speeds to under a minute per invoice. 

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This alone nearly tripled their team’s efficiency, giving them the opportunity to grow their business without adding any additional back-office staff. Plus through Denim’s use of Zapier integrations with Shipwell, jobs were seamlessly transferred between Denim and Peregrine’s TMS, further cutting down on manual data entry and error-prone tasks. 

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This massive leap in efficiency led Peregrine to grow to $12-15 million per month, earn an A rating on Truckstop with zero complaints from customers or carriers, and stay lean all at the same time.

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Conclusion 

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The back-office of your brokerage is more than just mundane accounting tasks - it’s responsible for moving many parts of your business forward, and can be a huge bottleneck if not enabled by the right tools and systems.

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Without proper integrations between your TMS, factoring company, and accounting software like the examples above, your back-office staff will be stuck in mundane and error-prone data-entry tasks that take forever and only cause problems. Automating these processes leads to happier customers, staff, and carriers, a more efficient business, and gives your brokerage the leverage it needs to grow. 

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Want to learn more about how you can be Denim’s next success story? Click here to speak with our team and get started today.

Factoring and saving money might not seem like they go hand in hand at first glance. 

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Many in the trucking industry view factoring companies as just another middleman taking a cut of their hard-earned margins. However, at Denim, we believe that factoring can be a powerful financial tool when tailored to your unique business needs.

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We understand that every freight broker and fleet has distinct financial requirements. To address these needs, we’ve developed flexible factoring rates that provide unparalleled control over your costs. Our approach ensures that you can maintain healthy cash flow without compromising your bottom line.

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Let’s explore what factoring rates are, how they're determined, and how Denim's innovative factoring for freight brokerages and fleets can benefit your business.

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What Are Factoring Rates?

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Factoring rates are fees charged by factoring companies to advance money against your invoices. This financial service helps businesses maintain cash flow without waiting for customer payments. The factoring rate typically represents a percentage of the invoice value and varies depending on several factors.

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How Are Factoring Rates Determined?

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Factoring rates are influenced by:

• The creditworthiness of your customers
• The volume of invoices you factor
• The industry in which you operate
• Payment terms (ex: Net 30, Net 60)

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Traditional factoring rates can be rigid, often not reflecting the nuances of your business needs. That's where Denim's flexible factoring rates come in.

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3 Ways Denim Saves You Money With Flexible Factoring Rates

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Traditional factoring rates offer a one-size-fits-all approach. Denim, however, provides flexibility, allowing you to tailor your factoring rates to your business model. Here are 4 ways we do that:

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1. Selective Factoring

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Selective factoring allows you to factor only the invoices you choose, giving you the power to manage costs effectively. This approach is perfect for businesses that don't need to factor every invoice and want to optimize their cash flow strategically.

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• Factor Only What You Need: With selective factoring, you decide which invoices to factor. This means you can choose to factor larger invoices or those from customers who take longer to pay, maximizing your cash flow benefits.
• Strategically Manage Your Finances: By factoring only selected invoices, you can better manage your finances. This strategy allows you to maintain a steady cash flow without over-relying on factoring services, ultimately saving on fees.
• Have More Flexibility and Control: Selective factoring gives you greater control over your finances. You’re not locked into a contract that requires you to factor all invoices, giving you the freedom to adjust your factoring needs as your business evolves.

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Yeti Logistics saved $20,000 annually on factoring fees by factoring only what he needed. Learn how this helped Yeti’s strategic growth. 

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3. Flex Factoring

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Flex Factoring offers even more control by providing prorated discounts for delaying advances (both your own advances and advances to contractors).

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• Delay Advances, Save More: You can push out advances up to 30 days, receiving up to a 66% discount. This flexibility allows you to plan out your cash flow needs and reduce costs for times when you don’t need immediate access to funds.
• Enhanced Flexibility: Use our Flex Factoring Calculator to see how much you can save with Flex Factoring. This tool can help you actively manage your rates, optimize your cash flow, and reduce costs.
• Enhanced Financial Planning: By strategically delaying advances, you can align your cash flow with your financial goals. This approach helps in budgeting and forecasting, providing a clearer picture of your brokerage’s financial health.

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4. No Fees for QuickPay

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Denim doesn’t charge brokers a fee for QuickPay. Because of this, brokers can choose to charge a fee to their carriers, creating an additional income stream.

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• Cost Savings for Brokers: With no QuickPay fees, brokers save money that can be reinvested into their business. Our brokers appreciate the fact that with Denim, there’s no hidden fees or added costs.
• Revenue Opportunity: Brokers can opt to charge a QuickPay fee to their carriers, turning a service into an additional revenue stream.
• Improved Carrier Relationships: Offering QuickPay without an additional fee can improve your relationships with carriers, helping to grow your brokerage. We’ve helped countless brokers cement their carrier relationships.

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River City Logistics leveraged Denim’s quickpay options to maintain their carrier relationships when they transitioned from an agency to an independent brokerage. Learn more about how QuickPay shaped their brokerage. 

Examples of Saving Money With Denim

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Every brokerage is different and our sales team will be happy to walk you through exactly how much money you could save when you factor with Denim. 

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Here are a few examples of what our flexible factoring might look like:

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Example #1

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You're working with a carrier or fleet that factors their invoices, so you don't need to QuickPay. By delaying your carrier payment for 20 days, you receive a discounted rate based on the value of the invoice, ultimately lowering your costs. This approach helps you maintain cash flow while benefiting from reduced factoring fees, ultimately improving your bottom line.

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Example #2

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You've taken a last-minute load from an existing customer to strengthen your relationship, but the margin is tight. To reduce costs, you delay your advance for up to 30 days, cutting your rate in half and improving your margin on the load. This strategic delay in advances not only saves you money but also enhances your profit margins, making last-minute loads more financially viable.

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We Make Factoring Flexible

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Denim's flexible factoring rates are designed to provide you with maximum control and savings. With Denim, you can tailor your factoring strategy to meet your unique business needs and enhance your profitability. For more information and to see your potential savings, request a demo of our platform.

Factoring helps trucking fleets maintain cash flow and manage their finances effectively. However, not all factoring services are created equal. Choosing the right factoring partner can significantly impact your fleet’s financial health and operational efficiency.

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Traditional factoring companies often come with rigid terms and limited flexibility, which can stifle growth and create additional financial burdens. On the other hand, innovative factoring solutions like those offered by Denim provide a more adaptive and supportive approach.

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Let’s look at some of the main benefits you can enjoy when you switch factors and work with a fleet factoring company that supports your business. 

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Flexible Factoring Rates

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Traditional trucking factoring companies often operate with set rates for every load, which can be limiting for fleets. These companies typically offer one fixed rate based on your loads, regardless of payment terms, which can hinder growth and scalability. 

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In addition to fixed rates, traditional factoring companies often require you to factor all of your loads with them, which you may not want to do (especially when you have clients who pay quickly.) They also don’t offer discounts for early payments.

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Traditional factoring:

• Has set rates for every load, which limits growth
• Requires you to factor all of your loads with them
• Don’t offer discounts if shippers pay quickly

Factoring With Denim

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Denim offers the most flexible approach to factoring for fleets. 

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With Denim, you can choose which loads you want to factor—whether all or only some—allowing you to only pay for the money you need. 

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Our Days Sales Outstanding (DSO) pricing means that our clients' factoring fees are adjusted based on how quickly their shippers pay. If your shipper pays faster than Net 30, you get a discount. Conversely, if they pay slower, your rate is adjusted to a new daily rate based on the days outstanding. 

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Don’t need your advance right away? Denim’s flex factoring allows you to push out your advance (up to 30 days) for a discounted rate, providing even more financial flexibility (check out our flex factoring calculator to see how much you could save). 

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Both of these programs can be combined for optimum discounts on your rate. With Denim, you are in control of your rate. 

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Work With More Shippers and Brokers

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Non-recourse factoring is often touted by traditional trucking factoring companies as a protection from non-payment. However, this can result in higher rates and increased risks. 

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For example, if a shipper claims non-payment due to damage, you may end up disputing this, but if it’s your fault, all your loads from this shipper are considered full recourse, but at a non-recourse rate (which is often high). 

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Non-recourse factoring also limits who you can work with, as most traditional companies underwrite shippers but not brokers due to perceived higher risks. This is why many fleets choose a suitable non-recourse factoring alternative.

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Factoring With Denim

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Denim is purpose-built for recourse factoring to save clients as much money as possible. 

• We work closely with our clients to find resolutions before chargebacks occur. 
• Our approach allows clients to work with more shippers and brokers, extending credit to more companies. 
• We run thorough credit checks and provide advice, ensuring you can work with a wider range of customers. 
• By underwriting both brokers and fleets, we open up your customer pool, providing more opportunities for growth.

Transparent and Communicative Customer Support

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Most traditional factoring companies primarily communicate over email and charge fees for various services such as wires, quickpay, and minimums. They also have high early cancellation fees, locking you into long contracts with penalties as high as 50% of your contract value.

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Factoring with Denim

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At Denim, we prioritize transparent and communicative customer support. 

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Our customer support team is available through phone, email, and chat and will respond within a few hours.

• We customize reports to give you the best understanding of your invoices and collections. 
• Our pricing is transparent and clearly outlined in your contract, with a flexible factoring rate and a single administration fee. No hidden fees!
• We only charge a 10% early cancellation fee to cover our UCC filing costs, providing more flexibility and less financial burden for our customers.

A More Efficient Back-Office With an Intuitive Platform

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Traditional trucking factoring companies typically only offer factoring and capital for your business, often charging extra for efficiency tools. This can lead to additional time, money, and overhead because you’re required to download and re-upload documents between systems.

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Factoring With Denim

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Denim provides a comprehensive back-office platform included with your factoring rate. 

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Our tools, such as document audit, document inbox, and analytics dashboard, help you manage collections and invoicing efficiently, reducing the need for additional hires. And, with two-way integrations, you can send documents and loads from your Transportation Management System (TMS) to Denim for funding and see job statuses back in your TMS. This seamless integration saves time and enhances productivity.

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Work With a Financial Partner

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With traditional factoring companies for trucking, you’re often just one of thousands of clients and have no customization options available to fit your unique business needs. These traditional factoring companies prioritize protecting their business, sometimes at the expense of providing personalized service.

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Factoring with Denim

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Denim works closely with each client to ensure complete satisfaction. Our team of experts is always available to answer questions and set up systems tailored to your business. Each client is assigned a dedicated customer support team member to assist with their needs, ensuring a high level of personalized service.

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You Deserve More From Your Factoring Company

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Switching to Denim for your factoring needs offers many benefits over traditional factoring companies. From flexible rates and top-tier technology to transparent pricing and superior customer support, Denim is designed to help fleets operate more efficiently and grow their businesses. 

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If you're interested in switching your factoring company and want to work with a partner that truly understands and meets your needs, request a demo today.