Delivery Service Companies - Invoice Factoring Receivables Financing

INVOICE FACTORING for DELIVERY SERVICE Companies

Fees as Low as 1%
Advances up to 98%
Free same / next day funding
Flexible, Tailored Programs

Like their long-range trucking counterparts, retail and grocery delivery service companies may be able to speed up cash flow by factoring invoices, instead of waiting for e-commerce customers to pay.

Unlock working capital tied up in customer invoices – without waiting for your customers to pay.

Get a Free Quote

1. Apply

Apply and we’ll help you find an invoice factoring program that meets your business goals and preferences.

Factor Invoices

Go from approval to your first funding in as little as 24-48 hours — or even faster.

3. Speed Up Cash Flow

Get free same day advances on factored invoices to expedite cash flow and grow your business faster.

Invoice Factoring for a New Breed of Transportation Companies

Should You Factor Invoices?

How it Works

How the Invoice Factoring Process Works

Your delivery service company may be able to speed up cash flow by factoring invoices instead of waiting weeks – or months – on customer payments. When you factor an invoice, you can receive an advance of up to 98% of the invoice amount on the same day. The factoring company will deduct a small fee (called a factoring fee) and any additional amount will be held in reserve. Instead of chasing customer payments, you can focus on growing your delivery services business.

For instance, let’s say that you are billing a customer in the amount of $6,000 but you want to access the funds without waiting weeks – or months – for your customer to pay. Assuming a factoring fee of 1%, and an advance rate of 98%, here’s how it would work:

OVERVIEW
Day 1 –	Generate a $6,000 client invoice and factor it
– Same Day	Your company receives $5,880 – a 98% advance by wire transfer or ACH
	The factoring company earns 1% factoring fee of $60
Day 30, 45, 60, 90+	Your company receives the $60 reserve amount after the invoice is paid

Invoice Factoring Calculator

Is Invoice Factoring Right for You?

Should Your Delivery Service Company Factor Invoices?

Factoring helps delivery service companies speed up cash flow by giving them access to the working capital that would otherwise be locked up in customer invoices or promised payments.

Delivery service companies that are contracted to provide delivery services, and then are paid on terms by grocery stores, retailers, or e-commerce sellers may be able to expedite cash flow by factoring instead of waiting on these types of payments for 30, 60, 90 days or even longer.

Here’s how it works:

Delivery services are fulfilled over the course of a month. At the end of the month, a customer invoice is generated for the delivery services filled or a statement of earnings is issued.
On the same day the invoice is generated or an earnings statement is available, it is factored, and payment of up to 98% of the invoice amount (or earnings statement) is made to the delivery services company in return for a low fee (called a factoring fee). The factoring fee might be as low as 1%.
Once the invoice or earnings statement payment has been received, any amount held in reserve is also returned to the delivery services company.

HOW IT WORKS
DAY ONE	$25,000.00	$25,000 invoice or earnings statement is generated and factored
	$24,500.00	$24,500 (98%) of the invoice or earnings statement amount is paid to your delivery services company
	$ 250.00	1% factoring fee is earned by the factoring company
DAY 30-60-90+	$ 250.00	1% held in reserve is returned to your delivery services company after invoice or earnings statement is paid in full

Cash in hand, you can focus on expanding the size and scope of your delivery fleet, hiring more drivers and growing more quickly. We would be happy to give you a free, no-obligation quote so you can determine whether your delivery company could benefit by factoring invoices (or earnings statements) instead of waiting on customer payments.

Benefits of Factoring

How Invoice Factoring Benefits Delivery Companies

Many B2B service providers use invoice factoring to speed up cash flow. Delivery companies that invoice e-commerce or retail customers on a monthly or quarterly basis, and then wait on payments for 30 days or longer could reap many of the benefits of invoice factoring; such as expediting cash flow in order to:

Better align expenses and revenues

Much like temporary employment and staffing agencies, delivery service companies that hire and pay drivers often need to expend significant resources on hiring, training, payroll and benefits in advance of corresponding customer payments. Factoring invoices speeds up cash flow so that revenue needed to pay for these expenses comes in sooner. Factoring can be especially beneficial as a payroll funding resource to help ensure that cash is on hand adequate to fund payroll, keeping drivers, dispatchers and support staff happy and on the job.

Take on new business more quickly

Growing a transportation company that specializes in delivery services doesn’t just mean hiring drivers more quickly. The cost of new vehicles, fuel, tires, vehicle maintenance and repair as well as costs for marketing and advertising can be offset more easily by delivery companies that factor invoices instead of waiting weeks (or months) on customer payments.

Get new customers

In addition to the quality of service a delivery company provides, the payment terms it can offer new customers can play a big part in whether they land new clients. When a company factors invoices, they don’t have to worry about how quickly customer payments come in, so they can extend generous payment terms to clients as a marketing advantage.

The easiest way to find out whether transportation factoring could benefit your delivery company is to reach out for information. We’ll provide you with a free, no-obligation quote for transportation factoring services so you can find out how much working capital you could unlock immediately using this cash flow financing tool.

Low Fees and High Advances

Invoice Factoring Fees as Low as 1% – Advances on Factored Invoices Up to 98%

We work with some of the best invoice factoring companies. They have experience working with delivery service companies and they can make sure the process works quickly and smoothly. When you work with us you’ll find some of the lowest invoice factoring fees and highest advance rates in the industry, but that’s not the only reason you should apply for factoring services with us.

You want an invoice factoring company that’s going to help you go from approval to funding quickly and look for reasons to say “Yes!” when you submit invoices for factoring. We can help you find a program that offers low factoring fees and flexible terms, such as:

A low factoring fee – as low as 1% – that is your “all-in” cost, with no hidden fees
Competitive advances of up to 98% of an invoice or earnings statement amount
Fast same / next business day ACH funding on factored invoices or earnings statements
The ability to run free credit checks on your customers day or night, online
No application, due diligence or proposal fees
No notification fees
No factoring minimums – factor only when you choose
No long term contracts or lengthy auto-renewal clauses

Even more importantly, we work with factoring companies that promise a high level of customer service to our factoring clients. We want you to work with a financing partner who understands your preferences and unique business needs, saving time and reducing the stress of managing receivables.

Our team has more than a decade of experience in factoring – first hand experience that we put to work to help our clients find a program well-suited to their business needs.

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More Financing Tools for Delivery Companies

Invoice factoring is just one of the tools that might help grow delivery service companies more quickly. Reach out to us for information about any of our business financing tools or explore your options by requesting a free, no risk or obligation quote for:

Invoice factoring
Business cash advances
Merchant cash advances
Equipment financing for transportation fleet or business expansion
Business line of credit – and more

Each of these business financing tools has its own advantages that might make one more appropriate for your organization. We would be happy to give you more information about our programs so you can choose the best financing options for your delivery services company.

We want to earn your continued business and referrals. No matter which of our programs you utilize, you will find that we will take a long term view, look beyond credit scores or balance sheets, and work hard to customize and tailor financing options to the unique needs of your business.

Apply online and you could go from approval to funding in hours – and get access to the working capital you need to grow your business more quickly.