Back in 2017, 54% of the surveyed trucking companies (less than 50 trucks) reported that checks were the most common method of payment. For companies with 50+ trucks, 54% reported that most of their brokers or shippers paid by check. A move was in place to stop this and move towards e-payments.
It’s been five years. How much has changed? Shockingly, it hasn’t changed at all. Almost 60% of the trucking companies participating in the study reported they still get paid by checks. Almost 70% report that moving away from paper checks would be invaluable in reducing time spent on administrative duties like invoicing, collections, and depositing checks.
Not only are you wasting valuable time on these administrative tasks, but check payments take time to clear. It can take days for a check to clear your bank and the broker’s or shipper’s bank. You’re now waiting upwards of a week for the payment to clear. If that check is returned for insufficient funds, you could be stuck with costly bank fees and overdrafts.
There’s also an issue with the USPS facing delays and shutting down some branches. While first-class mail used to take about three days. Now, the USPS says first-class packages are slower, and it can take weeks for mail to arrive. Is it worth it? We have a better option.
Discover All of the Benefits of Factoring Your Invoices With Our App
Factor invoices and you never have to worry about check payments. Everything is completed digitally, so money is there when you expect it. You don’t have to wait for a check to clear or worry about returned check fees. You’re not stuck waiting for the mail to arrive to see if you’ll get the check you’re due.
Some trucking companies worry about losing a lot of money when they factor invoices. It’s important to know there is a fee involved. The number of trucks in your fleet determines the fee, which can be as low as 1% for 11+ trucks or 1.95% for 1 or 2 trucks. Your bank may charge banking fees. If you consider the benefits of freight factoring and the ability to get paid now, that fee is well worth it.
When you use our app to submit your bill of lading, you don’t have to generate an invoice. It’s done automatically with the app, and you can upload the invoice to your bookkeeping software. Plus, Saint John Capital takes over tracking down payments. If a payment is late, it’s not your problem. Our staff makes the calls. Your office staff has more time to focus on other important tasks like securing more work, marketing your trucking services, and planning routes that improve efficiency.
Our app offers more than same-day or fast payments. Use it to search for loads and avoid deadheading. Our load-finding app contains millions of loads, so you’ll have a wide selection for almost every city in the U.S. Sort by inbound or outbound and look for high-paying jobs. Suppose you have a tractor-trailer heading across the country, but only half of the trailer is full. Make more money with a full trailer on the way to the destination, and use load-finding software to fill the trailer for the return trip home. You make more money this way.
Track loads with our app, too. You have a broker on the phone who wants to know exactly where the truck is at that moment. Use the track loads software to find out. You can also use this software to scan ahead and alert drivers if there are crashes or construction that could lead to lengthy delays. You’ll have the tools you need to reroute your drivers to avoid irritating delays.
How Does It Work?
You pick up your load and have the bill of lading in hand or complete it and have the paperwork to prove you’ve delivered it. If you request payment when you pick it up, submit the bill of lading through your freight factoring app with Saint John Capital. Once it’s received and payment is approved, 50% of the money you’re owed is paid to your debit card or bank account right then. The balance, minus any fees, is made when you drop the load off.
The other option is to wait until you deliver the items where they need to go. You can get up to 100% of the money that’s owed, again minus the freight factoring fees. Money is sent to your bank account, which will take a day or two, or you can request same-day payment to your debit card. To get same-day payments, you must submit the request via Saint John Capital’s app by the noon EST deadline.
We recommend signing up for the Saint John Capital Visa. You can use it anywhere that takes Visa, and you’ll enjoy rewards like fuel discounts. With the rising cost of diesel and gas, discounts on each fill-up are worthwhile. The Visa card has no hidden fees and doesn’t require a personal credit score to get it. You can use it to withdraw cash from an ATM or pay for items at truck stops across the U.S. Payments are sent directly to the card, so you’ll have money there when you need it.
Get Paid Quickly With Freight Factoring
Stop and think about the time you or your administration team spends on setting up invoices, emailing or mailing them, tracking down late payments, and going to the bank or completing online deposits with all of the required photos. What could your team be doing instead? It’s time to look at the benefits of moving from paper checks and having payment in hand within a day or two of delivering a load. In some cases, you can get paid on the same day you haul the load. Doesn’t that sound amazing?
If we can help with other services, such as a line of credit to help grow your trucking company, let us know. Get low interest, instant approval, and make payments weekly. Use the funds to add to your fleet, pay for emergency repairs, or cover payroll when clients aren’t paying on time.
Visit Saint John Capital to learn more about same-day payments. Freight factoring ensures you get paid when you pick up or drop off a load and have the money you need to fill up your trucks, pay your workers, and have cash in hand for unexpected expenses. Stop wasting time on unnecessary office work and enjoy being able to focus on tasks that market and grow your trucking company.