Topic
factoring
Trade Finance Chargebacks in Trucking Factoring: How They Erode Profits and Raise Effective Costs
Chargebacks in freight factoring can quietly erode carrier profits, especially under recourse or weak non-recourse agreements. A single $3,000 unpaid invoice can cost $2,900 out-of-pocket, and two chargebacks a year can raise the effective factoring rate from 2.5% to 5.8%, according to a guide from factoring firm Summar.
Trade Finance Credit vs Factoring in Trucking: Why Financial Fit Matters More Than Tool Type
According to FreightWaves, the choice between credit and factoring for trucking fleets depends on how well the financing aligns with daily operations. Credit provides liquidity for long-term investments but adds debt, while factoring converts invoices into immediate cash without debt. Skepticism around factoring often stems from poorly structured programs, not the concept itself.
Trade Finance Factoring or Trap? How the Industry's Worst Actors Fueled a $36 Billion Debate
A FreightWaves article examines the heated debate around factoring in trucking, where critics label it a 36% APR 'payday loan' but supporters argue the service bundle justifies the cost. Executives from Summar Financial break down the real trade-offs and how bad actors have poisoned the well for legitimate providers.
Trade Finance Demystifying Factoring: How It Can Become a Real Business Tool for Carriers
Factoring is often misunderstood by carriers, seen as costly or confusing. Summar Financial advocates for transparency and offers Summar Shield to protect eligible invoices beyond 90 days. Carriers should ask key questions about non-recourse coverage to avoid surprises.