Cash flow is the lifeblood of any trucking company. For many carriers, factoring is the critical tool that keeps that blood pumping, turning completed loads into immediate working capital to pay for fuel, drivers, and maintenance. But while factoring solves the cash problem, it often creates an administrative one. The process of collecting Rate Confirmations, Bills of Lading (BOLs), and Proof of Delivery (POD) documents, bundling them correctly, and submitting them to your factor can be a tedious, paper-heavy chore.
If you are factoring your invoices, your Transportation Management System (TMS) shouldn't just be a dispatch tool; it needs to be a financial accelerator. The best TMS if you factor is one that understands the factoring workflow and automates the document collection and submission process. It bridges the gap between your operations and your funding, ensuring you get paid faster with less effort.
In this guide, we’ll explore how a factoring-friendly TMS like Truckpedia can transform your back-office operations, turning a chaotic submission scramble into a streamlined, one-click workflow.
The Factoring Friction: Why Manual Processes Slow You Down
Factoring is designed to be fast, but your internal processes might be slowing it down. If you are manually scanning documents, renaming files, creating invoice schedules in Excel, and emailing bulky attachments to your account rep, you are adding days to your payment cycle.
- The Document Chase: You can't submit an invoice without the POD. Chasing drivers for clean photos of paperwork via text message is frustrating and inefficient.
- Submission Errors: One missing page or illegible signature can cause your factor to kick back an entire batch of invoices, delaying funding for everything.
- Reconciliation Headaches: Once the money hits your account, figuring out exactly which loads were paid and which fees were deducted requires a forensic accounting effort if your systems aren't synced.
Why Truckpedia is the Best TMS If You Factor
Truckpedia was built with the financial reality of trucking in mind. We understand that for carriers who factor, speed and accuracy are everything. Our trucking software for factoring is designed to eliminate the friction at every step of the funding process.
1. Faster Invoicing: From Delivery to Submission in Minutes
Speed is the name of the game. The faster you submit, the faster you get funded. Truckpedia automates the transition from "Delivered" to "Invoiced."
- Automated Workflows: As soon as a driver marks a load as delivered and uploads the POD through the driver app, the system automatically changes the load status and prepares the invoice.
- One-Click Generation: Instead of typing out invoices manually, Truckpedia pulls the rate, accessorials, and customer details directly from the load confirmation to generate a professional invoice instantly.
- Batch Submission: You can group multiple invoices into a single schedule and generate a summary report that matches your factor's requirements perfectly.
2. Simplified Document Management: No More Missing Paperwork
Your factor needs clean, complete documentation. Truckpedia ensures they get it every time without you touching a scanner.
- Driver App Scanning: Drivers use the Truckpedia mobile app to scan documents right at the dock. The app includes edge-detection and image enhancement to ensuring the POD is legible before it's even uploaded.
- Centralized Storage: Every document—Rate Con, BOL, Lumper Receipt, POD—is automatically tagged and stored with the correct load ID. When you are ready to invoice, the system automatically bundles these documents into a single PDF packet attached to the invoice.
- Missing Document Alerts: The system flags any loads that are delivered but missing required paperwork, so you can follow up proactively before it delays your funding.
3. Cash Flow Clarity: Tracking Funded vs. Unfunded Invoices
Factoring creates a disconnect between your customer's payment and your bank account. Truckpedia brings clarity back to your financials.
- Status Tracking: Truckpedia allows you to track the status of every invoice: "Sent to Factor," "Funded," or "Paid by Customer." This helps you understand exactly what is in your pipeline.
- Reserve Management: While factoring gives you most of your cash upfront, it holds a reserve. Truckpedia’s financial dashboard helps you estimate your incoming cash flow, accounting for the factoring fee and reserve release, so you know your true working capital position.
- Customer Credit Insights: By tracking payment trends, you can identify which customers are consistently slow-paying or disputing invoices, helping you make smarter decisions about who to haul for.
Ready to stop chasing paperwork and start getting funded faster? See how Truckpedia streamlines your factoring workflow. Book a Demo Today!
How to Set Up and Process Factoring in Truckpedia
Truckpedia TMS offers three streamlined ways to handle your factoring process, depending on your factoring company's capabilities:
1. Direct Integration with Factoring Company (API/FTP)
If your factoring company provides API or FTP integration (such as TAF, WEX, RTS, etc.), you can connect your Truckpedia account directly for the fastest, most automated experience.
Steps:
- Navigate to the Factoring section in Truckpedia and enter your username and password for your factoring company (these credentials are obtained from your factor).
- Go to Settings > Integration > Factoring, choose your factoring partner, and enter credentials or any additional information like a Client ID if required.
- After submitting, check for a successful connection (a checkmark will appear).
- Create your factoring company profile under Settings > Factoring Company. Add the company name, email, contact info, select your partner, and input the fee percentage.
2. Factoring by Email
For factoring companies that don’t support API or FTP but accept invoices by email, Truckpedia lets you send your invoices and required documentation straight from the platform.
Steps:
- In the Factoring section, fill in your factoring company's details including the email address.
- Whenever you request payment (from the Dispatch or Accounting tab), Truckpedia will automatically send the invoice and documents directly to your factor’s email instead of the customer.
3. Manual Document Upload
If your factoring company does not support API, FTP, or email submissions, Truckpedia supports a manual process.
Steps:
- After your driver uploads the Proof of Delivery (POD) in the app, go to the Invoice section.
- Select the POD, rate confirmation, and any other documents, then merge them into a single PDF.
- Upload the merged document directly to your factoring company’s online portal.
Skip Factoring for Specific Customers
If you have customers you do not wish to factor, Truckpedia allows you to skip factoring for those accounts:
- Go to Customers, edit the customer profile, and enable Skip Factoring in the billing section. Payment requests for these customers will go directly to their billing email rather than your factoring partner.
If you need further help setting up or processing factoring, contact Truckpedia support at support@truckpedia.io.
Truckpedia: The Financial Engine for Your Fleet
Your TMS should do more than just route trucks; it should secure your revenue. Truckpedia proves it is the best TMS if you factor by turning the tedious administrative work of funding into a seamless, background process. We give you the tools to submit cleaner invoices faster, reducing kickbacks and accelerating your cash flow.
Stop letting paperwork be the bottleneck in your business. Partner with a TMS that understands the urgency of your funding.
Frequently Asked Questions (FAQ)
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