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February 19, 2025

3 Reasons Why Trucking Businesses Factor Their Invoices

The average days outstanding for a trucking invoice is over 36 days. While most LTL and TL loads are paid within a 30-day period, some are paid in 90+ days. Brokers, fleet owners and owner operators need consistent cash flow to:

  • Pay drivers
  • Pay for gas
  • Take advantage of business opportunities

If you’re running low on cash but are “rich” in outstanding invoices, factoring is an opportunity to get some, or all, of those invoices paid quickly!

3 Reasons Why Invoice Factoring is Good for Your Business

Waiting on invoices to be paid is a part of business. Some customers are quick to pay invoices and are understanding of your financial needs, but other customers do not pay quickly. Most of the time, these customers are waiting for invoices to be paid before paying you.

Factoring your invoices is a smart choice because:

You Receive Cash in 24 Hours or Less

Cash flow is the most important part of any business. When an owner-operator is waiting on an invoice to be paid, they still have to pay insurance, gas and other business-related expenses. Your bills will continue piling up while your invoices wait to be paid. Factoring helps you relieve financial burdens by generating immediate cash flow in 24 hours or less. If your truck needs maintenance or you have the opportunity to expand your business, waiting on payment is not an option. Factoring ensures that you’re able to get back on the road, can haul more loads and that your expenses are paid.

Fuel Discounts

Large trucking fleets use fuel in bulk, and they’re able to negotiate fuel discounts that keep their trucks operating for less. Most big rigs have 120-to-150-gallon fuel capacity, with some having dual 150-gallon tanks (300 gallons total). Discounts of even 10 cents a gallon can save you $30 on fueling up just one. When you work with us, we offer fuel discounts at thousands of truck stops so that you never have to pay full price for fuel. As an owner-operator, you can keep more money in your pockets with fuel discounts.

3. Partners in the Trucking Industry

Trucking is built on logistics, and the right contacts and network can make your operation a success or failure. At Aladdin, we are your partners in the transportation industry and offer you multiple ways to save:

  • Fuel discounts
  • Fuel advance
  • Credit checking

As a business owner, especially when starting out, you can’t afford to take risks. Many factoring companies, us included, offer credit checking on all potential brokers and shippers that you haul for currently and in the future. If a potential customer has bad credit and a history of late or no payments, it will come up on the credit check. You can reduce your risk of non-payment and increase your chances of fast invoice payments with credit checks.

How Does Freight Invoice Factoring Work?

When you work with Aladdin, you’ll receive quick funding in 24 hours or less. The process is simple. You sign up for a free quote, enter in your information, and our experts in billing and collections will be ready to assist you shortly.

Factoring is, essentially, selling your invoice at a discounted rate to us.

We’ll pay you the balance of the invoice and take care of the collection process, whether it takes 15 or 90 days. You get paid. We collect the invoice. Everyone is happy.

FAQ

What if I renewed my UCR with DOT Compliance Group last year?

If you renewed with us last year, please check your Customer portal. If auto-renewal is still active, your UCR will automatically renew. If you have turned off auto-renewal, you’ll need to submit your renewal here on this page.

If I Pre-Register for 2026 UCR, when will I be charged the total amount?

The total amount will be charged on October 1, 2026 for the 2026 year.

I am an Ag Exempt Farmer. Am I exempt from registering for UCR?

No, if you cross over state lines you are required to register for UCR. Your Ag exemption does not apply to UCR.

Who is Exempt from UCR?

Private Motor Carriers of Passengers and All Motor Carriers operating solely within Hawaii, except those involved in moving household goods for individual shippers.

What states do not currently participate in UCR?

Currently Arizona, Florida, Hawaii, Maryland, Nevada, New Jersey, Oregon, Vermont, Wyoming, & the District of Columbia are non-participating states. (This information is current as of 6-16-2023. For the most up-to-date information check the FMCSA website.)

If my base state is a non-participating state that means UCR does not apply to me, correct?

No, if you operate as an interstate carrier and cross into a state that does participate, then you are required to register with UCR.

If I am an Amazon or Postal Service Contractor do I have to register for UCR?

Yes. Even though you do not cross state lines, your parcels do. That makes you an Interstate carrier and you would be required to register at the 0-2 fleet size.

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