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True Non-Recourse Factoring, as the only option offered by NCC for trucking clients, involves NCC pre-approving the freight brokers you choose to work with and NCC takes the credit risk for each specific load hauled with those brokers. This means if a freight broker fails to pay the invoice, NCC absorbs the loss, not you. Many of the freight brokers in our network are credit insured, though we also approve brokers who are not credit insured, based on their payment performance and activity history.
On the other hand, some factoring companies offer Recourse Factoring and places the risk back on the carrier if the freight broker fails to pay the invoice, typically within a 60 to 90 day period. In such arrangements, if the broker defaults on payment, the carrier must repay the advanced funds. NCC, however, does not provide Recourse Factoring services to trucking clients, emphasizing our commitment to shielding you from credit risk associated with non-paying freight brokers.
NCC operates on a Full-Advance model for our trucking clients, ensuring that they receive the entire payment amount upfront, less the discount fee. For instance, with a 3% discount factoring fee, you'll receive 97% of the invoice value in one payment. We do not retain a reserve from the invoices we purchase.
In addition to the discount factoring fee, clients may encounter various charges based on their preferred method of fund disbursement. These range from no cost up to $25.00 for wire transfers. Additionally, we offer optional services such as Fuel Advances, which incur a fee of 1% of the rate confirmation amount for each load.
To join the Fuel Card Discount Program, simply start by becoming a factoring client with us. As soon as you're on board, we'll automatically enroll you in the program. Just let us know how many cards you require, and we'll send them directly to your business address.
Our trucking clients can now bypass the stress of securing funds for fuel and maintenance, and eliminate the wait to receive payment after a load is completed. With our fuel advance feature, immediate funding of up to 50% of the rate confirmation is available as soon as the load is picked up and on its way. Utilizing a user-friendly portal, our clients can easily select the Fuel Advance Option for their pre-approved freight broker associated with the specific load, making the process both simple and convenient. The maximum advance we offer under this program is capped at $2,000 per load transaction.
NCC adopts a flexible approach towards the credit scores and historical background of our clients. Our primary focus is on ensuring that our trucking clients remain profitable, avoid short-term or revenue-based loans, keep up-to-date with insurance and safety requirements, and provide clear, legible documentation such as rate confirmations and bills of lading for verification purposes. The approval decision is largely based on the creditworthiness of the freight broker responsible for paying the invoice for the completed load.
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