F.A.Q.
If you have any questions about our factoring service please feel free to call us on 1-800-964-7139. We are always happy to provide you with any assistance we can.
Alternatively we have detailed some responses to the questions we are asked most frequently.
What Is Factoring - General
Factoring Application
Other Questions
What is factoring / freight bill funding?
Factoring is where an advance (cash) is made to a Client against the purchase of an accounts receivable by a Factor. The Factor then proceeds to collect the receivable. The balance of the receivable less any fees due to the Factor is then payable to the Client on collection of the receivable by the Factor. Factoring is an effective way for a business to finance growth or to assist in the restructuring of a business. It also does not lead to any loss in equity of your business nor does it involve taking specific security over personal assets. See our freight bill funding programs.
What is "bad debt protection" and is there a difference between "non recourse" and "recourse" facilities?
"Bad Debt Protection" is where the factor assumes the credit risk, in case of failure of the account debtor, on purchased receivables. This can also be referred to as "Non Recourse." At Bibby Transportation Finance we give our clients the choice of whether facilities are with bad debt protection ("Non Recourse") or without ("Recourse"). Many of our competitors will only offer you Non Recourse facilities, what they do not tell you is:
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Frequently Non Recourse facilities carry a price premium
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Many of our competitors will usually only fund those freight bills of yours they are sure carry no credit risk (nothing is for free), meaning that many of your receivables will be not funded in part or in full
There are situations in which Non Recourse facilities are the best choice for you. At Bibby Transportation Finance we will offer you the facility type best suited to your needs and our Marketing Representatives are happy to discuss which type of facility is best for you or provide you with proposals for either type of facility.
To be funded by Bibby Transportation Finance do I have to be in certain states?
Bibby Transportation Finance can fund any client in any state in the United States, our sister company Bibby Financial Services (Canada) can fund any client in any province of Canada.
What about the location of my customers?
Your customers can be based anywhere in the United States or Canada. We will also consider credit worthy customers in Mexico or other countries.
What size of trucking businesses does Bibby Transportation Finance fund?
We are willing to fund start up businesses and trucking companies from owner / operators to large fleets. We can consider facilities of up to $5 million in funds advanced, higher can be considered for established businesses.
Do I have to factor all of my freight bills?
We have programs that have no requirement to factor any of your receivables and others that do have some level of minimum contracted volumes. Where we do offer facilities with minimum volumes this allows us to dedicate resources, thereby enhancing our service provision to you and enables us to provide you with a more competitive rate.
What collateral does Bibby Transportation Finance require?
Bibby Transportation Finance will require a first position on your accounts receivable.
How do I get updates on the aging and status of the freight bills I have factored?
You will receive regularly monthly statements and facility reports. Also there is online access to your freight bill funding facility from which reports can be accessed at any time.
Where do my customers make payment to?
Your customers will be advised through notification on your invoices to direct payments to one of Bibby Transportation Finance's lockboxes.
My customer relationships are very valuable to me, how can I be sure these relationships will not be disrupted?
We take great care in how we approach your customers in making verification and collection calls. We understand that these are the lifeblood of your business as you are ours. Last year we collected over $5 billion of receivables for over 6,000 clients and have the experience of providing this service in a professional manner.
How long does it take to process my application and get me my first funding?
When we have received your completed freight bill funding application form with supporting information we usually take between 2 to 6 business days to process and establish your facility. This varies frequently due to the size of the business and / or the complexity of the facility.
What supporting information do I need to provide?
We will send you an Underwriting Checklist that will advise you of any additional information we require from what is set out in the freight bill funding application form.
How many years of trading do I need to have?
We are happy to fund start up companies and have no requirements regarding the length of time a business has previously traded for.
Why are you cheaper than your competitors?
As one of the largest independent global Factoring companies we are able to gain economies of scale that we can pass through to our clients. We also give our clients access to choices such as Recourse facilities and committed volumes that allow us to be even more competitive.
What makes you different?
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We know your industry
Bibby Distribution Services, our sister company, is the largest family owned distribution company in the UK with over 1,500 trucks and over 2,600 staff. Bibby Transportation Finance is dedicated solely to the trucking industry. -
Fast Funding
You will receive funds on your verified freight bills within 24 hours of receipt either to your bank account or to your Bibby Fuel Card. For initial freight bill fundings on new facilities we expect to have you funded within 2 to 6 business days of receiving your application and supporting documentation, the time depends up the size of your business. -
Competitive Rates
Everyone refers to their rates as competitive. We mean it. We typically save our clients at least 20% in fees over their existing funder, often much more. Why? When you fund over $5 billion of receivables a year you have economies of scale you can pass onto your clients. -
Stability & Openness
We are financial stable and open with our information. Want proof? Ask for our parent companies annual report and we will provide it? Ask our competitors for their audited balance sheet… surely a funding provider will be willing to show you their financial strength? -
Flexible
We do not have rigid credit policies, we will look at your trucking business and your businesses situation and work with you to develop a solution for your needs. -
Our Services
We offer more than just cash against your freight bills, we offer you a professional collections service and a suite of additional services. -
Variety
Whether you have 1 truck, 400 trucks or somewhere in between, whether you are in shipping or whether you are a broker, we are happy to work with you.
How can I found out about the financial strength of Bibby Financial Services?
We are happy to share with you the Annual Report of Bibby Financial Services Ltd our parent company. Feel free to ask our competitors to show you their balance sheet, you may find an element of reticence.
Is Bibby Transportation Finance connected to the historic Bibby Line Group?
Yes, we are owned by the Bibby Line Group. 2007 is a momentous year for our business and our parent company, Bibby Line Group, which celebrates its bicentenary of its founding. To find out more about the Bibby Line Group and its two centuries of history visit www.bibbylinegroup.co.uk.
