Question 1

What is invoice factoring?

Accepted Answer

Invoice factoring is a financial service where you sell your unpaid freight invoices to Sternridge at a small discount in exchange for immediate cash. Instead of waiting 30, 60, or 90 days for your customers to pay, you can get up to 97% of your invoice value within 24 hours.

Question 2

Who qualifies for factoring with Sternridge?

Accepted Answer

Sternridge works with qualified logistics industry professionals including freight brokers with active FMCSA authority, shippers, and other transportation industry companies based in the United States or Canada. We verify all applicants to ensure compliance with industry standards.

Question 3

How fast can I get funded?

Accepted Answer

Most invoices are funded within 24 hours of submission and verification. For established clients with verified customers, same-day funding is often available via wire transfer.

Question 4

What is the factoring rate?

Accepted Answer

Our rates are competitive and transparent, typically ranging from 1-5% depending on volume, invoice size, and customer creditworthiness. There are no hidden fees, no monthly minimums, and no termination penalties.

Question 5

Do you check my customers' credit?

Accepted Answer

Yes, we provide free credit checks on your customers (brokers/shippers) before you haul. This helps protect you from working with customers who may not pay. Credit protection is included with our factoring service at no additional cost.

Question 6

Is this recourse or non-recourse factoring?

Accepted Answer

Sternridge offers both recourse and non-recourse factoring options. With non-recourse factoring, you are protected if your customer fails to pay due to insolvency. We will discuss the best option for your business during the application process.

Question 7

Do you offer fuel advances?

Accepted Answer

Yes, we offer fuel advances to help keep your trucks on the road. Once you have an approved load, you can request a fuel advance to cover your fuel costs before delivery.

Question 8

Is there a contract or commitment?

Accepted Answer

We offer flexible terms with no long-term contracts required. You can factor as many or as few invoices as you need. There are no monthly minimums and no early termination fees.

Question 9

What documents do I need to apply?

Accepted Answer

To get started, you will need to provide your MC/DOT numbers (for carriers), proof of insurance, a completed application, and a voided check or bank letter for ACH deposits. The application process typically takes less than 48 hours.

Question 10

Who handles collections?

Accepted Answer

Sternridge handles all collections on factored invoices. We work professionally with your customers to collect payment when invoices are due, allowing you to focus on running your business.

Frequently Asked Questions

Everything you need to know about freight invoice factoring with Sternridge

Still have questions?

Frequently Asked Questions

Everything you need to know about freight invoice factoring with Sternridge

Still have questions?