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The practice of freight factoring has become a popular option among today’s fleets looking for new financial options. Whether it’s a small fleet looking to make ends meet or much larger fleets who just want to avoid any disruption of cash flow, factoring allows these fleets to get the money owed to them when they need it and continue on with their business.
Freight factoring is a mutually beneficial arrangement for the factoring company and the trucking fleet itself. But if you’re in the business of factoring you are well aware of this and don’t really need me to tell you that. The real issue with freight factoring today is more so about how factoring companies are finding their business.
To truly thrive in any competitive business you have to be able to find an edge. Something you have that no one else has, or a way to do something that no one else does. When it comes to finding new prospective fleets, however, most of today’s freight factoring companies are all doing things the same way. And that’s the problem. As Leslie Samuel said, “If you do what everyone else is doing, you’re going to get exactly what everyone else is getting.”
How Can You Approach Freight Factoring Differently?
The lion-share of most freight factoring business typically comes from new trucking entities entering the market. A paper trail is created when fleets apply for DOT numbers and operating authority which can be used to target them. This has been an extremely effective way to help companies go after new fleets entering the business. But with everyone focusing on new entrants to the business that leaves a pool of potential prospects untapped. Those currently already engaged in freight factoring who are nearing the end of their contracts.
Instead of just targeting the same new fleets that all of your competition are after, what if you broaden your scope and start going after fleets who are working with rival factoring companies nearing the end of their contract? Well that’s a lot easier said than done…until now.
The biggest issue is finding the fleets already engaged in factoring. How can you know which fleets are freight factoring? And even if you know which fleets are, what does it matter if they are under contract with someone else? Well, the team at Randall-Reilly have come up with a way to not only help you find those prospects, but find them at the right time.
Freight Factoring with Insights
If you’ve ever worked with Randall-Reilly before, you know how much emphasis we put on data. One of the key factors we use to help you find exactly who you’re looking for is the data gathered from UCC-1 filings. Now that same data is being used to help find fleets nearing the end of freight factoring contracts, and thus making them prime prospects for you.
How Does it Work?
This new approach to finding freight factoring prospects uses UCC-1 filings and specialized proprietary algorithms to match potential factoring targets to RigDig prospect profiles. These prospect profiles are built using the fleet inspection data we have collected and include fleet size, make-up, territory, etc. This means that you can now not only know when a fleet is likely to be nearing the end of a factoring contract, but you can also identify if they’d be a valuable prospect for you based off of the prospect profiles.
An average of a quarter million new UCC filings are recorded every month in the United States. These UCC filings can help not only find new entrants into the market, but fleets that have entered into freight factoring contracts.
Clients using Randall-Reilly Freight Factoring Insights will receive monthly leads of 8 and 20 month old factoring contracts. With most factoring contracts typically being 12 or 24 months this is designed to notify you which contracts are coming up with enough time for you to target and engage with them to allow you to be top of mind when they are free to shift their business.
Be Different from the Competition and Get Different Results
If you want to beat the competition you have to do something different than they are. Going after new entrants for factoring is good, but supplementing that approach by targeting fleets with expiring factoring contracts is better. The unique combination of proprietary data, industry experience, and UCC filings allows you tap into a market you never knew you had access to.